Reflections On Piramal Enterprises

I started investing in the stock markets [both US and India] from 2006. I never believed in picking individual stocks as I was heavily influenced by John Bogle’s writings. I took a passive route to investing by dollar cost averaging in index funds. Click here to read the rest.

15 thoughts on “Reflections On Piramal Enterprises

  1. Thanks Jana for sharing your thought process. it’s a delight to go through the steps ace investors take to reach a particular decision.

    Thank you.

    • Karthik,

      Thanks for the comments. I am definitely not an ace investor. As I wrote in the document I am a lucky idiot. Writing helps to organize my thought process and I share it.


  2. Very good post as usual Jana . Any other company is in your radar ?



    • Thanks Murali. None at this time. I am catching up on reading annual reports for my existing holdings.


  3. Hi Jana, It always a pleasure to read the way you dissect the numbers, the thing which i deseparetly want to develop. I always wait for your post. Thanks once again, these are lessons in learning.

  4. I am very much impressed reading your blog and your thought process. It helps me a lot as a beginner to learn and want to enhance my knowledge like you Jana🙂

  5. Dear Sir, It Always a meaningful to read your blog and digging some good ideas from read your blog but i am worry about unemployment rate what is the impact of automation acquisition can you elaborate on that.

  6. thanks jana for this wonderful write up. Its always a pleasure to read your blog. The analysis is razor sharp. Looking forward to more of your posts. Great going. Ayan

  7. Thank you. If I may ask you a question, how so you source idea? or how do you scan this type of idea? pay 60 cents for a dollar type of deal

  8. Hi Jana,

    Really wonderful analysis. This is the best analysis on PEL I have seen in last 2 years. I’d appreciate if you can update the analysis for PEL regularly.

    Wondering about few things in SOTP valuation. I am still learning valuation and appreciate your input. How did you calculate whole sale lending “book value / equity” at 3441. Is this calculated using – Profit / ROE?. If so, is this profit “PreTax” or “Post Tax”? Also, Did you deduct NPAs? Also, wondering about non-finance debt… Is this a derived value or taken it form results/ presentation ?

    • Hi Satish,

      Thanks for your comments. We know that Assets = Liabilities + Equities. If you look at the Notes to Consolidated Statements No. 38 then the break of Assets and Liabilities is clearly given. All I did was to subtract them to get the Equity at the segment level.

      From that we know that book value for Financial Services comes to 8,024 crores. I assumed that Shriram investments got funded through Equity. This is not a bad assumption as the investment is for the long term. So the balance has to be for Wholesale Lending as the Asset Management is an off balance sheet item.

      Yes I deducted the NPAs while arriving at the final intrinsic value. You should be able to see that in the last table in the final page.


  9. Super article Janav, kudos to you.
    I have been reading your blog since quite some time and find it very insightful. I came to know abt yr blog thru safal niveshak / fundoo proff.
    After you mentioned I listened to both the intervies of Mr. Piramal, one point / key take away as listing of DRG on US browses , he mentioned they’ll do it in near future. This will also be a good trigger for value un-locking.

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