Click to access 14-15ConsolidatedQ2.pdf

Am unable to understand how NIIT`s PAT become positive at the very end, in the above quarter result. Will be happy if one of my readers could enlighten me on that.

Irrespective, the company`s succession is very encouraging and in a way has pipped that of Infosys`s muddled succession model.

http://www.business-standard.com/article/pti-stories/niit-ltd-appoints-rahul-patwardhan-as-next-ceo-114100600412_1.html

The new CEO has been with the company for 20 years, been in different divisions etc.

Excellent management, undervalued company and a stock that trades way below intrinsic valuation. BUY remains.

Hello Readers

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Thank You

A few links about Transformers and Rectifiers India Ltd

http://www.thehindubusinessline.com/companies/announcements/others/transformers-and-rectifiers-india-ltd-dispatches-highest-rating-green-transformer-to-columbia/article6598968.ece

Click to access Presentation-Q2-2015-final.pdf

Quarter results are not great. Company making losses.

http://www.hellenicshippingnews.com/copper-prices-to-continue-to-fall-over-next-18-to-24-months-consultant/

Copper prices have taken a hit and are expected to spiral downward. For 2013-14, TRIL had revenues more than Rs 700 Crs, raw material cost Rs 600 Crs (of which Rs 210 Crs was Copper, Rs 130 Crs Lamination and Rs 60 Crs Transformer Oil). The coming 3 years, this company is going to see a substantial reduction in raw material cost.

And finally, the big one. The much awaited T&D boom.

http://economictimes.indiatimes.com/industry/energy/power/biggest-global-bidding-transmission-projects-of-rs-53000-crore-to-be-auctioned/articleshow/45154503.cms

BUY without fear. At a market cap of Rs 220 Crs, CMP of Rs 170, trading below book value, debt of Rs 150 Crs and a company that gets 70% of its orders from government agencies (check 2nd link slide 9), Transformers and Rectifiers India Ltd is the mother of all value stocks!

Recommended at Rs 12 and currently at Rs 120.

http://articles.economictimes.indiatimes.com/2014-11-10/news/55955983_1_market-cap-stocks-ilfs-transport

Is this a genuine up move or are operators taking the stock higher?

Nobody knows although quarter results are very encouraging. I still HOLD although the rationale for holding is becoming more uncomfortable given that operators maybe making a run on the stock.

All figures in Rs Crs                                 Income Statement for 6 months of 2014-15                  Income Statement for whole year 2013-14

Total Income                                                                                  130                                                                                            240

Operating Expenditure                                                                117                                                                                            222

PAT                                                                                                      9                                                                                                 7

Figures have been taken from SKM`s 2014-15 Second quarter financial report.

Click to access 31102014113005PaperResult2ndQtr201415.pdf

Previous year`s PAT has already been breached. 2014-15 Sales can be expected to be 15% higher than previous year and PAT maybe higher by 200% (atleast). If PAT reached Rs 20 Crs, then current market cap of Rs 200 Crs is justified (P/E of 10x).

BoJ (Bank of Japan) stimulus shot sending markets higher (quantitative easing is finance`s answer to Steroids). So the madness is going to continue unabated.

http://www.reuters.com/article/2014/10/31/us-markets-global-idUSKBN0IK02D20141031

SKM gets a HOLD. The turnaround has begun. See no reason why the company can`t do better in the long run.