That is pretty much known, and I do hope things work out great.But there is still no clarity on how are they going to raise these funds? Is it debt? Then they should aim for really good margins and profitability to sustain the payments and servicing of interest of this huge debt they are going to undertake, will there be anything left on the table? I think these are valid and very obvious concerns. Especially for a company who has not had much of a history as a publicly traded company. To me TBZ is certainly not a leader, and in this aggressiveness the concern is that it wont take much for them to loose thier way, like so many companies in the past few years whose debt gearing ratios and aim of growing to fast too soon, have made so may investors loose their shirts. To me unless convinced otherwise the margin of safety looks minimal. I am also sure the next quarter or two will give good results, but in the long run it looks very risky.
Coming to specifics spoke to someone in the company.
Earlier the co was privately held n as such the salary Was quite high n now it will be scaled down a lot.
Internal accrual will play a critical role in rolling out new stores but yes debt would also be taken.Dividend pay out ratio will be modest as such but since ROCE is very high so overall shareholder should benefit.They have to expand as competitors are also expanding but they will do it in a tempered manner and after Kolkata will open new stores in Gujarat,Maharashtra n AP where brand awareness is better for TBZ.
The TBZ brand remains with them . Hence they openly uses the name TBZ the original.other family members can use TBZ only with some suffix or prefix. Itâs very clearly contracted legally .
TBZ is not a bet which would occupy more than 5-10% of my portfolio. Hence I am not too worried about the moats etc business here.
The logic at a price of around 95 was that it was at extremely attractive valuations bcos we already knew that it was a 145 year old brand with a lot of women crazy after the brand strength of TBZ.
Now once I am getting the upsides quickly (in fact within 1-2 months) which I expected within 1 year for me it makes sense to get out and move to some other ideas which I have where again I feel that valuations are extremely attractive.(read techo electric engg)
I would bother too much about developing very high conviction levels only if I find something where I want to bet more than 12-15% of my portfolio.
I think too many people are obsessed with finding moats in everything they buy. One can find a handful of companies only among all the listed companies which have any sort of durable moats and when you find them, the valuations are sky high and dont leave much on the table for investors like us. They will at best offer 15-25% pa if bought at right price.
Speaking for myself, I am not in the markets for the usual 15-25% pa gains. So I have to make my money work harder and give me better returns. Hence I have to give more **âturnsâ **to my **assets **(read capital here).
Hitesh Bhai
I think renewable energy is an extremely tough space especially from operating perspective
If you like techno you surely would like orient green power
A sriram group company in renewable energy space
Infact the largest player in India
Quoting for 0.3 to 0.4 times book
The presentation on company website already highlighted by Hitesh Bhai is very informative and transparent. seems the management is trying hard to be very open with all stakeholders.
Company turning to Gold lease plan ala Titan as highlighted in the presentation is the key trigger which would lead to rerating.
Also anyone attending the AGM of the co on Monday please do share the details.Seems all decent cos in India are in west and southern part.
Delhi is filled with typical sarkari n Bhappay cos with professional gift mongerers acting as shareholders.
Any idea on present level of debt with the co.heard post IPO company has drastically reduced the debt except for the part of around 55 crores which they cannot prepay.
Any one familiar with the debt of the company?
I didnt know that orient green was a sriram group company. could be interesting. On first glance they seem to be making losses. Maybe u need to start a new thread with all the relevant details.
With techno, one gets the whole spectrum of power space â generation (wind energy), transmission (recent KT jhajjhar transco venture) and epc space in which company is one of the most respected names.
What you need to do is to look at the profits that wind energy is generating for techno. Fabulous results for q1 fy 13 especially in wind energy.
I have been following this management since a around 2009-2010 and they have always walked the talk. And the way they go about their business of building wind assets without too much debt, I am quite impressed.
Best part about it is nobody seems interested in buying the stock at cmp when non existent negatives are priced in. Personally I am quite bullish on it.
hitji,
with such a ringing endorsement for techno electric, there will probably be a stampede to buy it in the coming daysâŚ
Sure would try to put something together on orient green. Last checked they were facing issues with signing PPAs. Fuel cost was rising in biomass plants and wind assets were operating at 30% capacotyat
In the latest Business Today there was a detailed article on Orient green , Shriram epc basically the non finance business of the Shriram group.didnât studied in detail
TBZ opens new showroom on vapi Gujarat. Its 4th showroom in 2 months. What a pace. Hope they donât fall flat being aggressive
TBZ opens new showroom on vapi Gujarat. Its 4th showroom in 2 months. What a pace. Hope they donât fall flat being aggressive
simply on FIRE
Fantastic Call!
Still holding this one. Thanks hitesh bhai for the recommendation
Touched 210 today At 200 it is 96% returns in 2 months Thanks to Dr. Hitesh
We would see the LAW OF GRAVITY, working here quiet soon.
Fantastic
Its been a fantastic run for TBZ from the sub 100 levels.
I think one needs to look at risk reward (or mispricing) in such cases.