Cr 165: Fill & Download for Free

The wrong isn't with bollywood. It's with the audience.One example -Varun Dhawan, we all know him for overacting in movies like Student of the Year, Main Tera Hero, Humpty Sharma ki Dulhania, Dilwale, Dhishom, Badrinath ki Dulhania, Judwa 2. There are some movies where he got praise like Badlapur and October. I think October is one of bollywood's masterpiece film. And Varun acted in this movie, not overact. I can say his career's best performance till today.October is directed by Shoojit Sircar and written by Juhi Chaturvedi. Banita Sandhu made her film debut in this movie.But movie wasn't that successful compared to his others movies. Box office collection of October was 58. 41 cr. Where as SOTY collected 109.10 cr., Main Tera Hero got 78 cr., Humpty Sharma got 173 cr., Badlapur collected 81cr., ABCD 2 collected 165 cr., Dilwale 408.15 cr., Dhishom 150.50 cr., Badrinath 206 cr., even Judwaa 2 got 227.59 cr.When his overacting can make 100cr.+, why would he need to do acting.Bollywood are making movies what mass audience want to watch. If they make some sensible movie they don't get money. Because at the end, what everyone wants is the money.…We Indians want spices not only in dishes but also in films……Signing off

Disclaimer: I have no holding in CG Power & Industrial Solutions Ltd and neither do I track or expect to track the stock closely nor do I plan to invest at this point in time. Hence, any information provided here is for the purpose of presenting the currently available facts and analysis of fundamentals & financials at this time, and not to be construed as stock recommendation or suitability for investment or a sell call.For many years, I have heard analysts say about the revenue guidance of Infosys as “under promise and over deliver”. When it comes to CG Power and Industrials, it is vice versa - “Over promise and under deliver” most times.I have known this company from the time when it was Crompton Greaves[1][1][1][1], as my ex boss (Chairperson of Thermax) and another board member of Thermax (Valentin Von Massow) were directors on the CG board and before every CG board meeting, I used to prepare notes and questions for her on the performance of the company.During that time, it was doing pretty well under the able leadership of Mr. Sudhir Trehan and post his retirement, lots of changes happened and today, I would say that the company’s performance is in a rather bad state, based on the financials.Financials: I am sure no one can say that the financials look promising. Since FY16 the company has been making losses on the operating front, while the other income has been increasing because of the sale of assets. The problem is not with the revenues (topline).Even the latest declared Q4 results[2][2][2][2] and FY18 results are in the negative, making it the third year in a row of losses. The exceptional items are too much to bear - Rs. 443 cr? Well, there is explanation but that is not useful for a shareholder who is seeing his investments going down the drain.Break up of the Rs. 443 cr of exceptional items:The company’s Hungary business is running at a loss run rate of about 100 cr. per quarter. In addition to that, other current effects arising due to cancellation of orders account for another Rs. 150 cr. Another Rs. 165+ cr. of inventory and other non-moving assets from the transformer business was written off.This is quite a lot of money to lose, affecting the poor financials existing already. The company says that they are planning for a cleaner FY19 and hence incurring all the exceptional items now.No wonder the stock price dropped like a ton of bricks and the company is currently trading at the same price as it was 4 years ago, at the end of Mar 2014.The problem with the company is not the order book. The company ended FY18 with an order book of Rs. 3600 cr., similar to the order book of FY17. For FY19, the orders under execution will consist largely of government projects, infrastructure projects, water projects. Even on 5th Jun 2018, the company bagged a large order of Rs.319 cr. from Indian railways[3] .It is not that the segment revenues are unbalanced :- power systems : Industrial Systems business is at 54 : 46. Even for Q4, the power systems business grew by 16% whereas industrial systems grew by 28%.Also, industrial systems is one of the fastest growing segments, with the margin increasing from 5.9% in Q1 moving on to 9.6% in Q2, 10.6% in Q3 and 11% in Q4. For the full year, there was a 23% growth for Industrial System revenues and about 7.5% for Power System revenues.The problem is with the balance sheet and the subsidiaries.The gross debt of the company is at Rs. 2540 cr.[4] (1880 cr. + 660 cr.). Similarly, the net debt of the company is at Rs. 1730 cr. (1200 cr. +530 cr.)A Rs. 220 cr. in interest costs is not what should be for a company with EBT (before exceptional items) of Rs. 126 cr. This is not at all appropriate.Thee loss funding for the international subsidiaries is really draining the company. Imagine this - Hungary had cash losses of around Rs. 600 cr. , while Sweden, Indonesia and other geographies continue to do well.Things to look forward to, in Jun Qtr results:Revenue, operating profit improvement and interest reduction.Not to expect any profit at a consolidated level, as it might be difficult in Q1, and possibly even in Q2.Closure of the Hungarian business and debt reduction of Rs. 250 cr.Exit of the Latin American business completely (which might result in some exceptional items due to settlement of customer advances)Conclusion:Is this company showing promise? I would say it is too early to say. It probably needs 2 more quarters to clean up its international businesses, restructure the loans and advances, improve the financial parameters on all aspects. The balance sheet cleanup is an ongoing process and it is important to pay attention to the exceptional items and the notes to accounts of the P&L statement.In my opinion, the problem for the company is not a P&L issue but a Balance Sheet issue.Financial data and source credits: Global Pioneer in Electrical Energy , CG Power and Industrial Systems Q4 results press releases to stock exchanges and Screener.Footnotes[1] http://www.cgglobal.com/pdfs/annual-report/ar0607/AR_06-07.pdf[1] http://www.cgglobal.com/pdfs/annual-report/ar0607/AR_06-07.pdf[1] http://www.cgglobal.com/pdfs/annual-report/ar0607/AR_06-07.pdf[1] http://www.cgglobal.com/pdfs/annual-report/ar0607/AR_06-07.pdf[2] https://www.bseindia.com/xml-data/corpfiling/AttachHis/452bc062-1338-4d8b-8d3f-4a8f775905a8.PDF[2] https://www.bseindia.com/xml-data/corpfiling/AttachHis/452bc062-1338-4d8b-8d3f-4a8f775905a8.PDF[2] https://www.bseindia.com/xml-data/corpfiling/AttachHis/452bc062-1338-4d8b-8d3f-4a8f775905a8.PDF[2] https://www.bseindia.com/xml-data/corpfiling/AttachHis/452bc062-1338-4d8b-8d3f-4a8f775905a8.PDF[3] https://www.bseindia.com/xml-data/corpfiling/AttachHis/3920030e-f7eb-4ff8-852d-08dcd82f2658.pdf[4] https://www.bseindia.com/xml-data/corpfiling/AttachHis/bf8e373d-4b62-4911-a7a2-9a3e43a10e68.pdf

By looking current situation, one should be very specific about the investment in particular stock as well as be sector-specific, currently, there are only a few sectors that are considered for investment like pharma, FMCG, it, etc.so if you want to invest for more than one year and in only one stock, I generally not in favor of investing in specific stock over the long term but according to me if you want to select only one than its ITC Ltd.if you see its market capitalization, its market cap of ₹2,03,313 cr, the stock is ranked 10.if you look at price action its almost corrected about 45% over the period of one year. (Rs 165/share)if you look at its long term performance in spite of correction in the last 1 years its around 746%.its PE ratio is around 16, which signifies that the company is currently undervalued.ITC product portfolio includes the following categoriesas well as its include following cigarette brands and other brands,its also include considerable mutual funds, institutional and foreign investor holding,Over the last 5 years, market share increased from 91.36% to 92.79%Over the last 5 years, the debt to equity ratio has been 0.2%, vs industry avg of 0.51%look at its dividend yield, it's around 4%so by looking above facts, I recommended you to invest in this company, let's discuss investment strategy,divide your total investment in equal two parts.invest the first 50% immediately.now the remaining 50% invested as in 5 equal installments at every 2.5% or more correction(decrease) in stock price.and in the last I want to confess about the above should be considered as “RECOMMENDATION”, please do your own research before investing.thanks for reading please follow me and upvote if possible,