Reminiscences Of A Stock Operator: The Volkswagen Chronicles (Albert Bridge Capital)
Mother of all short squeezes, Volkswagen briefly became the world’s biggest company by market value, as short sellers caught betting on a price drop with borrowed stock scrambled to find shares after a buying spree by Porsche
Investing 25-30 crs into premium IMFL business every year. Sales is small now but it’s a high growth business
Economy brand business growing at about 8-10% every year
Rajasthan is a biggest state, followed by Haryana and then West Bengal
Bihar Distillary – Is for ethanol policy – Large part of capacity will go to OMCs – Will start in next 2 months – Will add about 100 crs of revenue to our business on annual basis – Margins will be north of 20%
Have taken price increase and that lead to increase in margins
Margin increase due to ethanol is not yet played out
12% margins can be safely assumed this year and will increase once ethanol is played out
Rajasthan is over 30% of our revenues and most profitable state, don’t see much change in buiness due to elections
There will be some capex in Bihar and Haryana for ethanol
FPI portfolio: Top 40 stocks Forty stocks account for 74% of FPIs’ equity portfolios in India
Mutual fund portfolio: Top 40 stocks Forty stocks account for 63% of MFs’ equity portfolios in India
LIC portfolio: Top 40 stocks Forty stocks account for 83% of LIC’s equity portfolio in India
Of the 223 issues, 216 were from the private sector which raised ` 68,870 crore compared to 118 issues that raised ` 31,683 crore in 2016-17.
In the cash segment, the turnover at NSE increasedby 43.1 per cent during 2017-18 compared to 19.3 per cent growth in the previous year. The turnover of BSE too increased by 8.5 per cent during 2017-18 compared to 34.9 per cent growth in the previous year.
The turnover of all stock exchanges in the cash segment increased by 37.4 per cent to ` 83.2 lakh crore in 2017-18 from ` 60.5 lakh crore in the previous year.
Of the aggregate turnover, NSE accounted for 87 per cent of the total turnover and BSE accounted for 13 per cent of the total turnover.
Over the years, index options have emerged as the most traded instrument in the Indian derivatives market. During 2017-18, the share of index options in total turnover at NSE increased further to 81.8 per cent from 77.1 per cent in the previous year.
So far, under mass media campaign, more than 67,980 TVCs, around 2, 25,040 radio spots, over 5,200 insertions in various print editions, around 962 screens in cinema halls were covered under the campaign. Further, around 53 crore bulk SMSes in various languages were sent cautioning investors against Ponzi schemes/unregistered CIS
During 2017-18, the total amount of fees and other charges received was ` 624.44 crore (audited) as against ` 518.75 crore in 2016-17 (audited). The recurring fee was 48.90 percent in 2017-18 as compared to 60.70 percent in 2016-17 of the total fee collected. During the year 2017-18, the largest recurring fee of ` 78.00 crore was collected from Derivatives Members registration followed by ` 40.82 crore collected from Stock Brokers and Sub- Brokers. In non-recurring fee category, the highest fee was collected from Offer Documents and prospectuses filed (` 112.24 crore) followed by Buy Back of Share (` 106.12 crore) and Takeover Fees (` 29.70 crore).
As on March 31, 2018 the total number of employees in various grades is 794 (including employees on deputation/ contract), out of which 698 employees are officers and 96 employees comprise secretaries and other staff. The male and female composition is 527 and 267, respectively.
There is a very long section on SEBI orders which is very interesting to see actions taken and how much time it takes.
Some more snapshots from the report
Mumbai continues to be the leader in turnover.
Free Float Market Cap at 45% of total market cap.
Only 3121 stocks trade for more than 100 days.. No of listed maybe 5200.
Only 1730 stocks have traded from more than 100 days regularly on NSE.
CDSL catching up in terms of investor accounts but value-wise NSDL is way above.
CDSL leads in geographical spread of DP locations.
Options share increasing. But its due to calculation on notional value of the contract.
Good increase in AUM and no of clients in PMS.
AIFs picking up big time.
Not a major jump in FPIs
USA followed by Mauritius on in Assets Under Custody
No of SME listings are ramping up in a very big way.
Market cap is still small.
Pending actionable grievances being reduced at a great rate.
Sub Brokers reducing !!
Given the high networth requirements doubt no of MFs are going to grow anytime soon.
In our last post we mentioned how Cartica Capital finds Page Ind. is reasonably valued at 90 PE
The interview was aired on 28th June 2018
Looking at the Shareholding pattern of Page Industries we came across that holding of Cartica Capital has come down from 8,62,721 shares to 6,84,058 shares between March to June 2018. Price range of Page Ind. during same time was 21800 to 27800
Shareholding of Cartica in Page Ind. over last 3 years
Last 2 years have taken a lot of hits to get our distribution in place, now expecting a high two digit growth
June July August will have a low base effect so 15% – 20% growth would be normal given good demand this year
Have good orders in EPC business from UP Power Distribution which will tilt % contribution. However we want to maintain it at 50-50 in the long run as EPC gives visibility but is risky business. Core business is consumer product business
We placed bid for 16 projects of low cost housing expecting to get 3-4, but we got it for all 16 projects i.e. order of 5000 crs. Which we do not have capacity for. Luckily in survey we found many houses do not exist, so will have to do orders worth 3000-3500 cr by March 2020