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Today two funds run by FRANKLIN TEMPLETON bought close to 79 lakhs
shares of PFRL from PFRL's old promoters (Biyani owned cos) . This
transactions accounts almost 8.5 % of the total equity of the company
and the deal value is above Rs.130 Cr
I see in your comments that Subex can be a potential turn around candidate.
They are turning profitable from last three quarters but when we see their D/E ratio is almost 4 and the promoter holding is less than 1% which are a bit of concern. Can you please share your views on this?
Once their FCCB conversion completes , there will be no debt in its books ( except short term working capital loan) .Recentl bond holders agreed to revise conversion price to Rs.13 . I believe , conversion of these FCCB will happen anytime from now . Though there is increase in equity on conversion, company can save lot of interest ( Last year company paid Rs.61 Cr as interest alone.) .
Actually , there is no specific promoter for subex at present . Institutional investors appointed a professional board to run this company which consists of well known names like Mr .Sanjeev Aga ( former Managing Director of Aditya Birla Nuvo) , Mr.Surjeet Singh ( former CFO of Patni Computer Systems) , Mr Anil Singhvi ( former Managing Director & CEO. of Ambuja Cements Ltd) ..etc .
On conversion of FCCB ,the share holding of instititions are expected to increase to 50-60 % , who are really interested in the revival of this company and not the person holding negligible stake in promoter category .
VPji, Thanks for the really detailed response. Like my namesake Sunderji, even I am tracking Subex for a long time. All in all, you are saying that it is a good stock to buy for some one who can wait patiently given that they have some really good products in their portfolio.
Nothing to suggest on a personalised basis and for time bounded investment . Only you can say what kind of stock is suitable for you . Use the inputs and decide yourself.
Your views on Bombay Dyeing...a great brand with good managment(Same as Britania) ...And the mngmt seems to be working to reduce the debt ..overall good business ...looks like a turnaround story...What do you say ... Note : Reliance AMU bought 5.3 % of total outstanding shares of Bombay Dying recently
salute to your in depth study. Subex - i read after conversion equity will become 534 cr and turnover will remain around 400 cr. how will they serve large equity.
Sir, Going thru PFRL Shareholding , it seems , Market has free float of 3.50% Shares in market , abt 32 Lakh Shares only , isn't it also a sign of building strong conviction to hold.
Good to see stronger Hands IN
ReplyDeleteHats off sir really a future bluechip in making.
ReplyDeleteSir your view on Ibre ( India bulls real estate ) plz......
ReplyDeleteMany times indicated that ,I am not tracking any cos from Indiabulls group
DeleteWhat is your call on Sanghi ind and kopran from one year perspective
ReplyDeleteNothing to suggest for time bounded investment in stocks.
DeleteSir please share your views on SMS Pharma and Microsec Financial Services Limited.
ReplyDeleteNot tracking Microsec Fin
DeleteSMS pharma is an already suggested stock @ Rs.240 one year back which is currently trading around Rs.600 .
http://value-picks.blogspot.in/2014/03/sms-pharmaceuticals-ltd-buy.html
Hi VP,
ReplyDeleteI see in your comments that Subex can be a potential turn around candidate.
They are turning profitable from last three quarters but when we see their D/E ratio is almost 4 and the promoter holding is less than 1% which are a bit of concern. Can you please share your views on this?
Thanks
Sunder
Once their FCCB conversion completes , there will be no debt in its books ( except short term working capital loan) .Recentl bond holders agreed to revise conversion price to Rs.13 . I believe , conversion of these FCCB will happen anytime from now . Though there is increase in equity on conversion, company can save lot of interest ( Last year company paid Rs.61 Cr as interest alone.) .
DeleteActually , there is no specific promoter for subex at present . Institutional investors appointed a professional board to run this company which consists of well known names like Mr .Sanjeev Aga ( former Managing Director of Aditya Birla Nuvo) , Mr.Surjeet Singh ( former CFO of Patni Computer Systems) , Mr Anil Singhvi ( former Managing Director & CEO. of Ambuja Cements Ltd) ..etc .
On conversion of FCCB ,the share holding of instititions are expected to increase to 50-60 % , who are really interested in the revival of this company and not the person holding negligible stake in promoter category .
VPji, Thanks for the really detailed response. Like my namesake Sunderji, even I am tracking Subex for a long time. All in all, you are saying that it is a good stock to buy for some one who can wait patiently given that they have some really good products in their portfolio.
DeleteThanks very much VP for giving the detailed analysis on this company. My confidence is doubled now :)
DeleteRegards,
Sunder
Hi..
ReplyDeleteI have about 2Lakh for investement in medium term of about 2 years. Can you suggest me few stocks for investment with medium risk.
Regards
Kumar
Vp , doesn't respond to personal portfolio management , if you cant do the hard work and decide on stocks then buy mutual funds.
DeleteNothing to suggest on a personalised basis and for time bounded investment . Only you can say what kind of stock is suitable for you . Use the inputs and decide yourself.
Deleteany view on Machino plastics
ReplyDeletesir ur views on RS Software
ReplyDeleteNot tracking above stocks
DeleteFranklin Templeton is a very respected name among MF houses.
ReplyDeleteHello sir, ur thoughts on polyplex corp ?
ReplyDeleteI hope , results of company's efforts including debt reduction will help it in future.
Deletepls advice on
ReplyDeleteptc india finance
ucal fuel
hi sir wht abt nathbio is still hold ?
ReplyDeletesir your views on south indian bank..
ReplyDeleteSir,
ReplyDeleteyour views on ABG SHIPYARD? Please suggest.
Anuva
Sir your views on Tanla solutions and Amulya leasing...
ReplyDeleteSir
ReplyDeleteYour views on Bombay Dyeing...a great brand with good managment(Same as Britania) ...And the mngmt seems to be working to reduce the debt ..overall good business ...looks like a turnaround story...What do you say ...
Note : Reliance AMU bought 5.3 % of total outstanding shares of Bombay Dying recently
Thanks
Anuj
So Big Guns are also joining the race..
ReplyDeletesalute to your in depth study. Subex - i read after conversion equity will become 534 cr and turnover will remain around 400 cr. how will they serve large equity.
ReplyDeleteHello VP sir,
ReplyDeleteIts good to see that a reputed MF is invested in pantaloons. Sir, what is your opinion on CAIRN india at CMP.
Sir your views on 3i infotech pls?
ReplyDeleteSir, Going thru PFRL Shareholding , it seems , Market has free float of 3.50% Shares in market , abt 32 Lakh Shares only , isn't it also a sign of building strong conviction to hold.
ReplyDeleteRespected VPsir.
ReplyDeleteYou view on Mic Electronic . Shall I enter on CMP.?
Dear Sir,
ReplyDeletePlease let me know your views on Zensar Techno and Paushak if you track them.
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