Value Investing Ideas in India

Bharti Airtel fund raising of upto Rs 32,000 crore through rights issuance of upto Rs 25,000 crore and Perpetual Bond with equity credit upto Rs 7000 crore.

The rights issue price would be Rs 220 per fully paid equity share (including a premium of Rs 215 per fully paid equity share over face value of Rs 5 per share) and the rights entitlement ratio would be 19 shares for every 67 shares held by eligible shareholders as on the record date

The fund raise is likely to bring down net debt/EBITDA sharply to 3.5x (FY19), as against the current estimate of 4.5x. Additionally, the plans of Africa IPO and Bharti Infratel stake sale will help raise Rs 40,000 crore, which should reduce its net debt to Rs 47,500 crore (net debt to EBITDA of 1.6x) by FY21.

Moreover, capex intensity has peaked out, which should reduce its annual cash burn from Rs 16,900 crore in FY19 to positive free cash flow of around Rs 4,300 crore in FY21, thus restricting the increase in net debt. In our view, despite the steep dilution, the fund raising plan is a welcome positive which will allow Bharti to be self-sufficient and manage operations without any average revenue per user (ARPU) increase

Bharti Airtel trading at 322 now.

Price/Book Nearly 1.55

Its a cyclical story

State Bank of India,

Have you ever look in to the credentials recently?
stock now trading at 320 RS

Still stock had given nil returns for the investors holding for past 10 years. Same time it was tremendous returns for the people who bought private sector banks same period.

Hence when it comes to Investing, Business is more important than the brands. With the same lending rate Private sector bank were able to make high returns with new business model that was completely innovative compared to traditional banking business. Hence Private banks accumulated wealth like anything.

Now the game changes, Even SBI back with New-gen banking business model, Given +ve Q results after continuous -ve Q Results.

With nearly 42 Crores Bank Account holders SBIN is available at 2.86Lakhs Cr Market Capital.


SBIN was the under performer for last 10 years,
now think its a value pick.
and gives you decent returns for your investments

NB:We are holding from 260 Rs level

YesBank Up today 5%, Now at 269

Yes bank Crashed 28% today,

Issued on 2005 July at 45 Rs.
Now at 226, after 5:1 share split So 226 X 5= 1130

25X Returns in 13 YEARS.... 1 Lakh invested Yes Bank has grown to 25. Lakhs in 13 years...
Still we are so much worried about the short term volatility of the market.

To See your Portfolio in DEEP GREEN💰,
be comfortable buying in RED.

Tata Motors reported Rs 26,961 crore consolidated loss for the December quarter.

The company said it took one-time exceptional non-cash charge for asset impairment of 3.1 billion pounds.
The auto firm had posted a profit of Rs 1,214.60 crore in the year-ago period.

The company added that it was taking decisive actions to make the business 'Fit for Future' by stepping up competitiveness, reducing costs and improving cash flows.

They did a non-cash exceptional charge to reduce the book value of our capitalised investments. This accounting adjustment is consistent with the other decisive actions that we must take as part of our ‘Charge’ and Accelerate transformation programmes to create an efficient and resilient business, enabling Jaguar Land Rover to counter the multiple economic, geopolitical, technological and regulatory headwinds presently impacting the automotive industry. We are taking the right decisions. now to prepare the company for the new technologies and strong product offensive for the future,” the company said in a release.

We Still on buy hold mode and taking this as an opportunity to buy a cyclical company at cheaper price..

It’s big correction mode ahead, buy quality business at cheaper price not the reverse.

80/20 rule in investing: 80 % of your returns comes from 20% of your portfolio,

80% returns comes from just 20% time, that’s 20 is the last years and you have to wait the first 80% of time

"It's not that we're dumb. We're wired to avoid pain and pursue pleasure and security. It feels right to sell when everyone around us is scared and buy when everyone feels great. It may feel right-but it's not rational."
-Carl Richards

Like power of Compounding, Know Power of Discounts 💪

You bought a stock at 100 Rs. Then market get in to a huge correction and your stock goes down.

If you buy the stock back at the correction much lower rates and when it reaches 100..

See the Magic of Discounts rates Buying 😀

50% Gain, if buy @75, down -25%
100% Gain if buy @50, down -50%
150% Gain if buy @40, down -60%
233% Gain if buy @30, down -70%
300% Gain if buy @25, down -75%
400% Gain if buy @20, down -80%
900% Gain if buy@10, down -90%

Tata-motors Down by 34% and at 170Rs from recent buy 260Rs.
when it reaches same rates again its not 34% gain, Its 54% 👍

Note : Only buy quality companies at cheaper price, not cheaper companies at cheaper price 👍

--Happy Investing

USD/INR at 73.64
Petrol prices at 91.5
Brent oil at 86.6
Dollar index at 95.5

Geojith @ 47 with PE 17
Muthootcap at PE 15.5 Trading @775
Tata motors @226 RS below PE 10
Hindusthan petroliom @220 with PE 5.1

Tough times ahead Or Golden opportunities ahead?

WE are heading to huge opportunities👍

Yes bank Crashed 28% today,

Issued on 2005 July at 45 Rs.
Now at 226, after 5:1 share split So 226 X 5= 1130

25X Returns in 13 YEARS.... 1 Lakh invested Yes Bank has grown to 25. Lakhs in 13 years...
Still we are so much worried about the short term volatility of the market.

To See your Portfolio in DEEP GREEN💰,
be comfortable buying in RED.

Reliance Industries Now at 1225 RS after 1:1 Bonus.
Gained 155% from Rec: 965 2 years back.

Nothing changed, only Valuation changed :

Now Reliance Industries:
stock now trading at 1229 RS
EPS nearly 60 (Bonus Adjusted 120)
So trading nearly at 20X to its earnings

Market cap 7.7 Lakhs Crore

Rec:
2 Years back Reliance Industries:
Have you ever look in to the credentials recently?

stock now trading at 965 rs

EPS Nearly 90 rs

So trading nearly at 10X to its earnings

Market cap 3.13 Lakhs Crore

Reliance ind was the underperformer for last 7 years,

now we think its a value pick

and gives you decent returns for your investments

Reliance Industries,

Have you ever look in to the credentials recently?

stock now trading at 965 rs

EPS Nearly 90 rs

So trading nearly at 10X to its earnings

Market cap 3.13 Lakhs Crore

Reliance ind was the underperformer for last 7 years,

now we think its a value pick

and gives you decent returns for your investments

All though rarely buy large caps stocks,
Now buying Tata motors @ 260 Rs.
Remembering old all time low of tata motors on 2010

We believe Its a cyclical value pick at current price.

Tasty bites Eatable now @ All time high 11371 from 675....

16x returns in 4 years and still counting....

Tasty Bytes made all time high 11000 today and turned 17X as of now from Rs. 650....

Geojith Now @67, Looking more attractive at discounted price..

Now at 20 PE and recent dividend rs 2 Per share..

we are adding more...

Stylam up 15% today and 850 Now

Our Call Stylam Industries reached 630 Rs !!,

Its already 6 times and a 6 Bagger Now !!!.
Buy call given 1 year Back at 100-140 August 2016
Gained above 350% In an year !!!

Disclaimer: Our Client Still holding at 100-140 levels

Muthoot touched 1000 From 200, it’s just 2 years for 5X return. Still more to expand...

MUTHOOTCAP trading at 220

A Kerala Based Company with 280 Cr Mkt Capital EPS nearly 22Rs trading at 280 rs ,Company providing loans for 2 wheeler, cars and commercial vehicles , its available at 13x to its Earnings Multiples,
company sales grows 20% yearly, and now the latest yearly sales is 240 Cr, I thinks its a value pick at present valuation

( Investors are also requested to go through the balance sheet and profit n loss account,)

One day training on Financial Freedom on 24th March, 2018 at Calicut