Hey, The formula that we use to calculate the PEG ratio is PAT/Profit growth 5 years. We take the historical PAT growth for the above calculation
Posts tagged Value Pickr
Research report (04-06-2024)
Hi @Deon_D_Almeida I believe reading through the management commentary from the annual reports is the best way to research about a firm .
But if you still want the research reports i guess reading through the reports of motilal oswal is a good starting point .
@Community Members please add to this if i am missing something
Mudit’s Portfolio (Stage Analysis + Relative Strength) (04-06-2024)
thank you @Mudit.Kushalvardhan for the guidance
Heritage Foods Ltd (04-06-2024)
There might be some political flavour to it but largely the rally was driven by stocks under Rural Consumption theme defying the crash. This happens to be one of them.
Heritage Foods Ltd (04-06-2024)
Chandrababu Naidu has won the state elections. The stock price seems to factor in Andhra state’s market as it was majorly pushed out during previous government’s period. Is the company reflecting fundamentalsad expected growth or is going up the hype train?
Punjab Chemicals & Crop Protection Limited (PCCPL) A Clear Runway Ahead! (04-06-2024)
1 good point was: for multiple future looking questions, management didn’t commit any number and kept the answer open ended. In an uncertain market, it is good to be honest that we don’t how situation may unfold.
1 not so good point I observed management saying “its industry wide phenomena”. Yes everyone is affected but it can’t be repeatedly used as a shield to justify your own performance.
Another point is, they want to do Rs. 1000 - Rs. 1500 cr additional sale in next 1 - 3 yrs, for which they will need to do capex of ~ Rs. 200 cr. Since, they don’t have much of cash balance, large part of it will be debt funded, thereby stretching there D/E further.
Disclosure: already Invested and added further in today’s market meltdown.
Digispice – play on the rural economy (04-06-2024)
Hi @Nash
The kirana wala hepls in both withdrawing and depositing money so you have to take the net effect into consideration.
The transaction is done through AEPS and it takes place from the bank account of the customer.
Oil India- has its time come? (04-06-2024)
Today’s 10-18% correction in ONGC and OIL stocks just shows how disconnected their rallies have been from reality. When oil prices have been stagnant globally and production of these companies continue to decline, and them being run so inefficiently, market was giving them premium on one pretext or the other.
Hopefully from here onwards, earnings take over.
Mukka Proteins-Newly listed company worth studying (04-06-2024)
Key issue is that the company has significant negative cash flow from operations in last 5 years.
Profits have increased by 40% CAGR but cash flow from operations continue to be negative. Major contributors to this are high receivables (60% of PAT) and high inventory (looks like they’re expecting better demand or poor planning on their end)
Peers like Avanti (to whom it supplies and is in a similar cyclical sector) and Godrej Agrovet continue to have positive CFO with low receivables and inventory costs.
From the RHP: “However, our operating cash flow before working capital changes is positive for all the periods disclosed above. Over the years, cash flows are used in building higher inventory levels, receivables and paying-off creditors in
line with the growth of our business”
However, the company is available at relatively cheap valuations and is offering decent growth. PEG ratio is 0.35 right now. Also, there have been a few instances of decent stock returns even if cash flows are negative like Tejas networks, Inox Wind, etc. Imho feels like a low risk, potential high return or no return bet.
Plus, this is proxy to Avanti in shrimp feed sector where turnaround is expected and valuations here are cheaper. Though Avanti is a better run business (personal observations)
Rural Elect Corp (04-06-2024)
Stock is down 23% today and I only hope that retail investors can maintain their conviction in the stock through further possible fall.