Game is on!!
Category: Stocks
Persistency : ICICI Prulife
Ael : we are only 50!!
Grey Hydrogen to Green Hydrogen : Trishul
Vizjinjam : Port for Mother ships
Protected: Premium Stocks : 3-apr-22
Protected: Positional Stocks – 3-apr-22
ALPHA LEARNERS – Mentorship program Apr-22
With great pleasure and best wishes from all of you, we are delighted to launch
ALPHA Mentorship program
ALPHA LEARNERS
Art and Science of Investing
to make you Independent in stock markets
AVAIL EARLY BIRD OFFER till 25th April 2022
A PROGRAM TO MAKE YOU LEARN AND EARN
This is a unique live program for approx. 5 months (on weekends) Where one can learn necessary
Fundamental Qualitative concepts to understand the things which create wealth in long run–like how to evaluate management, how to evaluate certain corporate actions, how to understand direction of company
Fundamental Quantitative concepts to substantiate what we have seen qualitatively, understanding ratios and numbers like margins and numbers like EBITDA, PAT, OPM, Financial Ratio, Valuation ratios PE, PB, PS, EVEBITDA, ROE, ROCE, Debt, equity and many other deep ratios to understand whether stock at right price or not
Learn about cost of capital, working capital cycle, inventory turnover, asset turnover, interest coverage, pledging(good or bad)
Why Dividend is good or bad
How long we can hold a stock or when to leave the stock
Capex, Opex and how it impacts and when it impacts
Why certain high pe stocks keep on running and low pe stocks remain down
Red flags and green flags
Necessary Technical aspect to make our entry and exit better in stocks ,oscillators and indicators including RSI, MACD, STOC RSI, EMA, TEMA, DEMA, Trends, SL
Technical aspect and understanding of Price Volume action, candlestick patterns ( bullish, bearish, single, double, triple patterns)
Technical understanding of Targets from different patterns, How to look for patterns and when to look for which pattern
Resources to analyze faster to analyze more companies faster
Understand Contrarian, Cyclical, Value and Growth investing
Bucket and GRADE Framework
Business Moats understanding–how to categorize moats, what is real moat, what is fake moat
Exit Strategies in stocks
Reading Balances sheet in simple way to analyze results and issues to make quick exits or to do pyramiding after results
Reading Cash flows in simple way to understand where money is being moved in company
Reading Quarterly, half yearly, yearly results and interpreting them better
Tricks and Checklist for faster analysis of Annual Reports to help us all understand whether to deep dive or not
Conf-call understanding, Transcripts Concepts and Tricks to understand faster
Big money moves aspect to understand where money is moving
Concepts and tricks on various intricacies in stock market
Understanding about primary, secondary market
Also get a KNOWHOW on
Checklist for stocks to identify red flags faster
Checklist for deep dive into selected stocks
How to build Portfolio for Short term
How to build Portfolio for Long term
How to find Multi bagger stocks
How to avoid pitfalls in market
When to exit stocks
Concept of Futures and options
4 Bonus sessions (apart from Program content)
Mutual Funds
Financial planning
IPO and
Big money moves
3-4 months of teaching and mentoring
Can be extended based on queries, case studies1-2 months of handholding
To clear doubts, correction of mistakes, independent walking in markets
10+ Assignments
Based on actual events happening in markets during the course
Case studies
Based on future growth understanding and pitfalls to avoid
Quizzes
To help you assess yourself whether you are progressing or not during the programPresenting Stock idea by Learners to bridge the learning gap –this will be an approximate six month effort by all participants
This is a program YOU CAN NOT AFFORD TO MISS
LET THIS NEW YEAR 2022 be the start of your journey towards INDEPENDENCE IN STOCK MARKETS
ACT NOW for your Independence
CONTACT us
AVAIL EARLY BIRD OFFER till 15th April 2022
FEEDBACK By Ongoing ALPHA LEARNERS
ACT NOW for your Independence
FEEDBACK By Ongoing ALPHA LEARNERS
CONTACT us
Number of batches and batch size is very very limited considering live classes
Major part of this initiative will go towards orphan children education and food
Do make use of this opportunity and be part of bigger initiative
Connect with us to help genuine needy children
In case you have any questions/ queries, please feel free to reach me through Contact Form
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.
Speciality Alumina Growth
Advantage India
First Aluminium Metro train
ELCID –finally delisting — 17 ka 1.6L
Emami on a roll
Metaverse : Tech Mahindra’s turn
NSE IFSC US stocks
Crude dependence of Indian companies
Reason to sell!! Find aplenty
Protected: Premium Stocks : 20-Feb-2022
Green metal
Sequent : Worst behind!!
High Entry Barriers
ROCE century: Redington
Protected: Premium Stocks : 30-Jan-2022
An insight into SaaS company
Disclaimer – Below Analysis is NOT a BUY/SELL/HOLD Recommendation. It is for educational purpose and it can be used for educational purposes further. There could be lot of things which might have been missed in my analysis either due to lack of information or oversight etc.. Do your own diligence & contact your expert financial adviser before making any investment decision.
Rate Gain Travel Technologies
Incorporated in 2004, Rategain Travel Technologies Ltd (RTTL) is a ‘software-as-a–service’ (SaaS) company offering distribution, marketing and revenue maximisation solutions for the hospitality and the travel industry. It is one of the leading distribution technology companies globally and the largest Software as a Service (SaaS) provider in the travel and hospitality industry in India.
Business —
It offers a suite of interconnected products that manage the revenue creation value chain for customers by leveraging big-data capabilities and integration with other technology platforms helping hospitality and travel providers acquire more guests, retain them via personalized guest experiences and seek to maximize their margins. The company serves a large and rapidly growing total addressable market.
RTTL’s mission is to be the leading revenue maximization platform for the hospitality and travel industry. It offers an integrated technology platform powered by artificial intelligence enabling customers to increase their revenue through customer acquisition, retention and wallet share expansion. COVID-19 has, however, accelerated the digitization of customer interactions with hospitality and travel companies. These changes are likely to lead to a shift by hospitality and travel companies from in-house solutions to third party software and services.
RateGain Travel delivers travel and hospitality technology solutions through the SaaS platform through 3 business units; 1. Data as a Service (DaaS), 2. Distribution, and 3. Marketing Technology (MarTech).
DaaS –It equips suppliers with data and information to increase acquisition and conversion. It offers data under two categories: Market Intelligence, which provides access to pricing and availability data at scale along with analytics to present trends, opportunities and market developments. Dynamic Pricing Recommendations, to serve certain segments with proprietary dynamic pricing technology to help maximize revenue.
For DaaS products, it operates on a subscription model where its customers in the hospitality sector subscribe to DaaS products such as Optima and Parity for a period. Its competitive intelligence products tracked points such as pricing, ratings, rankings, availability, room descriptions, cancellation policy, payment policy, discounting and package inclusions.
Distribution — It provides mission critical distribution including availability, rates, inventory and content connectivity between leading accommodation providers and their demand partners. Distribution also enables delivery of reservations back to hotel systems to ensure smooth operations and accurate reporting by hotels.
In its Distribution segment, it operates RezGain on a subscription basis where customers pay a subscription fee to access the product while DHISCO operates on a transaction model where it generates revenues from bookings done by OTAs and Global Distribution System operators
Martech — Its MarTech offering enhances brand experience to drive guest satisfaction, increase bookings and increases guest loyalty. It also manages social media for luxury travel suppliers allowing them to be responsive to social media engagements 24×7 as well as effectively manage their social media handles and run promotional campaigns
END USER INDUSTRIES — Growing industries in coming decade
- Hotels,
- Airlines,
- Online travel agencies (OTAs),
- Meta-search companies,
- Vacation rentals,
- Package-providers,
- Car rentals,
- Rail,
- Travel management companies,
- Cruises and
- Ferries.
Customers and Competitors–
Six Continents Hotels, Inc., an InterContinental Hotels Group Company, Kessler Collection, a luxury hotel chain, Lemon Tree Hotels Limited and Oyo Hotels and Homes Private Limited. It also counts 1,220 large and mid-size hotel chains, 110 travel partners including airlines, car rental companies and large cruise companies and over 132 distribution partners including OTAs such as GroupOn and distribution companies such as Sabre GLBL Inc., in over 110 countries as its customers
Moats —
Innovative Artificial intelligence-driven industry-relevant SaaS solution provider.
Leading distribution technology companies globally and the largest Software as a Service (SaaS) provider in the travel and hospitality industry in India.
Any other SaaS players will take time to break into this company niche market segment
Strengths
A large and rapidly growing addressable market opportunity for a vertical-specific platform kind of company
The travel technology segment is backed by industry tailwinds of digitization in the post COVID times.
Diversified clientele portfolio has helped accelerate growth and in innovating and thus retain both new and existing customers
Diversified esteemed clientele, RTTL served 1,462 customers including eight Global Fortune 500 companies till 30sep2021
Diverse and comprehensive portfolio of revenue maximization and business critical solutions
Strong financial performance with track record of successful acceleration post acquisitions
Innovative Artificial intelligence-driven industry-relevant SaaS solution provider.
Shareholding
Promoter has sufficient skin in game with holding ~67% and other prominent players holding 10% more. Bhanu Chopra is the chairman and managing director (CMD) of RTTL. He founded the company in 2004 and has been leading it since then. He was previously associated with Deloitte and he holds a BS in Business from Indiana University.
Some triggers and updates from recent press releases
Recognition in Industry with new customers
Recognition in Industry with best awards
Increase in Tourism Industry in coming years : Projections and online penetration
Getting along with Students for future
Update in H1FY24 results
Showing important traction in customers, employees increase + down in attrition and increasing contracts wins
Promoters skin in game + Other participants like FII , DII are also increasing in recent times, in Public domain, major chunk with Plutus wealth management
AUG24 Update
Cash flows, Sales, Profits all have improved in 2024
Big money from FII and DII have entered
Technicals on 27th Aug24
Risks (tried to see major risks, please do due diligence to understand more on this part)
Badly affected by Covid-19 in terms of financials. May take time to recover fully and if more variants of Covid-19 appear, it can further delay the cause
Intensive competitive sector both at Domestic and International level. Continuous adaption is the key
Another risk could be the change in channel of distribution. Many client if develop their own software may lead to business kill for company
Valuations —
They have to be seen in terms of huge growth runway available with adaption to digital and highly competitive sector.
Once Covid resides, this could be the one company which gets off the block faster. So need to track on acquisitions, mergers, customers, new deals and financial improvement of company balance sheet
Your strategy can be different than mine. Your selection of company might be different than mine. So lets not be a BLIND FOLLOWER
Disclaimer – Analysis is NOT a BUY/SELL/HOLD Recommendation. It is for educational purpose and it can be used for educational purposes further. There could be lot of things which might have been missed in my analysis either due to lack of information or oversight etc.. Do your own diligence & contact your expert financial adviser before making any investment decision.
In case you have any questions/ queries, please feel free to reach me through Contact Form
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.
Hot Potatoes : Free fall in many recently listed IPO
Protected: Positional Stocks – 23-Jan-2022
Finoetex chemicals
Protected: Premium Stocks : 16-Jan-2022
Protected: Positional Stocks – 16-Jan-2022
3 years down the line
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
Insight into Vishnu Chemicals
Vishnu Chemicals Limited is a market leader in manufacturing and sales of Chromium chemicals and Barium compounds across the world
Serving 12+ industries across 50+ countries (83 countries as per publicly available information)
Chromium Chemicals –>
~85% revenues (FY21) , Leading manufacturer in India as well as South Asia,
FY21 Domestic: Export Sales Mix: 51:49 , 3 manufacturing units
Over the last few fears, the company has diversified its Chromium revenue profile with presence in both domestic and export markets. Earlier the portfolio was concentrated in chromium, domestic oriented and now diversified and balanced geographically in domestic and export markets
Applications –> Pharmaceuticals, Leather tanning, Pigments and Dyes, Plastic masterbatches, Ceramic glazes, tiles, Electroplating, Automotives, Refractories, Wood Preservative, Paper pulping and others.
Barium Chemicals –>
~15% revenues (FY21), Leading manufacturer in India, FY21 Domestic: Export Sales Mix: 45:55 ,1 manufacturing unit.
Applications –> Ceramics, tiles, glazes, bricks, refractories and water purification chemical in caustic soda industry, speciality glass, Luminescent Compounds, etc.
Strengths
Long standing relationships with domestic and overseas marquee customers.
Well diversified board with specialists in field
Certifications — ISO 9001:2015 , ISO 14001:2008, REACH Quality Certification
Income, EBITDA, PAT, PAT Margin improving
D/E is high but decreasing as desired
Ability to pass the rise in input prices and freight costs.
Triggers for company in coming quarters
Operating leverage: Most of the overheads or manpower addition are largely done considering FY21 as a base.
Higher utilizations from existing capacity: Major debottlenecking completed in Vizag unit in FY21 will lead to better throughput & efficiency
Majority of the capital expenditure towards sodium carbonate in Chromium chemicals is completed, Majority of company’s sodium carbonate’s current requirement will be met through the process. Significant cost reduction expected from upon being operational by Q4FY22E.
Focus is to increase market share with higher volumes in Barium chemicals
Leading manufacturer in India for Barium Chemical : Other players have less than 1/10th of Vishnu’s current capacity.
Incremental capacity of 20,000 TPA of Barium Carbonate expected to be operational by Q4FY22E
China plus 1 strategy has made them a preferred vendor instead of being a second option for their customers.
Exit Triggers
Crash in finished products prices or inability to pass on raw material in coming quarters
Any change in China +1 strategy for customers
Less than expected utilization of incremental capacity
Risks
Debt profile is still out of comfort zone
ROCE and PAT Margin still not as much as desired
Any Exports oriented issues including currency risk, freights costs
Significant promoter pledge of 40%
Any delay in operations of underway capacity expansion
Protected: Alpha Electric – 100122
Protected: Positional Stocks – 10-Jan-2022
Protected: Premium Stocks : 02-Jan-2022
Protected: Alpha Electric – 020122
Sodium-ion : Faradion and Reliance
Aatmnirbhar version : PLI Semiconductors
ALPHA LEARNERS – Mentorship program Jan22
With great pleasure and best wishes from all of you, we are delighted to launch
ALPHA Mentorship program
ALPHA LEARNERS
Art and Science of Investing
to make you Independent in stock markets
A PROGRAM TO MAKE YOU LEARN AND EARN
This is a unique live program for approx. 5 months (on weekends) Where one can learn necessary
Fundamental Qualitative concepts to understand the things which create wealth in long run–like how to evaluate management, how to evaluate certain corporate actions, how to understand direction of company
Fundamental Quantitative concepts to substantiate what we have seen qualitatively, understanding ratios and numbers like margins and numbers like EBITDA, PAT, OPM, Financial Ratio, Valuation ratios PE, PB, PS, EVEBITDA, ROE, ROCE, Debt, equity and many other deep ratios to understand whether stock at right price or not
Learn about cost of capital, working capital cycle, inventory turnover, asset turnover, interest coverage, pledging(good or bad)
Why Dividend is good or bad
How long we can hold a stock or when to leave the stock
Capex, opex and how it impacts and when it impacts
Why certain high pe stocks keep on running and low pe stocks remain down
Red flags and green flags
Necessary Technical aspect to make our entry and exit better in stocks ,oscillators and indicators including RSI, MACD, STOC RSI, EMA, TEMA, DEMA, Trends, SL
Technical aspect and understanding of Price Volume action, candlestick patterns ( bullish, bearish, single, double, triple patterns)
Technical understanding of Targets from different patterns, How to look for patterns and when to look for which pattern
Resources to analyze faster to analyze more companies faster
Understand Contrarian, Cyclical, Value and Growth investing
Bucket and GRADE Framework
Business Moats understanding–how to categorize moats, what is real moat, what is fake moat
Exit Strategies in stocks
Reading Balances sheet in simple way to analyze results and issues to make quick exits or to do pyramiding after results
Reading Cash flows in simple way to understand where money is being moved in company
Reading Quarterly, half yearly, yearly results and interpreting them better
Tricks and Checklist for faster analysis of Annual Reports to help us all understand whether to deep dive or not
Conf-call understanding, Transcripts Concepts and Tricks to understand faster
Big money moves aspect to understand where money is moving
Concepts and tricks on various intricacies in stock market
Understanding about primary, secondary market
Also get a KNOWHOW on
Checklist for stocks to identify red flags faster
Checklist for deep dive into selected stocks
How to build Portfolio for Short term
How to build Portfolio for Long term
How to find Multi bagger stocks
How to avoid pitfalls in market
When to exit stocks
Concept of Futures and options
4 Bonus sessions from experts (apart from Program content)
Mutual Funds
Financial planning
IPO and
Accumulation Distribution session
3-4 months of teaching and mentoring
Can be extended based on queries, case studies1-2 months of handholding
To clear doubts, correction of mistakes, independent walking in markets
10+ Assignments
Based on actual events happening in markets during the course
Case studies
Based on future growth understanding and pitfalls to avoid
Quizzes
To help you assess yourself whether you are progressing or not during the programPresenting Stock idea by Learners to bridge the learning gap
This is a program YOU CAN NOT AFFORD TO MISS
LET THIS NEW YEAR 2022 be the start of your journey towards INDEPENDENCE IN STOCK MARKETS
ACT NOW for your Independence
CONTACT us
AVAIL EARLY BIRD OFFER till 1st Jan 2022
ACT NOW for your Independence
FEEDBACK By Ongoing ALPHA LEARNERS
CONTACT us
Number of batches and batch size is very very limited considering live classes
Major part of this initiative will go towards orphan children education and food
Do make use of this opportunity and be part of bigger initiative
Connect with us to help genuine needy children
In case you have any questions/ queries, please feel free to reach me through Contact Form
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.
Top Deals in 2021
TVS BMW EV
Aatmnirbhar version : PLI Semiconductor
Protected: Positional Stocks – 11-Dec-21
Medical devices : Aatmnirbhar Version
What’s Hot : It’s SaaS
NO DIVIDENDS
Tega Industries 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
Tega Industries IPO — Established in 1976, Tega Industries is a leading manufacturer and distributor of specialized, critical, and recurring consumable products for the global mineral beneficiation, mining, and bulk solids handling industry.
Business and Key areas of Operation -Tega industries are the second largest producers of polymer-based mill liners. The company offers a wide product portfolio of specialized abrasion and wear-resistant rubber, polyurethane, steel, and ceramic-based lining components used by their customers across different stages of mining and mineral processing, screening, grinding, and material handling. The company’s product portfolio comprises more than 55 mineral processing and material handling products.
The company has 6 manufacturing sites, including 3 in India, and 3 sites in major mining hubs of Chile, South Africa, and Australia. Majority of the company’s revenue (86.42% in 2021) comes from operations outside India. The company has 18 global and 14 domestic sales offices located close to its key customers and mining sites.
Also READ : DMR HYDRO IPO : SUBSCRIBE OR NOT
Also Read : Latent View IPO : BUMPER LISTING
Also Read : Tarsons Products IPO : BUMPER LISTING
Offer purpose — The issue consists of a offer for sale of 619 Cr.
Risks —
Entire money is offer for sale, Company will not have any access to money raised
Strength
One of the world’s largest producers of polymer-based mill liners
Products cater to after-market spends providing recurring revenues
In-house R&D and manufacturing capabilities and a strong focus on quality control
Global customer base, and strong global manufacturing and sales capabilities
Consistent market growth and operational efficiency
Experienced management team supported by a large, and diversified workforce
Future
Tega Industries are further expanding their operations in major markets including North America, South America, Australia, and South Africa.
Valuations
Valuations are on higher side as expected in bull market
Should we apply?
For medium to long term, prospects looks ok
Wait for listing to buy
In case you have any questions/ queries, please feel free to reach me through Contact Form
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.
Star Health 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
Star Health IPO — Incorporated in 2006, Star Health and Allied Insurance Company Ltd is one of the largest private health insurers in India with a market share of 15.8% in Fiscal 2021.
Business and Key areas of Operation – The company primarily focuses on the retail health and group health segments which accounted for 89.3% and 10.7% of the company’s total GWP in Fiscal 2021 respectively. The company mainly distributes policies through individual agents and also includes corporate agent banks and other corporate agents. As of Sep 31, 2021, its network distribution includes 779 health insurance branches across 25 states and 5 union territories in India. Star Health has also built one of the largest health insurance hospital networks in India with more than 11,778 hospitals.
Also READ : DMR HYDRO IPO : SUBSCRIBE OR NOT
Also Read : Latent View IPO : BUMPER LISTING
Also Read : Tarsons Products IPO : BUMPER LISTING
Offer purpose — The issue consists of a fresh equity issue of 2000 Cr and offer for sale of 5250 Cr. Offer is to augment its capital base
Risks —
In Short term , Increasing Covid-19 is a major risk. In Long term, any such major disease can be a risk
Strength
Largest private health insurance company in India with leadership in the attractive retail health segment.
Largest network distribution in the health insurance industry.
Diversified product suite with a focus on innovation and specialized products.
Strong risk management with superior claims ratio and quality customer services.
Demonstrated track record of operating and financial performance.
Future
Company is working in an underpenetrated but highly competitive sector
Valuations
Valuations are pricey, better options in secondary market
Should we apply?
For medium to long term, prospects looks ok
Wait for listing to buy at discount to IPO price
In case you have any questions/ queries, please feel free to reach me through Contact Form
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.
DMR Hydro 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
DMR Hydro SME IPO Business — DMR is engaged in providing engineering consultancy and due diligence services to hydropower, dams, roads, and railway tunnels. The services offered by the company include the entire life cycle of projects covering design & engineering, due diligence & regulatory, bid management & construction engineering, and quality & inspection
Key areas of Operation -Company has been working into renewables, water resources, mining, and urban infrastructure domains. The company has a presence across 11 states in India. Internationally the company provides services to over 5 countries including Nepal, Nigeria, Dubai, Germany, and Senegal.
Also READ : NYKAA IPO : SUBSCRIBE OR NOT
Also Read : Latent View IPO : Subscribe or NOT
Offer purpose — The issue consists of a fresh equity issue of 798000 shares and offer for sale of 198000 shares. Offer is to Fund working capital requirements and General corporate purposes
Risks —
SME company so liquidity risk is a major risk
The company is operating in a highly competitive and fragmented segment. There are many big players as well
Strength
Presence in both domestic and international markets
A wide offering of engineering consultancy and due diligence services
Experienced management and dedicated employee base
Catering to diversified sectors
Accredited with various quality certificates
Future
Company is working on areas for consultancy which are kind of good for future. Sustainability of margins could be thing to look for
Valuations
Valuations are reasonable looking at future. In short term, Price looks at par
Should we apply?
For medium to long term, prospects looks ok
People having risk apetite and long term vision can apply if they can held this stock patiently as liquidity can be low after listing
In case you have any questions/ queries, please feel free to reach me through Contact Form
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.
Protected: Premium Stocks : 21-nov-21
Protected: Positional Stocks – 21-nov
GoColors 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
GoColors IPO– Incorporated in 2010, Go Fashion (India) Limited is one of the largest women’s bottom-wear brands in India.
Business — The company is engaged in the development, design, sourcing, marketing, and retailing of a range of women’s bottom-wear products under the brand, ‘Go Colors’. The company offers one of the widest portfolios of bottom-wear products among women’s apparel retailers in terms of colors and styles.
Way of Operation – Company has 450 exclusive brand outlets (EBOs) that are spread across 23 states and union territories in India. The company’s distribution channels include large format stores (LFSs) including Reliance Retail Limited, Central, Unlimited, Globus Stores Private Limited, and Spencer’s Retail among others. The company’s LFSs have grown from 925 LFSs in 2019 to 1,332 LFSs in May 2021. The company also sells its products through its website, online marketplaces, and multi-brand outlets (MBOs).
Also READ : Tarsons Products IPO : SUBSCRIBE OR NOT
Also Read : Latent View IPO : Subscribe or NOT
Offer purpose — To part finance its plans for funding roll out of 120 new EBOs (Rs. 33.73 cr.), working capital (Rs. 61.40 cr.) and general corporate purpose, IPO has planned by company
Risks —
Highly competitive business
Third party contracts is a risk
Strength
One of the largest women’s bottom-wear brands in India
Wide, well-diversified, product portfolio and first-mover advantage
Multi-channel retail presence across India
Strong unit economics with an efficient operating model
Extensive procurement base and automated procurement & supply chain
In-house expertise in developing and designing products
Strong financial performance record
Future
Company is a pure long term story considering an expansion plan to increase outlets from 450+ to 2000+ in the coming five to six years plus its association with large format stores will bode well. Third party contracts may remain a risk
Valuations
Valuations are dicey as last two years Covid-19 plays havoc, though company was growing
Should we apply?
One can avoid and wait for company to perform and come back in positive territory
Risk takers can apply for listing gains(if any)
In case you have any questions/ queries, please feel free to reach me through Contact Form
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.
Laboratory equipment Market, leaders, margins : some key charts
Tarsons products 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
Tarsons Products IPO– Tarsons Products Limited is a leading Indian life sciences company with more than three decades of experience in the production and supply of labware products.
Business — The company manufactures a range of quality labware products that helps advance scientific discovery and improve healthcare systems. The company’s product portfolio is classified into three broad categories including consumables, reusables. These Products are used in various laboratories across research organizations, academic institutes, pharmaceutical companies, Contract Research Organizations (CRO), diagnostic companies, and hospitals.
Region of Operation -Company has 5 manufacturing facilities located in West Bengal spread across approximately 20,000 sq. mts of area. The company has a strong distribution network across India comprising of over 141 authorized distributors as of March 31, 2021 and supplies its products to more than 40 countries.
Also READ : NYKAA IPO : SUBSCRIBE OR NOT
Also Read : Latent View IPO : Subscribe or NOT
Offer purpose — The IPO comprises a fresh issue of equity shares up to ₹150 crore and an offer for sale (OFS) of ₹850 crore by existing shareholders and promoters. Company is planning to use IPO for Repayment/prepayment of all or certain of company’s borrowings; Funding a part of the capital expenditure for new manufacturing facility at Panchla, West Bengal (proposed expansion) and General corporate purposes
Risks —
High Import dependency
Competition with MNC players
Environmental concern on Plastics
Regional concentration of plants
Strength
Leading supplier of life sciences products
Extensive product offering
Large addressable market of life sciences industry
Well-equipped and automated manufacturing facilities
Strong sales and distribution network
Experienced Promoter backed by a strong management team
Future
Company is vertically integrated and equipped with automated support systems that help the company in maintaining quality, increasing productivity, and reducing costs. Its key manufacturing facilities are ISO 9001:2015 and ISO 13485:2016/NS-EN ISO 13485:2016 certified. Company is poised for bright prospects ahead. It is expanding to meet the rising demand for its products.
Valuations
Valuations are reasonable looking at future. In short term, Price looks expensive
Should we apply?
For medium to long term, prospects looks bright with good set of customers and looking at no listed peers, may be advantage to subscribe
One must apply if they can held this stock patiently and not looking for immediate returns
In case you have any questions/ queries, please feel free to reach me through Contact Form
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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Protected: Positional Stocks – 14-nov
Sapphire Foods 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
Sapphire foods IPO-Sapphire Foods India is YUM brand’s largest franchise operator in the Indian subcontinent in terms of revenue as of FY’20. It is also Sri Lanka’s largest international QSR chain in terms of revenue for FY’ 2021 and the number of restaurants operated as of March 31, 2021. .
Business — Company owned and operated 204 KFC restaurants in India and the Maldives, 231 Pizza Hut restaurants in India, Sri Lanka and the Maldives, and 2 Taco Bell restaurants in Sri Lanka.The company has an in-house supply chain function and works with vendor partners for food ingredients, packaging, warehousing, and logistics. The company operates warehouses across 5 Indian cities and has invested in building technology solutions in their restaurants. The company operates its restaurants at high traffic and high visibility locations in key metropolitan areas and cities across India and develop new restaurants in new cities as part of its expansion strategy.
Region of Operation -It serves clients in India and Srilanka with KFC, Pizza hut and Taco bell outlets
Also READ : Latent View Analytics Limited IPO : Subscribe or NOT?
Offer purpose — The IPO comprises a complete offer for sale of 2000 cr. Proceeds will not go company
Risks —
Decreasing revenues from same stores
Operating losses continuing
High competition
Strength
One of India’s largest restaurant franchisee operators and Sri Lanka’s largest international QSR chain
YUM’s largest franchise operator in the Indian subcontinent in terms of revenue
Focus on delivering excellent customer experience
Quality control and operational excellence
Scalable business model
Experienced management team with robust corporate governance practices.
Future
Company has been working to reduce costs on multiple fronts like store size etc which is yet to show up in financials. Similarly Increasing delivery revenues and opening new stores, driving same store sales growth is a work in progress. Model is scalable and with demographic advantage, it should be able to sustain and turnaround over a long period
Valuations
Valuations are comparable to peers and lower wrt some peers in this bull marlet. Looking in isolation, valuations are not attractive though
Should we apply?
Long term investors need to wait and watch company progress before investing.
Risk takers can apply for IPO and exit on listing gains if any
In case you have any questions/ queries, please feel free to reach me through Contact Form
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.
Protected: Positional Stocks – 7-nov
One97 Communications 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
One97 Communications IPO– Incorporated in 2000, One 97 Communications Ltd is India’s leading digital ecosystem for consumers as well as merchants. As of March 31, 2021, the company has a 333 million+ client base and 21 million+ registered merchants to whom it offers payment services, financial services, and commerce and cloud services
Business — The company offers an entire digital ecosystem for its customers and merchants –ranging from payment services (money transfers, in-store payments, recharge, and bill payments), and financial services (digital banking including FASTag, PayTM Wallet and deposit accounts, loan or BNPL referral, wealth management and insurance). Generating revenue in the form of transaction fee, consumer convenience fee, and recurring subscription fee (from merchants), payment services comprises 62 per cent of the company’s consolidated revenues in FY21 and 4 per cent comes from cross selling financial services
Also READ : Latent View IPO : SUBSCRIBE OR NOT
Offer purpose —
- Growing and strengthening Paytm ecosystem, including through acquisition and retention of consumers and merchants and providing them with greater access to technology and financial services – ₹ 4,300 Crores, Investing in new business initiatives, acquisitions and strategic partnerships – ₹ 2,000 Crores and General corporate purposes
Risks —
Revenue scalability is the biggest risk as the RBI has restricted the transaction fees and commissions on various payment services to less than 1 percent. Already revenue drop is happening compared to last few years
Lot of uncertainty in digital share with lot of big players also joining the league ( like google, whatsapp etc)
Over diversified –Kind of deworsefication by company–not a clear path which will bring profit
Strength
India’s leading digital payment service platform.
Strong brand identity with a brand value of US$6.3 billion.
Large customer base with 333 million total customers, 114 million annual transacting users, and 21 million registered merchants.
Paytm Super-app to access a wide range of digital payment services over mobile phones.
Future
Company has been into multiple segments and can grow with digital payments and PayTM payments bank, MF business as well. But due to this scattered approach, no clear visibility which path company is taking. Road is long and uncertain.
Valuations
Valuations are extremely high, Founder skin in the game is really low
Should we apply?
AVOID
In case you have any questions/ queries, please feel free to reach me through Contact Form
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.
Latent View Analytics Limited 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
Latent view IPO– Latent view is incorporated in 2006, Company provides services ranging from data analytics consulting to business analytics and insights, advanced predictive analytics, data engineering and digital solutions to companies in technology, BFSI, CPG and retail, industrials and other industries.
Business — Four Major domains -> (i) Consulting services (ii) Data engineering (iii) Business analytics (iv) Digital solutions
Region of Operation -It serves clients across the US, Europe, and Asia through its subsidiaries in the US, Netherlands, Germany, UK and Singapore.
Also READ : NYKAA IPO : SUBSCRIBE OR NOT
Offer purpose — The IPO comprises a fresh issue of equity shares up to ₹474 crore and an offer for sale (OFS) of ₹126 crore by existing shareholders and promoters. Company plans to use about ₹148 crore to fund inorganic growth initiatives, ₹130 crore for investment in subsidiaries and the remaining to fund working capital and general corporate purposes.
Risks —
Client Concentration
Regional Concentration
Technology disruption Risk
Strength
- One of the leading pure-play data analytics companies in India
- Extensive experience across a range of data and analytics capabilities
- Blue-chip clients across industries and geographies
- Focus on innovation and R&D
- Scalable and attractive financial profile
- Strong, experienced leadership team
Future
Company has created a niche place in data analytics services globally and It caters to Fortune 500 companies with long term relationships and it is also able to maintain healthy margins on its contracts
Valuations
Valuations are high
Should we apply?
Looks almost priced in at IPO price but for medium to long term, prospects looks bright.
One can apply if can held this stock patiently and not looking for immediate returns
In case you have any questions/ queries, please feel free to reach me through Contact Form
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.
SJS enterprises 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
SJS enterprises IPO –SJS is one of the leading players in the Indian decorative aesthetics industry. The company is a ‘design-to-delivery’ aesthetics solutions provider with a diverse product offering for the automotive and consumer appliance industries.
Business — The company’s product offerings include – decals and body graphics, 2D appliques and dials, 3D appliques and dials, 3D lux badges, domes, overlays, aluminum badges, in-mold labels, or decoration parts, lens mask assembly, and chrome-plated printed, and painted injection moulded plastic parts. The company’s subsidiary, Exotech, caters to requirements in the two-wheelers, passenger vehicles, consumer durables/appliances, farm equipment, and sanitary ware industries for chrome-plated, printed, and painted injection moulded plastic parts.
Offer purpose —
An offer for sale of Rs. 800 cr from existing promoters and stakeholders
Risks —
Massive dilution in IPO as offer of sale does not bode well
Maximum revenue coming from few client posing concentration risk
Short term revenue and profit risk is there
Also READ : Fino Payment Bank IPO : SUBSCRIBE OR NOT
Strength
Leading decorative aesthetics supplier with a wide portfolio of premium products
Strong manufacturing capabilities and established supply chain network
Innovative product designing capabilities
A strong relationship with global Tier-1 companies
Strong financials
Experienced and qualified management team
Future
SJS is a leading player in the Indian decorative aesthetics industry and scope of growth is there.
Valuations
The issue looks fully priced discounting all near term positives
Should we apply?
Avoid and wait for results for next 2-3 qtrs to see if company is able to perform as anticipated
In case you have any questions/ queries, please feel free to reach me through Contact Form
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.
PB Fintech 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
PB Fintech IPO– PB Fintech is India’s leading online platform for insurance and lending products. The company provides convenient access to insurance, credit, and other financial products
Business — Policybazaar is an online platform for consumers and insurer partners to buy and sell insurance products. 51 insurer partners offered over 340 term, health, motor, home, and travel insurance products on the policy bazaar platform, as of March 2021. Policybazaar offers its users with i) pre-purchase research, ii) purchase, including application, inspection, medical check-up, and payment; and iii) post-purchase policy management, including claims facilitation, renewals, cancellations, and refunds. The company has partnered with 54 large banks, NBFCs, and fintech lenders offering a wide choice of products to consumers across personal credit categories, including personal loans, business loans, credit cards, home loans, and loans against property.
Also READ : NYKAA IPO : SUBSCRIBE OR NOT
Offer purpose —
- For enhancing visibility and awareness of company’s brands, including but not limited to “Policybazaar” and “Paisabazaar”
- New opportunities to expand company’s consumer base including offline presence
- Funding strategic investments and acquisitions
- Expanding presence outside India and
- General corporate purposes.
Risks —
Till date the company has been posting negative earnings and can continue to do so in near term
Strength
Providing a wide choice and transparency to customers to research and select insurance and personal credit products.
Proprietary Technology helps in superior data intelligence and customer service.
Collaborative partnership with various companies for insurance and lending products.
Strong network effects for Policybazaar and Paisabazaar platforms.
High renewal rates.
Capital efficient model with low operating costs.
Experienced Founders and management.
Future
PBFL has two verticals of online business i.e. Policybazaar and Paisabazaar. With its novel technology-based initiatives, it has created a niche place. With network effects, company has a good scope to scale its business
Valuations
Valuations are really high and no listed peers to compare with as well
Should we apply?
Risk takers can put in IPO and exit with listing gains if any. Wait for significant dip to enter for long term as long term prospects are bright
In case you have any questions/ queries, please feel free to reach me through Contact Form
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.
Protected: Positional Stocks – 31 Oct 21
Protected: Premium Stocks : 31-oct-21
FSN E-commerce Ventures (Nykaa) 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
FSN E-commerce Ventures (Nykaa) IPO –Incorporated in 2012, FSN E-commerce Ventures, the parent company of Nykaa, is a native consumer-technology company involved in selling beauty, wellness, personal-care and fashion products
Business — FSNEV has a diverse portfolio of beauty, personal care and fashion products, including owned brand products manufactured by it. As a result, the company has been established not only as a lifestyle retail platform but also as a consumer brand. It offers consumers an Omnichannel experience with an endeavour to cater to the consumers’ preferences and convenience.
Offer purpose —
Fresh equity issue worth Rs. 630.00 cr. and an offer for sale of Rs. 5351.92 cr,To meet its requirements of funds for investment in subsidiaries (Rs. 42.00 cr.), capital expenditure (Rs. 42.00 cr.), repayment/prepayment of certain borrowings (Rs. 156.00 cr.), brand visibility and awareness (Rs. 234.00 cr.) and general corporate purpose
Risks —
High competitive landscape and on top of that unorganised market also poses a challenge
Maximum revenue coming from few client posing concentration risk
Any negative publicity in today digital marketing can have significant impact on company revenues
Also READ : Fino Payment Bank IPO : SUBSCRIBE OR NOT
Strength
Association with National and international brands
Omnichannel presence
India’s leading beauty and personal-care companies in the organised space and enjoys strong brand awareness
Strong supply-chain capabilities with around 20 warehouses throughout the country
Stringly technological driven business
Future
The company has a relatively asset-light business. With significant spending on marketing to attract new consumers and subsidiaries to open new retail stores, it will be able to scale up its business.
Valuations
Valuations are really astronomical and looks like promoters encashing the bull market leaving little on table
Should we apply?
One can avoid and wait for significant dip to enter. Long term story remains intact
In case you have any questions/ queries, please feel free to reach me through Contact Form
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.
Fino Payments Bank 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
Fino Payments Bank IPO– incorporated in 2007 and it offers a diverse range of financial products and services that are primarily digital and have a payments focus. The company is a fully-owned subsidiary of Fino Paytech. It is backed by investors like Blackstone, ICICI Group, Bharat Petroleum and International Finance Corporation (IFC).
Business — The company has a pan-India distribution network and its’ major products and services includes:
• Current accounts and Savings accounts (CASA),
• Issuance of debit card and related transactions,
• Facilitating domestic remittances,
• Open banking functionality (through their Application Programming Interface),
• Withdrawing and depositing cash (via micro-ATM or Aadhaar Enabled Payment System (AePS) and
• Cash Management Services (CMS).
The company’s merchants facilitate them in cross-selling their other financial products and services such as third-party gold loans, insurance, bill payments and recharges. Fino Payments also manages a large BC (Business Correspondents) network on behalf of other banks.
Also READ : NYKAA IPO : SUBSCRIBE OR NOT
Offer purpose —
300 cr of fresh equity and 900 cr of offer for sale of existing shares. Augmenting Bank’s Tier – 1 capital base to meet its future capital requirements.
Risks —
High competitive landscape
Payments banks cannot undertake lending activities restricting their growth, They can accept only savings and current deposits. The aggregate limit per customer is Rs 2,00,000. They are required to have a minimum of 25 per cent of their physical access points in rural areas.
Geographical concentration also poses a risk
Strength
Unique DTP (Distribution, Technology, Partnership) network helps in better customer servicing
Focus on technology development and in-house technological expertise
Customer centric and innovative business model
Highly experienced management team
Vision of socially inclusiveness and empowerment
High market share in the Micro-ATM segment
Future
The bank’s unique DTP (distribution, technology and partnership) framework, technological expertise and merchant-led distribution model enable it to reach a vast number of customers in under-penetrated markets while keeping its costs low.
Valuations
Valuations are really high and looking at growth prospects , it will take time for valuations to become reasonable
Should we apply?
One can avoid and wait for significant dip to enter. Also keep in mind better choices available in market for investment
In case you have any questions/ queries, please feel free to reach me through Contact Form
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.
IPO recent trends across world and DTC Winc’s IPO
Protected: Premium Stocks : 17-oct-21
Protected: Positional Stocks – 17 Oct 21
What to do in Current Stock Market in Oct2021: Sell out, buy more or hold or Reorganize ?
Also read : Invest in Stock market IF
We can broadly classify investors today in three kinds only
- Who have made lot of money in last 1 year or so and kept on riding and still want to ride further
- Who are sitting on sidelines and thinking to jump or have jumped in last few months
- Those who wanted to exit now looking at various indicators
Most of the investors I talk are fearful of immediate correction in market, though they have not exited the market yet to cash positions. Some of them are confident after making money in last one year. Even the so called new breed of investors are also 1 year old in markets and calling themselves experienced now who have seen volatilities, and buying every dip. Time will tell who will be the Last Standing Man
So as you are reading this article, did you notice where do you belong? If you feel you are outside the purview of these three kinds, you have two choices. 1. Align to one of the view 2. Send me with your classification!
Congratulations, if you are able to see yourself amongst one of the three kinds mentioned above
Question still remains same for everyone : What to do now? Should we buy, sell or keep holding? What’s next : Is it bull market or is crash near?
Let’s read further to understand more about it and see what strategies people can adopt
Case 1. Sell out 100% and wait to re-enter at lower levels
This strategy is for people who
- Are facing Liquidity challenges
- Can’t sleep properly due to fear of crash in markets
- Borrowed money to invest
- Goals are near ( within 1-2 years)
OR
You are able to foresee with your experience drastic correction coming. It may be due to Evergrande default or US debt or may be some other reason
Advantage with these strategy is you may not lose capital if market goes down and may get a chance to re-enter at lower levels. Problem with this strategy is it is impossible for anyone to predict whether market has topped out or not. Will Market go further up and can give you a bigger chance to cash out? Will market come down and give you a chance to enter at lower levels. Nobody knows. Get away from people if they claim to know.
It is always better to cash out if our goals are near or we have debt to pay because when correction happens, it will not give you a chance to exit at your desired levels
This strategy although seems good but it can be painful as markets may remain irrational longer than you remaining rational and you might keep on getting the itch to enter again.
So be careful of this approach and you have to be sure when you should re-enter.
Case 2 Go opposite and buy more
I will strongly advised against this
Problem with this strategy is most of us will be invested in 40-50 stocks on tips from random sources and keeping most of the stocks which are in loss. So if market correction happens, we will not be having enough money to average down all stocks.
In case, you have idle money and have a itch to invest at these levels, in such cases adopt a simple strategy
- Keep buying same quality stocks based on quarterly results or in sip mode
- Plan your investment in a staggered manner instead of putting money in single go
- Invest the money which you don’t need for next 5 years
Correct portfolio allocation and conviction in the chosen stocks is a must for investing at these levels.
Case 3- Hold and reorganise your portfolio
This strategy is for people
- Who have long term views on equity
- Who have money available to invest right now
- Who do not need to sell out as no immediate money requirement
- Who understand their stocks and sitting on good cushion of profit in last one year and can handle 30% downside
- Who will not panic when market falls down and quality watchlist is ready to buy in such an event
Under this strategy, adopt the simple course of action
- Reduce number of stocks to a level which you can track easily. (20 stocks in a portfolio is considered reasonable for an average investor to track)
- Reduce the stocks positions partially or completely which you have bought on tips and not working or in loss. Getting out with a small loss is good at these levels to rearrange your portfolio
- Moving some part to cash from positional stocks. May be keeping cash close to 30-40%
- Buy stocks from upcoming niche sectors
- Buy more of convincing stocks with long term horizon of 3-5 yrs.
- Increase the positions in stocks which are showing a promising future and management is walking the talk
Case 4- Sell Partially
This strategy is for people
- Who are ready to leave last 10-20% gains on table
- Who are ready to have patience for their cash deployment
- They do not feel zealous when other people make money and they themselves stay in cash
- Under this the simple course of action is
- Sell partially up to 10-25% and sit on cash, may or may not get a chance to deploy cash soon and wait can get longer
- Rest 75% to 90% should remain invested, so if markets runs up, they are still in the market
What I am doing in this market? My answer is Case 3 ( changed from Case 4 earlier this year)
- I have booked out of most positional stocks apart from few holding with my closed group of people. Last few months, i have moved to already 35-40% cash but at same time reshuffled that cash to strengthen my existing positions or build new positions aligning to next few months
- I am holding stocks which have good story building up and adding more on each quarterly result. I do expect strong quarterly results of my investment holdings
- Any new stock which looks promising to me, I am adding as positional and converting to investment as my conviction increases
- I am not averaging down any stock as of now
So that effectively means
I am putting money into the market from so many booked positions in last few months and adding new positions
I am selling my existing less convincing or loss making positions
I am not waiting for correction in market as i have sufficient liquidity available
I am re-organizing my portfolio for next cycle of market
I am happy to ride with my invested convincing positions
Overall, what I learnt from markets in my journey is very simple and easy to follow :
You can’t be 100% invested in market
You can’t be 100% sold out from market.
Will correction happen–Few events like US Debt, Tapering of interest rates, China India talks failure, China Power crisis, India Power crisis can dampen the spirit much faster than anticipated. So yes, quite a few things are bad, China power crisis is biggest of them. Any correction will be fast and furious. Be ready to see 30-40% erosion of capital seen on Screen today.
Are things all bad — On other hand there is good results anticipated for Q2FY22 both QoQ and YoY in many companies. Bigger population has been been vaccinated either partially or fully so effectively third wave is ruled out for few more weeks. Currently many things looking positive. Be it exports, be it festive demand in many sectors. Nifty has made new highs and can go further up. In short term upside seems limited though if everything falls in place, 21K on Nifty cant be ruled out within 7-9 Months (Jun-Jul2022)
Whatever strategy finally you adopt. don’t be a blind follower
Read more on Blind follower here
Wishing you all the best and lots of luck
In case you have any questions/ queries, please feel free to reach me through Contact Form
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.
New Energy Vision
Protected: Positional Stocks – 08 Oct 21
Coffee Exports
Protected: Premium Stocks : 03-oct-21
Protected: Positional Stocks – 03 Oct 21
Probiotics Bio-catalysis and Animal nutrition
Paras Defence : High level capability in major segments
Protected: Positional Stocks – 25sep21
Jubilant Ingrevia : on path to be gigantic
Jubilant Ingrevia Ltd (JVL) houses the Specialty Chemicals, Nutrition & Health Solutions, and Life Science Chemicals businesses, which have been demerged from Jubilant Pharmova Ltd (erstwhile Jubilant Life Sciences Ltd)
It has a Strong presence in diverse sectors and its vertically integrated and due to this , it is Globally Lowest cost producers for most products.
Multi Location Manufacturing & Operation Excellence is achieved by company over the years
Leadership team has an average 30 years of industry experience
Company has expertise in 35 technological platforms at large commercial scale and
Company also has an expertise to handle multistep chemistry (up to 13 steps) at large scale.
Three major segments of Speciality chemicals, Nutrition and Health solutions and Life sciences chemicals
As shared from Company presentation 25% of Life sciences chemicals are consumed in house by specialty chemicals segment while for Nutrition and health solutions segment (vitamin B3, 100% in house sourcing done from Speciality chemicals)
Financial Highlights– RoE, RoCE stood at 15%+, EBITDA grew by 53% YoY while revenue from all segments growing well
Growth triggers
Company is planning to invest 900 cr (550 cr,100cr, 250 cr in different segments by FY24) and expecting 2x revenue in ~5 years
Multiple products in different segments are in pipeline to be launched in coming years
There is a strong demand for Acetic Anhydride and there is no new facility addition announcement globally in the recent past. Company’s customers are exploring to shift from high cost to low-cost countries. They are adding another Acetic Anhydride facility to increase capacity by ~35% by investing ₹250cr over next 3 years.
Co is planning to increase focus to leverage its long standing relationship with innovator pharma & agro-chemicals companies to expand its CDMO operation.
Company is also moving up the value chain in most of their product segments
In the process of launching its diketene (highly complex due to high temperature cracking and storage hazards) and its value added derivatives.
Risks
Raw Materials Prices: Key raw material for life sciences biz is acetic acid. Hence, dependent on the prices of Acetic Acid(Very volatile).
Large capex in next few years: he funding of this 900cr capex will largely from internal accruals. But if for some reason this capex is not completed on time or need more debt then it may affect profits in coming years
Exit Strategy
Acetic acid Raw material prices hurting company growth or
Any ban on application of its pyridine and similar substances by other countries can hurt the company growth
In such cases , its better to exit and have a relook on invested amount
Current Market price of 760 Rs, Company looks optically expensive for investment but looking at big picture if it sustains 10.5 eps for next 3 quarters giving 42 eps for FY22 , stock price looks to have decent upside available
Update on Q2FY22 by Company on business outlook
Update on Q3FY22 by Company on business outlook
BELT Competency : Green, Yellow and BLACK
ALPHA LEARNERS – Mentorship program OCT
With great pleasure and best wishes from all of you, we are delighted to launch
ALPHA Mentorship program
ALPHA LEARNERS
Art and Science of Investing
to make you Independent in stock markets
A PROGRAM TO MAKE YOU LEARN AND EARN
This is a unique live program for approx. 5 months (on weekends) Where one can learn necessary
Fundamental Qualitative concepts to understand the things which create wealth in long run
Fundamental Quantitative concepts to substantiate what we have seen qualitatively
Necessary Technical aspect to make our entry and exit better in stocks
Resources to analyze faster to analyze more companies faster
Big money moves aspect to understand where money is moving
Understand Contrarian, Cyclical, Value and Growth investing
Bucket and GRADE Framework
Business Moats understanding
Exit Strategies in stocks
Reading Balances sheet in simple way to analyze results and issues to make quick exits or to do pyramiding after results
Tricks and Checklist for faster analysis of Annual Reports to help us all understand whether to deep dive or not
Conf-call understanding, Transcripts Concepts and Tricks to understand faster
Concepts and tricks on various intricacies in stock market
Understanding about primary, secondary and derivatives market
Also get a KNOWHOW on
Checklist for stocks to identify red flags faster
Checklist for deep dive into selected stocks
How to build Portfolio for Short term
How to build Portfolio for Long term
How to find Multi bagger stocks
How to avoid pitfalls in market
When to exit stocks
Concept of Futures and options
4 Bonus sessions from experts (apart from Program content)
Mutual Funds
Financial planning
IPO and
a SURPISE session
3 months of teaching and mentoring
Can be extended based on queries, case studies2 months of handholding
To clear doubts, correction of mistakes, independent walking in markets
12 Assignments
Based on actual events happening in markets during the course
Case studies
Based on future growth understanding and pitfalls to avoid
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Paras Defence and Space Technologies 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
Paras Defence IPO– Incorporated in 2009, Paras Defence is an Indian private sector company engaged in designing, developing, manufacturing and testing of a wide range of defence and space engineering products and solutions.
Business — It is one of the leading ‘Indigenously Designed Developed and Manufactured’(IDDM) category private sector companies in India, which caters to four major segments of Indian defence sector i.e. defence and space optics, defence electronics, electro-magnetic pulse (“EMP”) protection solution and heavy engineering. It is also the sole Indian supplier of critical imaging components such as large size optics and diffractive gratings for space applications
Region of operation –Company caters to India 83% revenue and have 17% exports revenue
Offer purpose —
Purchase of machinery and equipment’s: It has placed orders for ₹6.7 crore for the purchase of new and upgraded machineries, it is yet to place orders for ₹27.9 crore, Funding incremental working capital requirements of the company and Repayment or prepayment of all or a portion of certain borrowings/ outstanding loan facilities availed by the company
Risks —
High concentration of revenues from Goverment contracts
Cost overruns is common in fixed contracts (may lead to losses)
Technology risks
Various ongoing court cases may lead to penalty
Strength
Wide range of products and solutions offerings for defence and space applications.
One of the few manufacturers of optics for space and defence application in India.
Companies offerings are aligned with the “Atmanirbhar Bharat” and “Make in India” initiatives by the government.
Strong R&D capabilities with a focus on innovation.
Strong customer relationship with government arms and government organizations.
Strong experienced management.
Future
They are currently developing several new products, such as hyper spectral space camera, ARINC-818 based avionic display and naval periscopes,
and multi and hyper spectral cameras for drones and space, Unmanned Aerial Vehicles, cubesats and anti-drone systems. Looking at horizantal integration, prospects look bright if unfolded as looking currently
Valuations
Valuations are pricey
Should we apply?
People with high risk apetite can subscribe for long term only
Add more if it dips below issue price keeping long term horizon mindset
Others can avoid
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Protected: Premium Stocks : 19-sep-21
Protected: Positional Stocks – 18sep21
Sansera Engineering 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
Sansera Engineering IPO-Incorporated in 1981, Sansera manufactures complex and critical precision engineered components and caters across automotive and non-automotive sectors
Business — The company manufactures precision components such as connecting rods, rocker arms, crankshaft assembly and gear shift forks for the automotive industry
Region of operation –Company caters to India 65% revenue and have 35% exports revenue. 12% revenue comes from non automotive segment.
Offer purpose —
The IPO is entirely an offer for sale by the promoters and other strategic investors
Risks —
High concentration of revenues from few clients. Bajaj auto being highest , contributing close to 20% of automotive revenue
Export oriented risks
Faster shift to EV can cause some turbulence
Strength
Strong Operating profit Margin
Pass through arrangements with domestic customers for cost escalations help margins
Long term relationship with most customers
Reducing dependence on ICE vehicles
Experienced management team.
Future
The client profiles and relationship, move towards EV and contracts available presents good future prospects
Valuations
Valuations are matching with peers but look pricey
Should we apply?
People with high risk apetite can subscribe for long term only
Add more if it dips below issue price keeping long term horizon mindset
Others can avoid
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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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Tinplate makers : Capacity Ramp up
NaapBooks Limited 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
NaapBooks Limited IPO– SME company, Naapbooks is engaged in developing and providing Information Technological solutions to corporates.
Business —
The company develops Fintech App, Cloud Consulting, Blockchain App, Mobile App, Web App, Embedded App products to its clients.
Companies’ services include designing, developing, operating, installing, analysing, designing, maintaining, converting, porting, debugging, coding, and programming software to be used on computers, microprocessor-based devices, or any other such hardware. The company also provides Software Consultancy services.
Offer purpose — The IPO is for Funding the working capital requirements of the company, Funding purchases of equipment and Meet general corporate purposes.
Risks —
SME company and minimum lot size > 1 lac
Very less information available on business and management
Strength
Strict adherence to quality compliance standards.
Big demand for IT and automation in India post covid.
Strong customer relationship and repetitive clients.
Future
The company is showing good growth and profitable.
Valuations
Very small company and hence valuations could not be easily made out
Should we apply?
People with big risk apetite can subscribe for long term only
Others avoid
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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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Protected: Positional Stocks – 04sep21
AMI Organics 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
Ami Organics IPO-Incorporated in 2004, Ami Organics Limited is one of the leading research and development driven manufacturers of specialty chemicals.
Business — The company manufactures different types of Advanced Pharmaceutical Intermediates and Active Pharmaceutical ingredients (API) for New Chemical Entities, and material for agrochemicals and fine chemicals. The company has developed over 450 pharma intermediates across 17 key therapeutic areas i.e. anti-retroviral, anti-inflammatory, anti-psychotic, anti-cancer, anti-Parkinson, anti-depressant, and anti-coagulant.
Region of operation –Company caters to India and in 25 countries overseas i.e. Europe, USA, China, Israel, Japan, Latin America
Offer purpose — The IPO includes an OFS portion of ₹370 crore and a fresh issue of ₹200 crore. The fresh issue proceeds will be utilised to lower the
debt of ₹140 crore (from a recent acquisition) and shore up stretched working capital requirements of the company (₹90 crore).
Risks —
High concentration of revenues from few clients
Export oriented risks
Strength
Leading global market share for some of intermediaries
Strong R&D, sales and marketing capabilities
Consistent financial performance track record
Long term contracts for most of exports with price escalation clauses
Strong relationship with customers over long ter
Future
The strong growth anticipated for Ami Organics, drawing from its product and client profile and strong pipeline presents a good future prospects
Valuations
Valuations are matching considering peers but look reasonable
Should we apply?
People can subscribe for long term only
Add more if it dips below issue price keeping long term horizon mindset
In case you have any questions/ queries, please feel free to reach me through Contact Form
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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Vijay Diagnostics 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
Vijay Diagnostic Center IPO-Established in 1981, Vijaya Diagnostic Centre is one of the fastest-growing diagnostic chains in Southern India
Business — The company offers a one-stop solution for pathology and radiology testing services. The company offers around 740 routine tests, 870 specialized pathology tests, 220 basic tests, and 320 advanced radiology tests. The company also offers a broad spectrum of customized health and wellness packages to its customers.
Region of operation — Company’s operational network consists of 80 diagnostic centers and 11 reference laboratories spread across 13 cities and towns in the states of Telangana, Andhra Pradesh, National Capital Region, and Kolkata. 96.2% of the revenue comes from Hyderabad, the rest of Telangana, and the Andhra Pradesh region.
Offer purpose —
The IPO is entirely an offer for sale to provide partial exit to existing investors, who will be divesting 30 per cent of the stake
while the promoter is divesting 5 per cent.
Risks —
Company is in a highly competitive space
High regional concentration risk
Company not getting any proceeds from IPO for growth
Strength —
Largest and fastest-growing diagnostic chain in Southern India.
Affordable diagnostics service provider with a focus on superior quality.
Strong technical capabilities, cutting-edge diagnostic testing technology and robust IT infrastructure.
High brand recalls driving high individual consumer business.
Future
Company is operating with non-franchise model so growth is based on company reach. Focus is more on quality which bring people back to same place. Although the industry is highly competitive, but regional it has strong presence.
Valuations
Valuations are slightly lower considering peers but look reasonable
If we see growth projections, then valuations are at par or premium only
Should we apply?
We can completely avoid
Wait for lower prices to emerge to invest
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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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Gold Financiers
Protected: Premium Stocks : 28-Aug-21
Protected: Positional Stocks – 28Aug21
Protected: Positional Stocks – 22Aug21
ALPHA LEARNERS – Mentorship program
With great pleasure and best wishes from all of you, we are delighted to launch
ALPHA Mentorship program
ALPHA LEARNERS
Art and Science of Investing
to make you Independent in stock markets
A PROGRAM TO MAKE YOU LEARN AND EARN
This is a unique live program for approx. 5 months (on weekends) Where one can learn necessary
Fundamental Qualitative concepts to understand the things which create wealth in long run
Fundamental Quantitative concepts to substantiate what we have seen qualitatively
Necessary Technical aspect to make our entry and exit better in stocks
Resources to analyze faster to analyze more companies faster
Big money moves aspect to understand where money is moving
Understand Contrarian, Cyclical, Value and Growth investing
Bucket and GRADE Framework
Business Moats understanding
Exit Strategies in stocks
Reading Balances sheet in simple way to analyze results and issues to make quick exits or to do pyramiding after results
Tricks and Checklist for faster analysis of Annual Reports to help us all understand whether to deep dive or not
Conf-call understanding, Transcripts Concepts and Tricks to understand faster
Concepts and tricks on various intricacies in stock market
Understanding about primary, secondary and derivatives market
Also get a KNOWHOW on
Checklist for stocks to identify red flags faster
Checklist for deep dive into selected stocks
How to build Portfolio for Short term
How to build Portfolio for Long term
How to find Multi bagger stocks
How to avoid pitfalls in market
When to exit stocks
Concept of Futures and options
4 Bonus sessions from experts (apart from Program content)
Mutual Funds
Financial planning
IPO and
a SURPISE session
3 months of teaching and mentoring
Can be extended based on queries, case studies2 months of handholding
To clear doubts, correction of mistakes, independent walking in markets
12 Assignments
Based on actual events happening in markets during the course
Case studies
Based on future growth understanding and pitfalls to avoid
Quizzes
To help you assess yourself whether you are progressing or not during the program
This is a program YOU CAN NOT AFFORD TO MISS
LET THIS INDEPENDENCE MONTH be the start of your journey towards INDEPENDENCE IN STOCK MARKETS
ACT NOW for your Independence
CONTACT us
AVAIL EARLY BIRD OFFER till 31st Aug 2021
ACT NOW for your Independence
CONTACT us
Number of batches and batch size is very very limited considering live classes
Major part of this initiative will go towards orphan children education and food
Do make use of this opportunity and be part of bigger initiative
Connect with us to help genuine needy children
In case you have any questions/ queries, please feel free to reach me through Contact Form
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.
Protected: Premium Stocks : 14-Aug-21
Protected: Positional Stocks – 14Aug21
Aptus Value Housing 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
Aptus Value Housing IPO– Incorporated in 2009, Aptus Value Housing is a retail focused housing finance company primarily serving low and middle income self- employed customers in the rural and semi-urban markets of India.
Business — It offers customers home loans for the purchase and self-construction of residential property, home improvement and extension loans, loans against property and business loans. It only offers loans to retail customers and does not provide any loans to builders or for commercial real estate. Its target customers are first time home buyers where the collateral is a self-occupied residential property. It provides loans with a ticket size only below ₹25 lacs
Region of operation –Company caters to 4 states namely Tamilnadu, Andhra pradesh, Telangana, Karnataka
Offer purpose — The IPO is fresh issue of 500 cr and offer for sale by promoter. The issuance of shares is for branch expansion and general corporate purposes. It proposes to utilize the Net Proceeds from the Fresh Issue towards fully augmenting the tier I capital requirements of the company.
Risks —
Limited region of operation can pose regional risks
Loans to low and middle income groups may lead to spike in NPA with COVID-19 3rd wave risk
Strength
Good Financial ratios despite catering to low and middle income groups
One of the largest housing finance companies in South India
Highest return on assets (RoA) of 5.7% among 25% the Peer Set during FY21 and low Loan to value size helps the company further
Backed by sound promoters
Future
With affordable housing on rise in India and emergence of nuclear families present a long runway for company in short to medium term to grow the business and grab the opportunities. Expansion into new markets is also another opportunity
Valuations
Valuations are bit on higher side considering peers but look reasonable due to better finacial metrics
Should we apply?
People can subscribe for listing gains and hold longer with each quarterly review
Exit on listing if getting more than 30-40% gains
Add more if it dips below issue price keeping long term horizon mindset
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
In case you have any questions/ queries, please feel free to reach me through Contact Form
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.
Nuvoco Vistas 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
Nuvoco Vistas Corporation IPO-The company was incorporated as ‘Infra Cement India Private Limited’on February 8, 1999. Nuvoco Vistas Corporation Limited (“NVCL”) is the 5 largest cement company in India and the largest cement company in East India in terms of capacity.
Business — NVCL has an extensive portfolio of cement, RMX and modern building materials to cater to the needs of their customers. NVCL distributes their products through the trade segment, which mainly caters to individual home buyers (“Trade Segment”), and the non-trade segment, which is mainly via direct sales to institutional and bulk buyers (“Nontrade Segment”). Their focus is on the Trade Segment, where their distribution channels are a mix of wholesale and retail dealers and a sub-dealer network
Region of operation — NVCL has 11 Cement Plants (8 in East India and 3 in North India). Company’s Cement Plants are in the states of West Bengal, Bihar, Odisha, Chhattisgarh and Jharkhand in East India and Rajasthan and Haryana in North India, while their RMX Plants are located across India
Offer purpose — The IPO is issuance of shares for debt clearance and general corporate purposes.
Risks —
High and intense competition with Peers. Only Marginally ahead in East India in term of market share
High Valuations
Strength
Presence across key consumption markets and strong relationship with channel partners
Backed by Strong Promoter
Extensive sales, distribution network with diversified product portfolio
Plants are in close proximity to key markets and raw materials
Future
NVCL is the fastest growing cement company in terms of capacity addition on percentage terms with installed capacity doubling over the last 5 years post the acquisition of NU Vista. With focus on Infra in Pan India and special focus on East India, company can keep on growing well
Valuations
Valuations are high considering the Financials
Should we apply?
People can can give it total miss or subscribe only for listing gains if any. Sell on listing day.
Better peers are available cheaper in market
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
In case you have any questions/ queries, please feel free to reach me through Contact Form
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.
Car Trade Tech 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
Car Trade IPO-Cartrade Tech Limited (“Cartrade”) was incorporated on April 28, 2000. Cartrade is a multi-channel auto platform with coverage and presenceacross vehicle types and value-added services.
Business –Cartrade Tech Limited (“Cartrade”) is a multi-channel auto platform with coverage and presence across vehicle types and value-added services. Their platforms operate under several brands: CarWale, CarTrade, Shriram Automall, BikeWale, CarTrade Exchange, Adroit Auto and AutoBiz. Through these platforms, they enable new and used automobile customers, vehicle dealerships, vehicle OEMs and other businesses to buy and sell their vehicles in a simple and efficient manner.
Revenue streams — Commissions and fees, advertising, lead generation for OEM, inspection related charges
Risks —
High and intense competition in industry
High valuations
Industry still in nascent stage so continuous threat of new entrants will be there
Strength
Leading marketplace for automotive sales with an effective ecosystem
Technology platform oriented business
Network effects can make it a commanding marketplace
Profitable and scalable business model
Future
The company is well positioned to benefit from used vehicle industry growth as well as digital ecosystem. With Network effects coming into place with time, and selective acquisitions it can grow big
Valuations
Valuations are high
Should we apply?
We can avoid subscribing or apply for listing gains and exit
Wait for correction to enter for long 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
In case you have any questions/ queries, please feel free to reach me through Contact Form
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.
Protected: Positional Stocks – 08Aug21
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
In case you have any questions/ queries, please feel free to reach me through Contact Form
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.
ALPHA AFFAIRS 