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Vivek Sukhani
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Joined: 23/Jul/2006
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Posts: 6675
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   Posted: 16/Feb/2008 at 9:19pm |
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Fasteners, rivets, bearings, nuts, bolts, screws etc. all need to replaced....that ways stream is quite continuous.
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kulman
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Joined: 02/Sep/2006
Location: India
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Posts: 9319
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Posted: 16/Feb/2008 at 9:53pm |
Originally posted by Vivek Sukhani
...bearings, nuts, bolts, screws etc. all need to replaced....that ways stream is quite continuous. |
Yes Sir!
In fact I'm looking for those spare parts for myself as people say about me: he's lost bearing....he's a dheela nut and all that...
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Life can only be understood backwards—but it must be lived forwards
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smartcat
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Joined: 29/Mar/2007
Location: India
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Posted: 16/Feb/2008 at 1:42am |
I generally avoid MNC companies. They act as if somebody put a gun on their heads and asked them to list in the stock exchanges. Always trying to delist - somewhat similar to how the Indian cricket team reacts (We Are Going Back Home) when things don't go their way.
Most of the MNC companies make me feel unwanted with their 'delisting' and 'open offer' attitudes.
Otherwise, seems to be a good business to invest in. The revenues seem to be a bit lumpy though. I guess revenues keep spiking up with new capacity going onstream every 2 - 3 years.
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Vivek Sukhani
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Posted: 16/Feb/2008 at 7:31am |
thats hugely true.....its for the same reason that my dad doesnt like MNCs....he thinks 5 years down the line most of them would delist themselves.
Unfortunately though, I am a poor man.......I want my companies to throw cash, in whatever form. And these companies, and SKF is not a part of that list, are doing that. I was comparing SKF with FAG and FAG's financials appear much improved although my friend had called me to say the quarterly were disappointing. Somehow, these bearing companies have an issue with dividends. FAG earns so much and distributes so little. Timken also earns a decent income but doesnt distribute at all. SKF's dividend is also pathetic. I know one thing...even though I will mentally prepare myself for buying a few tickets of FAG/SKF/Timken, when the hour of reckoning, i.e. time to press the order will come, instead of FAG, my fingers will press FOSECO.......good things always seem to elude me!!!!!
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Musketeer
Senior Member
Joined: 12/Feb/2008
Location: India
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Posts: 310
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Posted: 16/Feb/2008 at 7:58am |
Originally posted by kulman
SKF's German parent wanted to delist the company 3 years back but didn't get response.
Somehow they haven't been able to command pricing power as expected from a leading Brand.
It's a good business..bearings. They need replacement after few thousands of hours of running.
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In my view, delisting/ acquisition should not be the primary criterion for investing in a stock (although I myself did that for CBoP and would not repeat it). Nor should it be the criterion for avoiding a stock.
If the business has grown well, has the potential to grow well, the opportunities exist and the management seems committed, it makes a strong case.
Pricing power ... even I want to find out if it has gone up or come down. How did you infer that?
Edited by Musketeer - 16/Feb/2008 at 7:59am
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Be fearful when others are greedy. Be greedy when others are fearful.
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catcall
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Joined: 02/Sep/2006
Location: India
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Posted: 16/Feb/2008 at 9:25am |
| Originally posted by Musketeer
Pricing power ... even I want to find out if it has gone up or come down. How did you infer that?
[/QUOTE
From the improvement /or lack of it in market rates... It's like this, some ten years back , for equipments fitted with a particular brand of bearing, it was almost a |
From the improvement /or lack of it in market rates... It's like this, some ten years back , for equipments fitted with a particular brand of bearing, it was almost always a propreitory buy... that's no more the case now and bearings, unless they are tailor made for a large equipment, have equivalents of the same types in other brands also and the rates therefore have to be very competiive, since there no particular brand has any techncal advantage over the other , in fact we normally float tenders to selected vendors to finalise ARC Contracts for these items mainly on a lowest cost basis... which is why i said that there is no "moat" advantage, the increase in bottom line is only through higher top line growth...
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There are two times in a man's life when he should not speculate-when he can't afford it and when he can-Happy investing!
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Musketeer
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Posted: 18/Feb/2008 at 12:01pm |
Originally posted by catcall
that's no more the case now and bearings, unless they are tailor made for a large equipment, have equivalents of the same types in other brands also and the rates therefore have to be very competiive, since there no particular brand has any techncal advantage over the other , in fact we normally float tenders to selected vendors to finalise ARC Contracts for these items mainly on a lowest cost basis... which is why i said that there is no "moat" advantage, the increase in bottom line is only through higher top line growth... |
True, for a number of its products, SKF India would be competing only on the basis of cost. But I guess that would happen to any firm that is in an industry that has matured. There'll be competitors offering the same product and hence pricing pressure would come in.
But continuous spending on R&D, being the first mover in newer opportunities within the industry could help address pricing pressure upto an extent.
E.g. 1) the products that they supply in the Power Transmission segment complement their bearings portfolio,
2) special emphasis on Wind Turbines
Such measures could perhaps mean the firm is trying to differentiate itself.
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Be fearful when others are greedy. Be greedy when others are fearful.
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Musketeer
Senior Member
Joined: 12/Feb/2008
Location: India
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Posts: 310
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Posted: 20/Feb/2008 at 8:00pm |
SKF India announced Q4 (Dec 2007) and annual FY2007 results today.
Here is the snapshot of quarterly performance.
I'll update the first post in this topic with the latest annual figures, whichever are available at this point. (Figures are in Rs. lakhs)
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Dec-07 |
Dec-06 |
% Change |
| Sales |
42005 |
37926 |
10.76 |
| Operating Profit |
7419 |
5677 |
30.69 |
| Operating Margin in % |
17.66 |
14.97 |
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| Net Profit |
4020 |
3173 |
26.69 |
Edited by Musketeer - 20/Feb/2008 at 8:06pm
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Be fearful when others are greedy. Be greedy when others are fearful.
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