Terrible results. Company keeps springing new provisions. Best case book value will remain same for 12-24 months as losses on running down legacy book will equal profits from new biz.
Long story if you have patience as still available at discount to book
h/t Prashanth_Krish on Twitter
The management is relying on change of consumer attitudes for scaling up in future. Any investment here is purely based on assumption that people will adapt and it is not on concrete grounds. Sure management is improving performance on y-o-y basis but that could be because of initial adapters and it may not be major trend. It could also be a fad. I believe there should be some empirical evidence like demand not being seasonal anymore. That is when we can say this is more of a trend than a passing by fad. I can relate this to Tata Nano. It started as a vision of Rs 1 lakh car which is affordable to almost all. Sales picked up initially due to early adapters but then it failed to take off. The management was again relying on change of consumer attitudes which did not happen as buying car was more seen by consumers as a matter of prestige and nano somehow gave an impression of being a cheap car and hence low prestige.
It is a small company operating in a competitive industry with no advantage. The big players might go to other logistic companies if they give better terms.
The debtor days are higher than peers but the cash flow from operations to profit is healthy so I will not worry too much regarding the receivables.
Disclosure: Not invested.
He is a hype man much like Jim Cramer from CNBC. Take care!
My Question is:
How do we value “carry forward losses” when calculating
intrinsic value of a company?
My Question is:
How do we value “carry forward losses” when calculating
intrinsic value of a company?
It looks like Gillette India uses the distribution network of P&G. There is a lot of negligence as the distribution under PG. Gillette prouducts are not being placed as they should have been.
It should have an independent distribution networking, and this is my opinion. After having discussed with many retailers, this is my thought.
Disclosures:- Invested with hopes that the product does get it’s due recognition!!
@phreakv6 Thanks for detailed analysis on AVG Logistics. One thing I want to know is that as of Sep-23 Balance Sheet, the company is having 139Cr of receivables out of which 50cr is more than 6 months. Why are the receivables so high when the company is doing business for Reputed customers like Nestle and Pepsico?
I sold IRFC , Yes Bank , Indian Bank early as I was tired of the up down in stock. Sold Cochin after it had slip as I had already gotten it 4x and thought it was overvalued 
Lesson learnt
Always sell good stocks in peak of its sector bull cycle if nothing fundamentally changes.
When is a stocks sector bull cycle?
I need more experience