If you give Rs 2 crore EV per bed then also this company has

Nov 24, 2014

Why Daljeet Singh Kohli picks Eimco Elecon

buy canada goose jacket In an interview with CNBC TV18, Daljeet Singh Kohli of India Nivesh outlined his views on three three stocks. He advises booking profit in Max India and recommends buying Eimco Elecon and Oriental Carbon. buy canada goose jacket

Canada Goose Online Below is the verbatim transcript of Daljeet Singh Kohli’s interview to Anuj Singhal and Ekta Batra on CNBC TV18. Canada Goose Online

canada goose black friday sale Ekta: I wanted to highlight Max India now in a lower circuit at around Rs 170 odd the view is that canada goose outlet black friday maybe the street is not factoring goose outlet canada in 46 percent stake that they own in hospitals as oppose to 100 percent stake, your sense in terms of what the fair value for the stock is and in terms of an canada goose outlet sale earnings valuations for say FY17 18 as well? canada goose black friday sale

canada goose clearance sale A: official canada goose outlet Yes I think market has actually gone a little bit overbought at the time of listing and probably canada goose black friday sale the slip was that only which you mentioned about 46 percent stake. According to our calculation also if we give 18 22 times canada goose outlet is the EV to earnings before interest, taxes, depreciation and amortization (EBITDA) normal range going for Apollo Hospitals or canada goose outlet store Fortis Healthcare which are two listed players and Max also has similar kind of business model, in fact, 60 percent of the hospitals are matured hospitals, so they are running almost 6 7 percent EBITDA, Apollo Hospitals on around 13 percent EBITDA. canada goose clearance sale

cheap canada goose uk Even if I give this similar kind of EV to EBITDA multiple, the EV value of hospital business should not be more than canada goose outlet toronto factory Rs 495 crore, so if that Rs 4,950 million. Now if we add that value of Max Bupa business at one time book value, then we should get around Rs 103 105 kind of price value per share for canada goose outlet store uk Max India and if we calculate the other way around normally hospitals you will calculate on EV per bed. If you give Rs 2 crore EV per bed then also this company has around that kind of 2,500 beds are already operational, so you will get similar kind of valuation. cheap canada goose uk

Canada Goose Jackets What market is building in either two things one is that in next three years this company is supposed canada goose outlet reviews to double its bed capacity which is probably by 2022 they will reach around 5,000 beds, so what you are paying today is actually you are taking care of all next 3 4 years of growth today https://www.canadagoosepark.com itself. I would suggest canada goose outlet online uk that if somebody is holding then this is the time to actually book profit here and re enter at a later canada goose factory outlet stage. Their business model is canada goose outlet parka very good, they are doing all things good but there is a price that you have to pay for that. Canada Goose Jackets

uk canada goose outlet Anuj: Eimco Elecon why do you like that stock? uk canada goose outlet

Canada Goose Coats On Sale A: The basic theme behind this stock is operational leverage. This company is into coal loading machinery basically so the major customer is Coal India, 90 percent of their business comes from them and they provide all this loading equipments. Sandvik Asia holds 25 percent in the company. Most of their equipment as of now are being used only for underground mining, now what we are expecting that because last 3 4 years economy was not in the very good shape, so Coal India was also not doing very well, but in last year Coal India has improved its performance tremendously from 2 percent growth rate it has gone around 8 10 percent growth rate. Now when this kind of growth will come in Coal India, obviously they will need more machines, more equipments and this company gets the advantage of that. Canada Goose Coats On Sale

canada goose coats Second thing is that when they sell the machine they also have the contract for maintenance of that and spare canada goose outlet uk parts. If we see last year FY16, 62 percent of the top line came from spare parts, which canada goose outlet nyc is again a high margin business, so you get a regular annuity business as well as you get more margins. Now what we are expecting that similar thing will happen in next few years also, so operational leverage will play, their turnover which used to be around Rs 2,000 million had come down to Rs 1,300 million. canada goose coats

canada goose coats on sale We are expecting in next two years it will go back to that level and margins have been stable in last four years, so if they remain at this level also even then you have a doubling of the absolute number. So that is where we are actually recommending this stock. We are looking at a target price of around Rs 658 which is almost double of our recommendation price, but stock price has already moved in last 3 4 days, but still there is a huge potential to play out because of the operational leverage. canada goose coats on sale

canada goose uk shop Ekta: The other one that you are looking at is Oriental Carbon and Chemicals lots of chemical stocks have been flying around, what so good or what so different about this one. canada goose uk shop

canada goose uk black friday A: Don get confused by the letter chemicals there, it is a chemical but it is canada goose outlet new york city not that speciality chemical or those chemicals which are moving these days. Now this company makes insoluble sulphur. This insoluble sulphur is a vulcanising agent used for tyre manufacturing, so out of the total cost of production of tyre 3 percent is the cost from sulphur and this radialisation of tyres requires in a normal tyre if you need 1 kg of sulphur, where in radial tyre you will need 1.7 kg. canada goose uk black friday

canada goose “So, the thesis here of investment is that as the radialisation of the tyre industry is improving, the requirement for insoluble sulphur will keep on increasing and we see that in cheap canada goose jackets cars radialisation is already 90 95 percent, but in trucks and buses radialisation is still at 30 percent, so if that keeps on increasing and we have compared in our report that with what happen in China, what happen in other economies when this process started and how long it continued, then we see that India is exactly at the starting point and for probably next 10 15 years we will have this kind of growth rate coming in the insoluble sulphur demand. canada goose

Canada Goose online The benefit of Orient Carbon canada goose outlet online is that there are canada goose outlet in usa only 3 players in the world that manufacture this product. Eastman is the largest in US, then canada goose outlet shop there is Shikoku in Japan and canada goose outlet jackets the third one is Orient. So it is an oligopoly market where there are only 3 players and this company is expanding its capacity which will come up in next two years, so an oligopoly market, 25 canada goose outlet canada 30 percent margin business and a huge market potential available to you all three make a for a very good investment rationale that is the reason why we recommend this stock and we have given a target of around Rs 700, I am sure as time will come canada goose jacket outlet we will improve this target also Canada Goose online.

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