Views on Life & on Equity Investing

Wonder, Wealth & Abundance

Simran Farms – How the company turned around

with 2 comments

I have precise explanation for improvement of performance. Circa ten years 1996-2007 company’s turnover stayed same, 7-10 crore range as it was into ‘Parent Poultry’ breeding. 2007 was the turning point as it entered commercial broiler breeding, when it had 80 farms, by 2009 it had 200 farms, by middle/end of next year 350+ farms. That is the reason the company turned around.

Financials are not fabricated. I cant answer for punters, operators in the script.

To me it feels very low probability of a permanent loss of capital but there can be likely massive gains in short term (2 years perspective). Heads we win, tails we dont lose much – Dhandho approach.

RJ made 5 bags in two years in United Breweries, knowing it has dubitable corporate governance.

Its about processes, strategies, timing, insight too besides Moat, Roe, Management bandwidth, High margins, Brands. I presume you dont intend to pass this stock to your grandchildren.

Look at Srinivasa Hatcheries, compare these two peers on sales to market cap basis. They are pretty much converging into same business. Think about possibilities.

I can also confirm for you that company has internal commercial feed production for poultry that accounts for 90% of input costs on lines of Venky`s.

Written by amitdipsite

June 15, 2010 at 7:34 pm

Posted in Uncategorized

2 Responses

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  1. sir what is ur view about iec education

    NIFTY&SENSEX

    June 29, 2010 at 4:36 am

  2. Hi there,

    Not following IEC education. Only Educomp and Everonn look worth buying. Its difficult to tell whether others will survive commoditisation of ICT in Govt schools or not.

    After above two small bet can be made in Edserv and Compucom but better to hold education basket if you are betting on segment.

    Regards

    Multibagger

    July 5, 2010 at 1:32 am


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