Accelya Kale
Printed From: The Equity Desk
Category: Investment Ideas - Creating winning portfolios!
Forum Name: Stock Synopsis
Forum Discription: A bried discussion of companies on very specific matters. Normally this is the prelude for further research as always members would be discussing quality companies with good management only
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=4661
Printed Date: 19/Apr/2025 at 3:20am
Topic: Accelya Kale
Posted By: brijwanth
Subject: Accelya Kale
Date Posted: 12/May/2014 at 9:42pm
I started researching the stock since the Dividend Yield was on the higher side (around 10%) and RoE is at 70.46%.
Summary:
+ves
>> EBDITA Margins are improving
>> Available at a reasonable PE of 10.82
-ves
>> Dividend payout is made dipping in to Reserves (not sustainable over longterm)
>> Caters to airline industry
>> not a sector leader
The profit reported in P&L for 2012-13 is 84.38 Cr. The Dividend along with Div. Tax paid is Rs. 122.25 Cr.
The profit reported in P&L for 2011-12 is 40.78 Cr. The Dividend along with Div. Tax paid is Rs. 42.26 Cr.
The company is paying such high dividend by dipping in to Reserves which have decreased from Rs. 137.53 Cr. to 101.96 Cr. The company is partly capitalizing Expenses though capitalization has decreased.
However I could not conclude whether to purchase or not. I seek the views of other members on the stock.
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Replies:
Posted By: brijwanth
Date Posted: 19/May/2014 at 10:47pm
>> Net Profit during 2013-14 is Rs. 88.66 Cr. and Dividend paid during the year is Rs. 144.78 Cr. which is not sustainable.
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Past will not be repeated in future but peaks and troughs do revert to mean, period and order of those peaks, troughs and mean days is the one i.e. not predictable- riser3 valuations
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Posted By: navtej91
Date Posted: 20/May/2014 at 12:13pm
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one more negative .. it operates in a very niche market of airlines billing and credit management ..else gud ratio but from here how much business can it scale u think ??? it could be gud punting stock but very sceptical to keep in core portfolio plus as u said dividend is more than profit and also more than operating income in cash flow?? what does management say about it?
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Posted By: brijwanth
Date Posted: 27/May/2014 at 8:01pm
My primary basis for evaluating the stock was dividend yield. It dividend yield itself is not sustainable there is no further point in research. With regard to scale up the business has limited scope since the company (parent company) has other subsidaries operating out of U.K. and France.
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Past will not be repeated in future but peaks and troughs do revert to mean, period and order of those peaks, troughs and mean days is the one i.e. not predictable- riser3 valuations
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