Like seriously? What is current year EPS? 21st Sept 2015 (Half year almost complete) - Current year is FY16.
Am I missing something really? When did markets start reverse discounting?

Assuming earnings growth of 20% as per management guidance, it is currently available at a PEG of 1.2
Neither expensive nor cheap.

Management integrity is a different ballgame (no comments on that) but it's definitely not expensive as per current valuations.

Disc - Invested at much lower levels and hold Repco as well

Key takeaways from the above interview:

1. MD Indicates that the demand scenario has improved a lot. This is corroborated by the 2nd point(below).
2. MD indicates rough capacity utilization of about 70-75%.(much higher than 62% last quarter)
3. He has indicated that Q2 will also be as good as Q1.
4. 2nd half of the FY is always better than the first half as construction activity picks up.
5. 90-100crores expected debt for next FY.

Risks are already highlighted in the previous posts.

Thanks,
Ravi.S
Disc - Invested

This is what Charlie Munger had to say on the board of directors.

Finally the institution of the board of directors of the major American company. Well, the
top guy is sitting there, he’s an authority figure. He’s doing asinine things, you look
around the board, nobody else is objecting, social proof, it’s okay? Reciprocation
tendency, he’s raising the directors fees every year, he’s flying you around in the corporate
airplane to look at interesting plants, or whatever in hell they do, and you go and you really
get extreme dysfunction as a corrective decision-making body in the typical American
board of directors. They only act, again the power of incentives, they only act when it gets
so bad it starts making them look foolish, or threatening legal liability to them. That’s
Munger’s rule. I mean there are occasional things that don’t follow Munger’s rule, but by
and large the board of directors is a very ineffective corrector if the top guy is a little nuts,
which, of course, frequently happens.

Well I see connected cars, life sciences systems traffic management as a very big theme in coming times. By connected cars I mean car as an extension of your mobile phone. KPIT is into the designs and solutions of vehicle safety and connected systems. In life sciences systems as well it is into several products like e-clinical solutions. One has to go through their website to understand the areas they are researching and working on.

It may not be in the same league as Tata Elxsi as far as innovation is concerned but they are working in right spaces. Moreover I see sometime in future management change happening which may provide triggers coupled up with throw away valuations.

With Thanks & Best Regards

Varun Jain Associate Architect ARCOP Mob - 09910507431 Off - 01126242050, Alt email-ID - Work - vjain@arcop.co.in