The 10th Annual New York Value Investing Congress takes place in New York on September 8th and September 9th 2014. ValueWalk will be providing coverage of the event- below is a presentation from Amitabh Singhi on value investing in India.
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Amitabh Singhi is Managing Director at Surefin Investments, an India based portfolio management and investment advisory company. Since inception in mid-2001 the fund has returned 24.7% annualized, net of all fees to investors. Mr. Singhi graduated with a BS in Economics from the Wharton School at the University of Pennsylvania, with concentrations in Finance and Management.
Amitabh Singhi on India’s new elected president
Amitabh Singhi is going on and on about India–talking about new elected president
30m housing shortage, growing by 4m a year
Amitabh Singhi’s ideas: Aro Granite, Tata Motors
First idea — created a private company to build low end housing units (looking for more investors –thinks demand is almost unlimited at this point) –can’t build them fast enough
Aro Granite Industries Ltd (BOM:513729) (NSE:AROGRANITE)
10yr avg ROE before 2007 = 20%
since 2007, ROE=10%
ROE’s should be 15%
Added capacity in 2007
Lots of working capital
trades at .5x book
4x P/E 13m market cap
Tata Motors Limited (ADR) (NYSE:TTM) (BOM:500570) (NSE:TATAMOTORS) DVR
TATA used to own 80% of DVR’s, but now own less than 1%,
The discount recently dropped to 30%
1/10th the voting right, slightly higher dividend
Long the DVR, short TATA common stock
