Tuesday, November 5, 2013
Friday, November 1, 2013
Chattisgarh - Opinion polls!
- 50% of the state are economically backward!
- you would expect Congress would be rocking here given the subsidy schemes direct transfer schemes etc
- "a one or two percent voter swing will prove to be a decider. In the last assembly battle of 2008, the difference between the BJP and the Congress was just two percent votes. But the BJP walked away with 12 extra seats than the Congress tally of 38 seats"
- The conflict in Chhattisgarh, of which the ambush of the Congress convoy is the latest manifestation, is over whether the natural resources of Bastar belong to its people or to the state-supported corporations. A result of uneven development, it will never be resolved if the state keeps resorting to military adventurism instead of formulating policies that help the tribal people take their own decisions - Why would CPI(M) ambush Congress convoy alone? 1) could be a coup due to in-party conflicts or 2)
- State has done reasonably well under raman singh chauhan - achieved the last five year plan, although social spend has gone up significantly => spent signicantly on the food security bill etc.
- But can someone run for 3 terms without significant respect (modi in GJ, basu in WB ?)
- http://exitopinionpollsindia.blogspot.in/2013/10/the-best-track-record-in-election.html - Exit polls always seem to underestimate the number of seats Congress gets....BJP only won 145;)
Wednesday, October 30, 2013
Rajasthan Elections - Analyzing survey results
CNN-IBN- The Week - No. of respondents - 4427! low number considering 50 seats => 90 people interviewed per region to arrive at conclusion - seems v. low
Crazy number of conclusions based on this little data:) - But comments below the web page are quite informative. Most educated people will want congress out, but the word educated is very subjective!
Headlines Today-CVoter - No. of respondents not mentioned
Signal?
Gehlot is also buffeted by an anti-incumbency factor that plays particularly strongly in the state. “Since 1993 in every election in Rajasthan, the ruling party has lost, Sandeep Shastri, the the Vice Chancellor of Jain University in Bangalore,” pointed out during a CNN-IBN panel discussion on the poll results. “It will require a great effort from the Congress to retain the state.”
Read more at: http://www.firstpost.com/politics/bjp-has-taken-rajasthan-as-gehlot-looked-to-delhi-survey-1201385.html?utm_source=ref_article
Read more at: http://www.firstpost.com/politics/bjp-has-taken-rajasthan-as-gehlot-looked-to-delhi-survey-1201385.html?utm_source=ref_article
With this low balling the data - I'm concluding 1) opinion polls are trash because of the sample set; however 2) looking at the comments below in each of the surveys with the anti-incumbency factor - it makes me believe that BJP will will in RJ
Monday, October 28, 2013
Signal and Noise - Key takeaways
There is a common thread among these failures of prediction. In each case, as people evaluated the data, they ignored a key piece of context:
• The confidence that homeowners had about housing prices may have stemmed from the fact that there had not been a substantial decline in U.S. housing prices in the recent past. However, there had never before been such a widespread increase in U.S. housing prices like the one that preceded the collapse.
• The confidence that the banks had in Moody’s and S&P’s ability to rate mortgage-backed securities may have been based on the fact that the agencies had generally performed competently in rating other types of financial assets. However, the ratings agencies had never before rated securities as novel and complex as credit default options.
• The confidence that economists had in the ability of the financial system to withstand a housing crisis may have arisen because housing price fluctuations had generally not had large effects on the financial system in the past. However, the financial system had probably never been so highly leveraged, and it had certainly never made so many side bets on housing before.
• The confidence that policy makers had in the ability of the economy to recuperate quickly from the financial crisis may have come from their experience of recent recessions, most of which had been associated with rapid, “V-shaped” recoveries. However, those recessions had not been associated with financial crises, and financial crises are different.
There is a technical term for this type of problem: the events these forecasters were considering were out of sample. When there is a major failure of prediction, this problem usually has its fingerprints all over the crime scene.
Same theme across outliers, black swan, soros theory of reflexivity, BG's Voting machine and Weighing machine....
A vast majority of us are all emotional by nature and as a corollary, we will overreact at all times. That makes the market inefficient at all times, there will be those rare occasions where inefficiencies will tend to benefit the buyers of businesses. At all other times, like sages who are in deep penance one needs to stand away from the crowds and markets. I am reminded of Urvasi Menaka (market) and Sage Vishwamitra (wannabe great investor)
Tetlock’s conclusion was damning. The experts in his survey—regardless of their occupation, experience, or subfield—had done barely any better than random chance, and they had done worse than even rudimentary statistical methods at predicting future political events. They were grossly overconfident and terrible at calculating probabilities: about 15 percent of events that they claimed had no chance of occurring in fact happened, while about 25 percent of those that they said were absolutely sure things in fact failed to occur.15 It didn’t matter whether the experts were making predictions about economics, domestic politics, or international affairs; their judgment was equally bad across the board.
Experts dont have a clue:) so why call them experts?
So who is better at forecasting? all things staying the same!
Unless you are a fan of Tolstoy—or of flowery prose—you’ll have no particular reason to read Berlin’s essay. But the basic idea is that writers and thinkers can be divided into two broad categories:
• Hedgehogs are type A personalities who believe in Big Ideas—in governing principles about the world that behave as though they were physical laws and undergird virtually every interaction in society. Think Karl Marx and class struggle, or Sigmund Freud and the unconscious. Or Malcolm Gladwell and the “tipping point.”
• Foxes, on the other hand, are scrappy creatures who believe in a plethora of little ideas and in taking a multitude of approaches toward a problem. They tend to be more tolerant of nuance, uncertainty, complexity, and dissenting opinion. If hedgehogs are hunters, always looking out for the big kill, then foxes are gatherers
Foxes sometimes have more trouble fitting into type A cultures like television, business, and politics. Their belief that many problems are hard to forecast—and that we should be explicit about accounting for these uncertainties—may be mistaken for a lack of self-confidence. Their pluralistic approach may be mistaken for a lack of conviction; Harry Truman famously demanded a “one-handed economist,” frustrated that the foxes in his administration couldn’t give him an unqualified answer.
If you’re looking for a doctor to predict the course of a medical condition or an investment adviser to maximize the return on your retirement savings, you may want to entrust a fox. She might make more modest claims about what she is able to achieve—but she is much more likely to actually realize them.
How to get more out of management interviews?
Wasserman, however, takes something of a poker player’s approach to his interviews. He is stone-faced and unfailingly professional, but he is subtly seeking to put the candidate under some stress so that that they might reveal more information to him.
“My basic technique,” he told me, “is to try to establish a comfortable and friendly rapport with a candidate early on in an interview, mostly by getting them to talk about the fuzzy details of where they are from. Then I try to ask more pointed questions. Name an issue where you disagree with your party’s leadership. The goal isn’t so much to get them to unravel as it is to get a feel for their style and approach.
I believe Heisenberg!
The debate about predictability began to be carried out on different terms during the Age of Enlightenment and the Industrial Revolution. Isaac Newton’s mechanics had seemed to suggest that the universe was highly orderly and predictable, abiding by relatively simple physical laws. The idea of scientific, technological, and economic progress—which by no means could be taken for granted in the centuries before then—began to emerge, along with the notion that mankind might learn to control its own fate. Predestination was subsumed by a new idea, that of scientific determinism.
The idea takes on various forms, but no one took it further than Pierre-Simon Laplace, a French astronomer and mathematician. In 1814, Laplace made the following postulate, which later came to be known as Laplace’s Demon:
We may regard the present state of the universe as the effect of its past and the cause of its future. An intellect which at a certain moment would know all forces that set nature in motion, and all positions of all items of which nature is composed, if this intellect were also vast enough to submit these data to analysis, it would embrace in a single formula the movements of the greatest bodies of the universe and those of the tiniest atom; for such an intellect nothing would be uncertain and the future just like the past would be present before its eyes.13
Given perfect knowledge of present conditions (“all positions of all items of which nature is composed”), and perfect knowledge of the laws that govern the universe (“all forces that set nature in motion”), we ought to be able to make perfect predictions (“the future just like the past would be present”). The movement of every particle in the universe should be as predictable as that of the balls on a billiard table. Human beings might not be up to the task, Laplace conceded. But if we were smart enough (and if we had fast enough computers) we could predict the weather and everything else—and we would find that nature itself is perfect.
Laplace’s Demon has been controversial for all its two-hundred-year existence.
At loggerheads with the determinists are the probabilists, who believe that the conditions of the universe are knowable only with some degree of uncertainty.* Probabilism was, at first, mostly an epistemological paradigm: it avowed that there were limits on man’s ability to come to grips with the universe. More recently, with the discovery of quantum mechanics, scientists and philosophers have asked whether the universe itself behaves probabilistically. The particles Laplace sought to identify begin to behave like waves when you look closely enough—they seem to occupy no fixed position. How can you predict where something is going to go when you don’t know where it is in the first place? You can’t. This is the basis for the theoretical physicist Werner Heisenberg’s famous uncertainty principle.
14 Physicists interpret the uncertainty principle in different ways, but it suggests that Laplace’s postulate cannot literally be true. Perfect predictions are impossible if the universe itself is random.
Fortunately, weather does not require quantum mechanics for us to study it. It happens at a molecular (rather than an atomic) level, and molecules are much too large to be discernibly impacted by quantum physics. Moreover, we understand the chemistry and Newtonian physics that govern the weather fairly well, and we have for a long time.
This is the same with markets too...
The weather is the epitome of a dynamic system, and the equations that govern the movement of atmospheric gases and fluids are nonlinear—mostly differential equations.23 Chaos theory therefore most definitely applies to weather forecasting, making the forecasts highly vulnerable to inaccuracies in our data.
Distort a series of letters just slightly—as with the CAPTCHA technology that is often used in spam or password protection—and very “smart” computers get very confused. They are too literal-minded, unable to recognize the pattern once its subjected to even the slightest degree of manipulation.
Awsome insights but emotions betray!
One way to judge a forecast, Murphy wrote—perhaps the most obvious one—was through what he called “quality,” but which might be better defined as accuracy. That is, did the actual weather match the forecast?
A second measure was what Murphy labeled “consistency” but which I think of as honesty. However accurate the forecast turned out to be, was it the best one the forecaster was capable of at the time? Did it reflect her best judgment, or was it modified in some way before being presented to the public?
Finally, Murphy said, there was the economic value of a forecast. Did it help the public and policy makers to make better decisions?
• The confidence that homeowners had about housing prices may have stemmed from the fact that there had not been a substantial decline in U.S. housing prices in the recent past. However, there had never before been such a widespread increase in U.S. housing prices like the one that preceded the collapse.
• The confidence that the banks had in Moody’s and S&P’s ability to rate mortgage-backed securities may have been based on the fact that the agencies had generally performed competently in rating other types of financial assets. However, the ratings agencies had never before rated securities as novel and complex as credit default options.
• The confidence that economists had in the ability of the financial system to withstand a housing crisis may have arisen because housing price fluctuations had generally not had large effects on the financial system in the past. However, the financial system had probably never been so highly leveraged, and it had certainly never made so many side bets on housing before.
• The confidence that policy makers had in the ability of the economy to recuperate quickly from the financial crisis may have come from their experience of recent recessions, most of which had been associated with rapid, “V-shaped” recoveries. However, those recessions had not been associated with financial crises, and financial crises are different.
There is a technical term for this type of problem: the events these forecasters were considering were out of sample. When there is a major failure of prediction, this problem usually has its fingerprints all over the crime scene.
Same theme across outliers, black swan, soros theory of reflexivity, BG's Voting machine and Weighing machine....
A vast majority of us are all emotional by nature and as a corollary, we will overreact at all times. That makes the market inefficient at all times, there will be those rare occasions where inefficiencies will tend to benefit the buyers of businesses. At all other times, like sages who are in deep penance one needs to stand away from the crowds and markets. I am reminded of Urvasi Menaka (market) and Sage Vishwamitra (wannabe great investor)
Tetlock’s conclusion was damning. The experts in his survey—regardless of their occupation, experience, or subfield—had done barely any better than random chance, and they had done worse than even rudimentary statistical methods at predicting future political events. They were grossly overconfident and terrible at calculating probabilities: about 15 percent of events that they claimed had no chance of occurring in fact happened, while about 25 percent of those that they said were absolutely sure things in fact failed to occur.15 It didn’t matter whether the experts were making predictions about economics, domestic politics, or international affairs; their judgment was equally bad across the board.
Experts dont have a clue:) so why call them experts?
So who is better at forecasting? all things staying the same!
Unless you are a fan of Tolstoy—or of flowery prose—you’ll have no particular reason to read Berlin’s essay. But the basic idea is that writers and thinkers can be divided into two broad categories:
• Hedgehogs are type A personalities who believe in Big Ideas—in governing principles about the world that behave as though they were physical laws and undergird virtually every interaction in society. Think Karl Marx and class struggle, or Sigmund Freud and the unconscious. Or Malcolm Gladwell and the “tipping point.”
• Foxes, on the other hand, are scrappy creatures who believe in a plethora of little ideas and in taking a multitude of approaches toward a problem. They tend to be more tolerant of nuance, uncertainty, complexity, and dissenting opinion. If hedgehogs are hunters, always looking out for the big kill, then foxes are gatherers
Foxes sometimes have more trouble fitting into type A cultures like television, business, and politics. Their belief that many problems are hard to forecast—and that we should be explicit about accounting for these uncertainties—may be mistaken for a lack of self-confidence. Their pluralistic approach may be mistaken for a lack of conviction; Harry Truman famously demanded a “one-handed economist,” frustrated that the foxes in his administration couldn’t give him an unqualified answer.
If you’re looking for a doctor to predict the course of a medical condition or an investment adviser to maximize the return on your retirement savings, you may want to entrust a fox. She might make more modest claims about what she is able to achieve—but she is much more likely to actually realize them.
How to get more out of management interviews?
Wasserman, however, takes something of a poker player’s approach to his interviews. He is stone-faced and unfailingly professional, but he is subtly seeking to put the candidate under some stress so that that they might reveal more information to him.
“My basic technique,” he told me, “is to try to establish a comfortable and friendly rapport with a candidate early on in an interview, mostly by getting them to talk about the fuzzy details of where they are from. Then I try to ask more pointed questions. Name an issue where you disagree with your party’s leadership. The goal isn’t so much to get them to unravel as it is to get a feel for their style and approach.
I believe Heisenberg!
The debate about predictability began to be carried out on different terms during the Age of Enlightenment and the Industrial Revolution. Isaac Newton’s mechanics had seemed to suggest that the universe was highly orderly and predictable, abiding by relatively simple physical laws. The idea of scientific, technological, and economic progress—which by no means could be taken for granted in the centuries before then—began to emerge, along with the notion that mankind might learn to control its own fate. Predestination was subsumed by a new idea, that of scientific determinism.
The idea takes on various forms, but no one took it further than Pierre-Simon Laplace, a French astronomer and mathematician. In 1814, Laplace made the following postulate, which later came to be known as Laplace’s Demon:
We may regard the present state of the universe as the effect of its past and the cause of its future. An intellect which at a certain moment would know all forces that set nature in motion, and all positions of all items of which nature is composed, if this intellect were also vast enough to submit these data to analysis, it would embrace in a single formula the movements of the greatest bodies of the universe and those of the tiniest atom; for such an intellect nothing would be uncertain and the future just like the past would be present before its eyes.13
Given perfect knowledge of present conditions (“all positions of all items of which nature is composed”), and perfect knowledge of the laws that govern the universe (“all forces that set nature in motion”), we ought to be able to make perfect predictions (“the future just like the past would be present”). The movement of every particle in the universe should be as predictable as that of the balls on a billiard table. Human beings might not be up to the task, Laplace conceded. But if we were smart enough (and if we had fast enough computers) we could predict the weather and everything else—and we would find that nature itself is perfect.
Laplace’s Demon has been controversial for all its two-hundred-year existence.
At loggerheads with the determinists are the probabilists, who believe that the conditions of the universe are knowable only with some degree of uncertainty.* Probabilism was, at first, mostly an epistemological paradigm: it avowed that there were limits on man’s ability to come to grips with the universe. More recently, with the discovery of quantum mechanics, scientists and philosophers have asked whether the universe itself behaves probabilistically. The particles Laplace sought to identify begin to behave like waves when you look closely enough—they seem to occupy no fixed position. How can you predict where something is going to go when you don’t know where it is in the first place? You can’t. This is the basis for the theoretical physicist Werner Heisenberg’s famous uncertainty principle.
14 Physicists interpret the uncertainty principle in different ways, but it suggests that Laplace’s postulate cannot literally be true. Perfect predictions are impossible if the universe itself is random.
Fortunately, weather does not require quantum mechanics for us to study it. It happens at a molecular (rather than an atomic) level, and molecules are much too large to be discernibly impacted by quantum physics. Moreover, we understand the chemistry and Newtonian physics that govern the weather fairly well, and we have for a long time.
This is the same with markets too...
The weather is the epitome of a dynamic system, and the equations that govern the movement of atmospheric gases and fluids are nonlinear—mostly differential equations.23 Chaos theory therefore most definitely applies to weather forecasting, making the forecasts highly vulnerable to inaccuracies in our data.
Distort a series of letters just slightly—as with the CAPTCHA technology that is often used in spam or password protection—and very “smart” computers get very confused. They are too literal-minded, unable to recognize the pattern once its subjected to even the slightest degree of manipulation.
Awsome insights but emotions betray!
One way to judge a forecast, Murphy wrote—perhaps the most obvious one—was through what he called “quality,” but which might be better defined as accuracy. That is, did the actual weather match the forecast?
A second measure was what Murphy labeled “consistency” but which I think of as honesty. However accurate the forecast turned out to be, was it the best one the forecaster was capable of at the time? Did it reflect her best judgment, or was it modified in some way before being presented to the public?
Finally, Murphy said, there was the economic value of a forecast. Did it help the public and policy makers to make better decisions?
Acrysil - What I like about the company!
- Strong global partner and CARYSIL brand is a premium brand
- Personally, I like exports of branded products reason being one gets cheaper manufacturing advantage and a higher pricing in overseas markets - much like branded drugs getting manufactured in India
- Do people really care about brands in Sinks/Kitchenware? seems like
competing brands - Franke, Nirali, Carysil: Summary of calls with the dealers
- Personally, I like exports of branded products reason being one gets cheaper manufacturing advantage and a higher pricing in overseas markets - much like branded drugs getting manufactured in India
- Do people really care about brands in Sinks/Kitchenware? seems like
competing brands - Franke, Nirali, Carysil: Summary of calls with the dealers
- Dealer 1 Bangalore: Franke and Nirali were top of the mind recall selling at INR 3600; Carysil (calls it export quality) starts at INR 6500 (square shaped, 19" by 16", not exactly square)
- Dealer 2 Bangalore: Franke and Nirali were again at top - I had to ask for Carysil (black, 22 by 18 by 9) - premium pricing its about INR 1000 bucks higher than Franke and Nirali
- Dealer 3 Bangalore:Which is the best? most premium? Carysil - pricing is 5800 (22 by 20), INR 6430 for (24 by 18) granite finish - 5100; White is expensive compared to Granite by a wide margin
- Dealer 4 Delhi: Nirali is common, no sign of Franke; Carysil is not top of the mind recall but when you ask for premium products they mention Carysil - it appears to me that the discounts are also lower in Carysil, another interesting feature is in all the other brands, the guy was willing to give 25% discount - wheras for Carysil the discount was only 10%
The above dealer checks make me conclude that 1) not top of the mind recall for distributors may not be for customers 2) clearly premium brand vs other swiss brands etc and 3) volumes will be lower compared to other brands and probably volume fluctuations will be lower much like sales of high end apartments/cars - agree ticket size is far lower
Products and Branding exercise:
Watch this:
http://www.youtube.com/watch?v=K3NQqCrzymU - dont like the comment on messy Indian cooking and the fake accent! nice design of the products
http://www.youtube.com/watch?v=eB8L-oSSP98 - German engineered really?
Worth doing detailed analysis!
Sunday, October 27, 2013
Market Turnarounds - Anthony Bolton
When evaluating the market outlook, there are three things that I focus on and one
that I don’t. The one thing that I don’t look at is the economic outlook, as this
invariably looks great at tops and horrible at bottoms. In my experience, economic
views won’t help you time markets correctly.
The first of the three factors I do look at is how the current situation compares with
the historical pattern of bull and bear markets. That is, how long and far we have
risen in a bull market and fallen in a bear market. When the time and scale of the rise
or fall are both high relative to historical averages, the odds of a change of trend
increase.
The second factor is indicators of investment sentiment and behaviour. These
include: put/call ratios, the sentiment of advisers, market breadth, volatility, mutual
fund cash positions and the exposures of hedge funds. When these indicate extreme
pessimism or optimism, it normally pays to bet against them. For example, high
volatility often precedes a change of trend.
The third factor is long-term (30-40 year) market valuations, particularly measures
such as price-to-book value or free cash flow. Again, when these move outside their
normal range, it can signal risk or opportunity.
that I don’t. The one thing that I don’t look at is the economic outlook, as this
invariably looks great at tops and horrible at bottoms. In my experience, economic
views won’t help you time markets correctly.
The first of the three factors I do look at is how the current situation compares with
the historical pattern of bull and bear markets. That is, how long and far we have
risen in a bull market and fallen in a bear market. When the time and scale of the rise
or fall are both high relative to historical averages, the odds of a change of trend
increase.
The second factor is indicators of investment sentiment and behaviour. These
include: put/call ratios, the sentiment of advisers, market breadth, volatility, mutual
fund cash positions and the exposures of hedge funds. When these indicate extreme
pessimism or optimism, it normally pays to bet against them. For example, high
volatility often precedes a change of trend.
The third factor is long-term (30-40 year) market valuations, particularly measures
such as price-to-book value or free cash flow. Again, when these move outside their
normal range, it can signal risk or opportunity.
Kokuyo Camlin - Turnaround story?
Food for thought
- Company has very powerful brands in the crayons/water paints/ink/pens etc. But is this translating to either pricing power or defensibility of revenues/margins? The answer seems no.
Just taking a look at the financials for the last 10 years -
- The company 3 or 4 loss making years; Cumulative FCF is -ve => has always funded through raising incremental resources
- capital efficiency is volatile with a downward bias at best
- The company could not pass on the raw material hikes - which are linked to crude derivatives; tells me the underlying industry should be highly fragmented and price sensitive;
All these said, can the company turnaround given the new Japanese promoter? may be
- Will start exporting but will it change the fundamental nature of the business - are there world class companies in the crayon/educational crafts business? don't know
- Numbers have started looking good in the first quarter, the rights issue should help
But do we like the fundamental nature of the business?
In Buffett's words - "Both our operating and investment experience cause us to conclude that “turnarounds” seldom turn, and that the same energies and talent are much better employed in a good business purchased at a fair price than in a poor business purchased at a bargain price"
I hope for Kokuyo's sake the business turns around not just P&L wise but as a strong franchise or it will be yet another casualty for a Japanese Strategic Investor in India. And as I am only "hoping" I would stay away from such businesses!
- Company has very powerful brands in the crayons/water paints/ink/pens etc. But is this translating to either pricing power or defensibility of revenues/margins? The answer seems no.
Just taking a look at the financials for the last 10 years -
- The company 3 or 4 loss making years; Cumulative FCF is -ve => has always funded through raising incremental resources
- capital efficiency is volatile with a downward bias at best
- The company could not pass on the raw material hikes - which are linked to crude derivatives; tells me the underlying industry should be highly fragmented and price sensitive;
All these said, can the company turnaround given the new Japanese promoter? may be
- Will start exporting but will it change the fundamental nature of the business - are there world class companies in the crayon/educational crafts business? don't know
- Numbers have started looking good in the first quarter, the rights issue should help
But do we like the fundamental nature of the business?
In Buffett's words - "Both our operating and investment experience cause us to conclude that “turnarounds” seldom turn, and that the same energies and talent are much better employed in a good business purchased at a fair price than in a poor business purchased at a bargain price"
I hope for Kokuyo's sake the business turns around not just P&L wise but as a strong franchise or it will be yet another casualty for a Japanese Strategic Investor in India. And as I am only "hoping" I would stay away from such businesses!
| Consolidated | 200403 | 200503 | 200603 | 200703 | 200803 | 200903 | 201003 | 201103 | 201203 | 201303 | |
| Net Sales | 183.1 | 198.5 | 196.9 | 187.7 | 213.8 | 283.5 | 330.7 | 358.3 | 383.9 | 435.9 | |
| Total Income | 184.1 | 199.4 | 197.7 | 189.3 | 214.4 | 283.9 | 331.3 | 358.3 | 386.2 | 436.6 | |
| Total Expenditure | 171.7 | 196.5 | 187.8 | 181.6 | 201.5 | 264.7 | 303.7 | 331.4 | 370.3 | 440.3 | |
| PBIDT | 12.4 | 2.9 | 9.9 | 7.7 | 12.9 | 19.2 | 27.6 | 26.9 | 15.9 | -3.6 | |
| PBIT | 8.1 | -1.7 | 4.7 | 49.2 | 9.1 | 14.8 | 22.4 | 19.4 | 9.5 | -11.3 | |
| PBT | 3.1 | -7.3 | -1.7 | 45.7 | 6.5 | 9.6 | 16.6 | 12.1 | 1.6 | -18.8 | |
| PAT | 1.9 | -4.9 | -1.5 | 36.1 | 3.8 | 6.1 | 12 | 8.6 | 1.3 | -13.4 | |
| Cash Profit | 6.3 | -0.3 | 3.7 | 39.9 | 7.6 | 10.5 | 17.2 | 15.1 | 8.3 | -5.8 | |
| Sources of Funds | |||||||||||
| Equity Paid Up | 4.8 | 4.8 | 4.8 | 4.8 | 6 | 6 | 6 | 6.1 | 6.9 | 6.9 | |
| Reserves and Surplus | 17 | 12.1 | 10.5 | 21.1 | 42.7 | 47.5 | 56.4 | 64.6 | 125 | 111.6 | |
| Net Worth | 19.4 | 7 | 7 | 20.9 | 45.3 | 51.8 | 62.4 | 70.8 | 131.9 | 118.5 | |
| Total Debt | 43 | 49.7 | 59.8 | 15.3 | 20.4 | 39.4 | 42.6 | 43.6 | 41.6 | 65.2 | |
| Application of Funds | |||||||||||
| Gross Block | 61.1 | 70.5 | 75.8 | 43.1 | 50.2 | 78.3 | 89.9 | 104.4 | 110.3 | 121.9 | |
| Investments | 0.6 | 0.6 | 1.1 | 1 | 1 | 0.8 | 1.3 | 2.3 | 2.2 | 2.2 | |
| Cash and Bank balance | 2.2 | 2.6 | 1.9 | 2.4 | 3.6 | 2.4 | 2 | 1.3 | 14.5 | 14 | |
| Net Current Assets | 33 | 18.7 | 20.1 | 16 | 38.9 | 43.3 | 47.9 | 8.6 | 62.5 | 54.6 | |
| Total Current Liabilities | 44.8 | 54.3 | 60.3 | 42.8 | 38 | 49.3 | 73.9 | 112.6 | 114.9 | 130.5 | |
| Total Assets | 114.1 | 122.7 | 136.5 | 84.4 | 107.4 | 143.3 | 180.5 | 196.1 | 256.2 | 270.1 | |
| Cash Flow | |||||||||||
| Cash Flow from Operations | 2.6 | 10.9 | 9 | -13.8 | -10.8 | 12.4 | 18.6 | 23.8 | -27.3 | -3.8 | |
| Cash Flow from Investing activities | -6.3 | -10.2 | -13.2 | 40.6 | -10.3 | -25.9 | -14.9 | -16.8 | -8.9 | -13.6 | |
| Cash Flow from Finance activities | 3.8 | -0.2 | 3.4 | -26.3 | 22.3 | 12.2 | -4 | -7.7 | 49.7 | 17 | |
| FCF | -3.7 | 0.7 | -4.2 | 26.8 | -21.1 | -13.5 | 3.7 | 7 | -36.2 | -17.4 | |
| Ratios | |||||||||||
| No. of Shares | 0.48 | 0.48 | 0.48 | 0.6 | 0.6 | 0.6 | 0.61 | 0.69 | 0.69 | ||
| Market Capitalization | 29.8 | 32.2 | 61.2 | 58.5 | 109.4 | 50.5 | 151.8 | 323.3 | 237.4 | 213 | |
| Price | 67.1 | 127.5 | 121.9 | 182.3 | 84.2 | 253.0 | 530.0 | 344.1 | 308.7 | ||
| Margins | |||||||||||
| EBITDA | 7% | 1% | 5% | 4% | 6% | 7% | 8% | 8% | 4% | -1% | |
| PAT | 1% | -3% | -1% | 20% | 2% | 3% | 7% | 5% | 1% | -7% | |
| Returns | |||||||||||
| RoE | #N/A | -37% | -21% | 259% | 11% | 13% | 21% | 13% | 1% | -11% | |
| ROCE | 1% | 4% | 37% | 7% | 9% | 11% | 9% | 4% | -2% | ||
| Multiples | |||||||||||
| P/E | (6.6) | (40.8) | 1.6 | 28.8 | 8.3 | 12.7 | 37.6 | 182.6 | (15.9) | ||
| EV/EBITDA | 28.2 | 12.2 | 9.6 | 10.1 | 4.7 | 7.0 | 13.6 | 17.5 | -77.3 | ||
Friday, October 25, 2013
Seth Klarman! Vanakkam Saaru Vanakkam
Imagine that every adult in America became a securities analyst, full-time for many, part-time for the rest. Every citizen would scour the news for fast-breaking corporate developments. Some would run spreadsheets and crunch numbers. Others would analyze competitive factors for various businesses, assess managerial competence, and strive to identify the next new thing. Now, for sure, the financial markets would have become efficient, right? Actually, no. The reason that capital markets are, have always been, and will always be inefficient is not because of a shortage of timely information, the lack of analytical tools, or inadequate capital. The Internet will not make the market efficient, even though it makes far more information available, faster than ever before, right at everyone's fingertips. Markets are inefficient because of human nature—innate, deep-rooted, permanent. People don't consciously choose to invest with emotion—they simply can't help it
Sunday, October 20, 2013
Quality better than Value - Food for thought!
| Company Name | 1W Rtn% | 1M Rtn% | 6M Rtn% | 1Y Rtn% | 3Y Rtn% | 5Y Rtn% |
|---|---|---|---|---|---|---|
| Banco Products (I) | -12.2 | 8.1 | 3.2 | -40.6 | -65.3 | 60.0 |
| Bosch | 0.5 | 4.3 | -0.6 | -0.6 | 43.7 | 174.9 |
| Motherson Sumi Sys | 0.3 | 11.8 | 36.5 | 65.4 | 97.9 | 451.5 |
| Exide Inds | -4.0 | 3.1 | 0.9 | -20.3 | -17.1 | 140.9 |
| Amara Raja Batteries | 0.5 | 3.7 | 25.4 | 30.9 | 188.2 | 1101.0 |
| BSE Auto | -0.2 | 7.8 | 14.5 | 15.4 | 22.5 | 284.9 |
Subscribe to:
Posts (Atom)