@vinamrachaware - good effort.

Couple of questions:
1. How did you arrive at the FCF figure of 44 million?
2. Assuming the initial cashflow as 44 million, what is the logic behind growing it by 13.7%?

I am raising this question because textile industry by nature is very high capex intensive i.e. in simple terms it needs frequent upgradation of technology, machinery etc to compete with other players

If you see the historical FCF generation of Ambika, I think it has generated positive cash flow in only 4 out of last 9 years which includes major capex in 2007, 2008, 2011 and 2014. If you apply negative FCF every alternate year based on historical trend, I guess the fair value will go below CMP.

ICRA Upgrade the NGL rating from A3 to A3+

ICRA ratings for Indian debt instruments-Aug 26

NGL Fine-Chem Ltd ST: Non-FB A3+ 35.5 Upgraded from A3

Amit
As per my calculation Fair value came 1742

kindly check below image & calculation

ambika fc.jpg1928x996 131 KB

Hi Hitesh,

I wanted to know ur views regarding Force Motors.
My rationale for it is

Market Cap of 3100 CR Debt To Equity 0.02 Mcap To Sales 1.29
Although we cannot directly compare it to Atul Auto But it seems cheaper on above parameters.
Also it manufactures Engines for Mercedes and BMW.
There Operating Margin Seems to be Stabilizing near 11 (Quatrely OPM)
They are a Dividend Paying Company
Comapany is is operations Since very long have been acuired by Jaya Hind Group

Above points Plus the Strong Presence of Their Force Traveller and also increasing number of luxury cars in India (BMW and Mercedes) Gives me Confidence.

(Form My Office to Home in a stretch of 9 Kms I almost site 40 Force travellers)

However I went Through their last Annual Report in that there was no mention of manufacturing of engines
for Merc and BMW also on their site their is no information of these products.

Also one general question
What do you do in such situations where U r seeing the the Company products are being used company posting decent numbers paying dividend but information about their products are not fully covered in their Website or AR.

Regards,
Kapil