There is one thing which puzzles me at times.....when we value a company how much is its size as represented by turnover, profits et. important. the question comes to mind when i look at the turnover of some cyclical companies about which we have debated earlier. These companies are making huge tonnes of money and even after covering their capex requirements, have bountiful cash surpluses with them. Thousands of crores in profits? I believe we must pay regard to the absolute numbers as number. What actually this money is doing is enabling them to make more and more acquisitions, repaying borrowings, and in case a company is free from both the counts, the company has huge cash surplus. People may write off free cash flow criteria but we cant forget that we would like our companies to not only to grow but to do that extremely profitably. Cyclicality is a factor with every thing. I was going through Mahindra Gesco's Report......although the report looked attractive but where is the profits. they have executed Chennai SEZ and many residential projec ts but man, where is the profits???? How long shall investors wait????? Faith is alright, but so us a ray to make us believe there's light......on top of it the concerns and risks they have talked about, makes them look as cyclical as the cement or a steel company. They have made private placements, issued warrants and although the company boasts of being debt free but its very easy to make out wherefrom they have come. I was also through MRPL's Annual report and can easily make out this company will easy make profits by leveraging its depreciation. Its making silent moves and will scale up very easily. I will go through SAIL's and tisco's reports thereafter and will post my views thereafter.

Vivek,

Although, I do agree big size may be a disadvantage in some cases, however I was talking about something different. RIL is getting into something unrelated, i do agree. However, some companies will become huge without any effort. take for instance ITC....if a company generates 3500 crores of cash flow and is sitting on plum cash and handsome MF investments and has no debt, can you work out the strength of this company. I was talking more for affordability to lose. Now, ITC can take on its competitors because of its financial might....we all know FMCG was a wrong venture for ITC but then who bothers.....even though the company may lose here and there there's a big cash cow to support that.....its like kar lo duniya mutthi mein style. So long as the company is totally debt free, it doesnt matter what they do. They have also developed a progressive dividend policy at the rate of 10 p.c. I have admiration for companies which generate tonnes of cash rather than those companies which only talk of promises with little delivery like suzlon. I have never bothered for business models and stuff like that and i never dream with my stocks ....i beleive in numbers and will like my compnies to throw bundles as corporate profits and dividends....doesnt matter if its a cyclical or a non-cyclical, doesnt matter if they are into a service like GE shipping or into commodities or into FMCG, all i want is big fat numbers......no begging, no borrowing and no stealing permitted however!!!!!!!

exactly...i am plying a similar game in seshasayee papers, thirumalai chemicals , century enka and cheviot. Porritts and spencer asia also fits this bill along with GE Shipping......