No doubt, Policy Bazaar business is very interesting business with good business model in insurance sector with consistent sales growth.
I would like to understand on the valuation point of view.
Current Market cap is 56,000 Cr. Assuming 56 PE and 1000 cr Profit, which is very optimistic in my opinion. 1000 cr PAT could take at least 3 to 5 years of time. Correct me if I am wrong?
Posts tagged Value Pickr
Policybazaar – Insurance Online (08-05-2024)
Akash Portfolio (08-05-2024)
Hi Aakash
I have a query regarding AVG Logistics.
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?
AVG logistics stocks (08-05-2024)
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?
Dhabriya Polywood – a history waiting to be written? (08-05-2024)
The order book and also the product offerings is looking favourable according to the current market conditions of residential and commercial real estate in the country
They are receiving orders from luxury real estate groups like DLF,M3M,Emmar
The partneship and client network with these builders can help them scale at a good pace as the upcoming projects of these builders and the peer once are lined up till 2026.
waiting for some guidance by managment in Q4 results and see how do they plan to absorb the demand
Valuations also seems favourable at 20-22 PE and is around 35% down form its ATH.Key investors like Ashish Kacholia and Mukul Agarwal also holds a reasonable stake
Shakti Pumps – solar shakti (power)! (08-05-2024)
Shakti Pumps Concall Notes – May 2024
Financial Performance:
- Achieved highest revenue of Rs. 1,371 crores and profitability of Rs. 142 crores in FY24.
- Q4 FY24 performance was the highest ever with revenue of Rs. 609 crores and PAT of Rs. 90 crores.
- EBITDA margins of 16.4% for the financial year.
- Anticipate stable EBITDA margins around 14-15% going forward.
- Order book of around Rs. 2,400 crores providing revenue visibility for 18 months.
- Recent order accumulation of approximately Rs 243 crores under the PM Kusum scheme.
- Robust revenue growth with government business revenue growing by about 52% YoY to Rs 945.1 crores in FY24.
- Export sales increased by around 23% YoY to Rs. 286.1 crores in FY24.
Future Growth and Strategy:
- Government’s focus on deployment of solar pumps presents significant opportunities.
- Company stands at the forefront of the solar pump revolution.
- Plans to double existing capacity of pumps/motors, inverters/VFDs, and structures.
- Raised Rs. 200 crores through QIP for expansion.
- Investment in Wholly Owned Subsidiary, Shakti EV Mobility Private Limited, for transition into the electric vehicle space.
- Focus on innovation with two new patents received this quarter, contributing to a robust patent portfolio.
- Commitment to driving sustainable growth and creating long-term value for stakeholders.
Order Book and Execution:
- Order book of Rs. 2,400 crores with execution timelines of 18 months for Rs. 1,500 crores and 90-120 days for the remaining orders.
- Strong order inflow from states like Maharashtra, Haryana, UP, and Rajasthan.
- Expectations of continued order inflow and growth in the future.
Market Share and Competitive Position:
- Market share at 30% with a commitment to increase it further.
- Strong position in the solar pump industry with a focus on quality and efficiency.
- Differentiation through the use of innovative technology like VFDs.
Margins and Operational Efficiency:
- Improved margins due to operational efficiency and scale.
- Operating margin guidance of 15% for FY25.
- Margins impacted positively by decreased raw material prices and operational improvements.
- Solar cells sales contributing significantly to revenue, with margins around 30%.
Industry Dynamics and Opportunities:
- Potential for significant growth in the solar pump industry.
- Focus on Atmanirbhar Bharat and indigenous manufacturing.
- Positive outlook on the EV segment with plans for expansion and quality stabilization.
- Expectation of sustained growth and market leadership in the future.
Investing Basics – Feel free to ask the most basic questions (08-05-2024)
Also what should be the Fair value of MAX HEALTHCARE?
Investing Basics – Feel free to ask the most basic questions (08-05-2024)
Hi, I have a doubt about MAX HEALTHCARE, India’s second-largest hospital chain. I’ve analyzed it thoroughly and there is nothing wrong in it. It is a great company with good fundamentals and the industry is also growing. The point of concern is the valuations. I am a newbie and I don’t know the exact way to arrive at the intrinsic value. Can anyone share a reliable method to calculate the intrinsic value of any company?
Shakti Pumps – solar shakti (power)! (08-05-2024)
Margins are not sustainable…
Fresh orders are required to sustain the valuations.
IDFC First Bank Limited (08-05-2024)
I’ve been tracking this stock for the last few months. I see a huge potential in the bank as per my understanding. The numbers are fantastic and so is the management. They are candid about their guidance and have almost achieved what they said 5 years ago. I don’t see any problem in the bank as of now. I think the stock price will be 5-6x in the next 5 years(because of the Guidance 2.0). Am I missing something? I am a newbie (Started my journey 3 years ago). This is my fifth company.
Disc:- I’ve invested in the stock around 81-82 levels
AA – Abhishek’s Attic (place to store stuff to clear my head)! (08-05-2024)
What is RMBS?
RMBS stands for Residential Mortgage Based Securities . Whenever a person takes a mortgage (any loan with real estate as collateral) and the lender gives money upfront in return for the promise of getting back the loaned amount along with interest over time. The lender can turn around and sell a group of such loan assets (future cashflows) to a third party, usually an investment firm. The lender benefits because his risk is minimized or completely removed as the investment firm has to deal with the consequences of any potential default.
Investors who end up taking on risk get rewarded if people keep paying their mortgages (principal + interest). The moral hazard is that banks, without doing thorough research on borrowers, keep giving out loans and sell them to investment firms who have to thus bear losses due to the negligence of banks. This is exactly what happened during the Global Financial Crisis in 2008.
History of Securitisation in India
The accelerating trend of the securitization market at the beginning of this century faced a major threat due to the subprime crisis. The ABS (Asset Backed Securities) volume dipped by 60%. On the other hand, the CDO (Collateralized Debt Obligation) market was at an all-time high, thus increasing its share in the Indian market to 70%.
Post the subprime crisis in the US, RBI issued a revised guideline to overcome the loopholes in the market. These guidelines were very rigid concerning the originators and SPVs. As a result of these factors, the Indian Securitisation market which reached a high by 2008 dwindled by March 2014.
RMBS in India
In a strategic move to propel the housing finance sector, RMBS Development Company Limited (RDCL) has been established by the National Housing Bank (NHB) in consultation with RBI. RDCL is expected to start operations in FY25.
National Housing Bank with 39% and LIC with 10% have the largest holding in RDCL. HDFC Bank , ICICI Bank and Bajaj Finance have acquired a 7% stake each in RDCL.
Tata Housing, Hero Housing, Shriram Housing and Grihum Housing Finance also own a part of RDCL. Others who have a stake in RDCL are IIFL Securities and Aditya Birla Housing Finance.
As per ICRA’s estimate, the share of RMBS would be modest, at less than 15% of the overall Rs. 1 trillion market in FY2024 (i.e. mortgage-backed securitisation (MBS) and asset-backed securitisation (ABS) combined, where securitisation is done through the issuance of PTCs).
The collaboration of RDCL has pledged ₹500 crore to revitalise the RMBS market.
CMBS in India
In 2014, DLF launched India’s first Commercial Mortgage Based Security (CMBS) by securitizing the lease rentals on two malls in Vasant Kunj in Delhi, DLF Emporio and DLF Promenade. DLF had said that it would receive Rs. 800 cr. for 7.5 years, where interest is paid through rents received from property tenants.
CDO, CLO and CMO in India
ICICI Bank launched India’s first multi-tranched CDO in 2002 called the Indian Corporate Collateralized Debt Obligation Fund. This fund offered investors a fixed-income product with a higher return than a corporate bond.
Collateralized loan obligations (CLOs) have also been issued in India, primarily by NBFCs. CLOs can help improve risk participation in the industry and boost credit growth for lower-rated entities.
Collateralized mortgage obligations (CMOs) are usually issued as Real Estate Mortgage Investment Conduits (REMICs). REMICs are structures that issue multiclass mortgage-backed securities with tax and accounting benefits for investors and issuers. The terms “CMO” and “REMIC” are often used interchangeably.
Summary
In the RMBS space, volumes have improved to ~Rs 10,000 crore in 9M FY2024 against ~Rs 6,000 crore in FY2023. The formation of RDCL could help in widening the investor base as they have traditionally been wary of investing in these securities due to its long tenure, prepayment risks, interest rate risks and absence of a secondary market. The other major advantage of RMBS is it not only provides a distinct funding profile to HFCs but also unlocks additional capital from diverse investor groups including Insurance companies, retirement funds, etc. The presence of an entity such as RDCL would reduce some of the investor apprehensions and most likely kickstart a growth story in the MBS market.