My Portfolio Review- Pankaj

[varun037]

@bhatpan

Regarding Nathbio i purchased the stock @150 and then added on dips, since then the stock has more than doubled. Last year company issued QIP @468 and company now has a positive cash flow of 39 as of Mar 18 (as per screener). Also, could the increase in inventory days could it be due to the cyclic nature of the business?? as it is mostly dependent on monsoon? Also, as per the recent company investor presentation, the company is on the verge of huge export potential in Philippines as nathbio is the only company to receive approval for fusion BT seeds in Philippines.

Changes in cash account should not be considered as cash flow. Free Cash flow has many definations but I dont take share sale as free cashflow.

You may refer to my previous discussion with Dinesh here and onwards.

Kovai Medical Center and Hospital - Health and Wealth

IMO cash from from debt cannot be added to free cash flow to equity. Money raised from debt is never free to distribute and carries some charge over the assets. Also consider, if this was true, any company with high debt will report positive cash flow to equity, even Suzlon, JPAss etc types. I personally calculate free cash as Cash from operations, less (net) amount invested in fixed assets. One can reduce interest payments from this, if he wants. I won’t reduce dividends as they are free cas…