Record hiring in IT
Category: Economy
Hiring index showing way forward
Critical Minerals for transition to Low Carbon economy
ICRA : How economic environment looks like
Small Insight into Infra Company
Likhitha Infra (approx 33 yr old company) is an Oil Gas Pipeline Infrastructure provider in India. Operations include Cross Country pipelines and associated facilities, City Gas Distribution including CNG stations, and Operation & Maintenance of CNG/PNG services.
Strong presence in more than 16 states and 2 Union Territories in India.
Two major domains, if we divide the operations , are Pipeline Infrastructure Projects and O&M services (Operation and Maintenance)
Revenue breakdown for the domains are highlighted below (for last 4 Financial years)
Strengths
Long standing relationships with domestic marquee customers.
Efficient business model
Strong project execution capabilities
Diversified geographical presence in India
Strong Technical Qualification to bid for new projects
Strong promoter holding showing skin in game
Good ROCE, stable and improving PAT margins and EBITDA
Highly experienced Management Team
Triggers for company in coming quarters
CGD is increasing in India and company is at right place for its business to grow with Strong client base and on top of that company has Strong Technical Qualification to bid for new projects which is visible in orders won recently
Company has received orders worth Rs. 250 Crores (approx.) excluding GST from various City Gas Distribution Companies during the
quarter from October 2021 to December 2021.
Till Aug. 2021 company has an outstanding order book of 1020 cr giving good revenue visibility. In Oct-Dec 2021 , company received 250cr of additional orders
As per the recent Government policies, PNGRB has increased the number of Geographical Areas (GAs) to 228 comprising of 402 districts spread over 27 States and Union Territories, covering 70% of Indian population and 53% of its area. These recent Government initiatives have provided lucrative opportunities for Oil & Gas infrastructure service providers
Recent policy moves, including a wide-scale rollout of CNG and the expansion of gas infrastructure including LNG terminals, long-distance transmission pipelines and city gas distribution networks, will help drive 30bnm³ of gas demand growth over the next decade through fuel switching away from coal and oil. A recent switch to CNG from coal in India’s brick industry is encouraging greater gas use.
Exit Triggers
Order chain drying up in coming quarters
Unforeseeable change in Government policies
Declining margins and increasing debtors or working capital cycle days
Risks
Any change in CGD policy
Much faster penetration of EV in coming 2-3 years
Rising raw material and commodity costs
The Company is deriving significant portion of orders from major Oil & Gas distribution companies inducing a client concentration risk
Vikas of NPA underway!!
Aatmnirbhar version : PLI Semiconductors
Covid-19 to INFLATION : Times are changing
Magical Central Bank
Supply shock may last 2 years as per DP world
Exports Imports : Up and Up
Exxaro Tiles IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
Exxaro Tiles IPO-Incorporated in 2008, Exxaro Tiles is engaged in the manufacturing marketing activities of vitrified tiles.,
Business — The company manufactures Double Charge Vitrified Tiles (double layer pigment) and Glazed Vitrified Tiles made from ceramic materials i.e. clay, quartz, and feldspar. Its product portfolio consists of 1000+ different designs of tiles in 6 sizes. Topaz Series, Galaxy Series, and High Gloss Series are some of the well-established products of the company. It supplies its products to large infrastructure projects i.e. residential, educational, commercial, hotels, hospitals, government, builders or developers, religious institutions, etc.
Region of operation — Major cities in India and It also exports tiles to different countries across the globe i.e. Poland, Bosnia, USA, and others.
Offer purpose — The IPO is issuance of shares worth ₹161 crore for debt clearance and general corporate purposes.
Risks —
The tiles segment is highly competitive with established listed names in the market as well as a huge unorganized segment that is active in manufacturing tiles. The company provided security regarding loans from banks by creating a charge over its movable and immovable properties. The total outstanding amount payable by the company stands at Rs 142 crore as of FY21. It carries high trade receivables on its balance sheet, accounting for 94 per cent of its current assets and 24 per cent of its total assets. As the company plans to expand, this can increase the quantum of trade receivables and inventories
Strength
Variety of vitrified tiles design choices in different sizes.
Large dealer network with 2,000+ registered dealers.
Strong PAN India presence in 27 states of India.
International presence with export to 13+ countries across the globe.
One of the largest manufacturing plants of glazed vitrified tiles in India.
Future
Earnings have been growing well and with real estate boom talk, it may turn out to be good story. Overall company and its products don’t have any moat
Valuations
Valuations do look fully priced at the current earnings levels of FY21, the earnings have been growing also well.
Should we apply?
People can subscribe only for listing gains.
If holding, need to patient for medium to longer term
Also Read
Burger King IPO crisp Summary — Listing with huge gains as shared
CAMS IPO crisp summary — Listed with 20% gains as shared
Happiest Minds IPO crisp summary –Listed with substantial gains as shared
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That small Window right now
Private banks vs Banking sector
Strong becomes stronger
Debt to GDP : on cloud nine
Green Metals Demand : Decade further
Unknown Transformed into Knowns , hence
Lockdown 2.0 impact started
Solar catching up fast
Acche Din!!
Howard Marks on Markets right now
Full interview details here — https://themarket.ch/interview/howard-marks-the-biggest-risk-is-rising-interest-rates-ld.3537
Macro Challenges still not out of blue
Cobra Effect!!
The lore goes that in British India, the city of Delhi was infested with cobras, so the administration announced a cash reward for submission of dead cobras. What did this policy do?
People of Delhi started rearing cobras, killing them, and then taking them to the authorities to collect their cash rewards. Instead of reducing Delhi’s cobra population, the policy turned the city’s homes into cobra farms. The administration was spending more and
more money, and the cobra population was increasing.
No one knows if this story is true. But it has come to be known as the cobra effect to demonstrate how governments often create wrong incentives for people and make policies that result in worsening problems rather than solving them
Excerpt taken from Puja Mehra article in Wealth Insight
FerroChrome : Price Journey to moon?
Dairy Products : Rising Prices
Container Roadblock to Exports growth!!
FM and Budget 2021-22 focus
REAL ESTATE : Greenshoots
Another Multibagger in making : Bad loans
Blockchain and Indian economy
Moratorium Centerstage : MSME and SFB
Post Brexit : Substantial gains for indian exporters
5G : Lets change the world
PLI Scheme : 10 Sectors
Implementation of production-linked incentive (PLI) schemes worth up to ₹1.45 lakh crore for 10 key sectors announced recently by the government is likely soon.
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Top Dividend players to Govt
Debt Trap : Growing!
PMI Services: Slow recovery PATH
Recovery : India vs Rest
India’s COVID-19 Stimulus: What influencing it
Economy recovery cues!!
Look at the sectors showing positive growth as compared to Oct2019
Coal
Electricity
Fertlisisers
Cement
Economy looks on recovery mode like a pendulum which swings in extremes. Although technically India enters into a recession with two quarters of negative growth but optimistically this can change by Mar2021. Only caveat here is fresh set of lockdowns
On the other hand, crude oil, refinery products and natural gas may remain suppressed as world moves to Work form home (medium term trend)
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GST Collection and Domestic Auto sales showing recovery
Two indicators showing more recovery in economy
Actual test lies in Dec 2020 collections
SBI CARDS : What’s Unfolding
Q2 FY21 results fo SBI cards are out and does not look great on few fronts although long term story seems intact as of now
Few snaps from SBI recent investor presentation where we can see the lagging part from company as compared to previous year FY20
SBI Cards : Declining portfolio growth, SBI Cards : Increasing NPA , SBI Cards : Declining PAT
Looks better to wait for right entry price : NOT a RECOMMENDATION
Economy pain : Inflation!!
Source : Hindu Business Line
Shift to E-COMMERCE : its real
SHRIMP Production : Covid-19 impact
MSME : AATMNIRBHAR Version : Tough Road ahead
One more blow to hospitality industry
CV Industry : recovery will be slow
Confidence or Disillusion
Q1 earnings : Disaster
Darwin theory : AdaptAbility
Aatmnirbhar version : TV
Skewed Growth
Indian Agri : Effort to improve Competitiveness
Prudence advised, Not Extreme risk aversion
Follow the same in your investing journey!
One can not avoid equities if good returns needed from capital. Dont be Risk Averse but Prudence advised!
High Growth Opportunity in INDIAN FMEG
IT : GROWTH STORY
Only segment which shows growth is IT Services Business , shows a trend where money is moving, Other segment impacted least is POWER segment but margin are too low
Weekend HookUp: May 23, 2020
Weekend HookUp: 23 May, 2020
Read on for how Electric Vehicles must features : Remember what you read? ; Biking ; Creativity
Electric Vehicles: 5 must features to succeed (Electric)
Read: How to remember more of what you read (Medium)
Cycling: Difference between bikes (Cycling Monks)
Creativity : Embarrassment as starting point for Brainstorming? (Forbes)
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Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
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Weekday HookUp: May 21, 2020
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Weekend HookUp: May 10, 2020
Weekend HookUp: 10 May, 2020
Read on how Goa plans to get back on tourism; subvention schemes in Mumbai can be fatal & genetically engineered mosquitoes hunting for wild ones
Real Estate: Subvention Schemes in Mumbai (MC)
Tourism: Goa Plans to get back on its feet (Mint)
Murder: Genetically Engineered Mosquitoes (Onezero)
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Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
Weekend HookUp: May 03, 2020
Weekend HookUp: 03 May, 2020
Read for Understanding GOLD history, standard and other currencies fight with Gold standard, how easy or hard is stranded aircraft maintenance, Why Tesla accelerates so fast and why eggs should be part of muscle building.
Economy: What is GOLD standard (Gold standard)
Learning: Aircraft Maintenance in Lockdown (Aircraft Maintenance BL)
Automobiles: Why Tesla Accelerates so FAST (Youtube)
Health : EGG-FACTS : why they are must in a diet (Fitness)
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Sharpest recovery among historical bear markets : Beware or be aware!
Weekend HookUp: April 25, 2020
Weekend HookUp: 25 April, 2020
Life: Strangest Secret in the world (Youtube)
Economy: Bullshit jobs: Why they exist and why you might have one (Vox)
Secret of Happiness: Two drops of oil (Paulo Coelho)
Panic Working : Focus on work that matters (Forge)
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Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
SBI Cards : Sign of Future!!
Looking at HDFC Bank Q4 confcall transcript analyses. One key point was discretionary spending on cards is effecting total spending. This do not bode well for companies like SBI cards where not only spending goes down but it will hit the profit as well due to late payment and increase of NPA in certain cases.
Also Read : SWOT analysis : SBI Cards
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Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
World will not remain same beyond COVID-19
Source KPMG report on Indian economy Apr20
Also Read : COVID-19 Impact on Indian Economy
COVID-19 Impact on Indian Economy
Which stocks to buy (not to buy) in this COVID-19 Lockdown!!
If February 2020 was forgettable for investors then March 2020 would be a month which most of the investors want to skip in their investing life. But what is the guarantee that April and May 2020 will be better if not the worst? So a rational investor can not wait for bottom as he dont know about the bottom. But what to buy and what to leave in such markets?
Let’s try to find out
Just when i was thinking what stocks to buy in these stressing conditions for economy and people, i mostly get stuck on FMCG companies. But the amount of negative news for the whole market is so high that making a decision is becoming difficult day by day. So i thought to keep watch on all news around COVID-19 lockdown and see if there are any positive inputs for any sector or industry.
It is evident from various sources that people are getting bored at home even when they are WFH. Although some of them are fitness conscious and are actively engaged in indoor exercises but their normal physical movement has almost gone done to ZERO. To pass the time, they have started indulging in binge watching/exercising to somehow beat boredom or depression. So i feel that these are the two sectors which could benefit the most in this lockdown as grocery stores are open and some of them do keep yoga mats or basic exercise equipment.
I searched a bit more on internet and came across something which positively testify this theory. https://www.stackline.com/news/top-100-gaining-top-100-declining-e-commerce-categories-march-2020
The site mention the TOP 100 Grwoing and declining e-commerce categories in US although most of these things also apply to Indian context as well.
Some of the major takeaways are (source : stackline)
· There is a surge in home fitness products including weight training equipment, fitness accessories and yoga equipment as gyms and workout studios are forced to close. Due to the increase in at home workouts, the gym bag category and many outdoor sport categories such as baseball & softball and track & field are in decline.
· Many companies have implemented a work-from-home policy, driving demand for computer monitors, keyboards & mice, and office chairs up as employees look to create a temporary home office.
· Most travel has been halted, causing declines in the luggage & suitcases, briefcase, and camera categories. Additionally,many spring break vacations were canceled, triggering a decline across sandal and swimwear categories.
· Formal apparel categories including Bridal and Men’s Suits are in decline as many couples are forced to cancel or delay their weddings.
So what we can take out from this in current Indian Stock Market scenario?
My observations (not recommendations) :
- Hospitality and Aviation stocks are facing issues like Lemon Tree hotels, Oberoi, Indigo, VIP industries etc.
- Branded retail stocks like Future group are also facing headwinds
- Jewelry stocks like Titan etc may face headwinds for quite some time.
- Real Estate stocks like Oberoi, DLF may be down for quite a long time
- FMCG stocks like ITC etc may be gaining out of this
- Pharma company stocks like Abbott, CIPLA, IPCA which are into sale of vitamins, cold and cough medicines, masks, PPE and ventilators may gain more
- IT stocks like TCS, INFOSYS etc may win more contracts
- Communication related companies may gain like Reliance Jio
- Gyms like Talwarkars may be facing headwinds for a bit longer time
- Food delivery services like Jubilant may gain market share
Please note that the information shared is for educational purposes. My views can be biased and i may hold some of the stocks mentioned. Please consult your financial adviser before taking any financial decision and most importantly do your own due dligence
What do you think out of this COVID lockdown? Please comment or mail me your views
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Hookup: November 27, 2019
HookUp: 27 November, 2019
Economy ; Health ; Medicine
Economy: New NPA brewing, Mudra Loans (Mint)
Health : Best Fruits you can eat in Keto Diet (Keto Diets)
Medicine : Drug Prices may fall for 80% medicines (ET)
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Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
Weekend HookUp: November 9, 2019
Weekend HookUp: 09 November, 2019
Travel ; Leisure ; Gadgets ; Books ; Stocks ; Medicine ; Economy
Travel/Leisure : Free Things to do in Bangalore (Travel)
Gadgets : Apple Watch Series 5 : Review (Gadgets)
Books : Great Alone by Kristin Hannah (Goodreads)
Stocks : 7 Favorite Stocks in past one year (ET)
Medicine : Blood test to identify breast cancer (BS)
Economy : RECP : India’s out : Good Or BAD (Downtoearth)
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Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
HookUp: November 5, 2019
HookUp: 05 November, 2019
Stocks; Economy
Stocks : Auto numbers reporting : wholesale or retail (BT)
Economy : The Man who solved the Market (FT)
Economy : Auto Sector turning around (HinduBusinessline)
Stocks : Yes Bank : Yes or no : Ravneet gill explains the NPA (Youtube)
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Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
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