Small caps are always plagued with CG issues. Till the time there is an effort to consolidate & ramp up all renewable energy business under a single head , such related party transactions take back seats in Bull market unless there is a cash consideration involved.
Posts tagged Value Pickr
Ugro Capital – Opportunity To Invest in a Fintech-like Company Below Book Value (22-12-2023)
I attend exhibitions and trade shows and I have come across Ugro as a participant in some of them.
Latest being IMTEX in Bangalore next month:
Looking for borrowers for machinery and equipment
How to fund an HUF account (22-12-2023)
All married Hindu males are eligible to form a HUF . The Gifts and inheritance is what makes the core of the HUF . The HUF will consist of the Karta and other Co parceners . The DOB of the HUF is your wedding day.
CL EDUCATE – Less Down side and unlimited upside (22-12-2023)
There were Chinese companies U.S. listed firms Gaotu Techedu, New Oriental and TAL Education which had Combined market cap of 120 Billion. TAL fr example was doing revenue of USD 5 Billion a year.
You can look at so many startups as an example you would not get any idea from just comparing financials. The competitive examinations business is all about teachers and outcomes (How many students got admitted). Reputation is the key here so you cannot build by purely selling ads. They have to buy these small companies and increase scale yet get good outcomes. That is a tough task.
Unfortunately, management was tied up with so many businesses and still, they should sell the corporate marketing business and focus only on Education but the drive is completely missing as the founders are now old. Immense potential to grow but let’s see. for me it was a style investment i did not need to think about business as such and it is multi-bagger. But now i need to evaluate if they can get growth back.
Disc: Holding stock since 2018 averaged down.
Edelweiss Financial Services (22-12-2023)
Hii, @camadhav you can go through the Moneycontrol article attached here Piramal, Edelweiss & other NBFCs under scanner as RBI cracks whip on loan evergreening via AIFs; provisions to rise
AIF as a % of investments is 11.4 %
Yes we don’t know how much of this AIF have invested in the company’s debtor company
@paragbharambe piramal enterprise and iifl fin has enough capital to support 
Edelweiss needs capital for insurance businesses, debt reduction, support credit business
Can’t say much let’s see want management do
Disclaimer – no recommendation for buy or sell
Ami Organics – Pharma Intermediates & Specialty Chemicals (22-12-2023)
but as per trends, it hasn’t rallied too much from its IPO price.
Dollar Industries ltd – Fit Hai Boss (22-12-2023)
Hi @Midhunjoe
You are right, any retail company worth its salt will have this kind of secondary sales visibility across its channel. The more important question is – Are the traditional “branded” hosiery players worth their salt when it comes to secondary sales visibility, retailer mapping, retailer incentivization, usage of loyalty programs etc? If you do some channel checks and speak to a few employees/distributors, the answer you will receive is a clear and emphatic no. One current employee from this cohort at a Regional Manager level told us that while Rupa/Lux/Dollar are classified as organised players, they barely qualify for that tag given how age old their distribution setups and mindsets are.
Having worked in a building materials company with a legacy distribution network and supply chain, I can tell you how difficult and risky it is to attempt to change the core of a traditional, legacy sales supply chain. The sales team often has a very old and traditional mindset and isn’t up to speed with modern retail and supply chain SOPs and nuances. You often have large distributors with huge territory whose families for several generations have been in the same business and they may even have direct links with promoter family who can leapfrog a sales leader and reach out directly to senior levels. This creates huge resistance to change. Its not at all easy to break through this.
It needs tremendous promoter will and focus and the right hiring and the right technology enablement to be brought in. It shows massive foresightedness on part of promoters IMO. So yes, while if you compare this with an FMCG supply chain, you will feel that this change is nothing out of the ordinary but the right comparison is with its peer set.
Ambika Cotton Mills (22-12-2023)
It’s just that the market is hitting all time highs and what looks great now might not when there is a correction. It is safer to buy good companies when the markets are correcting than when it is hitting all time highs. I prefer to sit on the sidelines during times like these.
Dollar Industries ltd – Fit Hai Boss (22-12-2023)
Chart shows Dollar was at 1600 on 1/5/2017 and fell down to 390 … can someone explain this? Or is my chart incorrect.
Narayana Hrudayalaya Ltd (22-12-2023)
There are multiple things that are sitting right in front if someone is careful enough to look.
NH can become too big as per my understanding. Below are my thesis pointers:
- Upcoming capex is concentrated in Bangalore and Kolkata where they already have a significance presence, so ramp up won’t be an issue and this will be high in margin.
- Gurgaon is positive and Mumbai is almost positive now, so bleed is not there and this should be able to further drive margins.
- Cayman new facility shouldn’t face any ramp up issues because they already have a presence there.
- I studied this in details last month only and I thought that they are just sitting on a goldmine in terms of in house softwares for hospitals. This can be ramped up as SaaS entity separately and this will be a very high margin biz. and looks like company has decided to capitalize this. In latest AR they mentioned about 6-7 in house softwares. This can be a goldmine.
Above pointers should play out in next 3-5 years.
Thereafter, I imagine Gurgaon would be reporting 15-20%+ margins and next expansion phase can come from here.
Insurance biz. and clinic biz. is going to be a very long term play and as per my understanding this is not going to be fruitful in near to medium term because it’s like a network effect and takes time to progress. I’m very curious about the clinic biz. because I think this can be a game changer for the company and can help company to penetrate into new geographies without setting up full fledged hospital and also it can help reduce the initial pain that hospitals have to go through to ramp up.
Anti-thesis:
- Margin pressure should come in from Cayman end. Also, need to cautiously see the market size of Cayman and market around Cayman which company wants to enter.
- Not sure of the impact of Insurance biz. on margins.
- Company’s venture NHIC is bleeding as of now.
- Need to watchout for improvement in Gurgaon and Mumbai margins as these facilities have been performing below expectations, there’s a question that of how long they’ll take to reach Bangalore or Kolkata margins or can they even reach those margins?
Disc: Not Sebi registered, Invested and biased.