Kaveri Seed thread being re-opened.

Please be mindful to ensure value-addition and balanced discussions.

Let’s try taking discussions objectively forward by collecting more data-points, as also reflecting on quality of the business.

Its true that floods have hit Chennai badly… My heartfelt feelings are with the affected.. But coming to its effect on repayment of housing loans.. ideally a person opts for home loan considering their long term stability in income and such situations are bound to arise in anyone’s life… I am aware that Chennai floods have affected people at large and its not an isolated event for an individual customer, hence I feel that people may find tough to pay their immediate EMIs but certainly its not going to take long when things will turn GOOD for people and they will be able to bring things to normalcy including paying long term plans of life e.g. housing loans

I feel that its impact on Repco’s earnings will be minimal & even may not see any noticeable impact in Q3 or annual results.

Like a job, one should compare earnings per hour. If you are trading in derivatives or significantly leveraged, you may be spending ten times the time on screen.
Even if your total earnings are up by 30% or even more, your earnings per hour of work or screen time is significantly lower.
In developed countries, even regular jobs are compared on per hour money and not total money.

Cheers

Hi All,

I just came across this thread.

I am actively involved in manufacturing of small industrial transformers since last 18 years & also am a retail value investor.

Recently, I had set up a manufacturing unit of Oil cooled Distribution transformers, normally used in Residential, Industrial & for power utilities.

The rules of the game here are totally different. The sector is marred by cut-throat competition, unethical de-rating of transformers, red-tapism by state owned public utilities, & very low customer bargaining power with the manufacturer. ( there is no moat, unless one gets into very huge transformers, where the competition is less severe ).

The margins have been on a considerable downfall since 2008-09 & dont have a chance to pick-up either in the near future.
.
I was invested in Voltamp a few years ago. Although the company has an excellent management, respectful brand in the market, debt-free financial books, yet the sectorial problems will not allow them to show sustainable positive growth.

All in all., I would suggest everyone to completely stay out from this sector & look for better profitable avenues.

Regards,

Mukesh Tolani

Release of pledged shares :
JM financial has released most ( 5% of 5.22%) of the pledged shares.