Some info Abt ipru -ON 31st Dec 2015 and 31st March 2016 ipru had sold in secondary transactions , 4 % and 2% stake to PREMJI INVEST and Temasek @226 approx.
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wonderful ppt, appreciate the time taken out by you in making these slides which will serve as a guideline for all of us
Thanks. So nice to not that u find it useful
lets listen to the concall on tuesday. axis direct has given a buy report on 21 oct with a price tgt of 310
Axis direct erstwhle Enam gives a target of 310 to Dilip Buildcon.
I missed listening to concall of Dilip Buildcon.Did anybody listened to it ? whats were they saying.Q2 is generally tepid for road construction cos due to monsoon.
I have applied with full force in the recently closed IPO of Sheela Foam the makers of Sleepwell brand of mattresses and industrail foams due to following reasons
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Highly Ethical promoters enjoying stellar reputation.All their vendors get payment through RTGS on the promised date without any follow up.
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V well educated promoters from IIT ,RPI & Purdue University(2nd Gen) with superb execution track record over last 40-45 years.
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Huge opp size .Its Indias leading brand in a sector where unorganized sector still has 70% market share implying huge opp for organized players thanks to Demonetization & proposed GST.Organized players are already growing at the rate of 11-13% vs vs 6-8% and taking market share away from unorgnized players
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Negative working capital
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Reasonable PE of 25-27 for FY 17 for almost zero debt(DE-0.2) branded FMCG play
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Asset turnover of 5.2 & Receivable days of 28 days
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Invested capital has shrunk by 33% in 4 years while sales have gone up by 50%
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Ronw has improved form 14.6% to 31 & EPS to 22 from 5.7 in last 3-4 years
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IPO came at approx 3500 Cr mktcap vs proposed 4000 Cr Mkt thanks to DeMo fears
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Australian subsidiary Joyce foams give sits tech edge in making better quality mattresses
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Co has started taking more frequent price hikes & discounts to channels gradually being reduced.Mix also improving every year.
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Existing block can sustain 30% higher sales every year
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Also operates in B2B business where again opp size is huge like in sectors like Auto seats,Bra cups,Insulation etc
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High quality anchor investors like GS,MS,Premji Investment,Fidelity,Kuwait Govt and a host of MFs like HDFC Icici Sundaram,Kotak,IDFC
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QIB portion oversubscribed 16 times & firm allotment in retail category
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Main competitors Kurlon performing poorly & is on block as per grapewine
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Risks remain delay in GST implementation,impact of Demonetization in short term,RM volatality.
Enclosed Angel broking &HDFC sec report covers main point about Sheela Foams nicely.
http://www.hdfcsec.com/Share-Market-Research/Research-Details/IPOReports/3020283
http://www.angelbroking.com/research/sheela-foam-limited-research-report-25-11-2016-78659
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Hasnāt the growth been tepid and the margins in this year abormally high? The IPO may open on a high given all what you have mentioned, but these are important questions one needs to understand.
The margins have been good because of operating leverage ; brand giving them pricing power Raw Material softening yet retaining the price reducing margins for channel distribution . company has again increased the prices post TDI price increase and have been increasing the same consistently. RM price expected to reduce post commissioning of Aramco plant in Saudi Arabia; Co is moving to higher margin product range.
Though current demonetization impact might hit the company in short term story remains intact IMHO.I intend to hold it atleast for 1-2 year POV and then take a call.
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I am thinking of applying in Laurus Labs IPO on 8 Dec 2016.
Views Invited
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Due to mixed reviews I generally decide on applying in IPOs after 4 PM on closing day after seeing the response of QIB & HNI response using physical forms.
This has been my RamBaan which has made IPO investing a rewarding experience for me.
In case of Laurus Labs too I will wait till last day 4 PM.
How do you check if hni have invested or not
its available on nse n bse site.
When you apply, do you apply under retail with multiple family accounts or as a HNIā¦ reason for asking is that there is not much point applying for these oversubscribed IPOs for a retail esp if the portfolio size is big
both options. depends
Hi Vivek ,
Can you post your current portfolio structure after the demonetization changes .I remember you were positive on nbfcs .Hence would like to see the changes you did
I am an eternal optimist.Still hold on to most NBFCs.
I have recently applied in 3 ipos Sheela Foam MRSS India & Laurus labs
Sheela foams & MRSS were firm allotment of Rs 2 & 1.4 lacs per app in retail category
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Hi Vivek
Any insights on MRSS India.: The financials seems attractive. I have gone through the presentations of the management on youtube but fail to understand the opportunity size and the rationale behind the further issue of shares/ equity dilution. Can you kindly throw some insights why they are in need to raise further funds in a short span of 1.5 years. Can u throw some more light on the Management, Business & Opportunity Size.
Kind Regards
I have recently started tracking MRSS.Liked it due to
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MD Mr Panchal being an ex Nielsen Asia Pacific head & now starting this Mkt research co
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Similarly other 2 main promoters Punit Bhatia an UCLA & Duke University passout & Raj Sharma an accomplished speaker & doer in right age of 40s
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Good team recruited like one heading Auto practice whoe once headed Tata Motors MR division and worked there for 35 years.
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75% promoter stake
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Long term debt zero
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Variable pay structure where fixed pay is 30% and rest variable which is paid after client gives satisfactory feed back n collections happen
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Indias only listed mkt research firm.Opp size huge & mktcap abroad for MR firms is 3 times the sales
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Growing at 100% cagr
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Mktcap only 50 odd crore vs huge opp size
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ROCE is high in range of 50-60%
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Good client lists like Maruti HPCL ,Google,Myntra and others
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Specialist in digital MR n have introduced technologies like Eye movement tracking,pulse tracking;webcam based face reading
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Reasonable valuations with fwd PE of 10-15 for fy 17
Risks are debtor days high ,limited track record;severe competition .:big cos like Nielsen competing
All in all a start up sort of option investment for me.
Are you still holding Repco Home