Good to know that u r attending the AGM. Can u pls inquire abt their debt reduction plans? A further decline in the debt, I think, would boost the bottom-line further as a third of EBIT is going into finance costs.
Thanks in advance
Posts tagged Value Pickr
Vivek Gautam Portfolio (14-09-2015)
Hi Ritul
I just wanted to reduce my leverage a bit.Hence the steps.Both Ambika & GRUH are excellent stocks to own otherwise.Your reasoning on Repco & Gruh is correct.
Syngene International IPO – Views invited (14-09-2015)
@Mahesh
I haven't gone through the numbers as of now. This is a new sector for me so trying to understand the sector and other factors influencing the company. Thanks for pointing it out though.
How to derive ROE using Dupont analysis (14-09-2015)
correct link
Syngene International IPO – Views invited (14-09-2015)
I was listing the possible things that can go wrong and it includes hedging risk also and in case of sharp depreciation of rupee against $ it might not go away in few quarters as hedges taken are more than double the size of current operation and must be spread over years....if you check forex losses trend over last few years then you will find over last 3 years company suffered cumulative losses of more than 100 cr. due to forex fluctuations......however, as you have rightly put, even I don't assign much importance to forex issues since its a pure business hedge but since we are here searching what factors can go wrong then it could include forex also.
Rgds.
How to derive ROE using Dupont analysis (14-09-2015)
Refer following link for better understanding
[ROE using Dupont analysis[1]http://articles.eomictimes.indiatimes.com/2014-08-04/news/52428487_1_profit-margin-dupont-company
Syngene International IPO – Views invited (14-09-2015)
@Mahesh Foreign currency risk even though always present shouldn't be a big factor. All exporters face such risks and their effect lasts at most for a couple of quarters and it evens out over the longer term so i don't assign a lot of importance to it. If the management doesn't have motives of making money from forex i would not feel rupee dollar rate to be a major risk going forward. A better idea would be understanding business risks playing out in the normal business operations
Syngene International IPO – Views invited (14-09-2015)
True Karan....apart from that if there is any GVK-type issue because of which there is disregard for a particular country like India could also affect business so is sharp depreciation of rupee, say it going to 75-78 could make it suffer hedging losses because of huge hedge contracts entered recently.....
As far as dedicated centre business goes, atpresent it contributes ~36 % to the revenues but there might be more dedicated centres on the way once CMS business approaches stabilisation and that is the most stable business for the company since contracts are long term and provide for enough compensation. Company might be inclined to encourage more clients towards dedicated centres.
Rgds.
VLS Finance limited (511333) (14-09-2015)
Sure. I will ask these questions. I myself need to review the annual report thoroughly for preparing my own questions.
Syngene International IPO – Views invited (14-09-2015)
The major force driving Syngene would be increased R&D spending by global pharmaceutical companies. Also companies would focus more on decreasing costs and hence would partner companies like Syngene. By reading RHP the major risk i could ascertain was with regards to clients of Syngene. Since it is kind of service related work one needs to monitor what are the developments taking place with the major clients of Syngene for eg. Bristol Myers. M&A activities in pharmaceutical companies can lead to alteration of these contracts which could have a material impact on earnings. Also any change in policy by these companies can only be known by studying the client companies in detail