If we take geoeconomics into consideration I think two important long term trends stand out.
The ratification of TPP by the signatory countries' parliaments would make Vietnam and other southeast asian countries more attractive for imports into USA.
If Bangladesh can sort out its mess, companies operating from there would be a significant threat due to cheaper labour.
This makes it crucial for Kitex to get its branding exercise spot on,otherwise they risk slowly fading away into oblivion from the minds of investors.
Posts tagged Value Pickr
Kitex Garments Limited (26-10-2015)
Kitex Garments Limited (26-10-2015)
Hi Raman,
I respect your views and agree to an extent on few things. Saying 'to an extent', coz sometime we agree on facts but interpretation maybe different and sometimes even if we agree on facts and interpretation is same then reactions can be different
I started trying to invest seriously only since last 2 years and hence lot to learn. I myself have to put in a lot of efforts to follow the right things on the behavioural part. Find practising difficult Lots to learn on all fronts.
I try to follow what Sethufan has reproduced from Mr. Buffet below. But it becomes easy to practise that. if I think I have bought at the right price. I am not good at determining the right price. But none the less it becomes easy to practise in this case, as I am invested since much lower levels.
In Kitex's case going by the past comments of the mgmt. I doubt if they will ever sound less excited on any comments on the future
Happy learning and happy investing to us
Oriental Carbon and Chemicals Ltd (26-10-2015)
Good results.
Sales 223Cr vs 194Cr YOY
Net profit 45Cr vs 31 Cr
EPS 6.14 VS 4.29
Cash stands at 39Cr
Point to be noted is short term borrowings increased from 98Cr to 128Cr in last 6 months. Why do company require to borrow when they have so much cash and investments in funds? Not sure if something is cooking up here.
Modern Shares & Stockbrokers – Cash Balance is Less than Market Cap? (26-10-2015)
Hi,
Please look at break up of Cash&Bank Balance in Annual Report. 65-70% of Cash is FD against MM, Borrowings and Guarantees.
Kitex Garments Limited (26-10-2015)
Whenever in doubt, please refer what legends have said. I am just reproducing what Mr Warren Buffet said. It applies in this context. Instead of worrying about so many things like technical charts, qtrly results, half-yearly results, cash balances, other income, etc , lets ask one question Is it a wonderful business to be in. If yes, dont waver. If No , just sell and forget.
“That factor so overrides anything else. If you’re right about the business, you’ll make a lot of money … the timing part of it is a very tricky thing. I don’t worry about any given event if I have a wonderful business … With a wonderful business, you can figure out what will happen, you cannot figure out when it will happen. You don’t want to focus too much on “when”, you want to focus on “what”. If you’re right about “what”, you don’t have to worry about “when” very much”.
It is the business where the cost of final product is not expensive for a consumer but a necessity and in addition to love factor. Just compare AIA.
Has any factor changed the tag " wonderful busines" . Then highlight that factor .
Rgds,
Indian terrain—play on consumption (26-10-2015)
Points to ponder -
What's the point of purchasing Rs. 16 crore property and saving Rs. 1.8 crores in rentals and making additional Rs. 1.8 crore expense as interest cost. Interest considered at 11.25%. (Management made it clear that property purchase wont be done from QIP funds, but from internal accruals and borrowed funds). Not sure but the move seems to help sinking Celebrity fashions, not at all good move for Indian Terrain.
If this move was planned, why did they repay long term debt of 16 crores in Feb-March?? Again taking Rs. 16 crore fresh loan would involve 1.5% expense (processing fee, mortgage charges, pledge charges, legal documentation, valuation etc.)
What are companies future plans to use the unused Rs. 60 crores of QIP funds??
Indian terrain—play on consumption (26-10-2015)
You are correct, 9 years of rent. It will not be 15 because company needs more space and wants to take the entire facility.
Top 5 picks for 10 year horizon (26-10-2015)
Hi,
I think it depends on whether you want to inject new capital or do you want to change your horses. If it's the earlier case and you are willing to be extermely patient then conservatively speaking, I think one might think to buy it at 100 -110 levels in case the market takes a nosedive. If its the latter case, then I don't have much to say as it gets too complicated.
Indian terrain—play on consumption (26-10-2015)
It would almost be 9 yrs of rent I think on Rs 1.8 Crs. and 15 times present rent of Rs 1.2 Crs. None the less. Its just that I take any mgmt's justification on related party transactions with a pinch of salt.
Regards.
Top 5 picks for 10 year horizon (26-10-2015)
Hi Samir,
I think India is facing an energy and water crisis from quite a time. Sooner or later in the next 20 years this demand would have to be met. Be it through renewable sources of energy or the traditional coal way. But I think the main take away from the fact is whatever be the source, you need to invest on infrastructure for more dense and remote connectivity. So power transmission and water supply channels would have to increase dramatically. Being a newbie, I am sure this might be sounding amature as I am not providing any numbers but just a hand waiving argument but I think companies like Skipper Ltd have a bright future as their product portfolio caters specifically towards that. Although this market is regulated, I still think there is a huge scope to grow within this regulation as the demand is getting more inelastic in nature progressively.