Is the company supplying motors to kone elevator? Any information on this would be helpful.
Posts tagged Value Pickr
Mrs Bectors Food Specialities: Can it beat the industry? (22-12-2023)
I don’t think it is as simple as that. 5 years can be considered as long time too. A lot can happen in both the business of a company, and with us too. After 2 years, you may not want to hold the stock for any reason.
Valuation while expensive today, which is again subjective, might not be the same as the company grows, and if the company indeed grows, the price does not fall much, it may in fact move up absolutely or relatively. One way to gauge this is to look at demand. Not that this gauging is perfect or it can be done quickly, but we will have some idea of looking at the valuation from the point of view of participants, if we follow the price. So if a business is growing, and can grow, price can go up for continuously.
The opposite is also true, if indeed the future growth of the foreseeable future is reflected in the current price, then the price may fall some, but there could be time correction.
So one can have a position, follow the business, take actions in accordance with price/demand/market.
Not invested in Bectors, following the thread, have a position in Britannia.
TARSONS products ltd (22-12-2023)
Acquisition con-call
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Globally, Plastic labware market is around 50 thousand crore. Europe is 2nd largest market in plastic labware
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Co was evaluating various routes of inorganic growth and this company seemed to meeting the desired objectives
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Nerbe – Hamburg based company. 4 decade old entity. Well spread product portfolio. Presence in 30 countries outside Germany. Promoter will continue to run the company.
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Acquisition gives Tarsons the gateway to expanding in Europe.
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Deal value estimated to be around 10 to 15 million Euro. Milestone based payment. Exact value will be based on FY 24 numbers…
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Deal is based on FY 23 Numbers. They felt that it’s the right price and not very cheap…
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Will be funded through internal accruals.
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Acquisition should be evaluated looking at the synergies and market expansion opportunities, and not just based on EBITDA multiple
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While there were questions on dip in FY 22 revenue, management responded that the larger objective was to scale up Tarsons products in the huge European market.
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Nerbe’s Inability to scale up – Conservative Family run business. Wanted to remain focused in Europe and did not look to scale up or expand beyond.
Disc: Tracking
Ambika Cotton Mills (22-12-2023)
Market going up is never the concern but the valuation going up is the concern. It is true that nifty is overvalued at 22-23PE (20-21PE could be nominal.so 5-10% correction is nominal).
But that is not applicable to ACML since its OPM of 15% in last 3 quarters is well below its historic average of 19%. Hence it will mean revert since its a cyclical business. Also, one must consider that even under this depressed OPM, the EV/EBITDA right now is 6.5. we all know the management is great for a small cap standard. So margin of safety is already available. one cannot assume MoS exists only at 4xEV/EBITDA. we should not refrain from buying just because nifty is trading above historic valuation.
Akash Portfolio (22-12-2023)
Major differences between IREDA versus REC and PFC is that IREDA’s cost of funds, at 6.2% in FY23, is lower compared to 7.3% for REC and 7.5% for PFC. They can use green bonds for all of their projects whereas others can only use them for their renewable energy projects.
Further they can grow for longer duration at higher rate due to lower base.
IREDA is trading at higher valuation versus REC and PFC on PE basis at present but I will still prefer it.
HDFC Asset Management Company (22-12-2023)
Thought that I will do a quick check on my original thesis from two years ago.
The company has made progress
- New fund launches have been completed
2.Prashant jain is no longer there but the funds are doing well - Hdfc amc website and app is better
Unforeseen things were
- Hdfc bank is now the parent so distribution will help. This is a positive
- The regulatory push to decrease TER has abated somewhat so the overhang is gone. This was a sentiment negative for last 12-18 months
- Sip flows have been strong . Didn’t expect sips to go up 3 times. This is a positive
Big question is
As TER decreases with increasing AUM size at what growth rate and AUM levels does it mean positive operating leverage from here on
Disc: invested from long time ago and holding
Mrs Bectors Food Specialities: Can it beat the industry? (22-12-2023)
Hi Harshit, usually fmcg companies command high valuations. In my opinion, Bectors food is doing what Varun Bev. did in 2018 and what Britannia did in 2000s. Their distribution is expanding very fast. They recently expanded in Pune, Bombay and Bangalore with north of 20k touchpoints.
PE will expand/contract as per the earnings and I usually look for double digit vol growth in fmcg companies.
On your second part of the question, Britannia did 1% volume growth this quarter and Bectors did 20%. Hence the higher PE.
Hope this helps.
Mrs Bectors Food Specialities: Can it beat the industry? (22-12-2023)
Thanks sir for your beautiful insights. I am tracking this counter and in my personal opinion the products are at par with other fmcg majors such as britannia, itc etc however what i want to ask about is valuation, is the current valuation justified?
Britannia has decades of presence and a good brand to show for itself hence it commands a PE of 50 however cremica is much newer and still commands similar PE to britannia despite the fact that britannia has a well established B2C business while cremica has just started building it and has a long way to go. Your thoughts on this plz. Also what according to you would be a right entry point in this stock if one has a horizon of at least 5 years?
E2E Networks Ltd – Listed small Cloud computing player (22-12-2023)
Government plans for setting up AI computing infra, in public sector and also in partnership with private players.
Article available with premium subscription.
Disc: invested