tag:blogger.com,1999:blog-7004453.post1464797059173617326..comments2023-09-02T19:53:06.144+05:30Comments on Understanding and applying value investing principles: How I am reacting to the interest rate tighteningRohit Chauhanhttp://www.blogger.com/profile/00356455735241398199noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-7004453.post-50548824562273532032007-04-03T08:27:00.000+05:302007-04-03T08:27:00.000+05:30Rohit,Indeed!"The time has come," the walrus said,...Rohit,<BR/><BR/>Indeed!<BR/><BR/><I><BR/>"The time has come," the walrus said, "to talk of many things: Of shoes and ships - and sealing wax - of cabbages and kingsā<BR/></I><BR/>Lewis Carroll<BR/><BR/>I looked at B.L.Kashyap company yesterday. It did IPO, I think, last year. The good thing about companies which went IPO recently is that the offer document spells out the business, the competition etc. in good detail. It also lists the pro-forma income statements and investment bankers' rationale for IPO price. <BR/><BR/>I thought B.L.Kashyap has a good business model. They are in mainly into developing commercial real estate - IT parks, hospitals, malls etc. and don't own the land. It is build-and-transfer model. They have some marquee clients - who's who of top tier of MNC and Indian companies.<BR/><BR/>However, it was scary to see how wafer thin their margins (NPM) are. These are in 2 or 3% range and a little slow-down or a little interest rate impact could move them into red.<BR/><BR/>Regards,<BR/>RaviRavi Arankehttps://www.blogger.com/profile/08706098376170260290noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-58623813206347310102007-04-03T03:44:00.000+05:302007-04-03T03:44:00.000+05:30Hi ravithink your wish is coming true quite soon.i...Hi ravi<BR/>think your wish is coming true quite soon.<BR/>i personally am not too comfortable about real estate and have special insights. as a result i would prefer to opportunities accross, especially in the midcap rangeRohit Chauhanhttps://www.blogger.com/profile/00356455735241398199noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-29708728851686980292007-04-01T10:37:00.000+05:302007-04-01T10:37:00.000+05:30Rohit,It would be interesting to watch out for fal...Rohit,<BR/><BR/>It would be interesting to watch out for fallen angels in real-estate space. If the downturn in real estate lasts for some time, I expect Mr. market to throw out the baby with the bathwater. Then there will come time to scoop up some real estate plays who can withstand downturn and emerge stronger.<BR/><BR/>We have seen how this movie played out during dot.com burst. Shares of Yahoo, Amazon and anything to do with internet were thrown out in-toto and provided some very real bargains in 2003. <BR/><BR/>Of course, one must be ready with a list of fundamentally strong companies and their margin-of-safety valuations. <BR/><BR/>I am putting together a list of companies in this space who have sound business models.<BR/><BR/>Here's hoping for some serious downturns.<BR/><BR/>Cheers,<BR/>RaviRavi Arankehttps://www.blogger.com/profile/08706098376170260290noreply@blogger.com