NMDC: Deep Dive Valuation

Commodity companies are generally prisoners to commodity prices. NMDC is no different in this regard with respect to iron ore prices, however it is trying to diversify in other areas. To see just how strong the relationship between iron ore prices and NMDC performance I plotted operating margins against iron ore prices in the last…

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Oil India: Forget the Oil Price

“Our reverse valuation exercise suggests that the stock is already discounting dated Brent crude price recovering to about $50 per barrel, providing limited leverage to any improvement from current levels,” wrote analysts from Kotak Institutional Equities in a report on 23 August,2020. The  analysts saw a sharp decline in oil prices which coincided with a…

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Syngene Valuation: Quantifying the Qualitative

Syngene International is engaged in providing contract research and manufacturing services from lead generation to clinical supplies to pharmaceutical and biotechnology companies worldwide. Syngene’s services include integrated drug discovery and development capabilities in medicinal chemistry, biology, in vivo pharmacology, toxicology, custom synthesis, process R&D, formulation and analytical development along with clinical development services. Syngene is…

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ITC: Sum of Parts Valuation

ITC is one of India’s foremost private sector companies with a market capitalization of US $ 50 billion and Gross Sales Value of US $ 10 billion. ITC has a diversified presence in FMCG, Hotels, Packaging, Paperboards & Specialty Papers and Agri-Business. I decided to value ITC using a discounted cash flow model. The only…

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