A year ago @JabongIndia sought a valuation of $1 billion+.
Now it's selling for 1/20th of that.That bubble? It just burst.
— Mahesh Murthy (@maheshmurthy) July 15, 2016
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Integrated aerospace offering from Tata
(Disclosure:I am market making in the shares of Tata Technologies)
Tata Technologies, Tata Advanced Materials and TAL Manufacturing Solutions Ltd have announced a new collaboration at the Farnborough International Air Show.
The three Tata group companies have agreed to come together to offer an end to end Design, Manufacturing and Assembly capability to the aerospace manufacturing industry.
It will include a strong focus on outsourced manufacturing for both metallic and composites and a strong capability in the design and engineering domains supported with a holistic capability in product lifecycle management integration.
“The industry is looking for quality, cost and capability as it strives to meet the unprecedented demand for higher productivity across the supply chain,” said Warren Harris, Tata Technologies managing director and CEO.
He continued: “Tata’s strength lies in a decade of significant investment in cutting edge next generation manufacturing facilities in India and a strong leadership position at Tata Technologies in advanced design and manufacturing engineering capabilities.”-from Engineering Capacity
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Kitex Garments:Super Efficient or Fraud?
Over the last four years, Kitex has been the first listed company in India to report its audited financial results (Reporting dates: FY16 – 4th April, FY15 – 6th April, FY14 – 3rd April, FY13 – 4th April). Normally, this would be viewed positively as it is reflective of strong financial controls inside the company.
In order to ratify the accounts, the auditor needs to gather substantive audit evidence which includes – physical inspection of assets (machinery, inventory), obtaining confirmations from third parties (banks, suppliers, customers), examining transaction records, checking assumptions and calculations. Completing all these activities within 3-4 days of the end of the financial year while theoretically possible has several practical challenges (for eg. In FY16, April 1st was a bank holiday followed by a weekend which limits ability to get third party confirmations). Even large audit firms with extensive resources are unable to complete the annual audit in such a short period of time.
Kitex’s auditor is the Cochin-based Kolath & Co which does not audit any listed entity other than Kitex. Given Kolath’s limited experience in auditing large businesses, its ultra-quick completion of Kitex’s audit raises concerns about the comprehensiveness of the audit. While Kitex’s audited results demonstrate a high level of efficiency, its secretarial compliance reports show delays in its filings (P&L, Balance Sheet, Modification of Charge, Changes in Directors) with the Registrar of Companies. Kitex’s selective efficiency in financial reporting is quite puzzling.-from 2Point2Capital
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Linkfest: July 15,2016
Some stuff I am reading today morning:
Growth challenges resurface at TCS (Mint)
Why Max India fell on listing (BL)
A multi-bagger portfolio (ET)
Prabhu wants to end the Railway Budget (BS)
China hacked the FDIC (CNN)
Long term investing,really really long term (IRR)
The market is always right? (PP)
You’re just going to have save more money (WSJ)
Equity Market Advisory (Subramoney)
The Bull Market you haven’t seen (Bloomberg)
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The real issue
So you cannot predict what is going to happen. What you can predict is whether this company which is earning say Rs 100 crore, will earn Rs 1000 crore in next five-six years, 10 years.
Out of the 10 companies you predict, may be 5, 6, 7 will be right, 2-3 will be wide off the downside and few of them will be wide on the upside and the combination will give you a good.
If you have a right process then I am quite sure you will make money. If you end up buying a little higher, your rate will be shorter term, rate of return will be little lower but eventually in five-six years it does not matter
See if the stock has to go from Rs 100 to say Rs 1000, whether you bought it at Rs 103 or Rs 98 does not matter. The issue is whether you bought it or not.
-said Raamdeo Agrawal