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  #2721 (permalink)  
Old 13-11-2017, 04:49 PM
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Deals pick up as hospitality industry shows signs of turnaround
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Old 15-11-2017, 04:57 PM
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Originally Posted by jazz View Post
I think both events are interconnected. Daiichi's move to Supreme Court to recover 3500crs from Singh Brothers has blocked both these moves. I have no idea when this thing gets sorted and I don't care. I am hopeful sooner rather later this has to happen. Either Singh bros will sell their share or the pledge shares will get sold off by fin institutions, Who knows ?

It all depends on where you see value. Fortis malar eventually will be a Diagnostics play while Fortis healthcare will be Hospital Chain Pure play.

I am more optimistic on latter as I see a lot of room for both turnover and margin expansion. At present they have 4000 operational beds with 70% capacity utilization and as per them without any greenfield capex they can increase the capacity to 10000 beds in their existing hospitals. This is high operating leverage business, with high fixed costs. There is lot of room to increase the utilization that will lead to higher margins.

Also they have acquired 51% of the Business Trust, that has helped them to lower the Business Trust Costs by 200crs and that is getting reflected in their margins which is up from just under 4% to now 7.4%.
They have plans to acquire the BT completely and delist it from SGX. If they can do so, that itself will lead to a re-rating of the company. With BT Costs going down by almost 400crs, margins will shoot up to 15% !!
Add operating leverage as they increase utilization, I expect them to do EBITDA of ~18%
And with no major greenfield capex, this will help them to reduce debt considerably, which will further help in reducing interest costs.
As per some reports EBIDTA is expected to go up 10x in next 3 years !!!

And lastly if IHH does acquire them, they will help them fund the balance 49% of BT so balance sheet wont look that 'out of shape'.

Stock simply isn't interested in closing below 140 since last 3 years. I think its a best price one can enter the company.

Disc: Long, forms considerable part of my Folio.


Fortis Healthcare acquiers RHT health trust portfolio for 4650crs

This is significant. EBITDA goes up by 270crs, interest costs down by 70crs. Funding is to be seen now.
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Old 16-11-2017, 02:03 PM
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In many of the stocks after Rakesh JhunJhunwala bought are falling Fortis,Lupin and he is reducing his position in Tv18 after holding it for few years.Did he plays with F&O and use holding stock to control daily movement?
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Old 17-11-2017, 06:05 PM
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Originally Posted by jazz View Post
Prakash Industries rallied to its almost seven-year high of Rs 149, up 9% on the BSE in intra-day trade after the company reported nearly five-fold jump in net profit at Rs 65 crore in September quarter (Q2FY18). It had posted profit of Rs 14 crore in the same quarter last fiscal year. The stock is trading at its highest level since November 2010.

The company’s turnover increased by 29% to Rs 648 crore in Q2FY18 against Rs 501 crore in the corresponding quarter of previous fiscal.


Prakash Industries said the growth in the profitability is on the back of major cost savings, higher volumes and better sales realisation.

EBITDA (earnings before interest, tax, depreciation and amortization) margins improved to 19.1% in Q2FY18 from 11.4% in Q2FY17.

The company said it is expanding its sponge iron and power capacity by setting up 6th sponge iron rotary kiln of 0.2 million TPA with 15 MW co-generation plant by September, 2018 which will take the integrated steel capacity to 1.2 million TPA. The company has secured an additional long term coal linkage of 0.21 million TPA. With this additional quantity, the company has fulfilled its 100% requirement of coal for sponge iron plants though linkages.

Owing to the above factors and favourable market outlook, the sales volume and turnover are likely to witness growth of over 60% and 80% respectively in Q3FY18, year on year.


Promoters and Madhusudan Kela buys equity warrants of Prakash Industries at 137.25 each.
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Old Today, 10:37 AM
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This one will test patience and maybe even make a few patients

Originally Posted by jazz View Post
Fortis Healthcare acquiers RHT health trust portfolio for 4650crs

This is significant. EBITDA goes up by 270crs, interest costs down by 70crs. Funding is to be seen now.

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