Can you share your views on Rolex Rings, looks fractionally overvalued to me.
And I guess you had removed it from your portfolio earlier , then recently added it again. Any specific reason?
Posts tagged Value Pickr
Priyank’s Portfolio (20-06-2024)
Control Print – Deserves attention? (20-06-2024)
Hi, There is no Independent Director by the name of Mr. Vivek Himatsingka on the company’s Board. There is one Mr. Gaurav Himatsingka however. Are you referring to the same person, and if yes, where did you find that he is the brother of Chairman’s Son-in-Law? Mr. Gaurav Himatsingka’s appointment resolution clearly states he is not related to any other Director. Can you please recheck and confirm?
KRBL- The King of Basmati rice (20-06-2024)
Is there some place I can track the status of the VVIP chopper scam case where KRBL was allegedly involved. I Googled but couldn’t find anything meaningful. Thanks
Steps of picking up quality stocks (20-06-2024)
Picking quality stocks involves a strategic approach that combines fundamental and technical analysis, as well as a consideration of market trends and company-specific factors. Here are key steps to help you identify and select quality stocks:
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Understand the Business Industry and Market Position: Analyze the company’s industry, its competitive position within the market, and its market share.Revenue Streams: Examine the diversity of the company’s revenue streams to understand its stability and growth potential.
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Financial Health Revenue and Earnings Growth: Look for consistent growth in revenue and earnings over several years.Profit Margins: Check the company’s profit margins (gross, operating, and net) to ensure they are healthy and stable.
3.Debt Levels: Evaluate the company’s debt-to-equity ratio to understand its leverage. High debt levels can be risky.Return Ratios: Analyze return on equity (ROE), return on assets (ROA), and return on invested capital (ROIC) to gauge efficiency in generating profits.3. Valuation Price-to-Earnings (P/E) Ratio: Compare the P/E ratio with industry peers and the company’s historical averages.Price-to-Book (P/B) Ratio: This helps in assessing the market’s valuation of the company compared to its book value.Price-to-Earnings Growth (PEG) Ratio: This adjusts the P/E ratio by the company’s growth rate, offering a more dynamic view.
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Management and Governance Leadership Quality: Assess the experience and track record of the company’s management team.Corporate Governance: Look for transparency, adherence to regulations, and practices that align with shareholder interests.
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Dividend and Earnings Stability Dividend History:
A consistent and growing dividend can be a sign of a company’s strong cash flow and commitment to returning value to shareholders.Earnings Stability: Companies with stable earnings are generally less risky. -
Market Trends and Economic Factors Economic Indicators: Consider broader economic conditions and trends that could impact the industry.Market Sentiment: Understand the current market sentiment towards the stock and the sector.
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Growth Potential Innovation and Expansion: Companies investing in R&D and expanding into new markets tend to have better growth prospects.Competitive Advantage: Identify any unique advantages the company holds, such as patents, brand strength, or cost efficiencies.
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Risk Factors Operational Risks: Evaluate risks related to the company’s operations, including supply chain dependencies, regulatory issues, and technological changes.Market Risks: Consider the volatility of the stock and the overall market conditions.
Example: Analysis of CEAT Ltd (Based on the Provided Document)CEAT Ltd, a major tyre manufacturer, exemplifies many of these qualities:Business Understanding: CEAT is a leading player in the tyre industry with a strong market position and diversified product range.Financial Health: The company has shown robust revenue growth, with a diversified revenue profile across different vehicle segments and markets.Valuation: The company’s valuation can be assessed through its market performance and comparison with industry peers.Management: CEAT is part of the RPG Group, indicating strong management and corporate governance practices.Dividend and Earnings: CEAT has a history of generous dividend distributions and consistent profitability.Market Trends: The company is investing in new technologies, such as EV tyres, aligning with market trends towards electric vehicles.Growth Potential: CEAT’s expansion plans, including increased manufacturing capacity and new product launches, highlight its growth potential.Risk Factors: Operational risks include reliance on raw material prices and market competition. However, CEAT’s strategic initiatives in branding and global expansion mitigate some risks.By following these steps and conducting thorough research, investors can improve their chances of picking quality stocks that offer good returns while managing risks.
Jupiter Wagons Ltd (previously CEBBCO) (20-06-2024)
Jupiter wagons.pdf (516.2 KB)
Jupiter Wagons-
- Got order from Siemens for 36 auxilliary batteries
- To supply batteries for Vande Bharat trainsets
3.First company to receive certification from RDSO for Non-AC Coaches(batteries)
Aarti Pharma Labs (20-06-2024)
With due respect, I don’t think that is the right way to analyze growth rate because the company has three different business verticals, with different respective growth plans. If we look at their CDMO business as an example, that is expected to grow between 30 and 35%, this is something that the management hinted in their latest conference call.(They might be conservative in giving this) So judging the growth story of the company solely on the basis of PE multiple would not be the right way.
In my opinion the company is poised for growth in the medium to long term, with their gross block almost increasing by 60%-65% between FY24 and FY26. The company also talks about the CDMO/ CMO business having an average asset turn of 1.3-1.6x, with 19 projects in the development phrase.
To sum up I feel. Capex Plans>> Projects pipeline>> better margin profile will help the company do well in the medium term.
Disclosure: I am invested in the company since FY22
Aarti Pharma Labs (20-06-2024)
With due respect, I don’t think that is the right way to analyze growth rate because the company has three different business verticals, with different respective growth plans. If we look at their CDMO business as an example, that is expected to grow between 30 and 35%, this is something that the management hinted in their latest conference call.(They might be conservative in giving this) So judging the growth story of the company solely on the basis of PE multiple would not be the right way.
In my opinion the company is poised for growth in the medium to long term, with their gross block almost increasing by 60%-65% between FY24 and FY26. The company also talks about the CDMO/ CMO business having an average asset turn of 1.3-1.6x, with 19 projects in the development phrase.
To sum up I feel. Capex Plans>> Projects pipeline>> better margin profile will help the company do well in the medium term.
Disclosure: I am invested in the company since FY22
Pratik’s Portfolio – Review (20-06-2024)
Thanks for this. So assuming that their current business’ PAT remains stagnant, PAT from Data center business alone can go up 9x in the next 4 years. This looks promising. However, could you please clarify a couple of things for me. On the valuations front, when you say current PE of 55 is cheap, are you saying this from a future growth potential perspective or on the basis of comparison with other peers who are in the same business? Secondly, given that it gone up 9x in the last 24 months, how much of this future growth do you reckon is already factored in the current stock price? Thanks.