ADAG Group - Investment opportunity or not?


(shahparag) #41

https://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0ahUKEwjI4537_cTYAhVMpY8KHRT3CH4QqOcBCCgwAA&url=https%3A%2F%2Feconomictimes.indiatimes.com%2Fnews%2Fcompany%2Fcorporate-trends%2Fwhy-anil-ambanis-third-business-avatar-will-be-his-biggest-test%2Farticleshow%2F62396235.cms&usg=AOvVaw1NLC3RYYz_nZ3e3EKa8A_x

very good article - on same line of the forum -MUST READ


(shahparag) #42

https://drive.google.com/open?id=1A3h94P1rOubbAG1wNS7khyOkSFDdG1fe

R-INFRA BUSINESS SEGMENT DETAILS


(shahparag) #43

https://drive.google.com/open?id=0B3I0sldHkYdFYlhZd3o4d2dZMThqZ3pxbEpRbjUwWWxIcWpj

R INFRA segment wise revenue detailing - i think major cashflow hurdle is as below

From April 01, 2012 till March 31, 2016 (2nd Multi Year Tariff (MYT) control period) and from 1st April 2016 till 31stMarch 2020 (3rd Multi Year Tariff (MYT) control period), determination of Retail Supply Tariff (RST) / Transmission charges chargeable by the Company to its consumers is governed by MERC (MYT) Regulations 2011 and MERC (MYT Regulations) 2015, whereby MERC is required to determine the RST and Transmission charges in a manner that the Company recovers its power purchase costs as well as other prudently incurred expenses and earns assured return of 15.5% p.a. on MERC approved equity in Distribution Wires Business and Transmission Business and 17.5% p.a. on MERC approved equity in Retail Supply Business, subject to achievement of Plant Load Factor of 85% , transmission availability of 98% and Aggregate Technical and Commercial (AT&C) loss reduction targets respectively. The rate review or “truing up” process during the MYT period is being conducted as per the principles stated in MYT Regulations 2011 and 2015

company has regulatory assets worth around 17000 cr as on march 17 which includes 5000 cr for mumbai assets which is sold out to adani .


(SANYUKTA) #44

i am sorry for writing this post.i am very sorry.


(Jiten Parmar) #45

Everyone has a personal life. Anyways, if one wants to make opinions based on tabloids, it’s personal prerogative.
I am reasonably happy with the team they have for their various business verticals.

My purchase price is still much lesser than CMP and have added more in last few days.

This company, may definitely not suit many, and so be it. In fact, management deserves the skepticism, due to their past. But, I believe markets are all about the future.


(sarangg) #46

Are you holding just Reliance Capital or Infrastructure as well? Infrastructure looks low priced (<5x EV/EBITDA) post the Adani acquisition afaik


(sachin50) #47

Many a times a stock is hit by bad news and the price dives, and the value investor as per his research decides if to buy or not. Nestle and the maggi is the one example , there will be many more for sure. Same is true when some good news rockets the stock to a fresh high, at times it continues on the trajectory of higher highs but few times just a dud.
ADAG group of companies have given handsome returns for lot of investors and will continue same way but maybe Relcapital and the Rinfra will better qualify for short term trading. These two stocks charts are so good and their movement is so bookish technical that these can be easily traded on hourly or daily or weekly charts. And one can easily go long or short by following these charts.


(Kshitiz Gupta) #48


(rahulshares) #49

This can materially affect the top line of RNAM


(khushi) #50

@jitenp what are ur current views on reliance capital.

Last time u were few weeks back around 400-420 levels before it went to 600. Now again it is at those levels.

What you have to say now … ?


(Jiten Parmar) #51

What has changed except price in last couple of weeks ? My view doesn’t change with short term changes in price quoted, especially, when I believe it’s true value could be much higher.

I have been adding in this fall too.

As I said earlier, I know the risks involved in this company. So, all must do their due diligence.


(Shankeshs) #52

Hi all,
RHFL FY18 Q3 results are out today. RHFL has posted 100% jump in its PAT. Going by the momentum FY18 PAT is expected at 175 Cr, EPS is expected in range of Rs. 3.25 to 3.40/-. RHFL is currently quoted at Rs. 68.50/-. RHFL is quoting at PE multiple of 20 on earnings of FY18. Is RHFL a good buy at current price? On paper it looks a great buy, but major concern here is poor group management track record of promoter. @jitenp, @shahparag Please share your views on RHFL.


(sanjay12354) #53

Net Profit doubles but quarterly EPS showing just Rs.0.96 compare to last years Quarterly EPS of Rs.2.39.

Is there any fresh equity issuance ?


(khushi) #54

Yes there has been issuance of securities

Read - http://www.bseindia.com/xml-data/corpfiling/AttachLive/3a832574-0fd9-44a6-bf46-05fe8e4f6e13.pdf


(Shankeshs) #55

This regulatory filing is with regards to debentures.


(khushi) #56

Reliance Capital Q3 results seem to be good, stock should positively react and should again test 600 levels.

Standalone EPS - RS. 8.41 vs 0.99 YoY
Cons. EPS - RS. 12.41 vs 8.29 YoY


(Jiten Parmar) #57

Price to book is a better measure for financials.


#58

Why would you say so? I have been trying to understand for years why people say so.


(Mayank Narula) #59

Because financial companies use their balance sheet to generate income. Everything on P&L is a function of balance sheet. Even profitablity is being derived from spread in cost of liabilities and earnings on asset which is not the case for a non financial company. Besides, there is a lot of subjectivity in provisioning etc which can end up distorting earnings. Hence balance sheet multiples are better representative of valuations than pe.


(jainaj) #60

Jiten sir, you were saying that you will give detailed thesis on reliance capital. It will be highly appreciated if you can do this
thanks