A very low gross margin biz as there is a huge presence of unorganized players here hence operates at a very low NPM as well. One major problem if there is volatility in the underlying RM then the entire P&L goes for a toss.
If they shift to some value add stuff which makes the end consumer think that here they cannot buy local stuff then their margin trajectory changes otherwise this is just a commodity biz.
Posts in category Value Pickr
Amba Enterprises (12-03-2024)
Linde India Ltd. – A Case Study by a Newbie! (12-03-2024)
strong volume breakout, Above 200DMA, symmatric triangle, 5 months Trendline BO.Fundamentaly also strong comp with capex & new aquasition.
Smallcap momentum portfolio (12-03-2024)
so vishwanath…how do you read from the most of the analysts’ notes these days …all of them say “move to largecaps, there is valuation exuberance at small mid caps”
how the momentum approach may fare if the analysts are to be believed or can the momentum still be able to post +ve outcomes ?
one advantage i see to momentum approach is, its easy or may be quicker to cash out, since your approach does not involve deep dive, deep valuation and ofcourse emotional attachcment.
i am keen to understand or study, if there is a way to get +ve outcomes at mid/smallcaps when they are correcting !
Smallcap momentum portfolio (12-03-2024)
The pf has taken a big hit because the smallcap index itself has taken a beating.
I have never gone to cash because it is very difficult to judge the market top and bottom. For me, it has been going through the journey withstanding such shocks.
I have seen very good perf in pf and hence able to take this loss. I know that it is difficult if one has just started.
My belief is that there is more money to be made in smallcaps and microcaps than any other segment of the market. Just that the risks are equally greater.
The SME portfolio (12-03-2024)
January month around 35% up overall.
February month around 3-4% down overall.
Upto March 7th around 2% down.
Yesterday survived luckily with flat.
Today around 7% down. (Today’s trades not accounted which may reduce this to 5.5-6%)
Amba Enterprises (12-03-2024)
Thank you for the write-up!
I’m guessing that Amba enterprises imports CRNGO and CRGO steel from say JFE or Bao steel and doesn’t actually manufacture them. Is that correct?
If so, then all that Amba does is to cut them into strips as per demand from their customers… right?
Phantom Digital Effects Limited (12-03-2024)
Judging price action on the back of this singular piece of news at a time when the entire market is going through a correction doesn’t seem wise.
Best to judge the news in isolation away from price.
For context: basilic is down 6% today itself.
Smallcap momentum portfolio (12-03-2024)
Question – given the bloodbath in the last 2 weeks and this week, is it better to exit the portfolio now and enter when the decline has bottomed out? Or better to wait? Asking because I entered big time 3 weeks ago and have seen strong dilution