We recently concluded the second edition of Safal Niveshak’s Value Investing Contest. Today, I feel happy to announce the winners of the same.
We received 24 entries in total and found it extremely tough to rank them in terms of quality and simplicity of analysis. Thus, we have chosen four winners for the first three positions.
While our choice of winners does not devalue the quality of analyses sent by others, it’s just that we had to pick the best very few, and here they are –
1st Prize
- Ankit Kanodia – Mahindra Holidays
2nd Prize
- Vikas Kasturi – NESCO
- Depesh Kashyap – MT Educare
3rd Prize
- Samar Srivastava – Poddar Developers
Here are the prizes winners have won –
- 1st Prize – Books of choice, worth Rs 5,000/-
- 2nd Prize – Books of choice, worth Rs 2,500/- each
- 3rd Prize – Books of choice, worth Rs 2,000/-
Congratulations to all the winners, and thanks to all who participated!
Click here to view/download all the submitted entries.
Thanks Vishal & Anshul 🙂
I have a few points to make regarding NESCO since I had questioned the management on the issues discussed here.
1. Management is confident that Indabrator will do good business in the coming years when the investment cycle picks up. From what I gathered, Indabrator enjoys a good reputation among its customers though it does occupy a lot of management bandwidth. Chairman Sumant Patel seems very sentimental about this division. When I asked him about exploiting Indabrator’s land holdings, he insisted that it wouldn’t be feasible because these are small parcels spread over different places.
2. Regarding exhibition centre, the management is waiting for the new Development Plan to be announced by the Mumbai civic body. Management is hoping that NESCO is eligible for higher FSI. Some of the cash hoard amounting to Rs 375 cr is being spent to acquire Transfer of Development Right (TDR) which is essential to construct high-rises. Rs 100 cr was spent to buy TDR for IT Building 4. Depending on the new development plan by BMC, NESCO may redevelop It BUildings 1 and 2 into high-rises.
3. A new metro line has been proposed from Dahisar to Mumbai airport which will pass over the length of the Western Express Highway. There is a possibility of a metro station being constructed on NESCO property. Depending on how it works out – who owns the station and access plus additional infra – it would be a big determinant to NESCO’s future.
disclosure: owning in core portfolio.
Hi Shiv,
I’m a newbie in the markets and had gone through a few Annual Reports of NESCO.
There were a few things that created a doubt in my mind, if you have any information on these please let me know:
1. Expansion of BEC from 450,000 sq.ft to 1,000,000 sq,ft : The management started speaking about expanding the BEC area in the year 2009. Since then they have said that they have appointed an architect for the same and expected to start the construction in 2011. This continues till the year 2013. But after that there was suddenly no mention of this project in the Annual report. Why is it so? If there was a problem, management could have mentioned it in the Annual Report.
2. Related Party Transactions: The company leased land at Anand, Gujarat from the promoter most probably for its Indabrator division (Source: FY15 Annual Report) and pays a monthly rent to the promoter of this. Did the promoter give the land to the company at below market rates or is the promoter earning money at the expense of the minority shareholders?
Thanks,
Mohnish
Dear Vishal ,
The Mahindra Holiday analysis is great analysis on industry structure and quality of Business , but it has no analysis on arriving at intrinsic value through multiple methods and comparing it with CMP ( except for a attempt to state BV is less ) . Finally Is BV a right method to value a stock with high intangibles + high fixed assets ( valued at historical values )
Hi,
I am happy to have participated in the contest. Even though I did not win a prize, I am delighted to have access to all the reports written by other like-minded people. I believe that many of the reports, especially the winning entries, are of very high quality in terms of depth and logic of analysis.
Vishal, I feel that we readers would benefit further if you and Anshul would point out which areas of the reports (at least the winning entries) were soundly based and could be used while we do our own analysis. You could even identify if there are any flaws in the logic.
Thanks, and keep up the good work.
Hi Vishal, Appreciate your gesture in conducting such contests. It goes a long way to fine tune our stock screening and stock analysis skills. Do continue this good work. THanks Venkatesh.