Posts tagged Value Pickr
SBI Cards & Payment Services Limited (03-09-2024)
Although the rate at which the number of credit cards issued might slow down, the average expenditure per card user will continue to rise, given the spending profile of the youth and earning growth. Also, the linking of Rupay Credit Card in UPI shall give a boost.
Regarding unsecured loans, one can not deny the possibility of default; however, tightening KYC norms and bank due diligence before issuing credit cards are also increasing. I think this company shall do better than banks in longer terms.
Disc. biased view, top 5 holding.
Natco Pharma: Focusing On Complex Products (03-09-2024)
Hi @chikspat
Challenges:
Management acknowledges potential earnings dips post-Revlimid patent expiry, emphasizing the need for new product launches to offset declines.
Does any one know the expiry details of the Revlimid patent expiry? if you do know pls share.
Matrimony.com Ltd – Lot of opportunity to grow (03-09-2024)
As an ex-user of their platform, disappointed with the data quality and poor moderation. They seem to purposely leave data of married, inactive and duplicate profiles despite reporting. Have used their competitor platforms as well, found the data quality was better and the profiles relatively more responsive.
Disc: No holdings. This is just my view, others experience might differ, which is fine.
Ashiana Housing – Banking on Tier II and III towns! (03-09-2024)
Ashiana Amarah realisation at around 14,250 for phase IV. It was around 11,670 for phase III.
Hero Motor – Leader in two wheeler (03-09-2024)
August didn’t turn out to be the standout month that many EV manufacturers had hoped for,Sales in August dropped by approximately 25.05% compared to July, largely due to the middle-month effect caused by the Electric Mobility Promotion Scheme 2024 (EMPS), which runs from July 1 to September 30, 2024.
Dharamsi Morarji Chemicals (DMCC) (03-09-2024)
Anybody tracking this anymore? Company seems to be undergoing headwind
Kotak Mahindra Bank – Low Cost Liability Banking Franchise (03-09-2024)
NPA provisions continue to rise sequentially in Q2 amid seasonal weakness – The Economic Times – NPA provisions continue to rise sequentially in Q2 amid seasonal weakness – The Economic Times
Sundaram Finance Holding – Auto ancillary mutual fund (03-09-2024)
This is a very interesting company. I used to hold Wheels India and it popped up as promoter share holder. Digging deeper I realized that this was an entity which was demerged from Sundaram Finance. Now TVS family has split and Sundaram group has gone to TSF group. They have their holding in all the auto ancillary companies directly and through SFHL. It is similar to Tata investments. SFHL also have mandate to invest upto 10% in other opportunistic bets.
Looking further at its holdings led to to realization that it was holding 23.57% in a gem called Brakes India Pvt Ltd. This is a high growth high ROCE business. A close comparison would be Wabco India. As these companies make complete system including actuation and not a single component, they command a high PE ratio.
Another positive is that none of its companies face EV disruption except for Turbo Energy which is 10-15% of valuation. Turbo chargers are still in growth phase in India. Non of Maruti engines use turbo chargers yet. Turbo charges in commercial vehicles are not going away.
Below table lists holdings and I have tried to do a valuation exercise.
| Companies | % Holding | Mcap (in crore) | Profit (in crore) | Assumed PE | Implied value |
|---|---|---|---|---|---|
| Brakes India | 23.57% | 716.00 | 50 | 8438 | |
| Turbo Energy | 32.00% | 265.00 | 15 | 1272 | |
| Axles India Limited | 38.81% | 86.00 | 20 | 668 | |
| The Dunes Oman FZC (LLC) | 43.69% | 56.00 | 15 | 367 | |
| Sundaram Dynacast | 26.00% | 20.00 | 20 | 104 | |
| Transenergy | 42.41% | 9.00 | 15 | 57 | |
| SBSL | 100.00% | 17.00 | 15 | 255 | |
| IMPAL | 20.00% | 1650 | 330 | ||
| Wheels India Limited | 23.96% | 2000 | 479 | ||
| TVS Holding | 6.49% | 30000 | 1947 | ||
| Sundaram Clayton | 7.49% | 3540 | 265 | ||
| Sundaram Composite | 39.00% | Annual report | 15 | ||
| Lucas-TVS | 5.32% | Annual report | 65 | ||
| Delphi TVS Technologies | 3.19% | Annual report | 20 | ||
| Fettle Tone | 2.71% | Annual report | 87 | ||
| Cash and equivalent | Annual report | 720 | |||
| 15089 |
Fettle Tone is one of promoter of Max health insurance.
SBSL – Sundaram Biz Services Ltd is into IT/BPO
Current market cap even after a sharp run-up is 9000 crore.
Below link summarizes performance of SFHL and its major holdings.
Disc: Invested around Rs 200. Not a buyer at this level.
But I am very bullish on Brakes India. This can command much better valuations with getting into advanced braking solution. They are catching up with Wabco. Infact Brakes India was JV with ZF and when ZF acquired Wabco they had to divest their stake in Brakes India to meet Competition Commission requirements as both companies were in similar biz
Indian Energy Exchange (IEX) (03-09-2024)
IEx.pdf (616.1 KB)
