Rohit, Hitesh,
One of the reason for higher valuation to DB Corp is their ability to enter any given market and start as No.1 or 2 newspaper from day 1 of circulation, which no newspapers in the world are able to achieve. This reduces their gestation period.
Posts tagged Value Pickr
Jagran prakashan (03-11-2015)
Zen technologies – A micro cap in the defense space- Can it be the next defence multibagger? (03-11-2015)
Director Ravi kumar is taking pay of only 30Lakh Rs which is very modest for 20Year experience and he owns 8 lakh shares.
Ashok Atuluri took 1.4Cr salary in 2012 when they were in profits. 2013, 2014 he took only 30Lakh
Management looks to be honest and incentives are tightly coupled with performance.
INDIGO ready for takeoff :airplane: (03-11-2015)
Aviation sector in for good times thanks to low fuel prices,huge opp size n new NCAP ie new civil aviation policy.
Zen technologies – A micro cap in the defense space- Can it be the next defence multibagger? (03-11-2015)
Starting a new thread on a defence based micro cap Zen technologies
They basically prepare simulators in the defence sector primarily landbased as of now. Here are a set of links all should go
through:
- Please go through this interview
- Please read through the future of the simulator industry in India
http://www.defproac.com/?p=820
- Several videos on the simulator technlogies you will find in the media section on the company website.
Here are some viewpoints to kickstart the discussion.
- The current sales is just around 80 crores.
- The land based simulator potential over the next 4 to 5 years is more than 5000 crores.
- The fastest growing section is in the aviation space. Zen is foraying into it with typing up with Rockwell Collins
http://www.zentechnologies.com/news/Zen-Technologies-Rockwell-to-unveil-collaborative-effort-at-Aero-India-2015.php - The CMD indicated that they are at advanced stage of negotiations for a 500 crore order (5x of current turnover).
- Huge operating leverage in play (Above 100 crores operating margins go up to 30 percent).
- The CMD indicated they they could make a stake sale of 24 percent to strenghthen their products especially in the aviation space.
- The make in india push and defence offset clauses have made a sea change on the environment in the defence industry.
Astral polytechnik ltd (03-11-2015)
"In a parallel development, it made an allotment of 1.38 million equity shares on preferential basis to Parikh, who had founded Kanpur-based Resinova Chemie in 1995, at a share price of Rs 425.93 apiece, aggregating Rs 59 crore (approximately $9 million)"
Read more at:
http://www.vccircle.com/news/technology/2015/11/03/astral-poly-completes-acquisition-resinova-chemie
Control Print – Deservers attention? (03-11-2015)
I think no one's looking at the ballooning receivables - the company now has Rs. 35 Cr. of receivables outstanding - up from Rs. 25 Cr. last yoy.No wonder the company authorized an increase in authorized share capital
Look at operating cash flows - all of the profits go back into inventory of FG that they maintain at customer's end. I am not sure if this is healthy in the long run. This is reflecting in the increasing WC debt too whch is up 25 % or so.
Merck Limited: The Most Undervalued MNC Pharma@ High Growth (03-11-2015)
Some aimless rambling. Even after reading it over two times, I am unable to make out what is it that the author wants to convey or maybe senility has overtaken me.
Motherson sumi : Recent opportunity to buy (03-11-2015)
Yes very well explained by Raj
motherson sumi is B2B business.
It has business in over 80 countries and is the leading suppliers as OEM to all major automobile companies of the world.
Though it's profit margins are less but this company is generating ROCE of 30-40% consistently over last 10 years.
Currently it has been beaten down by the Volksvagen issue.
Disc : Invested
Merck Limited: The Most Undervalued MNC Pharma@ High Growth (03-11-2015)
"The net profit is at Rs 1000 crore on basis of the recent results declared."
What is the turnover (ie annual sales) of Merck?
Motherson sumi : Recent opportunity to buy (03-11-2015)
Hi @Dhinakaran,
Actually it won't be fair to judge the efficiency of 2 companies based on the margins alone.
Some kind of businesses are more likely to have better margins while other's don't and there are multiple factor's influencing this. One of the factors is, if the business is customer facing (B2C) or business facing (B2B) But even in this factor there are all kinds of case like below...
B2B business - low margin. Maybe because they don't offer anything unique and their product/services are easily replaceable. So the basis of the business is their ability to conduct their operation efficiently and not add too much cost for the value they create in the value chain. Example Motherson Sumi ,Agri commodities company?
B2B - high margins - Probably because they create something which is not easy to replace - ex - Shilpa Medicare, AIA ?
B2C - low margin - Example: Road side restaurants ?
Finally B2C - high margins - because they create something which user doesn't want to replace with anything else ? Example : Amara Raja (is a mix of B2C & B2B), Eicher etc, Apple ...
Among other things industry structure and competition also decides the margins to a large extent.
I humbly suggest, you read more about Michael porter's work to understand these dynamics better.
Hope I was of help.
Regards
Raja