Comments on: Albert David http://dalaal-street.com/albert-david/ Monies and Conversations Mon, 06 Sep 2010 15:12:00 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Ayush http://dalaal-street.com/albert-david/#comment-591 Ayush Wed, 26 Aug 2009 16:01:13 +0000 http://dalaal-street.com/?p=184#comment-591 Siddharth, I think you need to look at the things at continuity. What i mean is - look at the over the years performance of the company....look at their cash flows. Don't just look at the ratios...think yourself as the business owner. I don't think any good MNC is available at below BV & less than 6 PE. Also growing at 15-20%. If yes please point me to the same. Thanks & Regards, Ayush Siddharth,

I think you need to look at the things at continuity. What i mean is – look at the over the years performance of the company….look at their cash flows. Don’t just look at the ratios…think yourself as the business owner.

I don’t think any good MNC is available at below BV & less than 6 PE. Also growing at 15-20%. If yes please point me to the same.

Thanks & Regards,
Ayush

]]> By: Ayush http://dalaal-street.com/albert-david/#comment-2283 Ayush Wed, 26 Aug 2009 16:01:00 +0000 http://dalaal-street.com/?p=184#comment-2283 Siddharth, I think you need to look at the things at continuity. What i mean is - look at the over the years performance of the company....look at their cash flows. Don't just look at the ratios...think yourself as the business owner. I don't think any good MNC is available at below BV & less than 6 PE. Also growing at 15-20%. If yes please point me to the same. Thanks & Regards, Ayush Siddharth,

I think you need to look at the things at continuity. What i mean is – look at the over the years performance of the company….look at their cash flows. Don’t just look at the ratios…think yourself as the business owner.

I don’t think any good MNC is available at below BV & less than 6 PE. Also growing at 15-20%. If yes please point me to the same.

Thanks & Regards,
Ayush

]]> By: Siddharth Shukla http://dalaal-street.com/albert-david/#comment-588 Siddharth Shukla Wed, 26 Aug 2009 13:07:35 +0000 http://dalaal-street.com/?p=184#comment-588 Hi ayush, I totally agree,but this being a micro cap don't u feel one should be extra careful. Further,many MNC pharma large/mid caps have debt free balance sheets & extremely comfortable interest covers . For a cyclical i would look for a higher interest cover than 3 for sure,but no matter how good the sector maybe, if the interest cover falls in the range of 2-3 it could be troublesome i feel based on my reading.But as you said it could be a temporary thing due to the CAPEX plan and if it can maintain or grow its cashflow, interest cover & D/E would improve over time.Just my first impressions,haven't still gone through the ARs. Rgds, Siddharth Hi ayush,
I totally agree,but this being a micro cap don’t u feel one should be extra careful. Further,many MNC pharma large/mid caps have debt free balance sheets & extremely comfortable interest covers . For a cyclical i would look for a higher interest cover than 3 for sure,but no matter how good the sector maybe, if the interest cover falls in the range of 2-3 it could be troublesome i feel based on my reading.But as you said it could be a temporary thing due to the CAPEX plan and if it can maintain or grow its cashflow, interest cover & D/E would improve over time.Just my first impressions,haven’t still gone through the ARs.

Rgds,
Siddharth

]]> By: Siddharth Shukla http://dalaal-street.com/albert-david/#comment-2282 Siddharth Shukla Wed, 26 Aug 2009 13:07:00 +0000 http://dalaal-street.com/?p=184#comment-2282 Hi ayush, I totally agree,but this being a micro cap don't u feel one should be extra careful. Further,many MNC pharma large/mid caps have debt free balance sheets & extremely comfortable interest covers . For a cyclical i would look for a higher interest cover than 3 for sure,but no matter how good the sector maybe, if the interest cover falls in the range of 2-3 it could be troublesome i feel based on my reading.But as you said it could be a temporary thing due to the CAPEX plan and if it can maintain or grow its cashflow, interest cover & D/E would improve over time.Just my first impressions,haven't still gone through the ARs. Rgds, Siddharth Hi ayush,
I totally agree,but this being a micro cap don’t u feel one should be extra careful. Further,many MNC pharma large/mid caps have debt free balance sheets & extremely comfortable interest covers . For a cyclical i would look for a higher interest cover than 3 for sure,but no matter how good the sector maybe, if the interest cover falls in the range of 2-3 it could be troublesome i feel based on my reading.But as you said it could be a temporary thing due to the CAPEX plan and if it can maintain or grow its cashflow, interest cover & D/E would improve over time.Just my first impressions,haven’t still gone through the ARs.

Rgds,
Siddharth

]]> By: Ayush http://dalaal-street.com/albert-david/#comment-580 Ayush Tue, 25 Aug 2009 17:26:54 +0000 http://dalaal-street.com/?p=184#comment-580 Siddharth, Albert has only standalone financial statements. Yes, debt equity is 1:1 i.e.. 104%. I feel this is comfortable figure for the pharma sector. For interest coverage I look at Interest/EBIDT and that is 5 times. Even if you are looking at Interest/NP, then 3 times is safe. More than just looking at these ratios, try understanding the meaning of these ratios in respect to the industry. For pharma, as the sector is non-cyclical these are safe ratios, IMHO. Regards, Ayush Siddharth,

Albert has only standalone financial statements.

Yes, debt equity is 1:1 i.e.. 104%. I feel this is comfortable figure for the pharma sector.

For interest coverage I look at Interest/EBIDT and that is 5 times. Even if you are looking at Interest/NP, then 3 times is safe.

More than just looking at these ratios, try understanding the meaning of these ratios in respect to the industry. For pharma, as the sector is non-cyclical these are safe ratios, IMHO.

Regards,
Ayush

]]> By: Ayush http://dalaal-street.com/albert-david/#comment-2281 Ayush Tue, 25 Aug 2009 17:26:00 +0000 http://dalaal-street.com/?p=184#comment-2281 Siddharth, Albert has only standalone financial statements. Yes, debt equity is 1:1 i.e.. 104%. I feel this is comfortable figure for the pharma sector. For interest coverage I look at Interest/EBIDT and that is 5 times. Even if you are looking at Interest/NP, then 3 times is safe. More than just looking at these ratios, try understanding the meaning of these ratios in respect to the industry. For pharma, as the sector is non-cyclical these are safe ratios, IMHO. Regards, Ayush Siddharth,

Albert has only standalone financial statements.

Yes, debt equity is 1:1 i.e.. 104%. I feel this is comfortable figure for the pharma sector.

For interest coverage I look at Interest/EBIDT and that is 5 times. Even if you are looking at Interest/NP, then 3 times is safe.

More than just looking at these ratios, try understanding the meaning of these ratios in respect to the industry. For pharma, as the sector is non-cyclical these are safe ratios, IMHO.

Regards,
Ayush

]]> By: Siddharth http://dalaal-street.com/albert-david/#comment-578 Siddharth Tue, 25 Aug 2009 16:18:03 +0000 http://dalaal-street.com/?p=184#comment-578 Hi Ayush, I am sorry, i meant 100%+ (104% to be precise) & am using the same formula you have mentioned. What data are u using, standalone or consolidated??? I am using consolidated data from Reuters India and Interest cover turns out to be ~3.5 ,i am not sure how accurate the numbers are tough.I feel that interest cover of a minimum 3 is desirable,what do u feel?? Hi Ayush,
I am sorry, i meant 100%+ (104% to be precise) & am using the same formula you have mentioned. What data are u using, standalone or consolidated??? I am using consolidated data from Reuters India and Interest cover turns out to be ~3.5 ,i am not sure how accurate the numbers are tough.I feel that interest cover of a minimum 3 is desirable,what do u feel??

]]> By: Siddharth http://dalaal-street.com/albert-david/#comment-2280 Siddharth Tue, 25 Aug 2009 16:18:00 +0000 http://dalaal-street.com/?p=184#comment-2280 Hi Ayush, I am sorry, i meant 100%+ (104% to be precise) & am using the same formula you have mentioned. What data are u using, standalone or consolidated??? I am using consolidated data from Reuters India and Interest cover turns out to be ~3.5 ,i am not sure how accurate the numbers are tough.I feel that interest cover of a minimum 3 is desirable,what do u feel?? Hi Ayush,
I am sorry, i meant 100%+ (104% to be precise) & am using the same formula you have mentioned. What data are u using, standalone or consolidated??? I am using consolidated data from Reuters India and Interest cover turns out to be ~3.5 ,i am not sure how accurate the numbers are tough.I feel that interest cover of a minimum 3 is desirable,what do u feel??

]]> By: Ayush http://dalaal-street.com/albert-david/#comment-577 Ayush Tue, 25 Aug 2009 15:57:04 +0000 http://dalaal-street.com/?p=184#comment-577 Siddharth, You are using the wrong formula for calculating the Debt Equity ratio. To calculate the same total debt is divided by (Equity + Reserves). So in this case the Debt Equity ratio is 1.1. Interest coverage is almost 5 times and in my opinion it is comfortable. Regards, Ayush Siddharth,

You are using the wrong formula for calculating the Debt Equity ratio. To calculate the same total debt is divided by (Equity + Reserves). So in this case the Debt Equity ratio is 1.1.

Interest coverage is almost 5 times and in my opinion it is comfortable.

Regards,
Ayush

]]> By: Ayush http://dalaal-street.com/albert-david/#comment-2279 Ayush Tue, 25 Aug 2009 15:57:00 +0000 http://dalaal-street.com/?p=184#comment-2279 Siddharth, You are using the wrong formula for calculating the Debt Equity ratio. To calculate the same total debt is divided by (Equity + Reserves). So in this case the Debt Equity ratio is 1.1. Interest coverage is almost 5 times and in my opinion it is comfortable. Regards, Ayush Siddharth,

You are using the wrong formula for calculating the Debt Equity ratio. To calculate the same total debt is divided by (Equity + Reserves). So in this case the Debt Equity ratio is 1.1.

Interest coverage is almost 5 times and in my opinion it is comfortable.

Regards,
Ayush

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