The harsh portfolio!

Q&A: Questions & Answers Portfolio Q&A
605

Thanks for your detailed notes. I got interested due to below 2 developments:

  1. Increase in FSI as per New Maharashtra Laws(Source-PPT shared by Nesco Management)

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  1. 30 years lease for developing Food Courts as per 12th Dec declaration
    10036c7a-8c13-450e-808c-4b85b2b7f235.pdf (174.4 KB)

Any views in consideration to above 2 points.
Thanks

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606

Hello Harsh sir, In Hariom pipes, yesterday, rating agency ( Care ) has rated the company “Issuer Not Cooperating” since 2021-22…, whereas on 5/6/2024 rating agency ( Crisil ) has given rating accordingly. ( Not tagged - Issuer not cooperating ). How can we analyse it?? Thank you.

607

Its well convered by Harsh Sir…If you see at it its more like a FD(their land) which is generating returns, they arent that aggresive to be able to take advantage of the land at such a great location. I have been staying in the area apart from the one building they added havent seen much for the last 10-15 years

608

This happens when a company intended to switch it’s rating agency so one agency gives issuer not supported and other issue rating. Going forward you see only crisil reporting. Not an issue

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609

Hello everyone, as I was going deep in financial statement I got into trouble that,

I have asked here due to I don’t had a clue where to ask such type of doubts

  • Here if we see in screenshot that in note 24 and 26 there is difference in number of inventory starting and ending can anyone explain me .
  • Also, Why Purchase of stock-in-trade is not counted in inventory ??
  • Can we add the Purchase of stock-in-trade with Purchases made during the year to get the Total cost of materials consumed ??

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610

Stock-in-Trade represents a trading activity where goods are bought and immediately resold. Inventory = part of manufacturing

To calculate the Total Cost of Materials Consumed, you should only consider costs related to raw materials used in production. Stock-in-trade purchases are accounted for separately as part of trading activities.

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611

Thank you very much for your help. However, I still have a doubt regarding point 1, which deals with the difference in inventory numbers at the start and end of the year.

612

Note 24 tells amount of raw materials that got consumed in the year to make finished product. This is calculated by beginning inventory + new puchases made in the year - ending inventory of raw materials.

Note 26 tells amount of finished goods/WIP items left unsold during the year. This unsold part should not be counted in COGS and hence COGS would be -
= 1743 + 360 - 110

Purchase of stock in trade is added to get overall cost of goods sold.

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613

Hey @harsh.beria93, What are the headwinds with Dreamfolks? I heard they are not able to maintain pricing but don’t know why and if there’s any other headwind?

614

Dreamfolks will face issues with rentals

Dreamfolks is a good busines - but its fortune seems to be tied to rentals brokered to them by airports. Once dreamfolks make money they will be charged good rentals on lease renewals.

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615

Thanks for sharing.
But are there any substitution for Dreamfolks? If not, then Dreamfolks has the upper hand in negotiations right?!

And looking at the nature of problem regarding the rentals, this issue would have been there always. Why that became a headwind now?

616

Negotiations in discussions? No way - Airports will always have an upper hand and lounges are not a must to have for Airports in times like these where air travel is a necessity and ppl will flock the airports almost every time of the year now.
And i won’t term it as headwinds, its just a thing where you need to understand the issue when they scale and their bottom line starts looking lucrative to outside world too. And it has been a problem for sure.

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617

Great! Agree that it’s not headwind but more a structural issue.
Dreamfolks don’t run these lounges right? It just curates the supply and provide connection to issuers/card schemes.

Are you suggesting that the lounge operators will have to pay higher rental which will pass on that higher cost to Dreamfolks?

618

Dear @harsh.beria93

Quite keen to know your annual review of portfolio, your comments on overall view on current state of markets and may be an yearly update of current portfolio construction as last detailed update was an year ago.

Thanks for this thread.

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619

hello sir, I really liked your mean reversion strategy in stocks picking & i also get benefited from your mean reversions picks of stocks. Are you find any mean reversion play in current market environment ?

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620

Dear @harsh.beria93 are you looking in wine space where Sula had horrible year therefore base is right for next year but Fratelli & Sula both are expanding capacity along with increasing the Marketing expense how these fare and do you track these companies?
And also do you have looked into Matrimony, Dreamfolks & Indiamart platform business where they are ignored in current market thus available cheap and they are profit making as compared to other platform plays out there.

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621

if valuation are high, like crossing historical PE, U must atleast book profits, if u believe the story of AMC in tact and market will bounce back. Or Full exist and wait for turaround. As it is sun rising industry.

622

what is historical PE? where to find it ?

623

You can get it on screener, just go through PE chart on different timelines 3y, 5y,10y etc, you can get the mean PE for the respective historic timeline.

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624

Go to Screener.in, In the Charts Section, There is PE Chart available. Where u can notice, the Current PE with respect to Average PE. if the PE is high you must strict your stop loss. Because PE may be derated if earnings grow up. Try to learn more with SOIC Videos. U Can be insightfull. U Can use EMA 21 for exit.

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