Snowman Logistics !! This time No Risky Bet.

My previews Views on
1.) Andhra Bank
2.)KTK Bank
3.)IDFC Bank
4.) JKTyre
all are doing well right now this time i am giving My 5 one that is snowman Logistics this will be next
big thing because.
1.) Public Holding
*Mitsubishi Corporation
*International Finance Corporation
So any where if i found Japaneses person or company i give my full support.

2.) Mr. Tomoyuki Masuda Director Japanese person in Board.
3.) No pledging of shares.
4.) Business realting cold storage and transportation you can say they have very less competition in markets.
5.) Right Now earning is less but likely to increase.
6.) This Stock was listed in change in 2014.
7.) They dont have to pay hefty interest. EBITDA Improved.
8.) Recent MoU with Andhra Government.
9.)GST will improved it.

I hope i am not late you can invest and forget and if you planning to invest in FD or mutual fund Then invest in this stock.

 

Japanese. Nice analogy. What will be the reason for increase in earnings??

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First Of all Thank you Niraj ji for commenting at least you always comment on my fundamental reports i am very happy its like someone talking to me and watching my reports thank you very much..

Now Come to the Point I hope that it will clear all the points in your mind.
* Japanese perfect its perfect analogy I will give you two example right know only
1.) Maruti Suzuki: - We know back then how this two collaborated with each other and now after separation Maruti is giant in Indian markets.
2.) Hero Honda :- You also know that how hero Honda take the market capitalization and growth is tremendous now it is known as hero moto corp.

* Japanese are very punctual and hardworking people.They are the first who implemented the quality control tools in the industry in a large scale. Toyota is on of the example in global markets. Kai zen, Poka yoke, Six sigma all are the quality control tools developed by Japanese. Edward Deming we know him as father of QM himself is product of japan. (What we get "Quality")

*Backed by huge company like Mitsubishi corporation and i hope you know about the Mitsubishi corporation.
*it was acquired by Gateway Distriparks Limited in 2008 the Logistic Company

* How it will increase the earnings so in this context i feel that the debt of the company is very low debt to equity ratio is 0.34 something so safe and interesting coverage ratios is also good.
* Business of the snowman is cold storage and we know that most of the time climate of India is hot and moist and humid type of temperature in south peninsular region we can say that the temperature almost 28 - 35 all the time in the year.
* less player in the cold storage supply chain major are coldex, gatikausar, crystal group,kelvin cold and the market is not well organized but growth is their in this sector.
So less competitors ( for Stock Investment purpose only Snowman listed in stock market) so i feel that less competition and more coverage then its competitor and recent.
so pallets capacity will increase to 106000 thats showing the demand is increasing and upcoming facilities Cochin and Krishnapatnam.
in this business cash flow is regular their is no cyclic in nature .
So it will take time to grow but i assure it will defiantly grow my first tgt - 80 rs 2nd tgt- 140 rs 3 rd 200 rs My maximum is 800 -1000 rs for this stock.

So, the Most Important that is accounting is clean why because
Modified C-Score is 2 which is very positive .(Accounting Is clean)
Altman Z-Score 7.25 which is highly safe that tell about the near future solvency or threat to the business.

Conclusion
* Quality+Clean Accounting+Less Threat+Good Management = Great Business.

Sir I hope I clear your confusion and this will help you to understand the company.

My thing is invest in those business which are new and booming rather which already bloomed.

It is wise to invest in a good quality stock price then the stock of high price. How.

Stock A Price = 50 rs

Stock B Price = 500 rs
* Time Period In both Case it will be at least three years.

capital 100000
Stock A = 2000
Stock B= 200

After Three Years price movement
Stock A = 50 to 350 = 600000 Rs Profit
Stock B = 500 to 1000 = 100000 Rs Profit

i hope this is sufficient to help you for taking the decision.

Thank you and please forgive for any mistakes.

 

@ganeshc89 ji very good and nice explanation. Thanks for efforts u made to put in for our simple understanding. I am Zero at fundamental analysis but i tried to get some good insights thru your post.After reading this I will keep snowman in my RADAR.

Do share & Keep posting such information & stocks for our benifits. Thankyou once again for your selfless & invaluable help .

 

Hi Ganesh, I did my own study after your post here. I see strong moat, first mover advantage, strong balance sheet, good capex, sound management and most of all earnings visibility. Good pick !!


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thank you praveen ji and bhat ji

 

Hi Ganesh, i have brought Allcargo from logistic sector last week. Its seems fundamental good company. Can you please give your view

 

Akash ji only negative is promoter stake is decrease and which is negative about the business and rest of fundamental is good you can hold this stock its sale growth in 5 years is 80 % .
PEG is more then when which is 1.5 so i think growth will be limited.
Solvency ratio is 5.70 which is in safe zone and accounting is clean so you can hold this stock it may cross 200 rs

Thank and Regards
Ganesh