thanks Ankit and Jatin. Yes, its under planning stage. Am not able understand is it a good move by company to diversify when so many are already present in HFC(specially with Gruh in low ticket size) 
Posts tagged Value Pickr
Arman Financial Services Ltd (10-12-2015)
Arman Financial Services Ltd (10-12-2015)
Hi Jatin and Prashant,
Ya even I went through the concall again and heard about the company’s plan to enter HFC. As Jatin said, it seems to be at planning stage and will take years to reflect in numbers.
TAKE SOLUTIONS LTD- will you take it? (10-12-2015)
I always wondered how come the company is paying taxes at so low rates.
In q2 fy 16 it paid taxes at 10% whereas for first half of fy 16, its less than 10%.
And I dont think it has carry forward losses of earlier years?
One logic is acquired companies could have carry forward losses and might help in lower taxes but couldnt find any answer on the above tax query.
disc: no position.
Anchor rate of corporate earnings growth (10-12-2015)
@hsriram Thank you for sharing the data.
If you compare FY 05 EPS to FY 15 EPS of these figures the EPS growth on a CAGR basis is 10.9%.
For FY 05 EPS, add June 04 / Sept 04 / Dec 04 / Mar 05 figures. This comes to Rs 2044.07
For FY 15 EPS add June 14 / Sept 14 / Dec 14 / Mar 15 figures. This comes to Rs 5,744.88
FY 15 / FY 05 is 2044.07 / 5744.88 = 2.81. This is a CAGR of 10.9% over 10 years.
Further there is some doubt on whether the EPS data is standalone or consolidated. I had mentioned elsewhere in the forum that at least the NSE Nifty data is for standalone; and for an equity investor consolidated numbers give the right earnings, not standalone. I suspect Sensex data is also standalone EPS and not consolidated EPS. Consolidated figures will give you a difference picture because in general overseas earnings (which constitute bulk of the difference between standalone and consolidated) growth are much slower than domestic earnings growth after the 2008 meltdown.
Unlike the Nifty the Sensex components and its weightages were not found in the BSE website so I cannot manually compute the EPS figures to verify.
Thanks,
Arman Financial Services Ltd (10-12-2015)
Hi Prashant & Ankit,
Yes, they mentioned about plans of entering into Housing finance only.
But this was the first time it was mentioned & from their talk it looked that plan was at very very basic stage only.
Will take atleast a few quarters to implement & should take atleast a few years to reflect into numbers.
Also, i think, they will look to lend to their existing set of customers only for this.
How to go long with leverage? (10-12-2015)
If at all you have to do this (and I don’t recommend doing it) I think you’re better off taking a very long term loan and putting that in leveraged stocks. The loan collateral should be negatively correlated with equities, ideally. At the very least should have no correlation. Two assets come to my mind: gold and real estate. So I’d say the ‘safer’ option is to take a loan against gold or reverse mortgage your house and ‘play’ using that money.
Disc: I’m personally very much against this, but find this an intellectually stimulating exercise.
Anchor rate of corporate earnings growth (10-12-2015)
Thought I will share what I have for Sensex for the last 20 years.
This is BSE’s reported EPS for Sensex and not estimated ground up.
The growth rate there happens to be 15%+ for the period 2004-14.
Don’t know how it can be so different. Sensex.xlsx (46.6 KB)
KRBL- The King of Basmati rice (10-12-2015)
CAG is over exaggerating things. This is what happens when accounting ppl who don’t know have field experience try to evaluate things.
The value of by-products taken by CAG is of too extreme amount. The by-prodcuts market value fluctuate a lot which even a rice miller can’t estimate. Sometimes they raise 200% in a month and same time goes to 25% of value the other month.
The major scam is going on other side i.e the p.d.s distribution side. There are many ppl who buys this p.d.s rice from distribution ppl at Rs.2 repolish it and sell it for around Rs.10. This is a major scam.
& there is other scam. Officers who give paddy for custom milling directly asks millers to take a kilo extra(101 instead of 100) while taking paddy and share that amount with them.
Vinati Organics (10-12-2015)
Had a short discussion with the company secretary. Key takeways:
1) Some demand on the volume side is getting affected due to fall in crude. I mentioned the point decreasing use of Enhanced Oil Recovery due to a drop in crude and whether that had an affect on demand – he said yes. He did allude to the fact that profits have still increased.
2) There aren’t any client churning issues – no client has churned away and moved to competitors (clarified this as it was mentioned in one of the research reports)
3) He asked me to check the bse website as they have just submitted a disclosure today. As per the release: “Vinati Organics Ltd has informed BSE that the Company has entered into long term tripartite agreement with USA & Japan based Chemical Companies for supply of a customized product.Due to this turnover is expected to increase by Rs. 45 Crores in Financial year 2016-2017.”
Hope this was helpful.
Regards
Vinati Organics (10-12-2015)
As per this management interview, they’re buying back because promoter holding had fallen to ~72% after FCCB conversion and they wanted to bring it back to the ~74% levels which have been seen historically. Disclosure to bse was made because it is a guideline as per SEBI. Also interview makes it clear that management sees value in the stock below 500 levels that’s why buying back at these levels.