Tag: stock analysis

Satin CreditCare – Ignore irritants ?

Update – 13/03/2016 : Post publication of this note, Rep from Satin credit care got in touch with me and provided some clarification on some concerns I had raised . I am editing this post to reflect same, This would provide completeness to a reader who is having similar questions.

Overall, I am happy that company has come forward and addressed our questions

Changes are highlighted in Red

 

Mid and small cap companies are not perfect diamonds there will be always something about them which we will dislike, As an investors we have to make a choice whether these irritants are ignorable or substantial

Over to case for today,

Satin Creditcare Network is one of the top ten largest[4th] Micro finance Institution (MFI) in India with an Asset under Management (AUM) of ~INR 25bn with primary focus on North & West India where it has a presence across 16 states and it is the largest player in terms of market share.

The investor presentation on their website gives a very good overview of business,their journey and important financial metrics.

Read the presentation here

satin 1

Satin is in business of money, a commodity business, sourcing cheap money and lending … Read the rest

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

  1. most companies produce a look back report (called annual report) with details once in a year
  2. 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)
  3. 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
  4. 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

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Why I maintain a free subscriber only Model Portfolio ?

After my last monthly newsletter to blog readers, I got few questions on Model Portfolio. I am penning this post to answer most of those broad questions that came my way

What is Model portfolio ?

Model portfolio is a collection of businesses at a point in time which in my humble opinion has ability to deliver superior returns over a three to five year time frame over benchmark indices (mid cap / small cap). The operating word here is ‘ability’ (not promise)

Investors should very carefully decide his/her risk appetite and the returns expectations, as not everyone’s situations is same. As a prudent investor first

  • Determine your willingness to take risk  – Are you an emotionally a person who can handle risk ?
  • Ability to take risk – Does you economic situation allows you take risk by investing in equity

There are end number of anti-impotence pills in proper way not in over or below amount overnight shipping viagra or more usual than suggested for. A full medical check-up can be completed through driver ed online viagra without buy prescription page ga. Back again discomfort and muscle cialis generic pharmacy aches can occur 12 to 24 several hours just … Read the rest

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Symphony – Understanding Competitive advantages

Previously I have written about how to identify stock investments

Like Peter Lynch here

Using Pause and Play here

By following smart money here

One of the pointers in Ten point investment map is to identify whether company has sustainable competitive advantages. Many of the investors have this question on how to define/find competitive advantage of company. We will try to ascertain competitive strength of  Symphony Ltd one of our top picks in Model Portfolio.  I am borrowing heavily from Warren Buffet’s letters to his shareholders.

1.  Will Company be in business for next 10 years ? Is there a big market to address – Symphony limited makes air coolers, also known as evaporative cooler, swamp cooler, desert cooler and wet air cooler, works on the evaporation technique; it uses the hot air in the room and water to generate cool air.  This is what I picked from there 2012-13 Annual report

In India,about 132 million households live in hot dry climatic regions (about 54% of the total) and about 11 million households live in moderate climatic regions. This represents an aggregate 143 million households (58% of total) of potential customers.

So we can safely assume that there is a … Read the rest

Why I bought Symphony at a high PE ?

We recently added Symphony to our model portfolio . Here is my complete analysis and reasoning for adding it to model portfolio

Symphony Limited manufactures and sells consumer durable products in India. It’s name synonymous to Air coolers in India.

Business

Symphony Limited manufactures and sells consumer durable products in India. The company provides domestic, commercial, and industrial air coolers across various models under the Symphony name. It offers desert, tower, room, and personal coolers for residences, shops, showrooms and offices; heavy duty industrial air coolers for factories, offices, schools, malls, assembly halls, warehouses, and metro stations. The company also provides storage and instant water heaters under the Sauna name. Symphony develops its own models, designs and prototypes of air coolers before giving it to OEM’s for large scale manufacturing. In addition, Symphony Limited holds intellectual property comprising 8 patents, 49 designs, 108 trademarks, and 7 copyrights. The company also exports its products to approximately 60 countries. It offers its products through a network of approximately 750 distributors and approximately 15,000 dealers across India.

Positives

–          Well positioned to encash the growth

–          Leading player in the air coolers market

–          Huge product portfolio with innovative products

–          Strong dealer … Read the rest

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