We are not in it for knowing whether its short attempt will be another success or not.
Top 7 insights👇
1. Always check the actual value of the reported investment
Hindenburg says Icahn overstated the value of his holdings by 22% Vs its current NAV.
CMP implies a 218% premium to NAV.🤯
2. Never trust brokerages
Takes a shot against Jefferies, the only i-bank having a 'buy' rating.
"Jefferies is luring in retail investors under the guise of IEP’s ‘safe’ dividend, while also selling Bn in IEP units through its i-banking arm to support the very same dividend"
3. Sustenance of Earnings & Dividends?
'Collect A 15.8% Dividend Yield While Investing Alongside Legendary Corporate Raider Carl Icahn"
That's the story being sold.
Reality: Where are the cashflows?
4. Valuation Vs the peers?
While the peers are trading at par or some even at a discount of their NAV.
The list includes Icahn's long-time rival Bill Ackman of the perishing square that is trading at a 34% discount!
Icahn is trading at a whopping 218% premium.
5. Leverage is a double-edged sword
Debt 5Bn dollars
Annual debt repayments for 3-4 years; 1 Bn Dollars
Current Market Cap 18 Bn Dollars!
The only way to sustain these high dividends is to take up more debt.
But for how long?
And what does the end game look like?
6. Promoter's financial muscle
Contrary to popular views, Icahn seems to be under serious financial strain.
Icahn has pledged close to 60% of his holdings.
How will he bail out his Holdco?
7. Being a contrarian needs "Courage" more than anything else.
Hindenburg's past record highlights the superlative record one can attain by being a contrarian.
Incorporated in 2003, Sula Vineyards Limited is India's largest wine producer and seller as of March 31, 2022. The company also distributes wines under a bouquet of popular brands including "RASA," "Dindori", "The source," "Satori", "Madera" & "Dia" with its flagship brand "Sula" being the "category creator" of wine in India.
Business segments
i) The production of wine, the import of wines and spirits, and the distribution of wines and spirits (the "Wine Business");
ii) The sale of services from ownership and operation of wine tourism venues, including vineyard resorts and tasting rooms (the "Wine Tourism Business")
Financial Highlights Q4FY24 and FY24
● Sula Vineyards Ltd reported Revenues for Q4FY24 of ₹117.00 Crores up from ₹110.00 Crore year on year, a rise of 6.36%.
● Total Expenses for Q4FY24 of ₹104.00 Crores up from ₹89.00 Crores year on year, a rise of 16.85%.
● Consolidated Net Profit of ₹14.00 Crores down 17.65% from ₹17.00 Crores in the same quarter of the previous year.
● The Earnings per Share is ₹1.62, down 17.35% from ₹1.96 in the same quarter of the previous year.
● For the full fiscal year FY24, the company sustained its growth trajectory.
● Own Brands Revenue for FY24 grew by 11.1% YoY to Rs. 534.2 Cr, with Elite & Premium constituting 75.2%, up by 15.5% YoY. Elite and Premium volume grew by 13.4% YoY.
● Wine Tourism revenue saw a substantial 21.7% YoY increase to Rs. 54.7 Cr, accompanied by a significant rise in Tastings across the country to 172,237, up by 29% YoY.
● The Net Revenue for FY24 reached Rs. 616.4 Cr, reflecting a 10.7% YoY increase.
● EBITDA for FY24 stood at Rs. 183.6 Cr, up by 14.1% YoY, leading to an improved EBITDA margin of 30.2%, up by 108 bps YoY.
● PAT for FY24 was Rs. 93.3 Cr, an 11.0% YoY increase, resulting in an EPS of Rs. 11.05.
At 45, six months ago, when we recommended the stock in our Small and Microcap Advisory, there were many questions.
A thread 🧵 :
1/6
Today, there's a buzz around RS Software, a micro-cap company pivotal in UPI fintech disruption. Investors are getting excited looking at the management commentary and revenue forecasts at a recently held public event.
2/6
However, there is limited availability of information on RS Software and business is quite complicated to understand.
Therefore, to educate the community on this business, we're offering our comprehensive research report, previously reserved only for our micro-cap advisory customers, completely free of charge. Link is shared at the end of this thread.
But the stupendous growth YoY just proves one point.
"Convenience & Experience" matter more than anything to us.
More so when it comes to our eating habits.
Devyani International [FY23 AR Notes]
Let’s go!
Before we go to the notes from the FY23 AR, let us tell you that we did a deep dive on the QSR space in our 12th and 13th MissioN SMILE webinars in February and March, 2022 respectively.
If you wish to access the recording of our deep dive on the QSR space, become a MissioN SMILE member.
Before we go to the key takeaway from the FY23 AR, let us tell you that we did a deep dive on Apcotex on our 1st MissioN SMILE webinar on 28th February 2021.
The share price was 175 at that time. What a journey it has had since then.
If you wish to access the recording of our deep dive on Apcotex, become a MissioN SMILE member.
"Uber is a fraud & we don't work with them. We're not registered on Uber unlike what they claim in their ARs & advertisements."
Tingo's story has that element & much more.
Top 10 learnings! 🙂👇
We're going to dissect this case & try to derive learnings which we as mango investors can incorporate.
HQ in New Jersey, Tingo has several businesses focused on providing mobile phones, food processing and an online food marketplace for farmers primarily located in Nigeria.
The new report is a revelation in terms of doing deep research on the promoter & management team.