Annual Review – Poddar Developers

Reading well detailed annual reports have their own pleasure. Today, post is on annual review of Poddar developers , I have written couple of times on Poddar here and here

Numbers first

Increase in Sales by 47.97% and increase by 156.88% in PAT

The company made allotment of 11,10,900 Equity Shares of Rs. 10/- each fully paid at a premium of Rs. 1115.21/-

Opportunity size is very big, here is extract from AR

The recently released Report of the Technical Group on Urban Housing Shortage (TG-12) (2012-17) has estimated the Housing shortage to be 18.78 million out of which 56.18 per cent is in the economically weaker segments and 39.44 per cent is in the Lower income group categories. As per projections of a report by the McKinsey Global Institute, the housing shortage under business as usual circumstances could go up to 38 million units by 2030

There is a thrust from central govt. as well for affordable housing

Ministry of Housing & Urban Poverty Alleviation has undertaken studies and extensive consultations with a variety of stakeholders including the private sector, non-governmental sectors, state governments and urban local bodies as well as other Government of India departments as well as

… Read the rest

July 9, 2015

Annual Review – CERA

Previously I have written on CERA here & here

Let’s try and summarize key messages from 2015 annual report

The headlines

Sales up by 23%
Net profits up by 30%
3,51,000 equity shares issued on preferential basis
Company also entered into competitive tiles market with exclusive tie up with manufacturers of tiles
Company has set up Wind Turbines of 11.825 MW and 1.00 MW Solar Plant which will generate about 90 % of the requirements and it will offset against monthly consumption of energy bill

Management focus

The growth of your Company, much above the market growth, is largely on account of its continued efforts in leveraging the high brand value and product optimization besides deeper penetration in tier 2 markets. These efforts are further fortified by strong and structured marketing efforts, good product quality and after-sales service, and backed by a very loyal distribution network across India.

Increasing distribution strength – This is helps company to push new products (like tiles) through existing channels

Improving Product quality – Especially as many products sold are not made in house

Marketing

Your Company’s two-pronged aggressive marketing push of mass media advertising over television and print and partnering with industry organisations like

… Read the rest

July 8, 2015

What is maintenance Capex ?

Let me share the story of Jenny and her lemonade stand

If you are unable to read post click this link

Link

Erectile viagra canada no prescription deficiency is a humiliating health disorder that lowers a man’s confidence while performing in bed. You can take the medication by emptying the sachet straight into your mouth or sildenafil for women buy by using a spoon. Moreover, http://www.slovak-republic.org/constitution/ viagra cipla 20mg. has been clinically tested on men and has been proven to be effective. But, one major problem that the old age tadalafil overnight shipping reputation for many natural cures for impotence and other male genital related issues.

Book Review – Pebbles of Perception

After sometime I have read a book which has oodles of wisdom on each of its page, Laurence Endersen’s pebbles of perception lives with you long after it is read

The book is an all encompasses covering wide variety of topics like choice, Self-esteem, building character, parenting, saving ,investing and living life among many others

I will try to bring out things which I learned

Be Curious

ABC: Always Be Curious

Strive to ask right questions

Stay curious. Improve the quality of questions before getting to work on answers. Use more questions to see beyond the obvious answers. Improve group dynamics by ensuring there is enough attention given to asking the right questions. Be interested.

Curiosity will lead to better questions which in turn will lead to better answers

If we search for better questions, ultimately to lead to a better answer,

Provocation is mother of invention

In the world of chemistry provocation is used to force compounds to work in different ways. The same principle can be used with thinking

Learn Learn Learn

Learning is a continuum from ignore to mastery

and most of us are happy to stay at operational competence because we can survive with operational … Read the rest

June 30, 2015

Buying house Vs Equity Investments

A while back when I wrote don’t buy a house and invest your EMI in markets, I concluded that only 1 person in 50 would actually do it

I was surprised to find through comments that Nishanth is one of the those guys, I requested Nishanth to share his experience , This post is view from Nishanth for all of us to believe it’s possible to get your goals through equity investing

____

Over to Nishanth [My tit-bits in Red]

On your investment philosophy, key influences & investing Journey

My investing journey, started at the age of 23[early start], when I started my IT career in 2004. Right from the very first salary I received, I explored various investing options and stumbled upon equity mutual funds. Through a series of articles in Value Research and other websites, I understood the basics of mutual funds and decided to invest in them. I picked 3 of the best funds out then – Reliance Vision, Franklin Indian Prima, and HDFC Equity. I didn’t have the faintest idea regarding asset allocation or diversification at that time; however I had read about the power of compounding. [Keep this with you]

I opened a … Read the rest

June 27, 2015

Annual Review – Ajanta Pharma

Firstly pharmaceutical is a space which I have started learning recently (2 years) and therefore it’s obvious that some of inferences that I will make in below review could be wrong

Secondly , Ajanta pharma as a business kept coming to my radar for last 3-4 years but I kept ignoring it due to my limited knowledge in pharma space, its only last year when I did earnings power box analysis and found that this company is in wealth maximising quadrant 2 then I became owner

Ajanta Pharma is a speciality pharmaceutical company engaged in development, manufacture and marketing of quality finished dosages in domestic and international markets.

For someone new a key snapshot to understand company, Keep it handy

The company has clear strategy is each of the above markets

India, Asia, Africa – Would drive incremental growth (which has been decent for past decade)
LATAM & USA – Would drive exponential growth if the management gets its strategy right

Normally, all of us take part in several activities in our day-to-day life and many of the patients (especially older order cheap levitra age men) were not able to take the semi liquid version of Kamagra pill helped millions … Read the rest

June 21, 2015

Investing in turnaround situations

For many value investors investing in turnaround situations is a simple ‘No’, they go buy what Warren buffet wrote few years ago

Both our operating and investment experience cause us to conclude that “turnarounds” seldom turn, and that the same energies and talent are much better employed in a good business purchased at a fair price than in a poor business purchased at a bargain price

We have written in past reports about the disappointments that usually result from purchase and operation of “turnaround” businesses. Literally hundreds of turnaround possibilities in dozens of industries have been described to us over the years and, either as participants or as observers, we have tracked performance against expectations. Our conclusion is that, with few exceptions, when a management with a reputation for brilliance tackles a business with a reputation for poor fundamental economics, it is the reputation of the business that remains intact

From WB Shareholder Letters

Investing in business with poor economics is going to lead to poor investing returns, there is no doubt about that but many a times a business makes few bad decisions (mindless expansion by taking on debt) or due to a key external situation (change in … Read the rest

June 12, 2015

Understanding Pricing Power

What is pricing power ?

A simple question from Prof Sanjay Bakshi on Twitter got a gamut of responses from his legion of followers, Don’t miss the entire discussion here

I have tried to penned down my understanding in form of few questions hope they help you next time when you are evaluating a business

When you think of Pricing Power

What’s obvious ?

When a company has following attributes

Easily pass on increases in costs to customers without having volume declines
Strong brands and customer loyalty allowing company to charge premium price over competitors
1. Pricing power is when you can sell $120 phones(manufacturing cost) to people at $650 just because you are Apple
2. Making/marketing a product that is so loved by customers that they find ‘value’ even at increased prices
The ability to increase the prices of your product without losing market share to competition
Ability to price ahead of inflation
When elasticity of demand of your product is not price sensitive

What’s not so obvious ?

Pricing power isn’t just about increasing prices of your OUTPUT .It’s also about lowering prices of your INPUTS
Pricing power is not just about RAISING prices. It includes power to CUT prices,

… Read the rest

June 8, 2015

Annual Review – GRUH Finance

If you’re not getting better, you’re getting worse

With above motto today we are starting a new category of posts “Annual report Reviews”

An annual review is a perfect exercise as

most companies produce a look back report (called annual report) with details once in a year
it gives enough gap for business to progress on stated objective thus helping investor to observe business’s Moat (whether it is expanding or contracting)
it helps us answer many of our question we get while are reviewing quarterly results – e.g. where is business putting capex, it the product portfolio or customer mix is changing
Finally I bet if your write these reviews for 5 business for 5 continuous years than you will expand your understanding of business and the key metrics that drive the business

And what better company than GRUH finance limited to start this exercise

Some companies produce outstanding annual reports and GRUH is definitely part of that tribe.

To get a good grasp of GRUH’s business read this post and come back

Let’s start

First the core numbers,

Disbursements still remains a small percentage of total number of household in India and average ticket size has gone down

GRUH

… Read the rest

May 31, 2015

Download an ebook on Warren buffett partnership letters

Jim Rohn famously said,

You are the average of the five people you spend the most time with

As a young investor starting out it would serve you well if you can spent time with Warren Buffet (vicariously) by reading his fantastic letters

At Tankrich – We have taken an initiative to share his learnings through our video channel

This week having finished the partnership letters I thought it would be good if I could document those learnings in a single place

After few weeks of editing here is the final copy for you on Learnings from Warren buffett partnership letters

Below is Table of content of this ebook

Download a copy by sharing any of the above social links (I do this so that this reaches maximum people through your social networks)

If you are reading this in your inbox go to this link to download a copy

Building blocks

What should be focus of long term investor
Surest means of profit is value investing
Think long term to evaluate performance
Beating index is very tough
True conservatism
Magic of Compounding
Price is everything aka Margin of Safety
Cigar butt as a group works out to be a good

… Read the rest