just downloaded, starting reading, thanks
will there be incremental updates?
Posts tagged Value Pickr
A Gentle and Practical Introduction To Value Investing (12-11-2015)
INDIGO ready for takeoff :airplane: (12-11-2015)
i feel "value investors" will stay away from IndiGo
A Gentle and Practical Introduction To Value Investing (12-11-2015)
Nice content and line-up Jana. Your blogs have been a treasure of information.
Just that it would be great if you could also share your thoughts on capital allocation while building a position. Basically there have been several debates around concentration v/s diversification and their merits/demerits. What I am seeking is thoughts that go while you build a position.
For eg. if you are convinced of an opportunity, and have thought about a % of your portfolio, depending on your conviction, when do you enter in phases/ when all at once. How do you tackle internally the queries opposing the thesis for investment. For me I have never been clear about how attractive is the opportunity, and hence written for myself scenarios on whether how much stock de-rates and decide accordingly my allocation, given the current valuation. This has helped me tremendously dealing with temporary corrections and adding to the position at that time.
Would be great if you have anything to share on the subject.
Regards
Ankush
A Gentle and Practical Introduction To Value Investing (12-11-2015)
Great work Jana. I am big fan of your blog. Enjoy reading and learning. Please update this in blog too.
Regards
Keshav
Jagran prakashan (12-11-2015)
Value research article. covers Jagran Prakashan & MPS.
Why print is here to stay
In spite of the advent of digital and online technologies, print hasn't turned obsolete yet. On the contrary, it has been growing steadily
By Vikas Vardhan | Nov 10, 2015
Why print is here to stay
The rise of e-commerce and the growth in the use of the internet and smartphones are considered to be a big threat to the print media and book-publishing companies in India. So, what is the impact like? If we talk about the listed companies in India in the publishing industry, we didn't find any adverse effect on them. On the contrary, they have been growing at a decent pace and have given exceptional returns on equity. We think that the edge in terms of return on equity will still stay for a long time.
Who will survive?
In print media it is the leader in the respective market that survives in the long term. It is the scenario where the winner takes it all. The four listed print-media companies - DB Corp, Jagran Prakashan, HT Media and Hindustan Media Venture - are the leaders in their respective regions. They have swept away the majority market share and thus command higher prices for advertising revenues. Since the revenue from advertising accounts for almost 70 per cent of the total revenue, their dependency on subscription revenue is low.
Advertising will keep the bells ringing
The advertising revenue will keep on rising for print-media companies, despite rising online digital marketing. This is so because, first, there is still a huge population which has access to newspapers only. Second, many ads and notices, like government tender notices and quarterly financial results, etc., go in print due to regulatory compulsions. These regulations are not going away any time soon, given the current scenario. Third, despite a rise in the literacy rate there is still a huge population that cannot read. In the case of the internet, not only does a person need to be literate but he should also be computer literate. On the other hand, in the case of print advertisements, even an illiterate person can connect to the visuals in newspapers.
Printing money
Company name Average 5Y RoE (%) Revenue (Rcr) 3Y sales CAGR (%) 3Y operating profit (Rcr) 3Y EBITDA CAGR (%)
Print media
DB Corp 24.99 1964 12.41 573 19.04
HMV 18.7 820 11.21 234 26.34
HT Media 12.51 2306 5.44 420 6.87
Jagran Prakashan 27.02 1644 10.18 488 14.33
Book publishing
MPS 35.25 210 9.76 90 46.63
Navneet Education 25.44 981 13.74 243 14.09
Data as of October 5, 2015
Subscriptions revenue will stay afloat
Despite a rise in online readership, subscription volumes will stay afloat in India. Newspaper readers are used to the printed version despite reading online. It will take time to change the lifestyle. In India there is a door-to-door delivery system. Therefore, the consumer may not easily do away with newspapers. In developed countries, like the United States, newspaper volumes have been falling because majority of sales come from newsstands, where people pick newspapers themselves.
India will keep witnessing a lot of population taking to newspaper readership with more people becoming literate. Television and newspapers will still remain the preferred path to accessing information in small towns, where still majority of Indians reside.
What will propel growth?
Domestic consumption in India is the biggest driving force behind economic growth. With this, consumer-product companies, like FMCG and automotive companies, will keep shelling out a lot of money on advertising. Newspapers will remain the preferred media channel to connect to the masses in India. In fact rising e-commerce has come as a blessing in disguise as they are using print media heavily to gain more market share. Amid rising digitisation, print-media companies are letting no stone unturned to take benefit of smartphones and online reading by focusing on websites, mobile-based applications and online content.
Why print is here to stay
Book publishing will benefit from digitisation
In the long term reading is expected to transform from physical-book reading to digital and online reading. This is beneficial for publishing companies. First, the delivery system will be faster and, second, companies will see logistics and printing costs come down heavily. This is a win-win situation for both readers and publishing companies. Access to e-books is convenient, fast and relatively cheap. Therefore, they will boost volume growth. The companies in the listed space, like Navneet Education and MPS, will continue with their high return on equity for the long term.
https://www.valueresearchonline.com/story/h2_storyview.asp?str=29330
Thangmayil jewellers ltd (12-11-2015)
Its been two and half years since this thread is active.. there have been lot of changes in this company. After a two years of sluggishness again it seems to be on the right track..
It is in turn around stage from last two quarters and posted good numbers in Q2FY16.
What went wrong
Aggressive expansion by leveraging debt
Gold price reduction and there by lesser realizations
industry and govt policy changes
Inventory pile up and when the gold price reduced went into losses
Corrective measures taken by company
Cost cutting by various means -
Investing in technology ( SAP & iQlik) and reduced inventory
decrease in adverstising spend
No new stores until current stores stabilized
Cost cutting in operations and mfg - Employee strength is reduced
improvement in Working capital and inventory turns
Reduction in debt
Positives
30 stores with 25% Market share
Good brand recall in its own territory
Gold prices are stabilized around 25K to 26K
Favorable policies by govt
Same sales growth is good even though ad spend is reduced
Volumes are growing but realizations are less so far. since prices are stabilized, realizations will go up
last two quarters shown turn around
Dec Qtr is biggest and expected to post a good net profits
Negatives
Competition is high and no new stores planned for now
Others who are monitoring closely please post your views.
Disclaimer: Not invested yet.
Entertainment Network India Limited (ENIL) (12-11-2015)
(post withdrawn by author, will be automatically deleted in 24 hours unless flagged)
A Gentle and Practical Introduction To Value Investing (12-11-2015)
I have read much of this accomplished persons blog and continue to follow his readings/ teachings/ learnings.
In my opinion, his writings are unparalleled.
His blog is a must read even for those not related/interested in stock market.
The purpose of anyone's careers/work/profession is not only to make money but also grow, survive, adapt. He is a master at linking excerpts from Buffet, Munger ,accounts, finance, teachings on evolution, adaptation, and linking them in plain english language.
REPCO home finance – another Gruh in the making? (12-11-2015)
Canfin has been growing superbly, need to study more on it. Do you know why its NIM , ROA is lower at 3%, 1.2% compared to Repco at 4.4%, 2.3% respectively? Is it because Repco lends to non-salaried segment which is at higher rates?
REPCO home finance – another Gruh in the making? (12-11-2015)
Look at the growth of CANFIN, it is expected to grow the fastest with 41% PAT growth expected over FY 15-18 (source MOSL)...they have target to reach 35k crore loan book by 2020.. So no doubt repco is great and I hold it... but I would say better to diversify in two hosing finance companies(esp when options are available) than betting too much on repco,