The results are worse than I could have even imagined. Worse than topline drop is the margin erosion. This sets back the business by 1yr+ . It seems enterprise business is getting beaten up pretty bad not only from revenue perspective , but even more so by margin perspective.
Will understand better when investor presentation comes out. But these are first thoughts for now. Unless Uday Reddy gives an honest account for the business in call tomorrow, lots of investors are gonna foldup.
Had mailed the CS regarding the same. After a couple of reminders got a response along the lines of Please ask your questions at the AGM.
Have never attended Mangalam Organics AGM, do they answer all the questions posed by the investors?
Also, the CS of the company resigned in June, not sure if a new one has been appointed yet.
Well, I don’t know why my post was removed/flagged, it was some analysis on Embassy properties and it’s peers on a web site outside of share market. I thought it would have been useful.
(I will delet this myself in 24 hours)
I think sharda cropchem business model of buying raw materials from china in dollars and selling in Europe in Euros are responsible for current business headwinds due to dollar appreciation and freight cost increase. These headwinds are going to stay for few quarters. Mr. Market will give much better opportunity in sharda cropchem in terms of lower share prices. Ukraine russia war and climate change in europe are fuelling the headwinds.
Dis. Not invested will keep close watch.
Havent posted a portfolio update in a while. There has not been much to update. Very few transactions done since the last update:
Added Star Health: opportunistic buying to take advantage of the market fall. Wasnt unfortunately able to be even more aggressive. Below Rs500/share, or ~25x FY24 PE, this deserved to be a 10% weight.
Reduced HOEC: I clearly underestimated the risk of having just one major block. The company’s own history shows how risky that can be. Reduced weight here to reflect the risks. As long as it is able to keep producing from Dirok and B-80, company will be a big beneficiary of high oil and gas prices.
Exited Godrej Properties: Bad buy, and even worse hold at >2000. Did some more checks in the real estate industry and selection of projects and partnerships as well as execution track record leaves a lot to be desired here. While there was no capital loss, there was an opportunity cost loss here.
Dont have too many great opportunities at the moment. Re-looking at the MFI space. Seems to be at a cyclical low and the RBI regulation changes have improved the economics structurally and increased the TAM of the sector. Also doing work on the capital goods side: Ador Welding, Disa India, etc. DFM Foods also looks interesting at below Advent’s buy price.
Aside from that, I continue to believe the existing portfolio itself is quite well positioned. Banking and non lending financials continue to offer attractive opportunities to deploy capital.
Good results posted for Q1 FY23. PAT of Rs 2.5 cr. Both the revenue and the PAT increased QoQ.
Debt free status .
Next 1-2 years will be interesting .
Margin expansion and topline growth expected in next 1-2 years.
Next 2-3 quarters will set the tone for growth and margins .
Disc – Invested
Idea borrowed from Intelsense advisory .
Had been invested in elecon long back sold during downcycle in 2015.
Krsnaa Diagnostics to add 40 New CT Scan centers after winning Maharashtra and Churu tenders
The company has been continuously guiding for 10000 crore topline and 1000 crore bottom line for the whole of 2020 and till Sept 2021.
The results are just not in line. Kuch toh gadbad hai Daya!! 
USHA Martin Follow-up
Started covering it from 118 levels- about 28 days back . Now at 150.
Previously touched 140 and came back …today crossed it with lot of force- volume as well as price movement.
Next resistance is 165 – previous ATH…once that is crossed ,then it would enter blue-sky zone…no resistances on left , once DANAGER of overhead-supply gone then it can fly.
Disclaimer: Invested and biased. Opinions are personal, no recommendation,no suggestions.