what about techinical perspective long term point of view, Hiteshji?
Posts tagged Value Pickr
KPIT – CASE (connected, autonomous, shared, electric) – Focused Automotive Play (26-07-2022)
Very good results. Revenue growth 6% QoQ and 23% YoY. Profit growth 8% QoQ and 41% YoY
Investor Update
Investing Basics – Feel free to ask the most basic questions (26-07-2022)
How to know components of other expenses in qtr results.
As ex. IEX’s Q1 results – under expenses – highest is other expenses 9.33 cr, followed by employee exp of 8 cr. Hence this is the most significant expense.
Any way to find more details? Thanks
Dolat Algotech Limited (26-07-2022)
FY22 Performance
Consolidated Numbers
In FY22, Revenue was $292.08 crores (10.57 percent growth YoY), operating profits were $200.79 crores (68.74 percent OPM; 11.09 percent YoY), and total earnings were 167.71 crores (57.42 percent NPM) (14.09 percent YoY). As of the conclusion of the fiscal year, the firm had no long-term debt and a strong current ratio of 1.81. A decrease of 25.39 percent was seen in the free cash flow for the year, which came in at 139.9 crores.
Please feel free to discuss or ask any questions you have about this company
Disclosure: Invested
Tanla Platforms ~ Leading player in the fast-growing CPaaS market (26-07-2022)
Competitors – Route, Valuefirst (twilio), ACL (Sinch), Ghupshup & few others. Most of them have market share between 5-10% except Route – which will be higher now.
Yes, platform is less than 10% of revenues right now. However, accounting for 25%+ share of gross margin (this quarter it is 30%) and hence extremely revelant. A doubling of platform revenue (going from 10% to 20%) would mean adding 25-30% on Gross Margin. Truecaller will be a mix of enterprise and platform revenue I guess – but wont be sizeable in value terms this FY. India’s dialy volume of A2P sms is 1.5bn+, I think they are just targeting 1bn+ message for the 1st year (from Truecaller Press release) which will amount to 10-20 Crore topline. Key is wisely international rollout on which they are delayed by over 2 quarters now.
Dolat Algotech Limited (26-07-2022)
Company’s Business
Dolat Algotech Ltd (former name – Dolat Investments Ltd.) was incorporated on 24th February 1983. The Company is engaged in the business of trading and investing in securities, Commodities (Castor oil, castor seed, cotton seed wash oil, silver, paddy, soya oil, Gold, raw wool, Hair oil and kapaskhali (Cotton seed oil cake)). The corporation stopped dealing in commodities in FY19 and now focuses largely on trading securities. Through the partnership firm Dolat Tradecorp, a completely owned subsidiary of the corporation, it also offers brokerage services. In light of its evolving trading method, namely algorithmic trading, the corporation changed its name. The business of the organisation is straightforward to grasp because there isn’t much to decode.
The company’s performance is positively correlated to the Indian capital and commodities market.
Dolat’s Marked to market income and Premiums on derivatives move sporadically over 2-3 year periods but show a long-term upward trajectory along with dividend incomes.
The cost of employee benefits, STT, dealer professional fees, delivery fees, and brokerage are significant expenses. The Company typically invests the excess liquid resources in mutual fund units and bank deposits to generate dividends and interest in the meantime.
ROIC VS CROIC of the company
ROIC
10-year average – 36%
5-year average – 35%
3-year average – 23%
CROIC
10-year average – 53%
5-year average – 46%
3-year average – 38%
The results are astounding, but they are declining, which is to be expected given how difficult it is to maintain such high rates over an extended period of time. These figures demonstrate that the corporation is not only creating book profits but also cash.
Management Team
Pankaj Dolatrai Shah – Managing director
Neha Purvag Shah – Director (Chairperson of Board)
Shailesh Dolatrai Shah – Director
Sunil Parmanand Shah – Director
Sailesh Kasanji Naik – Director
Monika Amit Singhania – Director
Mr. Vaibhav P. Shah – CFO
Mr. Sandeepkumar G Bhanushali – CS
Managerial Remuneration
Until recently, the managerial compensation was quite modest. When compared to the capital that the managers are required to manage, it is appropriate. The form of the compensation, however, is a drawback. The sole compensation for the MD is a base salary, while other executive directors get compensation in the form of perks like rent with no portion related to ESOPs. Although it is very little, executive directors do have some ownership.
RISKS
- The company is a small cap company which brings with it a potential risk of governance problems and substandard internal control and compliance systems.
- The company engaged in a lot of related party transactions (Brokering and margin facilities) which are, relative to other business transactions, inherently riskier (related parties – Purvag Commodities & Derivatives Pvt. Ltd, Nirpan Securities Pvt. Ltd, Jigar Commodities & Derivatives Pvt. Ltd, L. C. Raheja Forex Pvt. Ltd, Nirshilp Commodities & Trading Pvt. Ltd, Dolat Capital Market Pvt. Ltd, Shailesh Shah Securities Pvt. Ltd and Dolat Group Family Trust).
- Dolat’s performance is contingent upon the broad market performance (liable to volatility in the short run) as well as the competence of the management (change in the management team could be a threat) which adds to the fragility of the company.
- Bare minimum information in Annual reports
Disclosure: I have a small position in Dolat Algotech Limited. I have remained invested in this company for over a year now.
Source: ANALYSIS OF DOLAT ALGOTECH LIMITED – Financial Odyssey
Muthoot Finance (26-07-2022)
Interesting Q @Mudit.Kushalvardhan
Such correlation is observed in most stocks like Infy, Wipro even with Apple, Goog etc. However, some are God-gifted like AP, Pidi, Nestle etc. PE expansion went beyond reasonable duration, more than a decade for some minute minorities.
Can we say mean reversion for PE contracted stocks? I have not studied it much hence can’t comment. But interested to know other’s views/data etc.
If I summarise my pov AP, Pidi are exceptional, may not have more such examples. On the other ends not sure whether muthoot does mean reversion…
IDFC First Bank Limited (26-07-2022)
Just an observation .
This thread has one of the highest number of views (on a stock) on this forum.
A crowded trade ! Don’t know how many are stuck for how many years from higher levels !
IDFC First Bank Limited (26-07-2022)
There is thing called safety of fund as well ,while idfc does give 1% higher intrest rates but most people including me would park there funds in safer banks like hdfc or axis bank. Not only for safety but better products as well ,you could easily recover that 1 % by better credit cards alone .
From wealth management to credit cards both the banks is miles ahead of idfc,idfc outsources it wealth managment to hdfc or icici as told by my rm.axis netbanking is also better then idfc cant say the same for hdfc but with idfc i have seen the phone banking crashing and i am unable to transfer the funds for some periods of time and this happened multiple times.
The only reason i am using idfc right now is 3 in 1 zerodha account and there no charges on debit card for international transaction and unlimited imps transaction.If i had the money i would park my money in axis or hdfc.
Muthoot Finance (26-07-2022)
Mudit, 10 years is not long enough for the Munger quote we are trying to fit in these scenarios.
This comparison is prone to starting and ending point bias. Prevalent market conditions can cause the CAGRs to deviate. Maybe 20 years is a better comparison period.