Active TopicsActive Topics  Display List of Forum MembersMemberlist  CalendarCalendar  Search The ForumSearch  HelpHelp
  RegisterRegister  LoginLogin

Stock Synopsis
 The Equity Desk Forum :Investment Ideas - Creating winning portfolios! :Stock Synopsis
Message Icon Topic: Facor Alloys Post Reply Post New Topic
Page  of 2 Next >>
Author Message
vinvestor2010
Senior Member
Senior Member


Joined: 19/Mar/2010
Location: India
Online Status: Offline
Posts: 299
Quote vinvestor2010 Replybullet Topic: Facor Alloys
    Posted: 23/Apr/2010 at 3:47pm

Hi I just have a few brief points that I am aware of Facor Alloys

-the company is basically in the business of making carbon chrome which is an input for stainless steel
-the stock trades at around Rs 7-8
some key points I was observing
Reasonably valued- the stock is having a market cap of about Rs 151 cr + debt 17 cr and free cash of 45 cr this gives it a enterprise value of about Rs 125 cr
the cash is nearly 1/3 market cap this gives it a safety cushion
Fluctating Earnings Performance - the firm has reasonably good EBIDTA , however it does fluctuate with steel prices Y on Y
Key Costs- the key costs for the company are raw material and power supply accouting for nearly 75% of the COGS
Related Party Risk-this is one of 3 companies of the FACOR group which consists of Ferro Alloys, Facor Alloys and Facor Steel. About 25% of business comes from the other 2 companies to this firm, plus Facor Alloy is the most undervalued and the promoters may use the cash for their benefit rather than minority share-holders
In the news because Lakshmi Mittal has decided to enter India by stakes in related steel companies and there is speculation that he might be interested in this firm. The promoters also want to sell a stake as they are looking to expand in power sector. So it is a type of special situation investing.
Besides this it would be great if other people can give info on how this could play out and whether it is a value buy??


Edited by vinvestor2010 - 23/Apr/2010 at 3:48pm
IP IP Logged
podaraditya
Groupie
Groupie


Joined: 26/Jan/2010
Location: India
Online Status: Offline
Posts: 23
Quote podaraditya Replybullet Posted: 27/Apr/2010 at 7:19pm
Buy at CMP it will double from here.
IP IP Logged
vinvestor2010
Senior Member
Senior Member


Joined: 19/Mar/2010
Location: India
Online Status: Offline
Posts: 299
Quote vinvestor2010 Replybullet Posted: 27/Apr/2010 at 10:32pm
Originally posted by podaraditya

Buy at CMP it will double from here.
Can you give any inputs what exactly is likely to be the catalyst for this??
Hopefully it is a solid business reason.
Also the management is suspect if you Google you might find some things on this.
 
IP IP Logged
podaraditya
Groupie
Groupie


Joined: 26/Jan/2010
Location: India
Online Status: Offline
Posts: 23
Quote podaraditya Replybullet Posted: 01/May/2010 at 7:59pm
Facor Alloys wants to sell out its power plant.Public thinks its raising money for the power plant but thats wrong.There are three big conglomerates in race for facor alloys power division which are aditya birla group arcelor mittal and one big group from china. Enam is the advisor to aditya birla group. have you all realized that in the past 3 months all ferro alloys companies have given 200 percent plus returns and one thing is common in all these companies that is they all belong to marwari's. Not to say facor wont see the light of rs 15 easily if the deal goes through in the month of june.
IP IP Logged
manish_okhade
Senior Member
Senior Member
Avatar

Joined: 20/Oct/2008
Location: India
Online Status: Offline
Posts: 1997
Quote manish_okhade Replybullet Posted: 01/May/2010 at 8:20pm
Can you share some data on following:
 
1) RoE and RoCE
2) Promoter background
3) Growth prospects and competition
IP IP Logged
podaraditya
Groupie
Groupie


Joined: 26/Jan/2010
Location: India
Online Status: Offline
Posts: 23
Quote podaraditya Replybullet Posted: 01/May/2010 at 10:21am
I dont research speculative companies.Facor is only a part of my portfolio because my friend is working on the deal, that too in my held for trade side.
IP IP Logged
vinvestor2010
Senior Member
Senior Member


Joined: 19/Mar/2010
Location: India
Online Status: Offline
Posts: 299
Quote vinvestor2010 Replybullet Posted: 03/May/2010 at 5:18pm
Originally posted by podaraditya

I dont research speculative companies.Facor is only a part of my portfolio because my friend is working on the deal, that too in my held for trade side.
Facor ka swayamvar chaal raha hai Smile with mittal and birla , if they do too much nakhra (ask very high price), they might be left as kuanra
and a kunara company with so much cash on books hmmm.
IP IP Logged
podaraditya
Groupie
Groupie


Joined: 26/Jan/2010
Location: India
Online Status: Offline
Posts: 23
Quote podaraditya Replybullet Posted: 25/Jul/2010 at 10:06pm
Great results and good dividend reported
IP IP Logged
Page  of 2 Next >>
Post Reply Post New Topic
Printable version Printable version

Forum Jump 		You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot delete your posts in this forum
You cannot edit your posts in this forum
You cannot create polls in this forum
You cannot vote in polls in this forum



This page was generated in 0.125 seconds.
 Bookmark this Page

Join Theequitydesk.com Today!

It’s easy to Join and it’s free.

Here's why members would love to be a part of theequitydesk.com

  • Equity Desk focuses on why to buy shares and invest in share rather than what to buy.
  • Live discussion forum wherein members can discuss the current Indian share Market trend, BSE Sensex or the Nifty Index.
  • Have huge cache of information on Indian and World Share Market.
  • Analysis of Indian stock market, Global events, Investing insights, portfolio management strategies and thoughts,
  • Meet investors from round the globe check their investing strategies share experiences and learn for their experiences on stocks and shares, evaluate opinions on investing in India.

Register now while it’s free!

Already a member? Close this window and log in.

Join Us           Close
Partner Site India Forums : Indian Television, Bollywood, Bollywood movies, Discuss TV Shows India, Indian Television Serials Forum, Star Plus, Set India, Zee TV with Daily Update
Powered by