My 2 cents
Either way, something has to give
Disclosure : not invested.
Nifty has corrected but CNX midcap and small cap has not. Hence the feeling of BULL market
I think the expectation of 2200 crores odd sales in q2 from torrent was a bit too much. Esp in view of increased competition and price erosion in abilify.
Domestic growth was lackslutre but it was a deliberate strategy by the management as oulined in concall post q2 results.
On positive side there are two news
First is that Dahej facility has started production in line with expectation and
Elimination (albeit for a short period) of DRL and Hetero from nexium opportunity.
Negative is that market itself is weak and pharma sector is hurt sentimentally by problems faced by DRL and Sun.
Thanks saji for the report.
Off topic. Does anybody know on what basis do these brokerage houses arrive at the estimate numbers?. If you look at the various numbers like sales, ebidta, profit etc they values like 2259.7 , 493.3 etc. Why not a round off value like 2260 or 500 etc?
From what I understood, its spread between q2 and q3. Around 20-25 days in each quarter.
in case of anant raj industries
it has several sez. specifically manesar one.
it has a occupancy of 40 odd percent which can increase due to congestion in gurgaon.
also land in bagwandas road is worth more than debt.
once real estate market looks up, it will become multibagger and in bad times it has a lifeline in form of rent.
ksk has a rs 5 plus ppa with up of 1000mw and 500mw with tamil nadu.
ppa are scarce today. also numbers may vary a little as i am busy today.
wait for 2 years. it will be earning pataka.
simple logic: let asset to start and sweat the asset till you get sufficient returns.
You have captured all points very nicely.Just to add, they perform this write off (due to product return) every Quarter, however in Q2 40% of non cotton products were returned, so 55 Crs were written off against 22cr last year.
They are going to appoint one of the Big 4 as Auditors starting April 2016,mostly E&Y.
I was not comfortable with few points discussed during concall
1)Not yet finalized Dividend policy, they said they are focusing on sales and other tasks etc. but will form a policy soon -This is going on for a quite a while now
2)Guidance of 1.1 million production in August concall and cutting down the same to 0.9-1million – They give orders by June, so this should have been told in august itself.I could not understand their explanation of faulty batches/same cost etc.
3)One investor asked if there was an income tax raid 2-3 months back- Mithun chand strongly denied the same however is this a normal occurrence in conference calls[I have attended very few conference calls in my investing journey so this kind of query looked very strange to me]?
Disc – Invested at higher levels few months back
Actually market was expecting much more from Torrent @ to this report by idirect http://content.icicidirect.com/mailimages/IDirect_HealthCheck_Nov15.pdf
@saeyons, w.r.t business scale this may be helpful..
“The typical lifespan of a conveyor belt product varies from two to five years; after this there is need for replacement of repair work on the conveyor belt or part of the conveyor belt and this provides long term visibility to company revenue generation.India’s Twelfth Five Year Plan (2012-2017) has projected better growth prospects in industries such as Coal Mining, Cement, Steel, and Ports, which are some of the major end-users of conveyor belts in India. The growth in these industries is expected to drive higher demand for conveyor belts in India in the coming years.”
http://smallcapvaluefind.blogspot.in/2014/11/somi-conveyor-beltings-make-in-india.html