Hi @Deepesh_Punetha with reference to your questions i have read the annual reports and will try to address your queries

1)The hotel land for orchid mumbai is owned by promoter entity (Plaza hotels) and is given on long term lease to kamat hotels. It is mentioned as owned as technically it is owned by group company but actually it is a leased hotel. Kamat hotels pays royalty charges to promoter entity.

2. Even though agreement will end in 2024 this agreement is extendable for another 30 years so it will be extended.

3)The royalty payable is basically for orchid vile parle mumbai which is based on the percentage of sales as decided by the board. It is basically lease expenses but it is paid as royalty so it would be accounted in other expenses and not as lease as per ind as.For FY23 it was 3 percentage of sales and for FY24 it was increased to 5 percent of sales. Going forward not sure what will this be. Maybe management can provide clarity.

4. Loan was given by kamat hotels to promoter entity (plaza hotels) at 20 percent which was the same rate at which the company had raised ncd’s. The loan was given to enable promoter entity to clear outstanding dues with prudent arc which was taken for construction of a hotel project in nagpur which the promoter entity was undertaking and which was to be handed to listed entity but this project was shelved.

5. The contingent liabilities are mainly income tax issues due to misreporting by the banks of loan settlement as the loans were assigned to arc’s and arc’s also subsequently reported it so as per the company it led to double counting of income by the it department. The company believes these dues are not payable and should be set aside by the courts so hence it has not provided for them.

In case you received any further update from the company kindly let us know

Overall i feel valuations are attractive and the legacy issues of debt have been resolved. Now the company is on a strong growth trajectory which would kick in from Q1FY25. Moreover expansion would mainly be through the lease route rather than management contract so this would significantly contribute to topline.

Most large companies, not just IT, are AI running pilots. The results are promising. Many companies are estimating that in the next two or three years they will have to move fully into cloud and be ready to implement the new tech. Indian companies will gain more business. It will hopefully start with the rate cuts. Invested in IT.

Hi Sir,
My list matches with yours now, will verify for couple of weeks then see.

ANANDRATHI
CENTURYTEX
COCHINSHIP
EIHOTEL
EXIDEIND
HBLPOWER
HINDCOPPER
HUDCO
INOXWIND
JAIBALAJI
KPIL
MEDANTA
MOTILALOFS
MRPL
NBCC
POWERINDIA
SCHNEIDER
SIGNATURE
SOBHA
SWSOLAR

@hitesh2710 sir how do you look flat results for fundamental bets? Example recent result from Usha Martin is very flat. How do you see it and when would you cut positions when you see quarterly flat results?

Update for entry on 06th May 2024

50DMA (14920) > 200DMA (13308); hence, we can continue without any change.
Based on ranking:

1. JAIBALAJI
2. ANANDRATHI
3. INOXWIND
4. SCHNEIDER
5. COCHINSHIP
6. MOTILALOFS
7. HINDCOPPER
8. HUDCO
9. SOBHA
10. SIGNATURE
11. HBLPOWER
12. SWSOLAR
13. MEDANTA
14. POWERINDIA
15. MRPL
16. EIHOTEL
17. KPIL
18. EXIDEIND
19. CENTURYTEX
20. NBCC

Based on A → Z for easy tracking:

• ANANDRATHI
• CENTURYTEX*
• COCHINSHIP
• EIHOTEL
• EXIDEIND
• HBLPOWER
• HINDCOPPER
• HUDCO
• INOXWIND
• JAIBALAJI
• KPIL
• MEDANTA
• MOTILALOFS
• MRPL
• NBCC*
• POWERINDIA
• SCHNEIDER
• SIGNATURE
• SOBHA
• SWSOLAR

Exit;
ACE makes an exit.
CHALET stays within the top 25 and hence remains.

Entry:
CENTURYTEX makes an entry.
NBCC cannot enter as there is no vacancy.

With a variation of 70% weightage for 6m performance, we see small changes in pf.
ACE, BLUESTARCO and CHALET exit.
ARE&M, CENTURYTEX and HBLPOWER make an entry.