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Vivek Sukhani
Senior Member
Joined: 23/Jul/2006
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Posts: 6675
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   Topic: Nirma
Posted: 26/Feb/2010 at 4:17pm |
Originally posted by vaib
http://www.moneylife.in/article/71/3422.html (Nirma’s horror show)
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The results on the ground dont seem to be painting as bearish a picture as the article is suggesting.
Although sales for the soaps and detergents have declined, but the profits are very significantly up.
What attracts me to Nirma is a good brand company, with presence in industrial segments as well. And its high depreciation per share is another added attraction.
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Jai Guru!!!
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Vivek Sukhani
Senior Member
Joined: 23/Jul/2006
Online Status: Offline
Posts: 6675
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Posted: 26/Feb/2010 at 4:22pm |
What turns me slightly off is the kind of website they have. Most of the product descriptions seems to have not been updated for long.
At market cap less than its turnover, its attractive, valuations-wise. How much value we must attach to the 'ergonomics', is a matter of individual choice. Personally speaking, I am comfortable with a company, with a decent brand, available at about 6-7 times cash earnings.
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Jai Guru!!!
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manish_okhade
Senior Member
Joined: 20/Oct/2008
Location: India
Online Status: Offline
Posts: 1997
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Posted: 28/Feb/2010 at 10:49pm |
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I analyzed Nirma sometimes back and my observation is that mgmt is quite lumpy in giving consistant growth.
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Vivek Sukhani
Senior Member
Joined: 23/Jul/2006
Online Status: Offline
Posts: 6675
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Posted: 28/Feb/2010 at 8:41am |
Originally posted by manish_okhade
I analyzed Nirma sometimes back and my observation is that mgmt is quite lumpy in giving consistant growth. |
Price is the Real Lord, my lord!!!!!
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Jai Guru!!!
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manish_okhade
Senior Member
Joined: 20/Oct/2008
Location: India
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Posts: 1997
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Posted: 01/Mar/2010 at 12:33pm |
Vivek,
Can you explain the significance of "(Increase)/Decrease of stock in trade" part? For 9 months its far less than prev years. It seems to be increasing the profit margin.
Does it mean Nirma has invested in the past on big capex and reaping the rewards now?
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Vivek Sukhani
Senior Member
Joined: 23/Jul/2006
Online Status: Offline
Posts: 6675
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Posted: 01/Mar/2010 at 7:17pm |
Originally posted by manish_okhade
Vivek,
Can you explain the significance of "(Increase)/Decrease of stock in trade" part? For 9 months its far less than prev years. It seems to be increasing the profit margin.
Does it mean Nirma has invested in the past on big capex and reaping the rewards now? |
In an inflationary environment, Increase in Stock-in-trade should be good for the company...in an otherwise stable period, increase signifies pile-up of closing stock of Finished goods.
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Jai Guru!!!
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subu76
Senior Member
Joined: 25/Feb/2008
Online Status: Offline
Posts: 5709
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Posted: 01/Mar/2010 at 10:56pm |
The company is into
1. soaps
2. pharma products
3. Mineral processing
4. and now cements.
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excel_monkey
Senior Member
Joined: 17/Nov/2009
Online Status: Offline
Posts: 1281
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Posted: 02/Jun/2010 at 9:04pm |
Originally posted by Vivek Sukhani
What turns me slightly off is the kind of website they have. Most of the product descriptions seems to have not been updated for long.
At market cap less than its turnover, its attractive, valuations-wise. How much value we must attach to the 'ergonomics', is a matter of individual choice. Personally speaking, I am comfortable with a company, with a decent brand, available at about 6-7 times cash earnings. |
VALUE ALERT
As per 2010 numbers it is now quoting at price to cash earnings per share of less than 5.
Great brands as well as a growing pharmaceuticals business
I suspect commodities contribute a majority of revenues
But the company has been consistently and amply profitable
I would buy if I was a loooong term investor
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