How continental coffee is using the secrets of range architecture to conquer the Indian coffee market.
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The Second Act of ACT II !
How the undisputed popcorn king is planning to get himself a new throne in the cereal space and what’s been holding him.
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Har baap ka sapna, bas SETTLE ho jaye beta apna ! (completing the man !) A note on Raymond Franchise Stores.
India is a land of the plenty, unlike the US, not of opportunities, but of money. Every businessman daddy is trying to “settle” his beta with an enterprise. Being huge fans of rentRaymond has a target to open 300 mini-franchise stores in the next one year. I am of the opinion that not only will…
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Demonetization triggers Piramal Enterprise’s first ConCall in years !
Whenever there is wild spread ambiguity, i remember Pabrai’s distinction between risk and uncertainty loud and clear. In this specific case, the loan book concerns were about mortgage worthiness (risk) and cash flow/interest payments (uncertainty ). Piramal seems to have put off taking calls from investors all these years as the entire group structure itself…
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Bajaj Auto just shot itself in the foot with a Bullet !
Recently Bajaj Auto, released an ad on brotherhood day, an ad apparently to reduce discrimination in the Himalayas between the Bullet riders and the Avenger riders. Watch how it goes. I almost died laughing at the ad. It’s the cheapest shot of piggy backing on someone else’s brand name. The guy riding the Avenger, is…
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Who moved Jubilant’s Cheese ?
On August 2015, Jubilant traded at 1923 a share, thats a M.Cap of a whooping 12,610 cr.. Jubilant sold 2410 cr of pizzas(mostly) this year and made 114 cr after taxes. At 12,610 cr someone assumed that Jubilant is worthy to pay 110 years worth of current profits. 110 !!!!! I have something to say…
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MPS moves up the Value Chain
I just watched the future of the Magazine. It is mouth watering. Take a look before going forward.Mag+’s version of the magazine I attended the con call yesterday and there seems to be a bit of confusion in what MPS is doing. In reality, its actually very simple. Its just that we seem to want…
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People finally warm up to NBCC
An explanation of NBCC’s new 25,000 cr redevelopment contract.
Read MoreRevisiting Pat Dorsey’s Checklist on Economic Moats
Pat Dorsey’s little book-“THAT BUILDS WEALTH” The Game Plan IDENTIFY businesses capable of generating above average returns over many years. WAIT to buy, until they begin to trade at OR below their intrinsic value. HOLD till business deteriorates shares are extremely overvalued a better investment is found REPEAT till you die. Keep asking yourself what…
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“We make instant coffee, and take instant decisions !” – CCL Products
CCL Products fell by about 8% today, as the ANALysts (yes that was intentional 🙂 ) were unhappy with the growth figures, compared to last quarter/six months. I don’t know when they will understand that companies will not grow in a linear fashion. You just have to think long term. Most of their questions in todays call…
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Is Prem Watsa deliberately downplaying Quess Corp’s margin ?
Lets take the Business Wise audited financial results of 2015 for this analysis. Though this has been prepared for 15 months I would still like to use it as it as this would most likely be the result for 2016, apart from the KUONI deal. Businesses Performance for 15 months ending in March 2015. in…
Read MoreWhy Ajay Piramal does not want you to read the Standalone Statements. (and other updates from the 2015 AGM)
I was suddenly taken aback when Ajay Piramal said this, ” Please do not read the standalone statements and read only the consolidated statements. If you do so you will only be wasting your time.” While my CA instincts kicked in all i wanted to do was hold up a red flag, but then this…
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Piramal’s definitive 3 pronged approach.
I initially bought into Piramal Healthcare as it was a cash bargain. At 360/- a share you actually got over 600/- of cash ( ignoring all the irrelevant stuff like management, brand company history etc 🙂 ). The logic was that even if Ajay Piramal lost/mismanaged or stole 50% of the cash, my investment would…
Read MoreCCL Products – How about TAX FREE as a MOAT ?
In its Q1 2015 results, CCL generated a profit of 30 cr of which, Vietnam generated 10 cr and the entire amount was tax free ! Now how do you like this for competitive advantage ? This has been generated by using about 75% of the companies 5000MT capacity, which means that the company will…
Read MoreMPS Version 2.0
“ The last few years performance was attractive, but what we could deliver may truly be exciting.” Welcome to MPS 2.0 When technology disrupts an industry there is major chaos, and where there is large spread chaos, there is opportunity. More than anything else, it matter which side of the disruption you are on. MPS…
Read MoreMPS Changes Gear and FY15 Updates
MPS has completed another eventful year keeping in line its funda to keep its employee cost at 40% or lesser of the sales value. The standalone business has generated a PAT of 61.44 cr and its subsidiaries have generated 1.62 cr in profit. Very Impressive. The results can be down loaded from here – http://www.adi-mps.com/Investors/InvestorsOverview.aspx…
Read MoreWhy NBCC is a bunch of Mini Ratnas & FY 15 results discussion.
Check out the annual results from here : – http://nbccindia.gov.in/nbccindia/nroot/njsp/Financials.jsp The Sector Wise results are presented below: In Cr Total PMC Real Estate EPC Capital Emp 1,338 (419) 1,071 120 Revenue 4,632 3,917 508 207 EBITDA 433 287 109 36 EBITDA % 9.3% 7.3% 21% 17.4% The government has conferred a “Mini Ratna” status to…
Read MoreWhy you should hold on to every share of CCL
CCL Products products has a global production share of 5-10% of the coffee produced.(including Nestle) WOW !!!! There is no seriousl global player who has not heard of them, let alone dealt with them. And if you look at the client retention ratio, and the growth of the company over the last few years, it…
Read MoreStill skeptical about Zen Technologies
Initial Post on Zen http://biginvestorblog.com/2015/03/09/zen-technologies-practice-makes-perfect/ Zen just published their results yesterday. The jist of the results are as follows: Figures in Cr 2015 2014 Sales up 52% 70.54 46.35 Exepenses 59.91 47.34 R&D Expenses 13 14.85 EBIDTA 21.94 2.36 Interest 2.13 2.47 PBT 19.81 0.08 Tax 24% 4.87 0.00 PAT 15.73 0.06 No of…
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What Godrej Properties just did !
Godrej Properties has “first refusal rights ” for the 4,000 acres that Godrej Industries has in the mangroves of Vikhroli. Of this, Godrej Industries and Godrej Properties had an LLP for 35 acres, in which 28,00,000 sqft was to be built. The built up area was to be shared in 60:40, 40% being Godrej Industries’…
Read MoreEffects of the new Real Estate Bill
I hail from a family involved in the business of real estate and i have almost always had a bad taste for this business as I thought it was a business that represented the epitome of greed and irresponsibleness of our society. I was once in Singapore with the management of a company called Far…
Read MoreThomas Cook India – Fairfax ups equity stake and other updates
Thomas Cook allotted 1.827cr equity shares in lieu of 18.27 lakh preference shares to its promoters taking the promoters equity stake in the company from 72.9% to 74.7%. The total shares outstanding in the company today are 27.27 cr of Re1 each. http://www.bseindia.com/corporates/ann.aspx?scrip=500413%20&dur=A Stepping out of the preference cover to take on risks and rewards…
Read MoreZen Technologies – Practice Makes Perfect
“PRACTICE MAKES PERFECT” This is a quotation that almost everyone will agree with. When you are defending the country, the importance of this is almost unchallengeable. Zen Technologies makes SIMULATORS, for the Armed Forces, Air Force as well as the Police. They started of with simple driving simulators and today make a huge range of…
Read MoreCareer point – Now an Automobile Dealer ##@@#!#%^ !
Consolidated Results Q3 results in Cr Informal Education Formal Education Total (excluding auto division) CapEx 174 159 335 Revenue 19.55 (2.93) 16.62 Results 4.64 0.83 5.47 Finance apportioned based on CapEx (0.64) (0.60) (1.20) Expenses Unallocated apportioned (0.65) (0.61) (1.26) PBT 3.35 (0.38) 2.97 The management expects the company to cross a revenue of 70…
Read MorePiramal Enterprises – Q3 Note
Q3 in cr Pharma and Manufacturing Financial Services Information Management Unallocated Total Capital Employed 3221 9202 4293 (4607) 12110 Revenue 802 219 377 1398 Profits as reported -5 162 132 47 346 Profits without exceptional -5-2+34-18=9 162 132 47 350 Finance Cost -95 PBT 241 The Pharma and Manufacturing business has finally turned cash positive,…
Read MoreThomas Cook is cooking up a magic potion.
Thomas Cook has been time and again dissected and written about by Prof. Sanjay Bakshi. I can dare to say, his reports are probably the most convincing reports ever. His style of story like writing is rare and extremely enjoyable to read. Whether one agrees with him or not, his reports are deeply satisfying and…
Read MoreCareer Point- An Education PE Fund ?
Ajay Relan refers to Career Point as a “fallen angel” and he expects this angle to fly again in the near future. He loves it as it is service based, has a brand name, is a B2C business, operates in a recession free industry, generates massive cash flows, can scale without significant capital investments and…
Read MoreIs MPS being smart or stupid ?
Today was a particularly exciting day for MPS as they announced their Q3 results along with a second interim dividend of Rs 10 per share. They also passed an enabling resolution to issue securities for QIP upto 150 crores, The market, keeping in line with its eccentric reputation lived up to it by dropping the…
Read MoreMPS – not even halfway through the marathon
I ran the following stock screen just for fun : M.Cap > 1000cr, PE<25, D/E<0.5, 3 year ROE>30%,ROE>40% and ROA>30%, and here is what i found : Suven Life Sciences, eClerx, Blamer Lawrie, MPS, TCS and Accelya Kale. What i ran were basically the current ratios of a company i greatly admire – MPS, and…
Read MoreMPS – Raising the bar – Yet Again
This is a follow up to my previous posts – http://biginvestorblog.com/?s=MPS MPS has been growing from strength to strength for the last 2 years. I got in on the stock at about 115 a share and the company has not disappointed since then. The company aside, I’ve really begun to admire Nishith Arora. He states his…
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