This is what investors in Japan think about the company ( last 22 years performance of stock). Hope it helps to get a prespective as far as parent company is concerned.
Posts tagged Value Pickr
Rural Elect Corp (03-07-2024)
We are at the euphoria stage of the market. You and I have discussed this in out convos. Recent price action is completely out of whack with fundamentals.
What is the future, I am no guru to predict.
As regards to REC/ IREDA / PFC, look at loan growth and NPA to determine relative valuation for long term.
for eg: PFC has recently loaned the Shapoorji group some 15k crores for repaying old loans. Does it make sense. Is it part of their mandate.
Similarly, REC has started funding infra projects. Do they have clear understanding of the relative pitfalls. Infra projects in India are almost always delayed. Have they priced the risk.
I hold REC bought at current prices having but am doing so taking into account 15-20% dips and long term holding. If your outlook is shorter, maybe time is to take out profits.
Cineline India – Picture abhi baaki hai (03-07-2024)
Not much movement on the counter. Is there any positive news coming for this stock? Has there been any update on hotel sale/ quicker opening of screens?
Sumitomo Chemicals ~ After Excel Crop Care Acquisition (03-07-2024)
There is only one new AI named Indifilin in this report…that’s what I was mentioning ( one molecule in last 30 years)…rest are just code names. Looking at their past success ratio, I don’t think they would succeed in bringing 2nd or 3rd new AI , at least in next 10 years.
And ,also humbly speaking, I would not like to be discuss further about this company. For me it is cyclical generic company where parent is struggling and has a bad track record of last 1-2 decades. Hence would like to stay away as don’t want to waste more time on this.
Nuvama Wealth Management: Proxy to Affluent India (03-07-2024)
Thanks for the detailed answers. Appreciate it !
I understand the +ves with this co., their guided growth, operating leverage benefits and all.
However, the key is to understand risks that lurk ahead if one chooses to invest at the current price.
I am still wondering:
- Even if you give out loan against shares to clients, you are earning a +ve net income NIM on the same. That should get reflected in cash flow from operations sooner or later. CFO = “Cash collected from customers” - “Cash paid to suppliers”
Look at it that way (rather than working from Net income & making adjustments)
And the “WC items” you mention, it cannot keep on ballooning every year in a way that you have -ve CFOs every year for the last 5 years while +ve on EBITDA and PAT. - Paying out Dividends are essential if you are engaged in a business that throws out a lot of cash. It is to ensure that Shareholders trust your numbers.
I mentioned Anand Rathi because they have grown at 25%+ cagr and have the same future guidance also, while also maintaining a great dividend payout.
(360 WAM is much difficult to project & analyze because they house a lot of things inside: AIFs, Funds & what not. So i dont look at that) - Becoming a 1 stop solution (aka full service provider) is a good thing. But, does’nt offer much benefit in the sense you think that a particular customer will get everything done by Nuvama only. Because the HNI customer will pick the most price efficient vendor for the service he desires. This is financial services after all. (The same thing happens in IT services where the customer follows a multi-vendor strategy. Nobody likes to depend for everything on just 1)
*The major concern for me is: Are their P&L numbers genuine or inflated?
If the mgmt. can answer why the CFOs are consistently hugely negative & when can we expect to see +ve numbers there, that will help.
Yatharth Hospital & Trauma Care Services Limited (03-07-2024)
Everything from return ratios, fundamentals to valuations seems good. My only concerns are the lack of cashflows, growing receivables, and CRISIL’s “Issuer not cooperating” rating. I understand that almost 40% of the business comes from govt. which maybe the reason for subdued cashflows and rising receivables. But what about crisis report? Also, I read @Naval said somewhere in the thread that some issues going on within the management.
Can anyone provide better clarity?
Disc. not invested. studying
Rural Elect Corp (03-07-2024)
Wherever there is future earning visibility , investors are chasing those stocks…And IREDA is a Navratna PSU, so there would not be any corporate governance issues, Govt backed , no issue in fund raising , NPA’ s are good… For the investor , you get regular dividends.
The stock may continue to be in demand with a bout of ups and downs.
However, when compared with REC, PFC, Hudco , there is a wide valuation gap…
REC , PFC don’t carry Renewable energy Tag , but IREDA do carry the tag.
Given an option and if I have to add to my existing holdings , i would rather add to REC, PFC and Hudco rather than IREDA.
I am holding all the three from lower level with 9-10 % Dividend yield - IREDA i was allotted in IPO. Had Partly booked profit and later added back on decline
Discl: Invested. May be biased . please do your own assessment before investing. PSU stocks could be volatile at times due to change in govt policy
Sumitomo Chemicals ~ After Excel Crop Care Acquisition (03-07-2024)
Ok, that’s what I was asking you actually. They have certainly discovered new “active ingredients” regularly. I am not sure how this relates to molecules (I have to educate myself here), but here’s a list from just 2018.
Anyway, if there’s some research you can share or can point me towards, that’s great. If not, that’s fine.