Consider using Price-to-Sales (P/S) ratio, Enterprise Value to Sales (EV/S) ratio, and Discounted Cash Flow (DCF) analysis to value the company since its PE ratio is not applicable.
2 Likes
Good profit
May the best way to start analysis is why the company failed to generate substantial break even profit? What component in their business caused the an unprofitable endaveour ? What was the challenge ?
past burdens
How did company solved their Debt issue? Look at cash flows. Is company not able do business with efficiency? Look at cash convesion cycle. Is margins are the issue? Is business facing sector headwinds or poor management ?
1 Like
I have question about this website.
- Is there a mobile app for this ?
- Is there a main Page forum for Kaynes Technology ? I cant find it.
1 Like
-
No app, only website.
-
No thread exists for Kaynes.
2 Likes
Hi,
I had a few questions wrt related party transactions for a company’s RHP I was going through.
- Here, does loan accepted means that the company has accepted a loan from related party or the company has given a loan to related party?
- What is the significance of negative opening balance, does it mean the company owes money to related party or vice versa?
- Also, is the interest expense applicable on Closing balance or Opening balance + Loan accepted?
I can build it. Please DM me.
Hi, Based on the limited information that has been shared it appears as follows:
Loan accepted means company has taken a loan from the related party
No, it means company has paid more to the related party who now owes it the money. See for Hiren Kotecha - Loan repaid = 0.72 which is the Closing balance for 21-22 which is also the opening balance for 22-23. So it seems it means company has paid him 0.72 which he now owes to the company
Interest expense will be on the entire loan exposure for the tenure of the loan. You cannot get the interest calculation from the given information since the dates of the loan taken / repaid etc are not available.
Overall, the following formula should hold for the numbers given:
Opening Balance + Loan Accepted - Loan Repaid + Interest Expense = Closing Balance
If it doesn’t seek an explanation from the company.
1 Like
Sir, management analysis ke liya kaun kaun se source use kre.
Kuki kisi kisi company ke MD ke bare may bahut less details diya hota hai.
Google pe linkindin pe bhi available hai. To kaun sa source use kre.
You may wish to find same answer in valuepickr search, you will find it, but in english. Replied it earlier.
For others also please you may follow the procedure.
Management analysis is indeed one of the most difficult part of company research. It comes only with experience, and even experts go wrong many a times. For starters, go through the article given below.
How to do Management Analysis of Companies - Dr Vijay Malik
In general, to assess management quality you need to look at management’s actions (ACTIONS – not words) over a long period of time, and arrive at a judgement. Look at what the management has done, and not done over the years.
A simple way is to take the latest Annual Report and compare it with the Annual Report 10 years ago. Compare parameters such as number of products, product lines, number of plants, manufacturing capacity, dealer / distributor network, geographical reach etc. If the management is dynamic and competent, you should see good growth in these things over the years. Also look at what the management has NOT DONE – absence of frequent equity dilutions, unrelated diversifications, debt write offs, large M & As etc. are all positives and their presence is a negative (or risk).
Finally, you can never be sure about what the management will do next. Remember you are only trying to reduce the chances of a mistake and increase the odds of good decisions.
9 Likes
Hello Sir,
As an investor should I try do the DCF valuation of the company that I am trying to invest .
Hi, DCF is one of the methods to value a company. It is theoretically the soundest as it incorporates the influence of all the factors which affect valuation, such as growth rates, cash flows, cost of capital etc. However, it requires one to make several assumptions about the future which no one can do accurately. In today’s market, almost every decent company will look overvalued on DCF making it impossible for you to invest anywhere! Reverse DCF is an intuitively easier way to use DCF (read Expectations Investing by Michael Mauboussin) as it tells what expectations are priced in by the market in the current valuation. Besides this, other methods like P/E, EV / EBIDTA. Price to Book, Markt Cap to Sales etc. also have their own merits. There is no one holy grail to valuation and it is best to look at valuation from multiple angles and arrive at an overall judgement on the value of the stock.
6 Likes
Thank you very much sir this writing cleared the doubts and thank you as well for the book name.
1 Like
A company has made the following disclosure in its Annual Report
Since there are a lot of techies active here on ValuePickr, can someone comment on the legitimacy of this practice? Are these stated drawbacks really so severe as to disable the audit logs for database updates? What is the normal practice in the industry?
- I have worked on audit features for enabling audit logs for my product. Audit logs are definitely required for auditing purpose as the name suggests.
- A given software application might need different type of data storage to serve different use cases.
There are different storage types available like relational databases (oracle, maria, mysql db2 etc.), nosql databases(mongo db e.g.), full text search databases (elastic search) , graph databases (e.g. neo4j to store network relations e.g. linked in face book contacts etc)
Each has its pros/cons - If you have separate node(machine) and/or database and/or separate table space for audit logs, then it shoudln’t impact the performance of main application as such.
- Of course, it will incur additional storage cost but it is for compliance.
I mean company should not give excuses for disabling this feature. Hope I answered your question
1 Like
100% agreed with @Prashant_Karandikar . Too much disk utilization is not a reasonable answer to disable this capability. There are solution that can be implemented to not face this problem, some of which might incur additional cost. Audit logs provide accountability when things go wrong. This step on a significant database of accounting appears to be the company trying to cut corners.
1 Like
Since you are a student, I would say to concentrate on your studies first, even if you are studying finance courses. Markets are not going to go anywhere, they will be here.
On the other hand, experience in the market is very valuable, so you can put your money even now, but the objective to gain experience, not profits. You invest, say 25% of your intended funds, wait and see what happens. The rally might pause, or there could be a considerable fall, then you can visit your theses again and invest more, or if it continues to go up, you would have gained some practical insights as to why the rally is continuing and can think of allocating more after looking at the changes in the businesses that you follow.
You will see many bull runs, many bear markets as well, which will teach more. Time is on your side, so you can afford to take it slow.
You can wet your feet, to gain experience, but don’t jump, if you have limited capital, because if there is a decent fall, there will be many opportunities but no funds.
7 Likes
This implies that they are not SOCS compliant and this can lead to dubious malpractices. Not a good reason provided by them.
1 Like
dear all,
I am studying Xpro india. While going through latest Monitoring Agency Report in relation to Preferential Issue & Qualified Institutions Placement dated July 26, 2024, i noticed that company used 399 M Rs for working capital. however in asterisk, only details for 139 M rs is provided. what happened to remaining amount. (i.e. 260 M rs.)
Queries
- If only 139 Mrs were transferred than why the utilisation for quarter is 399 Mrs.
Thank you @Prashant_Karandikar @aditya14920251 @keeyes for sharing your views on the matter. I too find the reasoning a little unconvincing.