The matter has been under litigation and it seems that IIFL Securities has got relief.
Please see the recent news.
Posts tagged Value Pickr
Raymond – The Complete Man (21-12-2023)
If governance goes up Debt gets retired, the brand is strong and does deserve better multiple.
Also the true unlocking of RE business has not happened as yet
Krishana Phoschem ltd – Agro – Based Multibagger? (21-12-2023)
Recently there is a aggressive Insider Trading activity happening in the company.( Purchasing from open market ) . Could’t figure why.
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Just happened to see “Madhya Bharat Agro Products Limited” Announced on December 15 they made an agreement with “National Fertilizers Limited” for DAP/APS/NPK fertilizers
Here is the full details
“This is to inform you that Madhya Bharat Agro Product Limited (MBAPL) (A Unit of Ostwal Group of Industries)
has entered into a marketing agreement with National Fertilizers Limited (NFL), New Delhi (A
government of India undertaking) with effect from 15th December 2023 (subject to approval from DoF)
for 2,90,000 Metric ton of DAP/APS/NPKs valid up to 31st March, 2025, total expected inflow from this
agreement is ₹ 1170 Crores (including ₹ 447 Crores subsidy) excluding GST.”
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Both companies are owned by Same promoter group. And both companies have similar products.
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But why this will have an impact is currently MBAPL is currently their NPK/DAP capacity is 2.4 Lack metric ton and they are already running at 53% capacity as of november end.
Also MBAPL mentioned in their presentation
Work on setting up of 1000 TPD DAP/NPK ( 365000 MTPA ) plant with matching Phosphoric acid plant purchased from Birla Copper (A
unit of Hindalco Industries Ltd) commenced.
o Location for setting up DAP/NPK plant has been finalized in Maharashtra.
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Did’t mention when the plant will be operational
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If the new plant does’t become operational as early as possible
Maximum of 1.2 Lack Metric ton will be produced from MBAPL and remaining will be produced from KPL which is 1.9 Lack Metric ton ( Maximum ). But honestly don’t know how this intercompany model will pan out.
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Currently KPL has 3 Lack Metric ton of Capacity on NPK/DAP fertiliser and currently running at 33% utilisation. If the NFL agreement which lead MBAPL to buy 1.9 Lack Metric ton from KPL then
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There is also a possibility rather than KPL getting orders from MBAPL, KPL might get on agreement from NPL or some other fertiliser company. Let’s see
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Happened to figure out Both the sons of MK ostwal are CA. Watched Praveen ostwal interview in youtube. My Initial judgement is he is simple and humble.
Disclosure : Invested
Sunteck Realty – Quality Real Estate Company (20-12-2023)
The market seems to have been spooked by this sale and has not yet grasped that it was a treasury sale and that the money stays with the company. I think this shows the prudent nature of the management and their conservative capital allocation philosophy. In a time hen there is so much of talk on real estate cycle taking off, in my opinion it is good to see that the management is still focusing on cash infusion for growth without raising additional debt when the interest rates are close to medium term highs.
Sunteck is still not cheap, probably fairly valued at about 4 times EV/pre-sales. The good news is the P&L will start reflecting growth from this quarter as Max World Naigaon gets completed, and will continue next year as ODC and Goregaon projects get completed then.
With the low float, these spokes can easily create fresh interest among retailers. Let’s see how things play out.
Disclosure: Invested from mid 200s
Divi’s Laboratories (20-12-2023)
I think, its not about input cost advantages, neither scale advantages…rather its process innovation where they keep updating their process to the point where they become low cost producer. Now exact quantification of the process innovation is not possible for me, but it would reflect in margins, i guess.
Sunteck Realty – Quality Real Estate Company (20-12-2023)
Promoter group entities sold 4% stock. The reason for the sale appears to be:
Sunteck Realty has reduced its net debt to zero by gaining a cash flow surplus that will be utilised to further accelerate business operations.
A recent sale of 60 lakh shares (4.10%) of Sunteck Realty by its wholly owned subsidiaries Satguru Infocorp Services and Starlight Systems have generated a substantial cash flow which shall be retained & consolidated with Sunteck Realty, leading to nullifying the net debt and generating positive cash flow in the company.
Source: Construction Week Online
Dollar Industries ltd – Fit Hai Boss (20-12-2023)
Trying to be the devils advocate here.
Any FMCG/FMCD, Retail company worth its salt organizes its distribution in the manner explained . The distributors are assigned a fixed territory with retailers mapped and with the use of digital tools ensures that territories are adhered to and undercutting is not happening. Plus most of the companies reduce their credit to distributors as they move up the value chain.
I might be plausible that in the value for money inner ware segment Dollar is starting this initiative of structured distribution and might get some benefits out of it .
But the same can be replicated by all companies with a seasoned Sales and Distribution guys at the helm.
P.S: Not following Dollar industries , just my 2 cents on the distribution model .
Experiment with Low Volatility (20-12-2023)
I guess, then the approach towards such stocks should be mathematical, and one does not need to do any kind of FA. Have some process in place, based on numbers, enter, adjust/exit as per the set rules, just like a factor based index. If this is indeed true, then the return too could be similar to that of an index, probably more than Nifty, but not probably more than 25%.
One can look at factor based indices, but these too are not perfect, sometimes the definitions could be arbitrary, and may not repeat the back tested results.
No interest in investing in stocks based on these kind of ideas, yet. Just saying.
Annapurna Swadisht Ltd – A Swadisht FMCG investment? (20-12-2023)
After the company got listed, I was not able to find any presence of “olonkar” brand on online retail platforms. However I was able to get a whatsapp number to order “Gohona Bori”. However on the price front it seems like a mismatch to other products that it sells. The minimum order for delivery was 5 Jars (6 pieces in a jar). And price per jar was Rs.90. Now after one year, I do see some of their low ticket size products available in small kirana shops. However, I would seriously not compare the products to the established brands like Haldiram, Maggi etc. Annapurna Swadisht products are quite inferior. And there is high competition with local unlisted players.
Not invested, tracking.