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8 02, 2016

What Went Wrong With Kitex Garments?

By |February 8th, 2016|Categories: Kitex|3 Comments

Kitex Garments (KGL) is a company that seems to never go out of the news, though you’ll be forgiven for never even hearing about the company. It’s run by Sabu Jacob, in Kerala. Why the interest in a company that makes cotton undergarments for kids, and sells them abroad, and managers to run a labour intensive company out of Kerala?

Answer: He generates awesome ROCE (Return on Capital Employed) in […]

5 02, 2016

Company Notes: Eicher Motors (Oct-Dec 2015)

By |February 5th, 2016|Categories: Auto, Eicher, Stocks|1 Comment

Eicher Motors Limited (EML) is the flagship company of the Eicher Group which produced India’s first agricultural tractor in 1959. Eicher Motors owns the iconic Royal Enfield motorcycle business, which leads the premium motorcycle segment in India.

Eicher Motors currently has 2 JV’s.

 – JV with the Volvo group i.e. VE Commercial Vehicles Limited – designs, manufactures and markets reliable, fuel-efficient trucks and buses.

 – JV with US based Polaris Industries i.e. Eicher Polaris […]

3 02, 2016

SparkPlug Summary: Auto Sales for January 2016 – Eicher up 65%, Leyland up 30%, But Maruti falls

By |February 3rd, 2016|Categories: Auto, General, Premium, Sectors, SparkPlug 2015, Stocks|0 Comments

Today we bring you a mini version of our Monthly SparkPlug Report – a summary of the sales made during the month of December. We initiated this SparkPlug series in August this year and it has been an on-going series since then.

Data for April to November has been sourced from SIAM while the December numbers have been obtained from the Press Releases. Detailed SparkPlug Report will be available for Capital Mind Premium members […]

2 02, 2016

Company Notes: Maruti Suzuki (Oct-Dec 2015)

By |February 2nd, 2016|Categories: Maruti, Stocks|0 Comments

This is a follow on post of Maruti Suzuki based on the financial results declared on the 28-Jan-16. We have captured a few essentials of the earnings call and at the same time incorporated the Q3 numbers into our earlier post (Company Notes: Maruti Suzuki). You can also check out the Maruti Suzuki Financial Results Q3 and A summary of the Nifty 50 results.

Here is what the company had to […]

27 01, 2016

Five Reasons Why Indigo Shares Crashed 25% in Two Days

By |January 27th, 2016|Categories: Stocks|Tags: |3 Comments

Indigo’s stock has fallen over 25% in two days. While I’ve been very appreciative of the aviation business and Indigo in particular, this is time to take stock. And we have been long at Capital Mind Premium, though we were out at 1160 due to a trailing stop loss. But the stock fell from the 1200 levels to 900! What happened?

(Note: this is not a stock recommendation; it’s merely […]

24 01, 2016

Company Notes: Maruti Suzuki

By |January 24th, 2016|Categories: Maruti, Stocks|6 Comments

Maruti – the family name of the 90’s is India’s leading passenger vehicle company and formerly known as Maruti Udyog Limited, is a subsidiary of Japanese automobile and motorcycle manufacturer Suzuki.

The company has come a lot far from its initial production of the Maruti 800, based on the Suzuki Alto kei car to the latest Premium Hatchback Baleno. Total Investment in the Baleno Model stood at 1100 crore between Maruti and its Vendors. As of 27-Oct-15, the company […]

8 01, 2016

2015 in Review: The Top 10 Mid Cap Performers of the Year!

By |January 8th, 2016|Categories: 2015 in Review, Stocks|2 Comments

Earlier this week, we had analysed the best performing Large Cap stocks (some of whom had returned more than 100% this calendar year!). Continuing from where we left off, we are looking at those Mid Cap stocks that have outperformed their peers this year; and boy, are there plenty of those! What a topsy-turvy year 2015 has turned out to be for the markets! The Nifty and Sensex had […]

7 01, 2016

2015 in Review: The Top 10 Large Cap Performers of the Year!

By |January 7th, 2016|Categories: Stocks|2 Comments

As part of our year-end special pieces, we will be analyzing the markets to identify those companies that have done exceedingly well over the last 12 months (ending Dec 31, 2015).

As part of this series, in this post, we will talk about the performance of the Large Caps in this market. The Nifty has taken a severe beating this year, and as of now, is 5.1% down for the year! […]

15 12, 2015

Guest Post: Havells Sells Sylvania To Stem Losses But Needs To Pump Up Domestic Business Too

By |December 15th, 2015|Categories: Stocks|Tags: , |3 Comments

Havells India Limited has announced last week that it would sell 80% stake in its wholly owned subsidiary Sylvania to ‘Shanghai Feilo Acoustics Company’, a Chinese listed company. The company would exit the remaining 20% stake over the next 3-5 years. The company has also decided to sell 80% stake in its Havells Exim Limited another wholly owned subsidiary, based out of Hong Kong.
The […]

7 12, 2015

Good News for JP Morgan Debt MF Holders, They Have Sold The Amtek Auto Debt at a Haircut

By |December 7th, 2015|Categories: AmtekAuto|3 Comments

Why should mutual fund holders care that a vulture fund has bought the bonds of a beleagured auto company at a discount? The answer: because their mutual fund has managed to sell those bonds, even if at a discount, and instead of being locked out of their own money, the mutual fund holders see some money back.

The history:

26 11, 2015

JP Morgan Might Offload Amtek Auto’s Troubled Bonds to a Vulture Fund at a Haircut

By |November 26th, 2015|Categories: AmtekAuto|1 Comment

Amtek Auto’s bonds have been held by JP Morgan AMC, now in a segregated fund. The 200 crore worth bonds are it seems, in some kind of a deal with a vulture fund, SSG Capital Management. (Source: Economic Times)

While SSG plans to directly buy out the Rs 200 crore debenture holding held by JPMorgan, Amtek intends to settle the issue of the remaining Rs 600 crore […]

25 11, 2015

Premium: US FDA Warning Letter to Dr. Reddy’s – Here is an Additional Update

By |November 25th, 2015|Categories: Dr Reddys, Premium|Comments Off on Premium: US FDA Warning Letter to Dr. Reddy’s – Here is an Additional Update

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This is our follow-on newsletter w.r.t the Warning Letters issued by the US FDA to Dr. Reddy’s Laboratories on 6-Nov-15.

Let us do a quick recap of what happened:

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10 11, 2015

Premium: Dr. Reddy’s stock tank – Here is a breakup of what happened

By |November 10th, 2015|Categories: Dr Reddys, Premium, Stocks|Comments Off on Premium: Dr. Reddy’s stock tank – Here is a breakup of what happened

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Dr. Reddy’s Lab tanked on Friday and then again today, after news came out that involved US action against the company.

The stock has been in news for 2 different reasons:

  1. On Friday, USFDA (Food & Drug Administration) issued a warning letter in relation to the for the inspection performed API manufacturing facilities at Srikakulam, Andhra Pradesh and Miryalaguda, Telangana, as well as the Oncology Formulation manufacturing facility at Duvvada, Visakhapatnam, Andhra Pradesh. This is following the issuance of Form 483 containing the observations made during the earlier site inspections and the subsequent remediation plans submitted by Dr. Reddy’s.
  2. On Tuesday, the District Court of Delaware, USA granted in favour of Astra Zenecaand issued a Temporary Restraining Order for the sale, delivery, transfer or other disposition of its generic esomeprazole capsules (which reduces stomach acid secretion) in the US market. AstraZeneca happens to be the manufacturer of Nexium which is similar to Dr. Reddy’s esomeprazole capsules.

Let’s take a look at the stock as such:

 

ReddY

[…]

2 11, 2015

Network18 Takes a 380 Cr. Hit On The Shady Senior Professional Welfare Trust Loan, A Further Provision Is Likely

By |November 2nd, 2015|Categories: Network18|5 Comments

Network 18 has finally realized that it’s “Senior Professional Welfare Trust” that owes it more than 550 cr. is mostly a dud borrower. After giving it that much money as a loan, the company has now had to write off Rs. 380 cr. as a provision because they are unlikely to recover money from it.

Let’s recap: