Hi sorry for delayed response, just saw the message @cathene Stock Pricol is now at 430s .Please read on Investment Rationale for my insight on 30%

Though this is old news, I want to know the implications of Biocon biologics involvement with bribery case.

Government grants sanction to prosecute Drugs controller Mr.Reddy. He is suspended but the suspension is revoked as per this news article.

My question is how to trust Biocon, if they have not bribed for other products too. Maybe this is why the company’s marketcap is so low.

What is the current status of this case…Can anyone update.

Is Equitas eligible as per standard requirements to convert to Universal bank ? If anyone understands this better and provide your thoughts would be helpful.

Room for growth is a bit not too much from this point as they have cracked the major markets in which they are present and gained a resonable market share there from single digits to high double digits

Beer being the star can’t get them to a 60-70 PE like other IMFL players listed

Maybe a room for peak PE of 40-45 and a price rise of 20-25% from this point if market sentiment rimains on the stronger side

Agree @manhar the sales would grow at a staedy pace but margins (due to glass bottles) and taxation to some level is a stress

Thanks for the interesting comments.

I understand the view on PSUs, however I think if value lies there, it commands respect, any sector for that matter. For example, PSUs 2-3 years ago or LIC at 600 levels, SBI in 2016 etc. Coal India at 10% div. yields in my opinion was a solid buy. But yes, if you have a framework or rules, you should abide by them.

Yes I am aware. But I think any Govt is smart enough to go OFS only if they believe it has reached the value it is deserved to be sold. Initally the IPO was pegged at 12-15L Cr INR, meaning nearly double the current levels. There could be a chance the govt might not start trimming their stake until LIC moves somewhere closer to there. Also, we have the 10 year exception to promotor stake. So let’s see. Yeah, LIC will lose its market share to HDFC Life, SBI Life etc but the question is despite of that can they keep showing earnings growth and if yes, the market should atleast decently value LIC’s EV ratio if not that of HDFCLife and SBILife.

Understood. My problem is, I have to learn about how these companies go on about their business and how they can grow their earnings. One of the best examples I have is Gulf Oil. For me, it is a decent buy at the moment, but March last year was a very good buy and in fact, I have been following them for a while now. at 9xPE, it was a great buy. They are exploring new areas, especially with the EV oil and when EV becomes a play in India, both castrol and Gulf oil will have a role to play. Another good aspect was that both these companies hadn’t performed in terms of stock performance. I just did not have it in me to follow my instincts.

True. In any market, there are always opportunities. We just have to be lucky I believe. I think of one or even two of the rice export players is undergoing some sort of consolidation for a while now. I actually was invested in LT Foods since Oct 2020 and sold it last year to enter KRBL. Seems like a mistake, but I am in it for the next few years, It has done nothing in my portfolio for a while. I am keen, let’s see what happens.

Ah Sun TV is simply because of 2 things. 1st thing is a mix of reasons such as low PE compared to median 10-yr and historic levels, SUN is one of the most watched channels in the country and they have a huge portfolio. They don’t care about corporate governance by the looks of it but they are a very solid promoter. I don’t see any reason for them to sabotage the business. I am also biased since I am from the region.

2nd thing is they own SRH. I think IPL is the fastest growing brand in India and definitely the world has started to turn towards cricket and it can only become bigger in the next decade. Hoping they will win atleast 1 IPL in the next 5 years. The team looks good and they are performing better than expected this season. So let’s wait and watch.

I will also post my updated PF soon, I am also not sure if I should really post it. Not because of negativity or bad comments, some positive comments can also make me biased. I am hoping not to follow the crowd. I like to stay away.