My take if Advertisement expenses are increased this should increase earning , Even If co stops advertising then also earning will increase being major expense . In theory if co stops advertisement for one year this stock will be 20 p/e stock.In future as brand becomes established the ratio of advertisement exp to sales will keep coming down which will be eps assertive.Dis :Small Exposure
Posts tagged Value Pickr
Torrent Pharma Ltd (08-12-2015)
Just to add to Hitesh Bhai's point: Currently the pharma sector (large caps) are going through some kind of re-rating. People have seen what USFDA issues have done to IPCA, Dr. Reddy's and Sun Pharma. Most of the time market tends to overplay the negative/positive news. In case of Torrent multiple factors such as the sectoral derating, perceived absence of long term pipeline combined with the overall decline in equities is playing out. FDIs have pulled out massive money from the markets and Pharma was their sector. At the same time torrent with a market cap of nearly 25000 crores is actually a large mid-cap and it will not move into a different orbit without institutional interest (a 25% movement requires 1B $) unlike the sub 2000 crore market cap companies.
I have found a strange kind of herd mentality in how funds behave, they are fine being collectively wrong instead of taking a risk of standing out and being right. As far as numbers are concerned, for torrent it is relatively easy to work out (rough idea of marketshare of various formulation their prices the taxes paid etc.) As Hitesh Bhai said a rise in earnings will be followed by a rise in money paid out to investors and sustained performance and other superior business parameters will force the market to notice it. The same funds which shun companies come around again with a different set of reasons. I would advise you to go through their conf calls where they talk of their dividend payout ratio and upcoming surprises. Finally quoting Buffet "In the short run the markets are a voting machine but in the longer run they are a weighing machine". Go through the story, build your own conviction, assess the risks anxd take a call.
DIsclosure: Invested. Forms more than 10% of my portfolio.
GoodLuck Steel Tubes (08-12-2015)
Having tracked the company:
Positives:
Technocrat Promoters( IIT ians)
Company adamant on improving margins..the same is reflected in recent results with flat sales but booming margins.
Company expanding into a new plant in Gujarat to be close to port and improve export benefit.
Good Promoter Stake
Low PE of 6
Company has been consistently generating good cash flows out doing PAT figures consistently
Company has gotten licensed to be a supplier for Indian Railways.
Orderbook for Solar structures good for 1 year.
Negatives:
Substantial capex of 300 crores in next couple of years
Dependence on capex by government
Overall though can see a vast opportunity ahead for the copany specially considering the sectors the company is in .
Disclosure: Invested
Arman Financial Services Ltd (08-12-2015)
Having listened to multiple confrence calls from the management, absolutely delighted with the great information disbursal by them despite being such a small player limited to only Gujarat and MP
Somi Coveyor Belts (08-12-2015)
A link describing cartelisation among conveyor belt cos.,
Does presence of cartelisation imply belting is a commoditised industry?
Somi Coveyor Belts (08-12-2015)
Hi All,
Please have a look at Somi's competitor,Continental Belting,a private co. The following article and video provide some vital info on the industry.
I'm trying to understand what is a belting player's edge over its competition and where does Somi stand on these parameters? Is it the belting fabric? Is it consultation on optimum installation of belts,because its not a plain vanilla application for all and seems lot of customisation is involved? Or is it providing every efficient solution on lowest energy cost/tonne of material handling?
Also,why has Somi given such aggressive targets,we know industry is not so robust both in India and globally? The new product steel cord belts is already being provided by a few players,Continental Beltings being one.
Views invited.
If you CAN’T BOTHER to research/present a BALANCED view with decent RISK assessment, you have NO RIGHTS to start a thread on that business (08-12-2015)
This thread has served its purpose and is now being unpinned/closed.
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Deepak Fertilizers and Petrochemicals (08-12-2015)
Deepak Fertilizers had Rs 334.98 crore of subsidy receivables due as on March 2015 (Page 127 of 2015 AR). Compared to this, revenue for the year stood at Rs 3841 crore (Page 111). The company therefore seems to be relatively better placed in terms of subsidy dues.
This is the link where moneycontrol says that "news are doing rounds" about delay in payment of arrears from the government this year:
http://www.moneycontrol.com/news/business/subsidy-arrears-low-urea-prices-may-dampen-growth-zuari-_4505801.html?utm_source=IW_DATA_stockpage
If you CAN’T BOTHER to research/present a BALANCED view with decent RISK assessment, you have NO RIGHTS to start a thread on that business (08-12-2015)
Hi Guys,
This thread has seen active participation by many, and the issue has been discussed form multiple perspectives. Time has now come for VP Core Team to intervene.
From VP Core Team deliberation on issue (Ayush, Hitesh, Donald, Abhishek, Sandeep), two things are pretty clear
1. Subash Nayak has been adding value to VP over last few years
2. His recent conduct is unbecoming of a relatively Senior VP member
a) he has not complied with the guidelines, instead
b) he has been openly mocking Admin in particular, and VP Guidelines in general
c) there is absolutely no sense of identification/belonging/pride with VP Ethos & Culture
d) there is some merit in the "Advertisement" charge being labeled against those who refuse to properly examine/respond to counter-arguments against one's "invested" ideas
Above conduct is pretty damaging and sets a bad precedent if others were to follow in Subash's footsteps. No matter how valuable a member's past contribution, it comes to nought if there is no respect/identification to the Community Ethos & Culture. Subash's recent posts are clearly indicating he is not here at VP to learn, share and grow with us, he is here for other things.
VP Core Team is unanimous in recommending a Temporary suspension (30 days extendable to 90 days) of Subash Nayak's membership.