Hi,
This is a tab where in I will try to post various updates on my earlier posts:
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Update 5: Post Link:: Swaraj Engines
Swaraj Engines has come up with a reasonable set of numbers. It is interesting to read the footnotes, which says that capacity expansion from 60000 units to 75000 units is almost complete. This can also be seen from the increased depreciation amount. My purchase price of the stock was around 400/- when i last posted. Considering the completed CAPEX and almost assured offtake we can look at increasing the buy price by around 20% to Rs.480/-.
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Update 4: Post Link:: JB Chemicals.
I have exited my position in JBC today. In last 3-4 weeks i have written to the company, results have been announced but there has been no disclosure from the company on their issue with J&J. Since J&J is also a big customer for me it is a big question which JBC is not answering.
Poor disclosures+ Average Business overrides the cheapness, hence exit call.
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Update 3: Post Link:: JB Chemicals.
JBC today announced that J&J has held back payment of Rs. 160crs held in escrow accounts as J&J claims JBC has not fulfilled its obligations. Company is going to contest the same.
This leads to a material impact on our case, as the cash reduces, and we get the business for around Rs.32. It is still cheap, but there is now a fundamental question on whether J&J will continues their association with JBC, who does contract mfg. for them. If they discontinue then revenues of JBC will be impacted.
I have not sold my position in the company and am awaiting clarifications from company. In case company dosent clarify quickly, then I will exit the position.
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Update 2: Post Link:: JB Chemicals
I have taken a starter position in this company and will continue to add into it.
Suffering badly from endowment bias in First Leasing and Ashoka Buildcon. With markets rising, yet to make up my mind on these ideas.
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Update 1: Post Link :: Portfolio Management- Process of Reviewing
I have exited Garware Wall Ropes. It appears cheap but if one looks at its RoE & RoCE numbers business it is not a great business. My fair value estimates were in range of Rs. 60-70, and giving a 50% discount to that my buying range would have been around Rs.35 which i think is also near to its 3 year lows. My buying price was 57, so took exit and plan to invest in other ideas.
--------------------------------------------------------------------------------------------------------------------------
This is a tab where in I will try to post various updates on my earlier posts:
--------------------------------------------------------------------------------------------------------------------------
Update 5: Post Link:: Swaraj Engines
Swaraj Engines has come up with a reasonable set of numbers. It is interesting to read the footnotes, which says that capacity expansion from 60000 units to 75000 units is almost complete. This can also be seen from the increased depreciation amount. My purchase price of the stock was around 400/- when i last posted. Considering the completed CAPEX and almost assured offtake we can look at increasing the buy price by around 20% to Rs.480/-.
--------------------------------------------------------------------------------------------------------------------------
Update 4: Post Link:: JB Chemicals.
I have exited my position in JBC today. In last 3-4 weeks i have written to the company, results have been announced but there has been no disclosure from the company on their issue with J&J. Since J&J is also a big customer for me it is a big question which JBC is not answering.
Poor disclosures+ Average Business overrides the cheapness, hence exit call.
--------------------------------------------------------------------------------------------------------------------------
Update 3: Post Link:: JB Chemicals.
JBC today announced that J&J has held back payment of Rs. 160crs held in escrow accounts as J&J claims JBC has not fulfilled its obligations. Company is going to contest the same.
This leads to a material impact on our case, as the cash reduces, and we get the business for around Rs.32. It is still cheap, but there is now a fundamental question on whether J&J will continues their association with JBC, who does contract mfg. for them. If they discontinue then revenues of JBC will be impacted.
I have not sold my position in the company and am awaiting clarifications from company. In case company dosent clarify quickly, then I will exit the position.
--------------------------------------------------------------------------------------------------------------------------
Update 2: Post Link:: JB Chemicals
I have taken a starter position in this company and will continue to add into it.
Suffering badly from endowment bias in First Leasing and Ashoka Buildcon. With markets rising, yet to make up my mind on these ideas.
----------------------------------------------------------------------------------------------------------------------------------
Update 1: Post Link :: Portfolio Management- Process of Reviewing
I have exited Garware Wall Ropes. It appears cheap but if one looks at its RoE & RoCE numbers business it is not a great business. My fair value estimates were in range of Rs. 60-70, and giving a 50% discount to that my buying range would have been around Rs.35 which i think is also near to its 3 year lows. My buying price was 57, so took exit and plan to invest in other ideas.
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