First, I wish you a very happy Holi!
May you have the most blessed Holi festival than you ever had. May it be full of fun and love. May you be as colourful as the festival itself or even more.
And may you use the least amount of water while playing and washing off your colours. 🙂
Now, after a tremendous response to the first edition of Safal Niveshak’s Value Investing Contest, I feel happy to announce the winners of the same.
I received 23 entries in total and found it extremely tough to rank them in terms of quality and simplicity of analysis.
Thus, I have chosen two winners for each of the first three positions.
While my choice of winners does not devalue the quality of analyses sent by others, it’s just that I had to pick the best very few, and here they are –
1st Prize
- Ankit K – Balkrishna Industries
- JK – V-Mart Retail
2nd Prize
- Sudhanshu Jain – Munjal Auto
- Venkat Sivagnanam – Gabriel India
3rd Prize
- Maheswar Reddy – Tree House Education
- Nishanth Muralidhar – Swaraj Engines
Here are the prizes winners have won –
- 1st Prize – Books of choice, worth Rs 2,500/- each
- 2nd Prize – Books of choice, worth Rs 1,500/- each
- 3rd Prize – Books of choice, worth Rs 1,000/- each
Congratulations to all the winners, and thanks to all who participated!
I will publish the reports of winners on the website very soon.
Congrats to all the winners. Eager to read the winning reports 🙂
Congratulations to all the winners! Hope to learn from the winning entries on how to improve my own report.
Hi Vishal,
Thanks for posting the Value Investing contest winning entries. Congratulations to those who participated, especially the winners.
Now the winning entries…
Would you mind sharing your criteria for choosing the winners? I am curious weather it was based on quality of the analysis or the company itself? (disclosure: I did not participate in the contest)
The reason I ask is: the 1st winner, Balkrishna Industries (BOM:502355) is trading at P/E almost 50. It’s price-to-book ratio is close to 3 and debt 1.5x equity.
Although it’s EBITDA is a respectable 20%, which seems to be the only thing going for it. However, with high debt, one can imagine a significant proportion of the earnings goes towards servicing the debt, leaving 10% net.
Despite a respectable performance, the investors are getting just 0.35% in dividend yield.
How this company is qualified as a value investment opportunity?
Am I missing something glaringly obvious?
It seems to me that the company is reinvesting its profits back into growing the company, which is commendable. However, with the company trading at 50x its earnings, wouldn’t Google or Apple be a better value (P/E 33 and 13) than the Balkrishna Industries?
I know Google or Apple aren’t Indian companies (hence the rules), but I am citing these world class companies to demonstrative the price discrepancies between industry dominant companies with incredible world wide competitive advantage vs. a company which is adjudged to be the value stock winner.
I am really curious on your view on this.
Thanks.
Pankaj
PS: I guess I could say the same on V-Mart Retail, trading at price-to-book ratio of 7, but would leave it for another day 🙂
Balkrishna Industries has a trailing 12 mth eps of 43.33 and at CMP of 489 rules at p/e of around 11 which is in line with other tyre co’s in India. It has posted a 10 yr CAGR of 27% growtth in sales and 30% in PAT. Not too shabby I guess…
PS. Data taken from Screener.in
My criteria is based on live data, because you are buying the stock today.
Regardless of the criteria used, the real question remains – is Balkrishna Industries (BOM:502355) the best value stock in India right now?
Not shabby numbers… may be. Would Benjamin Graham buy Balkrishna Industries today? How about Buffet?
Judges think so. Rather than hearing the final decision on winners, I would love to hear justifying arguments that led to that decision too.
Pankaj, you seem to have not read the contest rules.
The contest was NOT about writing on or picking the “best value stock”. It was about the quality of analysis, and I have ranked the analyses I received on that parameter alone.
I hope this makes it clear.
And yes, BKT is trading at 11x P/E (based on latest share price and TTP EPS) and not 55x that Google mentions!
Congratulations to all the winners!