Interesting, so you were uncomfortable with the valuations. Even I am concerned with valuation of most of the small-mid cap companies.

Think once that are you in the market to make money with a margin of safety, or to prove yourself right that you have valued a stock correctly? If your average price is far lower than CMP, and the stock is showing momentum Daily/Weekly then you shouldn’t sell.
An average of 100 puts you in a comfortable position in IREDA as per me. I made the first buy at 50 on pre-open and have averaged up since then at 86.

Coming to last point, there is no need to regret after selling, all this thinking need to be done before selling decision is made. Lost profits are not actual loss, only opportunity loss. I am sure you will have some free cash now and can find better opportunities

Ex: Times to be cautious with high valuations and Parabolic upmove

1. Low free float: MMTC, IRFC
2. Earnings not following up: Adani Total Gas
3. You find other opportunities with same Reward and less risk!

In the end, it does not matter if you and I think a stock is undervalued, overvalued etc. Only when institutes have the conviction, and big money flows in, the companies will do well.

Rallis India –

Notes from AR – 2022-23 –

Rallis India ( a TATA group company ) is one of the leading domestic agrochemicals company operating in the agrochemicals and seeds markets

Company has a branded domestic agrochemicals business selling herbicides, insecticides and fungicides. Company exports AIs ( technicals ) and is also engaged in contract manufacturing. Also makes – bio-fertilizers, Biopesticides, water soluble fertilisers for the domestic mkts

Seeds business – caters to field crops like paddy, maize, millets, cotton, wheat. Also caters to vegetables like – Chilli, Okara, Tomatoes, Gourds and Watermelons

Has a total of 05 manufacturing facilities – 03 in Gujarat, 02 in Maharashtra. Also has 02 R&D centers in Bengaluru

Product wise revenue break up –

Agrochemicals – 88 pc
Seeds – 12 pc

Geography wise revenue split –

Domestic – 63 pc
Exports – 37 pc

India is a major agrochemicals exporter and has been attracting global majors as they try and diversify their supply chains out of China. Rallis has been expanding its manufacturing footprint to encash such opportunities

Indian agri-exports topped 4 lakh cr in FY 22-23. With greater penetration of scientific agriculture, these figures can ramp up significantly. This is also a great opportunity for the agri-input providers

FY 23 outcomes –

Sales – 2967 vs 2604 cr
EBITDA – 221 vs 281 cr ( margins @ 7 vs 11 pc )
PAT – 92 vs 164 cr

FY23 profitability was adversely impacted by –

Impairment of intangible assets ( technical knowhow ) amounting to 31 cr wrt seeds development technology

Re-assesment of future sales potential resulted in company making provisions of Rs 53 cr wrt the slow moving seeds inventory

Company’s manufacturing capital –

14 AIs ( or technicals )
14 Formulations
77 pc capacity utilisation

Volumes sold –
9.1 k MT of herbicides
8.1 k MT of fungicides
12.6 k MT of insecticides
13.3 k MT of seeds
0.9 k MT of crop nutrients and other products

Disc : not holding, not SEBI registered

Even though plenty of cashless transactions are being done daily and likely to increase further which can be negative for the company, but their onboarding of DJB business will be a masterstroke, because this segment has hardly any cashless transaction! Cash rule the Diamond Jewlery, Bullion segment.

3Q FY24 Few good Points in below article

Paytm’s parent company One97 Communications expects wealth management through futures and options (F&O) and equity trading to become a big part of financial services distribution revenue in the next 12-18 months, its president and chief operating officer Bhavesh Gupta told analysts on Saturday.

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