This is a normal H1 phenomena, please look at payables at end of each H1 during past few years, this year its not abnormal.
Posts tagged Value Pickr
Motilal Oswal Financial Services (29-11-2023)
Demerger of wealth management .very unlikely. Promoter family is not going to dilute their holding or or pledge their holding and they dont need to do this ” unlock ” as you mentioned . They will just take dividend as malai … if you dont mind this ” desi ” phrase … They are not overly concerned about valuation of MOSL …
Investment Learning (29-11-2023)
Total assets and total liabilities are same because very financial transacton needs to be balanced. Suppose you had Rs 20000 as bank balance. Ideally your bank statement should show Rs 20000 as liability to you. and you will show Rs 20000 as asset in your books … Hope this is clear now …
Malolan
Long term investment strategy (Buy, hold but don’t forget) (29-11-2023)
This logic implies that, when Indian GDP Growth rate was almost 8% to 9% during 2003-2013, Nominal GDP rate was about 16% to 18%.
Probably that’s the reason why SENSEX CAGR was about 16% during that period.
Probably it is good idea to understand the lessons learnt at that time and use those in next 20 years.
Nithin’s Portfolio (29-11-2023)
when will you enter gain? And starting from scratch, how will you approach the process?
Rudra portfolio (29-11-2023)
Good session by Siddharth Bhaiya on finding mulibaggers. Some good case studies in the last 30 mins
Behavioral Finance 101 (29-11-2023)
Goodbye Charlie Munger.
Your influence has been immense.
Two quotes, which I hold dear; especially considering my many stupidities in investing and more when I migrated to trading for a period;
—-
If you’re not failing, you’re not improving.
—-
“Of course, there’s going to be some failure in making the correct decisions. Nobody bats a thousand,” Munger said. “I think it’s important to review your past stupidities so you are less likely to repeat them, but I’m not gnashing my teeth over it or suffering or enduring it.”
“I think the tragedy in life is to be so timid that you don’t play hard enough so you have some reverses,”.
—-
Goodbye Mr Charlie.
You will be an influence to me all my life.
Phillips Carbon Black (29-11-2023)
The Board of Directors of PCBL Limited (“Company”), has at the Meeting held on 29 November 2023, in-principleapproved the term sheet for entering into a joint venture with Kinaltek Pty limited (“Kinaltek”). The Company shallown 51% of the shareholding in the joint venture company (“JV Company”), and shall be infusing a consideration ofUSD 16,000,000 in the JV Company and a commitment to infuse funds up to USD 28,000,000 in stages in the JVCompany, for setting up a manufacturing facility (“Proposed Transaction”);
The Company has entered into a term sheet to form a JVCompany with Kinaltek (an Australian company, which has developed nano silicon technology for battery application).The Company shall own 51% shareholding in the JV Company which will have the intellectual property and know-how of
products for battery application and a pilot plant for the same.
Avanti Feeds (29-11-2023)
Some General pointers for basic understanding of the cyclicality in the shrimp business and mapping the points discussed in the Q2FY24 with the company:
- Normally, the shrimp culture season starts in end of January or February
- Shrimp Feed Consumption :
- Raw Material pricing : Major component of expenses
Ecuador Vs India explained :
Cost Structure Comparison :
Financials
- Sales have not seen any improvement in the last couple of years due to fall in shrimp prices and Ecuador chipping in market share.
- But we have to see what has led to the fall in expenses which seems like to be the reason for a growth in profit?
- Snippet from con-call
- Seeing the Operating Profit Margin trend, single digit has been seen only in 2013 which was a decade back, from there on the margins had improved.
- Also there has been other income increase
BALANCE SHEET
-
Why have the trade payables increased so much, it is a liability after all so need to be looked at because due to this the profits would have an upward bias
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They are holding extra cash than what they used to
- Not much investment opportunities ?
- Not sure about the near future ?
Answer : Received from con-call
Ratio Analysis
- Seeing the last 5 years PE ratio, 15 times has provided a value comfort and as the margins improve we can see it go 22-24 times i.e. 50%+
- The increase in debtors is a seasonal play and would be in single digits only as mentioned by the management
Growth Triggers :
- Optimistic outlook for an increase in sales in the second half of FY24
- ************************First Area : New plant coming up which would start contributing to sales
- More on Second Area – Pet Care :
************************************Additional Benefits :************************************
Risks :
- Possibility of an imposition Tariffs/Quotas by US to regulate import prices
- Possibility of a further increase in raw material prices like Soya & Fish Meal
Technical Analysis :
With an intermediate support of 375( No reco, do your own due diligence)
I have summarised the point in this thread too – https://twitter.com/Lakshayy_99/status/1728689844136943949.
Do let me know your thoughts, and correct me if there’s any thing incorrect. Hope you gained some insight from this 
TCS opportunity (29-11-2023)
Bill Ackman asks Warren Buffett a question about stock buybacks when valuations are high
An interesting question asked to Warren Buffett about Coca Cola share buyback at 40 PE.
Though I am not sure that TCS doing a buy back at that price is right or wrong.
But this is their 5th buy back since 2017, it is a really cash rich company, pays handsome dividends, 13% Stock Price CAGR for 10 years along with 3% dividend yield.
The entire IT sector is going through challenging times but then that’s nothing new, every sector goes through turmoil and I feel it is such an amazing company to hold on to.