Caution there. there are some 15 similar sized companies in the same vicinity of 30KM radius, famously the Raasi Cements which was forcefully took over by N Srinivasan of India Cements and Ex BCCI president in 90’s. The area is rich in lime stone on both either side banks of Krishna river which falls into both states, Deccan I suppose is on Telangana Side and India Cements also on Telangana Side, then there is penna, duncan, KCP etc etc … Mostly all political big pins own a medium size cement plant in AP & TG. I am not sure of the dynamics of market but usually most politicos are also big contractors here, so usually the cement plants are for kind of captive consumption … Some one should through a light on corhporjate governance and pollution issues beand union issues … Historically its a naxalite effected areas but nothing dangerous happening now but still I guess AITUC is having a strong union in these areas.
Posts tagged Value Pickr
MPS Ltd (06-10-2015)
Thanks a lot for your brilliant analysis as usual 
My only worry is the amount of time the management is taking to deploy the QIP proceeds and with no news whatsoever about it (the upcoming Q2 results and concall could throw some light).. The waiting time is too much and i must say that this is truly testing one’s patientce
On a personal note I had missed out on opportunities like Jubilant Lifesciences, Kitex and 8k miles but i believe that this is one stock that should be part of one’s long term portfolio regardless of the short term vagaries.
Regards
Sreekanth
MPS Ltd (06-10-2015)
Thanks a lot for your brilliant analysis as usual
My only worry is the amount of time the management is taking to deploy the QIP proceeds and with no news whatsoever about it (the upcoming Q2 results and concall could throw some light).. The waiting time is too much and i must say that this is truly testing one’s patientce
On a personal note I had missed out on opportunities like Jubilant Lifesciences, Kitex and 8k miles but i believe that this is one stock that should be part of one’s long term portfolio regardless of the short term vagaries.
Regards
Sreekanth
Satin Creditcare Network Ltd – Reaching out! (06-10-2015)
Vivek
I see that you have good exposure towards MFIs.. Whats ur views on competition esp that RBI has given licences to new payment banks + Mudra scheme launched by GOI? wouldn’t it hurt the business of these companies?
Regards
Sreekanth
Satin Creditcare Network Ltd – Reaching out! (06-10-2015)
Vivek
I see that you have good exposure towards MFIs.. Whats ur views on competition esp that RBI has given licences to new payment banks + Mudra scheme launched by GOI? wouldn’t it hurt the business of these companies?
Regards
Sreekanth
REPCO home finance – another Gruh in the making? (05-10-2015)
Hi, Please help me with following.
I want to understand how NIM, capital adequacy, growth and leverage relate.
RHFL’s CAR was 20.26% at Mar 31,2015 and for Gruh it was 15.36%.
RHFL’s D/E was 6.29 and for gruh it was 11.56(taken from screener)
Now as gruh has more leverage on their equity base compared to RHFL, it will help them to disburse loans at higher rate than repco can and also ensure higher ROE. Then why repco is not taking their leverage up? Is Higher leverage a good parameter or higher capital adequacy? Of course, higher CAR makes repco more safe theoretically than gruh. But is it something to worry about?
Is it because repco’s NPA levels are very high compared to Gruh’s and they have to maintain higher CAR?
Also how all of this relate to growth?
Please correct me if I am wrong at any point.
Shilpa Medicare -Racing away on the Oncology API highway! (05-10-2015)
I am hoping USFDA approval news after necessary corrections will bring in the next jump in the stock price. May be thats already priced in the current price. @ayushmit, what do you think as good buying price range for Shilpa for the newcomers ? Every time it goes below 900, i see some buying interest. And once in a while it is touching ~830 range in the past one year. Not sure if one should wait for such lows again.
Conart Engineers – debt free, cash rich infrastructure company (05-10-2015)
This stock seems to be attracting buyers lately. Looks inexpensive even now at the current price of Rs.34.70. Has anyone invested? Did anyone attend the AGM?
Disclosure: I’ve invested in this.
Deccan Cement : Dull company.Dull business.Big wealth creation opportunity (05-10-2015)
- Current Interest coverage ratio is 1.8 and it has never been > 3 in last 5 years.
- Tax paid last year is just 1.46 Cr against the PBT of 21.35 Cr. That’s less than 10%.
- The EPS has fluctuated widely in last 5 years. If you take average of EPS for last 3 years, it comes to around 15. With that the P/E ratio comes to around 30x, not exactly cheap for cement business. Agreed that TTM EPS is more than 50 and with that 3 year average comes to 30. That’s still P/E of 15 – not exactly cheap for cement business.
- CFO is consistently +ve and that’s a good thing but net cash flow has flirted between +ve and -ve and that doesn’t reflect promoter’s conservativeness.
- Poor ROE and ROCE ratios. Working Capital days between 40-60 in last 5 years and that’s again a good thing.
Disc: Not invested and not looking to
GRUH Finance – mini HDFC (05-10-2015)
its a hypothetical situation as mentioned before. I dont see gruh diluting equity soon.