Satya's Weblog

Today, I disabled notifications settings request from websites. It is very annoying when websites ask you to set notification. Most of the websites ask you to do so. Few websites may fall in category where you visit each day but don't want notification setting.

Here is how to block notification for all and forever:

See the address in image. Or else go to advanced setting. There you see- Privacy and Security. Then Content settings and then Notifications.

SOM Distilleries result for Sept Quarter has come today. I have mentioned it recently on facebook post.
Earlier I also mentioned GM Breweries and 1 more. But I have took trading bet on SOM distilleries few days back.

I wanted to see more profit based on revenue growth. Expense is more than expected. Still Alcohol companies pay State excise duties after GST!



Here is some output from my quick analysis:

Expense of material consumed is little more. It is more by 2% YoY.

Earlier it was 28%. Now, 30%.

State excise duties paid was 16% earlier and now 21%. Big negative.

Other expenses is high by 50%. This is big too. 

Still EPS is 1.8 now than 1 earlier. YoY.

Price action is not supportive after result. Should catch later on positive side.

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Here are the reasons for input cost rise. If you too forgotten the effect of GST on Alcohol then you need to read this article.

Alcohol for human use has been kept out of GST but raw materials and packaging products are included in the new tax. That means liquor firms will incur higher costs but won’t be eligible for output credit. Since they are not eligible for credit, they won’t be able to offset the cost increase like other sectors.

“Raw materials such as molasses used to produce ENA (extra neutral alcohol) has been posted at 28%, i.e. an increase of 12.5% compared to the pre-GST tax structure, while a majority of dry packaging goods have been slotted at 18%, i.e. an increase of 3.5% to 5.5%,” said Sridhar Pongur, joint managing director of John Distilleries Pvt. Ltd, that makes single-malt whiskies under the Paul John brand.

The catch is liquor firms have to approach state governments, which handle the distribution of alcoholic beverages in nearly 65% of the country, with requests to increase prices and wait for approval.

If state governments increase prices for liquor firms by between Rs50 and Rs70 per case, that should help offset the rise in costs, said single-malt maker Amrut Distilleries Pvt. Ltd’s executive director Rakshit Jagdale.

Jagatjit Industries Ltd expects the introduction of GST to push costs up 7-9%.
http://www.livemint.com/Industry/6NiLeHyl1DKlJacyUTbbqL/GST-impact-on-liquor-Prices-may-go-up-marginally-as-input-c.html

Automobile is a hot sector from few years. Finding a stock from this space is though as valuation is costly in this sector from long.

About Bharat Seats: Bharat Seats Ltd is a joint Venture of Suzuki Motor Corporation, Japan, Maruti Suzuki India Ltd and the Relans for the manufacture of complete seating systems and interior components for the automotive and surface transport.


Net Sales growth for 2017 compared to 2016 is 18%. YoY June 2017 sales growth is 46%. YoY PAT growth is 160%. PAT growth of 2017 over 2016 is 68%.

Debt of Bharat Seats is decreasing. Financial has improved on many fronts.

CMP: Rs 182

Sanwaria Consumer Ltd was called Sanwaria agro earlier. It is one of the largest integrated food processors in India and is engaged in the business of manufacturing and selling of Rice, edible oil and staple food products like Pulses, Sugar, Soya Chunks, Wheat Flour, Rice Flour, Salt, Suji, Maida, Besan, Daliya, Soya Meal etc.


Before more details come here, I request you to go to there website and check their products range.



Mentioned about it on Friday, 6th Oct here so that if investors want to buy then he can buy. It is going on UC from few days but it could be just a start of the journey.



Few highlights - Good and bad:

• Very High debt. D/E = 2.44
• Interest Coverage Ratio = 1.75
• Management quality is important factor but its management quality is not good as 2-3 times it got punished. Management is trying to win confidence. Declared dividend and bonus share in recent past.
• Result is coming very much better than earlier from Dec 2016. 
• Current valuation of PE = 10, it is still very cheap.
• At PE=10 for consumer stock, risk can be taken, I think.
• Working for Patanjali.

 CMP: Rs 8.85

I was looking for SmartPhone in Rs 10,000 to Rs 20,000 range. Requirement was just normal usages and not about fully gaming device or pure play photographer's device. In normal usages, I can use web browser, Facebook, Twitter, few more social apps, and Gmail. I can play YouTube and few other news websites. Other apps can be portfolio management, productivity management, etc.

I understand that in Rs 10,000 to Rs 20,000, I should easily get mobile for above things. So, I searched Amazon for review.

Amazon and FlipKart sell most number of mobile phones. Review is important in electronic items as just numbers can lie easily. Mobiles with 2GB RAM can be beaten by 1 GB RAM. iPhone can beat general 2GB RAM mobiles. Also, it can easily happen that one 2GB RAM mobile is far below another 2GB RAM mobile. Make quality also matters. This happens with Camera too. Camera is easy to test. Test say 12MP camera of one phone with another low branded mobile of 12 MP camera. You will see both are different.

I get result which tells the story of Make-In-India is in progress. I used Sort By: Avg Customer review.

honor 6X

Mi Max 2

This has resulted in two Mi Branded (Mi Max 2) mobiles at top. Xiaomi has two plants here in India. Xiaomi is a Chinese company but source all mobiles from India plant other than Mi 5 which is imported from China.
After two Mi brand mobiles, it was Samsung but I want to ignore this as only 38 people has reviewed it.
I will jump to Honor 6X for high ratings which is of Chinese mobile maker Huawei. Huawei also started working on its plant to make-in-India. Below lines from the article:

Starting from the first week of October 2016, the Flex manufacturing plant in Chennai will manufacture one of the Honor smartphones models. The plant will have the capacity to make three million units by the end of 2017.

If you expected Micormax and other Indian brands in the list then it is your mistake as these brands are too late in taking entry into 4G mobiles. 4G mobiles are common standard for any smartphones.

Most of the parts are imported from China for all of the brands and just assembled here. In assembling they solder all the components locally. Govt gives incentive on duty on imported components. We need quality components manufactured locally for a make-in-India quality mobiles. But assembly also created some job here and helped gain investment too.

Currently, the handset makers in India import semi-knocked down (SKD) units which include the circuit board and the microchip set of the mobile which account for more than half the value of the phones. Most of the other components, including the display screen, wi-fi antenna, mic are also imported and then soldered together in India. To this the ‘Made in India’ components of battery, charger, USB cable and earphones are added and then the finished product is put into the box along with the accessories and the instruction manual.

It will take time for the entire process to be localised. Imports have cost advantages given that India lacks world-class component makers. And here lies an opportunity for the government.

According to the article (Apr, 2017) on this website, these many SmartPhones are manufactured in India.