Waterbase Ltd

Waterbase Ltd 

Other Food Products

 

Market Cap.: ₹ 363.61 Cr.

Current Price: ₹ 94.20

Book Value: ₹ 28.59

Stock P/E: 18.95

Dividend Yield: 0.00%

Face Value: ₹ 10.00

 

Company is virtually debt free. Promoter’s share has increased.

How does it compares with Avanti feed?

Net Profit 

Weird cash flow and balance sheet over the year. I got the point of bad loan and too much climate dependency and outbreak of disease but still the company should take steps to fix this.

Model ponds are developed in Nellore for all kinds of Shrimp Farming.

The Company’s mission is to supply products of the highest quality and deliver a superior service to its customers – farmers, shrimp feed dealers, as well as domestic and overseas buyers of processed shrimp.

I will say a very good and informative Annual report and shareholder letter better than Avanti Feed

Shrimp farming is a risky business and prospects are a effected by several factors such as diseases, poor seed quality, fluctuating international prices, weather, seasonal patterns, production costs, etc. Many of these factors cannot be controlled thereby increasing the risk profile of the shrimp business.

Indian people in general don’t like shrimp a lot I guess so it is almost all US and Europe. Thailand is biggest competitor.

In all seafood shrimp is largest commodity in terms of value.

Current price of processed shrimp is in the range of ~ 550- 600/kg i.e. US$ 8-8.2/kg

Final Verdict: May be a great company. Management surely looks capable. Avanti feed looks much better positioned. A lot of risk is involved so not for my appetite.

 

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Shreyas Shipping & Logistics Ltd

Shreyas Shipping & Logistics Ltd

Shipping

Market Cap.: ₹ 476.20 Cr.

Current Price: ₹ 216.85

Book Value: ₹ 106.28

Stock P/E: 19.76

Dividend Yield: 0.60%

Face Value: ₹ 10.00

Company has good consistent profit growth of 38.62% over 5 years

Company has a good return on equity (ROE) track record: 3 Years ROE 29.31%

Competitors:

GE Shipping company

Dredging Corpn

Shahi shipping

Global offshore

Most of them does seem to be great competitor.

The company performed too well in 2015 out of the blue and then flat or less. Current year is also bad.

Net profit : 30 with margin

Sales is growing but not net profit why ?

Less margin business?  Raw material prices not constant?

Operating profit is also okay growing

Need to read balance sheet properly. Seems complex business

Although price of share is cheap can bounce if there is some growth in profit.

Price is two times book value

Debt equity ratio is 0.54

what if a vessel goes down? does it happen like that .. Fleet look very old like 20 years old or even older

Too much operating cost..

How does shipping compares with other ways of shipping.. check that .. Delay in shipping? road transport is faster..

Who are the clients … How busy are the vessels? What if vessel is not full? There is schedule of each vessel mentioned in their website.

Roads are getting congested ? Rails are overloaded? So offshore transport?

A truck on Indian roads can cover 60K –1 Lacs km, while in the US, a truck can travel up to 4 Lac km a year. Also, World Bank has estimated that trucks delays at checkpoints costs our economy anywhere between INR 900 Cr to INR 2,300 Cr.

However, coastal shipping presently accounts for only 7 per cent of overall cargo movement in India. Promotion of coastal shipping is essential due to the potential economic and social benefits it could confer. Hence it is important to address issues such as route development, capacity additions, and incentives by reduction in fuel bill, logistic cost, impact of land congestion & pollution on national economy and the environment. The Ministry of Shipping has taken due cognizance of the same and is intervening to simplify procedures to enable ease of doing business. Numerous initiatives have been declared during the year making Indian coastal shipping quite competitive with other countries.

The last mile connectivity in case of coastal shipping is economically viable only if the producers/consumers of the shipped goods are within a distance of around 100 Km from the loading/unloading point at the port side. This last mile connectivity often proves to be a challenge in India driving up the overall cost of transportation via coastal shipping. Availability of dedicated infrastructure will go a long way in promoting coastal shipping as a mode of freight transportation.

Fuel oil fluctuation

Lot in Reserve and surplus

Lot like airplane business oil dependency?

Final Verdict:  Buy

 

Disclaimer
I am very new to value investing and this is me taking random notes just for myself. Please don’t base any of your decision on these write-ups. That will be foolish.

Piramal Enterprises Ltd

Piramal Enterprises Ltd 

Pharmaceuticals

Market Cap.: ₹ 30,833.82 Cr.

Current Price: ₹ 1,786.95

Book Value: ₹ 751.05

Stock P/E: 30.98

Dividend Yield: 0.98%

Face Value: ₹ 2.00

The company itself is diversified also into finance sector.

Net Profit: 

Growth: 24% Can maintain I guess so good priced can buy 

Great management 

Diversisifed : Finance + Pharma + Asset management 

Shriram capital 

Can Consider  for long term steady growth

By investing in this company you are not only buying a good pharma share stock but you are also getting a free financial manager for your money. So free portfolio manager

A seasoned investors, is wise to learn to trust the process that generates winning investment results and give it time(long pauses).

Final Verdict: Buy

Disclaimer
I am very new to value investing and this is me taking random notes just for myself. Please don’t base any of your decision on these write-ups. That will be foolish.

Welspun India Ltd

Welspun India Ltd 

Textiles

Market Cap.: ₹ 7,058.19 Cr.

Current Price: ₹ 70.25

Book Value: ₹ 20.32

Stock P/E: 7.69

Dividend Yield: 1.85%

Face Value: ₹ 1.00

Company has good consistent profit growth of 234.48% over 5 years

Company has a good return on equity (ROE) track record: 3 Years ROE 33.74%

Company has been maintaining a healthy dividend payout of 19.94%

Looks cheap to me 

Net profit : 500

14 % growth can have I guess

A buy call

Futuristic

I should buy

More study needed

Management average.

Target issue not a big loss to business directly but other prospect may be effected in getting new business. One stain can it wash it off? Din’t look like a big deal to me. I should buy this right now.

http://www.bloombergquint.com/business/2016/08/25/welspun-indias-30-year-track-record-undermined-by-bed-sheets-controversy

Final Verdict: Buy

Disclaimer
I am very new to value investing and this is me taking random notes just for myself. Please don’t base any of your decision on these write-ups. That will be foolish.

Praj Industries Ltd

Praj Industries Ltd 

Construction & Engineering

The company is growing now.

Venture Capitalist Vinod Khosla who has a 10% stake.

Market Cap.: ₹ 1,500.28 Cr.

Current Price: ₹ 83.90 ( Costly can buy on huge correction)

Book Value: ₹ 37.41

Stock P/E: 20.53

Dividend Yield: 1.92%

Face Value: ₹ 2.00

Company is virtually debt free.

The company has delivered a poor growth of 8.31% over past five years.

Expected to have good result this year sale then

profit avg : 70

no significant growth till now

ttm is 37% otherwise just 3%

If 20% growth then make sense for this price

Emerging business so less growth till date is okay for me. The price is not cheap right now is what I think. Otherwise outlook is nice for the company. Management is good looks like.

The company deals with segments like Alcohol / Fuel Ethanol and Brewery Plants, Sugar Industry, Water and Wastewater Treatment Plants, Critical Process Equipment System, High Purity Systems, BioProducts (Livestock Health and Nutrition Products), and Customised Research Service & Solutions.

For FY 15, company breached the order book position of 1000 crores. Out of this ethanol stands at 60%, Brewery 7%, and Emerging business 33%. Domestic orderbook comprises 58% whereas export order book comprises

Praj Hipurity Systems expected to benefit in a major way because of strong growth in biosimilars. This division has recently won many breakthrough orders from multiple international markets namely Algeria, Turkey, Myanmar.

Company has debt free balance sheet with cash of nearly 250 crores not much.

For 9M fy 16, revenues were 705 crores against 685 crores in 9M fy 15.

Net profit for 9M FY 16 was at 35.44 crores against 39.65 crores for 9M FY 15.

Great position at this time in make in india 

Praj has market share of 65% in domestic and 30% in International ethanol. Company has identified following avenues for growth. Main customers are ethanol producers and breweries.

Like ethanol company intends to take breweries biz overseas. As of now it caters to domestic players. Recently it has received orders from large beer companies like SAB Miller and Heineken.

Launching second generation ethanol process. Company is putting up a demo plant. This plant would demonstrate second generation ethanol making process which would produce ethanol from cellulose instead of starch or molasses.

Exploring bio Products such as a) Live stock health and nutrients (Pro biotic market size in South east asia for this is 10000 crores). b) Human Health and wellness products like Omega 3 and Vitamin E and c) Industrial Biochemicals like Xylltol and furfural.

Company also expects to monetise its R&D over next 6-9 quarters.

Since past two years company has embarked on a transformation of its business model.

Company has focussed more on emerging businesses namely

Critical Process Equipment business mainly deals with Oil Skids catering to oil companies.

Industrial water and waste water management

outside presence

India , thailand , uae , tanzania,

how much in research ?

Environment ethanol drives vehicles ethanol made of bio material when oil is costly not right now but in future 

okay shareholder letter just  above average management  in capability Innovation and research patent of praj ?

waste to ethanol

water and wastewater treatment

bio products, increase pharma sector

~20 patents : Not much right? for this big company?..

integrated bio energy indian govt .. so good for a year or two

Final Verdict: Looks costly stock

Disclaimer
I am very new to value investing and this is me taking random notes just for myself. Please don’t base any of your decision on these write-ups. That will be foolish.

Buying Cheap is very important

The most important thing I tend to forget is buying cheap. Don’t rush into the market as soon as you get the bonus or you have got spare cash after monthly expenditure and other saving.

Always remember this.

Just wait for market correction. I am not saying that wait for one year or more like big shot investors. Keeping cash for long time is also not great and with this much inflation(India) it is worse. Still I should consider waiting for at least 2 months. I should sit on the cash for a maximum of six months. Keep on searching for best equities with cheapest price at this time.