October 2, 2025
Akash Prakash Amansa Capital Portfolio
Equitymaster has painted a rosy picture of Akash Prakash’s stock pick and highlighted all of its virtues. The stock appears to have all the attributes of a multibagger and we must grab it before anyone else
Equitymaster has painted a rosy picture of Akash Prakash’s stock pick and highlighted all of its virtues. The stock appears to have all the attributes of a multibagger and we must grab it before anyone else




Latest newsletter of Equitymaster

Equitymaster’s latest newsletter has put the spotlight on one of the stock picks of Akash Prakash’s Amansa Capital.

The virtues of the stock are described thus:

(i) The company is the market leader in its industry. It has, over the years, grown its profits faster than its sales.

(ii) Over the last ten years, sales have grown at a compounded annual rate of 25%, while the profits have grown at a whopping 50%.

(iii) The company has latched on to a multi-year mega trend both in the domestic and international markets.

(iv) Apart from riding this trend, the management has made the business stronger by backward integration. They have forayed into exports (now around 60% of the company’s revenues) and they have allocated capital wisely.

(v) The other numbers are good too. Margins, return ratios, debt levels, and cash flows, everything looks to be in top shape.

A Company with strong fundamentals

Growth 10 Y CAGR
Sales 18%
Operating Profits 29%
Net Profits 50%
Return Ratios 10 Y Avg
Return on Equity 32%
Return on Capital Employed 31%
Debt to Equity 0.6
Operating Cash Flows/ Profits 1.9

(Source: Equitymaster)

(vi) The company’s journey may have just begun. Not only is it building upon its success, it is continuously introducing new products in the Indian market and expand abroad.

(vii) Going by its track record, the company is well poised to execute its plans to perfection and keep the growth momentum going.

Equitymaster recommendation
(Image credit: Equitymaster – Chart shows that over 10 year there is 50% CAGR growth in bottom line and average return ratios are in excess of 30%

Unfortunately, the name of the stock will be revealed only on Monday, 25th June 2018.

Latest portfolio of Amansa Capital

To decipher the name of the stock being referred to by Equitymaster, we have to first peep into the latest portfolio of Amansa Capital.

For this, we have to take the assistance of Ayesha Faridi and Karunya Rao of ETNow.

The two charming ladies have ripped open the portfolio and explained all the salient features of the stocks therein.

Based on the valuable information provided by Ayesha Faridi and Karunya Rao, I have laboriously pieced together the latest portfolio of Amansa Capital as of 31st March 2018, which is as follows:

Stock Name CMP (Rs) Nos of shares  Held AUM (Rs Cr)
Gateway Distriparks Limited 182 94,33,238 172
SRF Limited 1671 44,42,241 743
Ramkrishna Forgings Limited 727 23,72,440 173
Cyient Limited 707 72,35,341 512
Eveready Industries India Limited 237 40,00,000 95
Zensar Technologies Limited 1268 21,36,385 271
Majesco Limited 469 13,03,252 61
MindTree Limited 983 67,31,593 662
Sundram Fasteners Limited 626 84,96,550 532
CEAT Limited 1326 14,02,310 186
Bharat Financial Inclusion Limited(SKS) 1172 44,63,628 523
Info Edge (India) Limited 1199 37,10,862 445
Federal Bank Limited 83 580,01,055 481
Crompton Greaves Consumer Electricals Limited 225 175,52,797 395
Trent Limited 317 89,75,416 285
Dish TV India Limited 72 441,94,773 318
PI Industries Limited 791 25,09,397 198
Tata Communications Limited 602 51,64,228 311
AU Small Finance Bank 680 45,21,582 308
Balkrishna Industries Limited 1101 28,31,796 312
Aurobindo Pharma Limited 611 69,08,053 422
Bharat Forge Limited 613 50,00,000 307
Sun TV Network Limited 836 41,04,620 343
Total AUM     8055




Is PI Industries the recommended stock?

I rushed to screener.in and meticulously checked to see which stock meets the parameters referred to by equitymaster.

Only one stock ticks all the boxes referred to by equitymaster and that stock is PI Industries.

According to screener, PI Industries has the following virtues:

(i) It is virtually debt free.

(ii) It has good consistent profit growth of 41.85% over 5 years

(iii) It has a good return on equity (ROE) track record: 3 Years ROE 31.94%

The statistics relating to the 10-year, 5-year and 3-year data is also impressive:

Period Compounded Sales Growth Compounded Profit Growth Return on Equity
10 Years 20.74% 72.89% 30.6%
5 Years 21.08% 41.85% 30.85%
3 Years 12.59% 34.74% 31.94%
TTM 0.03% -19.86% 33.08%

(Source: screener.in)

PI Industries is a worthy long-term pick: Experts

Ruchi Agrawal of moneycontrol.com has conducted a detailed analysis of PI Industries’ fundamentals.

She has explained that the Company is presently in the doldrums because it has posted weak FY18 results.

However, she has assured that this is a passing phase and that the Company will soon go back to its days of glory owing to several positive operating factors like substantial growth in the custom synthesis manufacturing (CSM) segment, healthy order book line-up, limited and reduced exposure to rising global raw material prices and new product launches for the domestic business.

She has opined that PI Industries is a quality stock in the agro chemical space and that it is worth looking at from a long-term perspective.

Rohan Gupta of Edelweiss has issued a similar crisp opinion about the prospects of PI Industries:

Outlook and valuations: Dual segment growth; maintain ‘BUY’

Given the deferment in revenue from Q4FY18 to FY19, the growth expectation for CSM has still been kept the same. On the lower FY18 revenue, we have also maintained our 18% revenue expectation. However, management is confident of strong growth in the domestic agrochemical segment riding new product launches and is guiding for industry‐leading 18% growth in FY19. Given the traction, we have also adjusted our revenue growth expectation for FY19 higher from 8% to 12%. However, factoring in the lower margin guidance, we cut FY19/20E EPS 8%/5%. We value PI at FY20E target P/E of 25.0x, leading to TP of INR954. We maintain ‘BUY’.





Agri input firms expect double-digit growth in sales, net profit in FY19

Dilip Kumar Jha of Business Standard has spoken to leading experts about the prospects for agriculture input companies in FY19.

The experts have opined that companies manufacturing farm input such as seeds, fertilisers and agrochemicals are likely to post double-digit growth in sales and net profit in 2018-19 on the back of an anticipated normal monsoon and possibility of increases in minimum support prices (MSPs) for kharif crops in 2018.

It is also pointed out that being a pre-election year, the government may seek to lure farmers with an increase in MSP.

The Government procures commodities such as wheat, rice and a limited quantity of pulses under the MSP.


(Image credit: Business Standard)

Conclusion

It is not known whether Equitymaster has PI Industries in mind or some other stock. In any event, as PI Industries is a core stock in Akash Prakash’s portfolio and that as it has all the virtues of a multibagger, we should also consider tucking into in a slow and steady manner!








3 thoughts on “Equitymaster Recommends Akash Prakash’s Multibagger Stock Pick

  1. PI Industries has been a great performer and with its products including in the pipeline and CSM business, we think it should be a good performer in the market in the coming times. However UPL is also a very large global player and has shown reasonable growth in sales and profitability over the years.

  2. if you are not share about the name of the stock, then why you writes volumes and volumes on the subject.

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