Jitendra Kumar Gupta's blog

Introducing new page under: One up on wall street Here is collection of investment thoughts from Chetan Parikh His website is worth visiting Must read book: Indias Money Monarchs: Converstions With Leading Investors "Most of my multi baggers have come through waiting patiently, understanding corporate strategy and the resultant cash flows from a three to five year period. But if i had to hold a non-steady cash flow company for any length of time, management is a very important factor. In many cases it is the jockey, not the horse that one should bet on"

It is difficult to find a single construction or engineering company, which has negative working capital, zero debt, return on equity in double-digits, huge cash in its books and consistent dividend paying history, all under one roof. The company in question is National Buildings Construction Corporation (NBCC), which has launched an offer for sale (by the government) to raise Rs 108-127 crore. In the last four years, NBCC’s profit has doubled and shareholders’ funds have gone up four-fold, and without raising any funds, including debt, thanks to its business model. The company gets its dues (money) from clients in about 100 days, whereas it pays to its creditors in about 300 days. These positives have helped NBCC attract an initial public offer (IPO) grade of four on a scale of five by ratings agency CARE, which indicates above-average fundamentals. As regards the IPO, at the upper price band of Rs 90-106 it is priced at 8.5 times annualised earnings and 1.6 times book valu...

http://blogs.business-standard.com/jitendra/2012/03/01/buffettspeak-in-productive-assets-i-trust/

http://www.berkshirehathaway.com/letters/2011ltr.pdf

http://businessstandard.com/india/news/early-signs-suggest-onsetbull-market-ramesh-damani/464220/     Markets have had a surprising rally in 2012 and sentiments have also turned positive, with many suggesting the start of a new bull market. Against this background, Jitendra Kumar Gupta   spoke to   Ramesh Damani , member of the Bombay Stock Exchange, for his views for a variety of subjects, including what’s in store for the rest of the year. Edited excerpts: There are elections across the world and that is seen as a sign of extended liquidity. The flow of bad news has also reduced, particularly from the US. How do you perceive the situation?