VIEW ON E-COMMERCE COMPANIES

With the new IPO in the market infibeam  which operates online shopping site: www.infibeam.com

I would like to share my view point.

Most of E-Commerce companies which are listed or unlisted in this sector or E-Commerce service sector  are only focusing on gaining market share which means just working on sales.

Selling with negative profit which will not last long in any business.

Below is the category which I always apply to invest in IPO.

1) Is the 30 %  or more than this of IPO's  money used for payment of its debt  - I Avoid such companies.

2) Is the money used for just expansion of its business  ? if yes I apply below filter

a) Is the  expansion plan of the business on aggressive mode by promoters ? if yes - I Avoid such companies.

simple maths :When you are running fast  just in case  you fall down the probability to get up and run again  is less whereas if you are walking and just in case you fall down the probability to get up and walk again is more.  

b) Whats the profitability of the business Annually ? if negative - I Avoid such companies.


If I take one of the most popular company Flipkart , my gut feeling is  the way its operating and raising money from  investors very soon it will  move to the  road where it has to look for a buyer  for  its business.

so don't get carried away with the name of E-Commerce.

VIEW ON RECENT MARKET INDEX CORRECTION IN INDIA

Market correction has nothing to do company's execution. What does this means ?

It Means invest in company's which are still performing the growth for glory.Never invest in company looking at market performance, always look at company's execution direction.

Never get carried away by words spoken on TV channel by analyst  or newspaper articles.

Let's take an example of State bank of India (SBI) .

Will people stop earning their livelihood  ?

Will people stop going to bank to deposit money , when market moves into negative  ?

Yes SBI has issue with NPA which keeps on growing day by day . But that doesn't mean government will keep their eyes close.

Things will change with TIME, similar to our thinking which changes with time.

So how to invest in such a scenarios ?

Ans: Invest in staggered manner  - SIP mode.

Apply Buffett's  rule which is simple but difficult to implement for lot of people. 
But the person who applies  this shine's out.

"Buy when others fear and Sell when others are greedy."

There are different ways of making money in stock market.
example trading / timing the market while buying and selling listed entities. It just depends on person to person which they are good at with.

The Rule which I follow I have shared with an example.

VIEW ON CURRENT MARKET INDIA

Few things I would like to share.

• Do not get carried away by "Make In India"  / Opening Of FDI gateway to India in different sectors slogan or any other statement made by government authority . What does this means....?

• Don't buy stocks just under this influences slogans. This will not help to make money in long run.

• Always evaluate the companies performances and its future outlook, via balance sheet/quarter result review and management commentary.

• Opening FDI gateway doesn't mean that the companies will start performing well unless and until companies knows how to invest the money and execute towards glory.

• So keep your eyes and ears open and sharp in this noisy and foggy environment to identify real value investing.

STRIDES ARCOLAB

• The company manufactures pharmaceutical products, over-the-counter drugs and nutraceuticals. Products include softgel capsules, hard-gel capsules.

• Recent Acquisition :
• Acquisition of Seven brands from Johnson & Johnson 
• Acquisition of majority stake in domestic branded business of Medispan. link

• Strides Arcolab acquires CNS divisions of erstwhile Ranbaxy link

• Acquisition of a generic pharmaceutical business in Australia and related assets from Aspen link

• Merger with Shasun Pharmaceuticals under pipeline....

• Company seems to be now in a position to improve profit margin and balance sheet.

• Background of Founder Arun Kumar , He is first generation entrepreneur who know when to make entry and exit to a business.

KPIT TECHNOLOGIES LTD

• Operates in Engineering and Software Technology segment.

• Company had few bad quarter results in the past which I believe the promoters has found the cause for it and now on the line for improvement.

• The recent June 2015 quarter result showed the sign for improvement. 

• Looking at the current price it looks very cheap.

RESULT UPDATE Q2 April-June 2015

MANAPPURAM FINANCE    link

STATE BANK OF INDIA   link

SALZER ELECTRONICS  link

ARVIND LTD  link

SNOWMAN LOGISTICS  link

INDIAN HUME PIPE  link

Old link for overview of each of this companies can be found under archive.

EVEREADY INDUSTRIES Q1 RESULT / SBI UPDATE

EVEREADY INDUSTRIES Q1 RESULT  LINK

STATE BANK OF INDIA  one more step taken by Chairman  LINK

+ve outlook for both

Eveready OLD LINK

SBI OLD LINK