INVESTING AS A HIGHWAY
Posts tagged Value Pickr
Indian Defense Sector (04-07-2024)
Thanks to Mr Basu Mallick who initiated this thread in May 2022. After going through his first introductory post which was an inspiration for me to start my investment journey in Defence stocks.
Those starting points of Basu mallick in 2022 are stilll valid today and if we see the financial performance of defence companies, the Govt seems to have walked the talk -the FDI automatic route, defence acquisition council, Atma nirbhar Bharat, Exports potential to name a few- all are playing out very well…And it is not only the PSU defence companies - even the Pvt corporates both Large and MSME’s engaged in defence sector are doing well.
The recent announcement of extending custom duty extension for 5 years for import of parts / components for defence equipment manufacturing for next 5 years is another incentive for increasing output of defence equipments.
And recently the govt giving a export target of 50k crore for defence sector, where we have just 1% market share in international defence market which is currently dominated by developed countries.
Apart from exports contribution from HAL & BEL, Bharat dynamics , now all 3 defence shipping companies are targetting building of commercial ships for exports which has huge potential as western countries are looking for replacing their ailing fleet with new generation ships to run on cleaner fuel like green hydrogen, Ammonia, methanol etc.
Here is a you tube presentation from equity masters on shipping stocks.Tanushree of equity masters gives a warning on Pvt shipping stocks.
Shipbuilding Stocks Alert Watchlist, Frauds and Bankruptcies
Tiger Logistics (04-07-2024)
My observation for Tiger Logi are:
- Decreasing RoE, RocE
- Falling Sales
So may be avoided as of now.
Sampre Nutritions (04-07-2024)
Sampre Nutritions is again doing a fund raising worth 83 Cr which is more than their market cap through FCCB after already done fund raising so many times.
The company had many red flags earlier regarding high volatility in margins and sales too but I choose to ignore it as it was exclusive manufacturer for Mondelez which gave the company some credibility and also through scuttlebutt I found that their plant at Hyderabad, Telangana was very good and since they were approached by Mondelez to set up a new plant for lollypops so fund raising made sense and since the promoter himself was not selling due to raising funds through preferential allotment he got diluted.
So I had mailed their investor relations for questions I had but I have received no reply.
Now in the past they had also come with a similar circular that they would be raising $100mn
It was just a plot to pump and dump shares as can be seen in this chart.
Their Related Party Company is in the same business
They have earlier made announcements of opening new subsidiaries in Dubai and England similar to their announcement now of signing an MOU with African.
Now they are raising capital through Aries Capital Ltd as their lead manager, this company was also the lead manager for fund raising through FCCB route for Evexia Lifecare and KBC Global.
Now if we look at both these companies now:
Evexia Lifecare’s borrowed 700 CR and then siphoned off this money in Africa
Similar pattern was observed in KBC Global:
Although after the announcement of fund raising the stock is locked in Upper Circuits I have decided to sell all my holdings as this company is most probably fraudulent and I choose to ignore all the red flags as it reminded me of Warren Buffet See’s Candy business and since they were exclusive manufacturer for Mondelez for eclairs, I was expecting an update regarding the money they had spent on importing machinery for manufacturing of lollypops for Mondelez and was expecting some increase in sales and margin once it goes live.
Cineline India – Picture abhi baaki hai (04-07-2024)
There is bad news… More shares pledged…
Mazagon Dock: aptly called “Ship Builder to the Nation” (04-07-2024)
Slightly yes. Tempting to book profits.
A good price action with few corrections and bases is always good and gives more confidence in holding.
Mazagon Dock: aptly called “Ship Builder to the Nation” (04-07-2024)
Does the rise too fast and too frequent make you nervous?