Team VP is proud to have raised the bar again.
We are happy to bring to you a new initiative VP BizQuest – which will provide a peek into how Team VP goes about dissecting a promising investment prospect – every month.
This month – MPS Limited.
Please have a close look. Hope all of you tracking/invested in MPS are in for a special delight 
)
Hurry! Team VP might be deserving a special pat on the back for another special effort.
All businesses will trade at fair value at some point in time.With a strong base it will be difficult for any company to grow at 35% – 40% CAGR YoY . My mental model will be to calculate the projected EPS 4 years from now and apply a reasonable PE of 20 -22 times earnings and see where the price can head to. Unless I am convinced that there is enough headroom inspite of the stock trading at high valuations with my mental model I will restrain myself from investing. I always feel all stocks will trade at fair value at some point in time..
Page and Jockey as a brand is amazing but I am not sure whether an investor getting at this valuation will make higher risk adjusted returns
Okay. So I believe the increase in other expenses was due to that maintenance costs? Also any idea how much of the NCDs will be used for repayment vs capacity expansion?
I believe there was maintenance in Q2 due to which plant was shutdown and for the rest part of the quarter the capacity was 72%.
If they issue NCDs, they are going to pay off the debt and would be out of CDR. NCDs would be at lower interest rates so finance cost would be lower.
Thanks Sri Krishna. In Q1 capacity utilization was around 60-65% so I am a little surprised now with Q2 results where the utilization was higher. Is it solely due to lower realizations like other boarders have mentioned??
Secondly, as per debt covenants they were not allowed to expand capacity. They are not out of CDR yet. How is it they are going for expansion now? Also I believe the cycle of expansion for south Indian cement companies was over. Issuing NCDs for the same can disturb the balance sheet and demand/production balance. Now these cement companies in the south work as a cartel. How will this expansion impact it?
Can fellow boarders help me understand this please? Am I missing out on something? TIA
Disc: Invested
thanks for the link.
this might allow torrent to extract some more juice from the abilify opportunity.
Ujaas bags a 6MW order from Daman & Diu’s Electricity Department.
http://www.bseindia.com/corporates/anndet_new.aspx?newsid=2ada1a4e-4f90-4d57-8500-2a9d5951e8f3.
As per the BSE filing, its 4th order win in last 6 months. Ujaas on slow and steady *win the race mode.
Disc : Invested.
Being a value investor, I have not ventured into buying Growth stocks in the past 4-6 years. Whenever I have bought Growth stocks at fair or high valuations, have received not so optimum returns and have moved back to value investing.
MOST is good at researching into growth stocks, and do give recommendations at high valuations but some of those in the past have proven quite not so good. Some of the highly valued stocks in IT such as TechM, HCL Tech have corrected once their growth suddenly drops from above normal to below normal, so one has to be very cautious if you are paying for PE of 50 and above.
My assessment is that, competition is increasing in all sectors and some of the decent 30%-35% growth stories are seen suffering today with modest 20-25% growth and have not sustained high 50+ PE valuations for long time. It looks tough that, 35% growth will be sustained by PAGE for next 8-10 years to justify such high valuations. Being a cautious investor, I may sound pessimistic, but Mr. Market sometimes in sad mood can bring down valuations of strong business to realistic levels.
Being a value investor, I have not ventured into buying Growth stocks in the past 4-6 years. Whenever I have bought Growth stocks at fair or high valuations, have received not so optimum returns and have moved back to value investing.
MOST is good at researching into growth stocks, and do give recommendations at high valuations but some of those in the past have proven quite not so good. Some of the highly valued stocks in IT such as TechM, HCL Tech have corrected once their growth suddenly drops from above normal to below normal, so one has to be very cautious if you are paying for PE of 50 and above.
My assessment is that, competition is increasing in all sectors and some of the decent 30%-35% growth stories are seen suffering today with modest 20-25% growth and have not sustained high 50+ PE valuations for long time. It looks tough that, 35% growth will be sustained by PAGE for next 8-10 years to justify such high valuations. Being a cautious investor, I may sound pessimistic, but Mr. Market sometimes in sad mood can bring down valuations of strong business to realistic levels.
samirhuli,
Regarding pharma stocks I am not too sure at this stage which co from among the ones u mentioned is going to create the max wealth. But most of the US facing pharma companies who dont have regulatory hurdles are sitting pretty and are on track to make decent gains in next few years.
Regarding your comments about missing the bus, in case of the stock you are tracking or the girl you are wooing, its never too late to take the plunge. 