Shankar – for your reference from last con call.
On a separate note, huge fan of your newsletters. Thank you bringing out such great articles.
Shankar – for your reference from last con call.
On a separate note, huge fan of your newsletters. Thank you bringing out such great articles.
HDFC and Kotak gave phenomenal returns for many years… and valuations went very high… time correction is only logical. again they will give good returns when earnings catch up…
Govt. banned ethanol from sugarcane to keep the price of sugar under check – then sugar industry went into problem with farmers not getting paid.
Govt banned sale of broken rice by FCI for ethanol production to keep the price of rice under check – then the grain based ethanol industry went into problem with many of them in losses. To save them Govt. increased price of ethanol from maize (much higher than petrol prices – which consumers are paying for) then price of maize shot up which did not help the ethanol producers… further it led to problems for animal feed industry (and consumers are paying for high prices)… Farmers didnt benefit much but middlemen made money as at time of harvest maize prices were low.
Now they have allowed ethanol from sugarcane when there is no molasses and cane harvesting season is yet to start… so no impact on ethanol supply – no payment to farmers, no benefit to sugar mills… at current FRP rates of sugarcane ethanol is only marginally profitable for sugar mills. Dont see how farmers will get paid on time – in some cases even paid at all !! They may increase ethanol price and force OMCs to blend at higher prices (as crude oil is falling) and then fuel inflation will not come down impacting the whole economy !!!
All in the name of keeping sugar prices down… and everybody is paying for it !!! Is the Govt even thinking before making decisions??
Investments decisions should be made on facts and not hope – so i think sugar and ethanol companies are very unattractive right now…
Hi Piyush ji,
It should not. Zoyer is based on vendor payments & even vendors are mostly paid in H2. Generally Indian businesses don’t spend much in Q1 as budgets are being finalized. This is my view based on the companies I’ve worked in
Yes, it’s probable that the system will be streamlined. Referencing back to the earlier question a person had made and assuming everyone pays per schedule – plus with Zaggle growing, the 30-60 day cycle and esp. in H2 which is a heavy period, comes to 20% of revenue which is receivables as on 31st March.
Thanks for the note though. Ofcourse, I might be wrong in this assessment and will be happy to add to it as more information gets revealed in future calls/interviews
PS: Pleasantly enough, there is a direct line that has opened. It seems my newsletter reached Mr. Raj N’s mailbox and he’s subscribed to my newsletter
The Many Mistakes of Bhavish Aggarwal
Kindly watch this video, like I was unaware that OLA had this much bad business guidance. Like they have very unrealistic guidance which led to their businesses shut down.
Hi Shankar,
Given with Zoyer coming in a big way, H2:H1 skewness will reduce.
Also, WC. –
Propel is largely real time. You buy at one end and sell at other and money is received in advance (mostly). They keep some voucher in inventory if they get extra discounts at year end.
Debtor days
Software fees Is 30-60 days.
Program fees is 30-45 days.
Payables – usual payables.
Inventory – hardly any
But I think, WC shouldn’t be of much concern here. Corporates and banks both will pay as per schedules.
Zaggle Prepaid Ocean Services signs agreement With Founderlink Technologies. Under the agreement, Founderlink Technologies will offer business loan to Zaggle corporate customers
Not directly related to the fundamentals of Nucleus; wanted to work out the meaning of “Non-institutional investor” in a buyback.
Here’s the NSE demand schedule – https://www.nseindia.com/market-data/tender-issue-information?symbol=NUCLEUS&type=Active
Under “bid details”, do the NIIs categorized as “others” mean ordinary investors having shares worth > 200,000 in their demat account on the cutoff date, or they get clubbed with retail investors, and NIIs mean something else?
Now completely off-topic – this was the last buyback before Oct 1 where buyback-flippers had a chance to make real money. Post Oct 1, buyback proceeds will get treated as dividend, and get taxed according to one’s slab, while providing for acquisiton costs to be treated as a capital loss.
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