Sandesh Ltd.
Sandesh Ltd. is available at 113.00 rupees (28-Mar).
Sandesh Ltd. has an NCAV of 111.45 rupees.
The scrip has cash per share of 26.60 rupees which is very good. It has a good market share in Gujarat where it is now the #3 newspaper (from #2, a year ago). At these numbers, prudence has it that the stock will go up however from an investing viewpt, the following needs a look into -
a) Sales have dropped; so have profits
b) Didn't declare any dividend last year
c) There was a sudden spurt in sales last yr (from nowhere we has a number of 635 crs in the financial statement)
d) Q3, 2005 was a negative profits quarter
e) Fwd PE comes to 17.20 (but very inconsistent profits)
So although this stock gives me fantastic margin-of-safety, it doesnt give me the comfort of a consistent and growing earnings growth. If anyone's been tracking this stock, then opinions are soughted.
Sandesh Ltd. has an NCAV of 111.45 rupees.
The scrip has cash per share of 26.60 rupees which is very good. It has a good market share in Gujarat where it is now the #3 newspaper (from #2, a year ago). At these numbers, prudence has it that the stock will go up however from an investing viewpt, the following needs a look into -
a) Sales have dropped; so have profits
b) Didn't declare any dividend last year
c) There was a sudden spurt in sales last yr (from nowhere we has a number of 635 crs in the financial statement)
d) Q3, 2005 was a negative profits quarter
e) Fwd PE comes to 17.20 (but very inconsistent profits)
So although this stock gives me fantastic margin-of-safety, it doesnt give me the comfort of a consistent and growing earnings growth. If anyone's been tracking this stock, then opinions are soughted.
posted by Shankar Nath at 7:08 PM
9 Comments:
hi shankar,
I think I remember someone telling me sometime ago that the huge variant in sales was due to a bullion (import-export of various commodities) sale or something similar. But note that it had not brought anything much in profits.
This is mentioned in the Operating income schedule, which I dont have more info on. (Sales Trading for 511.97 Cr)
And a good chunk had come from property development and misc services.(wonder if the co is really into media business??)
Looks like the co doesnt really know where it needs to go...
Do let me know if you find anything more in your analysis.
And the NCAV indicated by you includes lot of inventory, receivables and loans.. and I am not sure I am comfortable factoring them in my review.. I will take the cash of 20.25Cr though.. (who wouldnt?)
I am not sure of this.. but it appears that the mainstream of business brought in only 54Cr of sales last yr after deducting the other income like the trade and land deal.... and they have an inventory pile of 40 Cr in different stages..
I am relatively new to this analysis.. and being an engr doesnt help me.. so correct me if I am wrong anywhere.
Prem Sagar is right. I live in Ahmedabad so I know this company and the promoters well. As far as the media business is concerned, they are going down after Divya Bhaskar's entry. They will certainly do real estate development, etc. and make money but then why not invest in a real estate company?
Hello shankar,
Here i need a help from you,yaar according to the recieved info RIL is coming with a IPO around 10th of april.
I have also heard some talk about preferential allotment,i have 15 reliance shares,please tell me that in what ratio the companies allot the preferential shares.
What do you suggest,should i buy more RIL shares so as to get a larger IPO chunk.
Please help,i do not hav any idea abt preferential allotments.
Hope u will help.
Thanks,
anunay
Hi Anunay,
I've not been tracking this stock and hence would not be the right person to comment on the same. Anyway, I find the complexity too stretched for comfort.
One thing - for an excellent account of preference shares, I suggest you get hold of the Intelligent Investor by Benjamin Graham.
Regards,
Shankar
Premsagar/Rajdeep,
Thanks for your inputs. aa stock saras naththi !! (I spent 3 yrs in Gujarat and this is the ony Gujarati I could pick up)
As predicted, the stock however has gone up by 9% in the last 2 days.
Warm Rgds,
Shankar
Hi Shankar,
I think you have an interest in PNB gilts too.
I too have. Though there is excellent margin of safety and is trading close to cash holding and far below NCAV & book, I just think somehow this would continue until some acceleration is provided by some news event or something. Else it could be a value stock forever.
I am very comfortable holding it, but in a bull run, its hard to justify a decent one trade for less, and makes me think.
But a very good value pick. I would add a bit more on declines.
Whats ur take on it?
I have been following a site now for almost 2 years and I have found it to be both reliable and profitable. They post daily and their stock trades have been beating
the indexes easily.
Take a look at Wallstreetwinnersonline.com
RickJ
Hi !.
You may , probably curious to know how one can reach 2000 per day of income .
There is no need to invest much at first. You may begin earning with as small sum of money as 20-100 dollars.
AimTrust is what you thought of all the time
The company incorporates an offshore structure with advanced asset management technologies in production and delivery of pipes for oil and gas.
It is based in Panama with affiliates around the world.
Do you want to become an affluent person?
That`s your chance That`s what you really need!
I feel good, I started to take up income with the help of this company,
and I invite you to do the same. If it gets down to select a proper partner utilizes your money in a right way - that`s it!.
I take now up to 2G every day, and my first deposit was 1 grand only!
It`s easy to start , just click this link http://ozilokeso.o-f.com/vucode.html
and lucky you`re! Let`s take our chance together to get rid of nastiness of the life
Yes exactly, in some moments I can bruit about that I agree with you, but you may be in the light of other options.
to the article there is even now a definitely as you did in the downgrade issue of this beg www.google.com/ie?as_q=xilisoft dvd ripper ultimate 5.0.30 ?
I noticed the phrase you have in the offing not used. Or you profit by the dreary methods of inspiriting of the resource. I take a week and do necheg
Post a Comment
<< Home