This is new. They usually talk about bringing strategic partner for their AIF platform. But now this is about shareholder partner. If they come, I wish they buy shares from open market and not a fresh equity infusion
Posts tagged Value Pickr
Aptus Value Housing : Is valuation justified or just another HFC? (30-09-2023)
Aptus housing book yield in closer to 14%, adding LAP and business loans which are higher yield bring the overall yield to 17%. There are some companies that charge even 20+% for housing like SRG housing. These are priced for the potential riskiness of the book. You can ask these Affordable housing companies have very good credit quality and their historical loan loss also low, so they should charge much less. But for every Aptus, Aavas, Home First, we have some many companies struggling in this space like Manappuram, Muthoot, Motilal Osiwal, Ujjivan. Look for the NPAs of the housing book of these companies. And there are lot of companies which does not survive.
But they cannot charge less even if they wish. For a HFC that deals with larger ticket, higher quality customers, credit rating companies are comfortable in letting leverage to inch up to 7-8 times, so they are getting low cost of funds and with higher leverage they can work with thinner NIM and still get a better RoE but for are AHFC they are still looking for a leverage of 4-5, some they have to work with much higher NIM to at least match same RoE. If they try to reduce further, business will not make any money, so companies will stop doing this line of business and EWS have to get money from local lenders and people are still charging 36% at least for these segments.
So 36% vs 17% – not a sin
Selan Oil Exploration (30-09-2023)
Quick notes AGM 2023 please let me know in case I missed anything.
Operational review:
a) started a drilling campaign in three fields as oil prices were high. Nearly 10 fields drilled. Karjisan back in production and is stronger than before.
b) focused during the year on enhanced governance practices and for risk management
c) increased diversity by 30%
d) investor roadshow will be posted on website for transparency.
e) increased focused on safety. Aim to be top quartile on safety
Future strategy:
a) drilling campaign have confirmed bakrol and karjisan might have improving prospects which the company will update stakeholders in due course.
b) all capital decisions will be made assuming oil prices at a more stabilized level (not at cyclically higher price).
C) Main focus on growth! Aim to move from crude to gas over the longer term. Therefore, will focus on adding more gas asset.
d) Will not do rank exploration. The company has enough resources for 7-8 years. Will focus on discoverer resources.
e) Looking to achieve reserves replacement ratio of more than 1. Trying to increase the recoverable factor in existing fields. Next year will focus on recovery potential such as water injection pilot
Capital allocation
a) while deciding on new projects they aim for Mid to high teens irr assuming lower oil price
b) When started fy 23 they had 200 crs of cash with 500 boepd and ended up with the same amount of cash but increased production to 750 boped until now.
Q&A
Achievements: a) Getting positive result from Bakrol. Karjisan drilling wells have positively surprised the management team.
b) smooth transition of takeover. Created a strong diverse board and undertook measures on safe operations.
Disappointments: a) Lohar is a declining field. Not producing as much oil and gas. Focusing on managing the cost structure in Lohar.
Antelopus Update
a) Has four license and an onshore in assam another one from Andhra
b) no revenues currently in antelopus
c) Selan in has oil reserves in cambay basin while antelopus has offshore oil and gas assets which gives a diversified portfolio of assets.
d) The money from Sean will first go to developing : duarmara, Mumbai offshore. They will will need more money from investor shareholders and will be banking on insti shareholders on capital commitment.
e) Duarmara field had issues before with forest clearances but now things are cleared up. The production schedule is more mature and is expected to start it by Q424.
Update on Eliao
a) Waiting for transfer approval from ministry. Might start drilling by next
b) Eliao post approval looks like one well for now and then will drive more wells
c) Elias has a one year lifecycle but there an optionality
Other update:
a) Timeline on merger: swap ratio will be decided soon (few weeks possibly). The merger process will take around 15 months.
b) Bakrol ec extension has been applied for. Before second drilling by next year they will have an extra approval.
c) Looking at operating leverage to lower per bbl cost
d) will come back with capes plan for FY 24 during the course if the year
Aptus Value Housing : Is valuation justified or just another HFC? (30-09-2023)
One question , Is not it a sin business to charge 17% on home loan for economically weaker section for a token size of less than 10 lakh fund ? What do you think ? Feel free to flag it and get deleted by mods.
Apar Industries (30-09-2023)
Raising of Funds
Sudarshan Chemicals: 3rd largest pigment manufacturer globally (30-09-2023)
someone i know who is a fairly big regional player told me that convincing businesses to buy pigments from you is the hardest.
Its a very tough industry to crack but once you crack it there is decent growth.
Sudarshan Chemicals: 3rd largest pigment manufacturer globally (30-09-2023)
Kiri Industries could be better bet at current level. The last few Qtr results were bad, but coming Qtrs will be much better comparatively.
At current price, looks like there is not much rooms for further downside move.
Aurobindo Pharma (30-09-2023)
Appreciate if ppl can give a tldr while posting videos mods can delete my post in 24 hrs
Krsnaa Diagnostics – what is the diagnosis? (30-09-2023)
Hi
@SKMohite Karsnaa operates largely on B2G model while others have largely B2C model hence better margins & cash flows.
e.g. Cash conversion cycle of Krsnaa is ~60 days while that of Dr Lal Path Labs is -87 days.