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Posts tagged Value Pickr
Oil India- has its time come? (09-04-2024)
All good points and depending on one’s investment time horizon and risk apatite, no one is right or wrong in the market.
As far as I’m concerned I generally don’t go as much by narrative or future speculation as the management pedigree, their ambition and execution skills. Most of the PSU’s tend to have none. Their CEOs and top leaders rotate every 3-4 years and merit is not always the first criterion in their selection. They will only get as ambitious as government allows them to and having worked in a PSU like ONGC at the start of my career I know they are miles behind the private players like Reliance in execution.
And that will never change regardless of whichever government comes into power. And since government actions (OFS, price regulations, dividend increase etc) are always an overhang for PSUs, their multiples will always be lower than their private counterparts.
As PSU stocks have done very well in last 2 years, many investors who got into market in 2022 and invested in PSUs have reason to feel good about them. Recent price action has more or less closed the valuation gap and from here on any further price action will now be driven by earnings.
RIL: Is the ‘Reliance” on ‘Jio’ Justified? (09-04-2024)
How is Reliance playing the Data center theme
Sintex Plastic Ltd (09-04-2024)
Thank you for sharing. This also clarifies that Sintex Plastics is not owned by Welspun Corp, and what they have acquired is only Sintex-BAPL for 1,250 crore. Sintex Plastics is in the IBC process and its fate will be decided by the NCLT court.
The final verdict is that the losers here are Sintex Plastics’ creditors (with 141 crore in debt) and public investors. The promoters have already exited.
Hindustan Zinc – Galvanize Capital of Investors? (09-04-2024)
All time highs from 52w low in less than a month! Never seen a largecap with this much fury.
Glad to have picked up few more in last month’s crash.
Hoping the prices to remain firm along with silver and not fizzle out again.
Sintex Plastic Ltd (09-04-2024)
Cyrus Patel: Yes. Good morning. Congratulations on your acquisition. I have only two questions. What is going to happen to the existing shareholders of Sintex plastics, which are– is it going to remain a quoted company? Is it going to be delisted? What is going to happen?
Akhil Jindal: Yes. So, basically because this company has been acquired under the IBC, so there is no shareholding left in this company of any other investor or shareholder other than Welspun Corp. So Welspun Corp is a 100% owner of the new Sintex-BAPL. And no other investor has any stake left in the company. So it’s a 100% subsidiary today.
Cyrus Patel: So it will be delisted?
Akhil Jindal: The parent– this company was never a listed company; the parent of this company was a listed company. And I understand that, that company is also going through an IBC process. So what would happen to that company would be decided in the NCLT courts.
Cyrus Patel: Okay. So the Sintex Plastic Technology, which is the listed company is currently being traded on the exchanges, and that will continue to be traded until any further notice from any of the authorities, right?
Akhil Jindal: That’s right. I mean whether it’s traded or not traded, sorry, I’ve not kept track of it. But this was originally the promoter of the Sintex-BAPL that we have acquired. And the Sintex-BAPL, as I mentioned to you, is now 100% subsidiary of Welspun Corp.
Cyrus Patel: Okay. Understood. And for which they are getting paid INR 1,250 crores in total?
Akhil Jindal: Yes, INR 1,251 crores was paid to the creditors of this company. And to that extent, no cash travelled back to the Sintex Plastic, as you as you asked.
The Anti-Portfolio (09-04-2024)
@Jadewade thanks! 
Well beta drugs looks to me just one of the weaker positions compared to the rest, I bought it at the absolute peak too, might have waited for 1300 levels atleast. Your projection is correct, that doesn’t provide immediate growth trigger for the stock and I am not that much of a longer term investor. It’s releasing half yearly results only and hardly sharing info with investors. Regulatory action can impact profits, also I don’t trust the high valuation of pharmaceuticals, just my opinion, better for margin of safety.
Arman financials is not out of sync with the market action the entire sector is facing. Yes, I too hear of elevated NPA, it’s just one of the scares that happens with faster growth, I mainly trust their solid background. It’s expensive based on great performance and expectations, and for such tiny caps price movement can be bit exaggerated. Yes, strong growth seems to happen in yearly cycles, so the consolidation phase may just be getting over.
Screener.in: The destination for Intelligent Screening & Reporting in India (09-04-2024)
And also the calculation Parameters applied need to Indicated. But suggestions are rarely taken so better not to waste time.
Sintex Plastic Ltd (09-04-2024)
This is an excerpt from Welspun’s Investors Report…
“As you are all aware, we submitted
our bid in the CIRP process under a consortium. The acquisition cost for the consortium was
INR 1,251 crores. For the plastic product business, which WCL has acquired, the acquisition
cost is INR 1,141 crores. There was a cash in the company and the subsidiary of Sintex-BAPL
to the extent of INR 735 crores, which was utilized for this particular transaction. Thus, the net
implied cost for WCL for this national iconic brand, Sintex is close to INR 406 crores only
Even in the CIRP process when the company was into stress, the company has been
EBITDA positive and cash positive. At its peak in FY ’19, the revenue for the plastic product
business was close to INR 1,000 crores and the EBITDA was in the vicinity of INR 220 crores
with an EBITDA margin of 22%.”