I could not agree with more than what Subash bhai has described above.
Actually it is rightly said that beauty lies in the eyes of beholder..
Normally all the other builders or Real Estate Industry as a whole, during these times of turmoil & high interest rate regime, has lost its sheen among the investor’s, due to couple of key Factors.
Anticipation of Sub-prime like Crises or bubble burst in Indian Real Estate, which is far from reality, at this juncture for sure.
Funding Capabilities in question, for the builders & inventory piling due to High Interest Rate Regime.
Trust for the Out-performers or Competent Strategic Alliances (such as AP) even among the best stars in Real Estate is missing, due to overall subdued Performance of the sector & Investment Sentiment, as a whole.
Diversified or Versatile Profile Jockey even is being doubted for his Capital Allocation skills & turning around dead businesses, bought at cheaper or dead dull valuations, in turn rewarding Shareholder’s immensely in the longer run.
Jockey can control the horse, but on racing track, a Horse can never control a Jockey.
AP’s track record speaks for itself rather than searching words to describe him.
I am fully betting big on the Competence of Capital Allocation skills on AP & his ability of execution.
Views may be biased & this is not a Buy/Sell recommendation.
Investors should take their own call with due diligence before arriving at any decision.
Part of free wheeling interview with AP. 30+% CAGR growth, great track record of 25+ years of generating excellent shareholder returns, master strategist , minority shareholder friendly company, great board of directors… I am not sure what else one can ask for…
The non-real estate lending arm of Piramal Enterprises will provide customized offerings to companies across sectors
Piramal continues to expand its product offerings in financial sector…
Any promoter anywhere in India who wants money, wants flexibility and wants a good partner, should call on us. We want to become the first port of call for all companies,” said Khushru Jijina, managing director at Piramal Fund Management, the wholesale funding arm of the Piramal Group.
Wow… pretty innovative I would say… I know some folks are going to get nervous with this expansion
Would like to understand what unallocated Assets and liabilities are in 17Q1 results under segment wise assets and liabilities on page 4(link given below). Per this, Financial services book value is ~9187 Cr (22845 - 13658). Unallocated assets - liabilities are: 1573 - 6001 = - 4428 Cr. Wondering how unallocated negative equity affects the valuation of financial services. Also, is it OK to use 9187 cr book value for valuation of Financial Services? Appreciate your insight…
I understand your skepticism towards Indian regulatory mechanism and rightfully so. But I am more perplexed at the fact that people like Piramal’s and Murugappa’s are being penalized whereas most of the well known Nifty Fifty family owned big businesses, are regularly flouting insider trading norms without getting caught.
I feel corporate governance norms of Piramal group are one of the best in Indian industry. But they are not above law. So they need to be penalized, if they have made mistake.
About demerger news, well I don’t recall any demerger happened in Piramal yet… So one which is yet to happen can not be considered as “news”… . If you go back one year and listen to AP’s interviews (few links on this forum also), he has always been talking about the separating the finance and healthcare business. So I am not sure where the “news” is coming from?
In nutshell, I am with you on being skeptical about promoters and lack of oversight from regulatory authorities in India. But I feel it would be bit of exaggeration if you paint everybody with the same brush.
I agree with you. There has been no “new” news on demerger in Piramal. It is a fact though that this stock has been more in news in recent months - not sure if that is a good thing or bad.
This is not specific to primal enterprise. I have been trying to understand how once can measure corporate governance. We have seen so may presumed greats of corporate governance falter at times. This is because corporate governance is in the hands of individuals.So one can hardly measure it .Take the case of wells fargo or satyam . On paper everything looks good until it goes bust.
I use thumb rules like no. of related party transactions, strength and type of independent board members, reputation of auditor, various disclosures and consistency of disclosures done by the company from time to time, through conference /analyst calls, presentations etc, social reputation of the promoters, industry reputation (type of companies working with them ) etc. Not scientific method though…
But nothing is fool proof. Risk remains as long as you are in the stock market as can be seen from the examples you mentioned above. So at the end of the day, it would be individual’s call.
Important point to note is this deal would be EPS accretive with immediate effect. Also Piramal is going to leverage its low cost manufacturing base in India This would help expand margin as products would be manufactured in India in place of Europe.
