Regarding the earlier question, the “Undrawn Sanctions” were mentioned along the lines of Asset Quality.
Posts tagged Value Pickr
Shivam27’s Portfolio and Investment Journal (29-05-2024)
Thanks a lot for the detailed answer… the dedicated capacities in case of Azad remind me of innovator pharma CDMOs where customer pays upfront in some cases, partially funding for their dedicated facilities… looking ahead to having such discussions thanks
Aptus Value Housing : Is valuation justified or just another HFC? (29-05-2024)
Thank you bud.
Also, when it comes to disbursement numbers (Asked by Mr. Nidhesh, Investec), Mr. Balaji wants to answer the question offline, pretty weird no?
Karan’s small/micro cap portfolio (29-05-2024)
Thanks alot Karan.
Regarding Q4 in particular.
Results seem confusing to me me.
They are down in topline also YOY.
On contrary peers haven’t degrown yoy in last quarter.
But flip the coin and take it back to Q3, their results were surprisingly good compared to all peers.
Again like I said can’t make sense, how they have degrown in revenue as well this quarter when same is not reflecting in peers like kaveri etc
Easy Trip Planners (Easemytrip) – An outlier in OTA (29-05-2024)
They already lost control on the core business
Dreamfolks services limited( DFS) (29-05-2024)
Its not OPM, they are talking about Gross margins and they are achieving this target.
There was hit on Gross margins few quarters ago so the bottom line dropped significantly. Now they are targeting 11-13% GM
Karan’s small/micro cap portfolio (29-05-2024)
Hi Jhon Azhar,
I follow Mangalam Seeds, and to be frank, there are some concerning signs alongside positive developments. It feels like management could be more transparent.
Firstly, their financial reporting changed. Previously, production expenses and stock purchases were separate. Combining them this year makes it hard to analyze margin changes.
Secondly, recent results might be outliers. Seed companies like Kaveri Seeds and Bombay Super typically see stronger sales in June and December quarters, with March and September being weaker. Mangalam Seeds’ 37% margin last year seems unusually high.
Thirdly, margins have dipped in the last two quarters. It seems they might be prioritizing growth over margins, which wouldn’t be a bad strategy in itself. However, unlike competitors experiencing sales growth, Mangalam Seeds’ sales are down year-on-year, suggesting they’re losing market share even with lower margins.
On a positive note, two new additions – Kena Print (subsidiary) and Sharayu Mangalam Seeds (associate) – have significantly boosted consolidated results. These outperform the company’s other four subsidiaries. However, an investment in Sharayu instead of a full acquisition raises some questions.
Overall, Mangalam Seeds seems to be on a growth trajectory, but potentially with lower margins. Management focus might be shifting towards developing Sharayu. Additionally, their reliance on debt for growth is concerning, especially considering potential interest rate hikes and their negative cash flow from operations.
In conclusion, Mangalam Seeds presents a mixed picture. Their performance in the upcoming June quarter, typically strong for the seed industry, will be interesting to watch.
Aptus Value Housing : Is valuation justified or just another HFC? (29-05-2024)
Undrawn sanctions are loans approved but not disbursed.
In HFCs, these could be lines of credit approved from NHB, Banks or other financial institutions.
I’m not sure if this has any correlation with Asset quality, as you mentioned. You might want to elaborate a bit.
Gensol Engineering – A play on Energy Transition (Solar Energy & EV) (29-05-2024)
Debt is indeed growing at a fast pace, however this is mostly because of their EV leasing business.
You need to look at the EV leasing business like a NBFC, which takes leverage to generate interest (leasing) income.
In Gensol’s case, the EV leasing income comes with additional perks of value-added services and maintenance contracts (Over and above the leasing income). Most fleet owners are happy to pay extra for services like insurance claim management, OEM warranties, etc.
Moreover, the solar EPC business is quite working-capital intensive, so I am sure that business also requires some working capital loans, given the fast pace of growth.
Coming to the EV manufacturing business, I believe it is largely funded by Equity, as far as I know.
Due to the asset heavy nature of overall business, the reported PAT margin might come down due to depreciation cost, however, as depreciation is a non-cash expense, Gensol’s operating cash flow will remain better than reported PAT as a % of sales.
This depreciation arbitrage will help them on higher interest coverage, lesser taxes, etc.
Regarding pledging, yes, it is quite high, however, it seems to be a common feature among EPC players in solar space. KPI Green promoter has also pledged 45% of their equity.
This is my humble understanding. I am not a CA or financial expert.
Please do your own research.
Aptus Value Housing : Is valuation justified or just another HFC? (29-05-2024)
Hey guys just a quick question, I was going through the transcript for Q4 FY24, and when it comes to the Asset Quality Part, what does Mr. Balaji mean by “Undrawn Sanctions”?