the way the economy is growing, i expect a lot of microcaps to become smallcaps and smallcaps to become midcaps than mid and largecaps growing bigger

Historically, this does not happen much though. A few will, but more often than not, most of them are unable to navigate roadblocks/changes well. Reasons could vary – recessionary impact, supply chain disruption, govt payment delays, leverage etc. Will it be different this time? Also, I find it hard to imagine people will herd into smallcaps with great growth visibility if there is a crash. Most of them are already richly valued – with relatively smaller float, a few key investors along with strong retail interest have pushed them up much too quickly in my view. Even assuming the growth triggers play out, it is hard to see funds get in even at slightly lower valuations to drive them further up. I could well be wrong, we will see.

That said, I wish I had taken your excellent Wockhardt note more seriously. I have been take by surprise by the rapid surge there. It’s not been a well-run firm for the longest time, so it’s a bit strange to see it take-off the way it has on the antibiotic breakthroughs narrative. A big miss for me, but I guess that’s part of the game.

Great post as always and thanks for all your contributions here. Fantastic food for thought.

@abhijitjph Though I agree with your statement, it would have been better if you had elaborated on why you think so, rather than just providing a one-liner.

One more reason to be bearish on EMT: the new acquisition—30% of the paid-up equity shares of Rollins International Private Limited for a value of INR 60,00,00,000 (Sixty Crores). Rollins operates in the wellness and healthcare industry, focusing on gluten and lactose-free foods, allergen-free supplements, and technology-driven health solutions. This is completely unrelated business line.

Turnover of Rollins:
FY 2023-2024: 2134.98 (audited) – should ignore the latest one; it seems inflated.
FY 2022-2023: 938.06 (audited)

They paid 60 crores for a 30% stake, valuing the company at 200 crores. Hence, they paid 21.32 times the sales of FY 2022-23.

I started the post of easymytrip, invested significantly, and exited timely post-GoAir issue (& because of it). Everything is documented in the above thread. I would put my neck out and say, “Iss stock may fasna mana hai.”

From August when you added till September when you sold, in 1 month what was the valuation changed for Trent? Curious to know…

Update for entry on 14th October 2024 (lookback dates: 13/10/2023 and 12/04/2024)

50EMA (24,882) > 200EMA (21,948); hence, we can continue without any change.

Based on ranking:

1. IIFLSEC
2. PGEL
3. STAR
4. VMART
5. NEULANDLAB
6. WABAG
7. CHOICEIN
8. WOCKPHARMA
9. SARDAEN
10. OPTIEMUS
11. HERITGFOOD
12. NAVA
13. KESORAMIND
14. LTFOODS
15. GRAVITA
16. ZENTEC
17. SYMPHONY
18. SUDARSCHEM
19. TIPSMUSIC
20. TARC
21. SHILPAMED
22. GRWRHITECH
23. PRUDENT
24. SANSERA
25. SENCO

Based on A → Z for easy tracking:

• CHOICEIN
• GRAVITA
• GRWRHITECH*
• HERITGFOOD
• IIFLSEC
• KESORAMIND
• LTFOODS
• NAVA
• NEULANDLAB
• OPTIEMUS
• PGEL
• PRUDENT
• SANSERA
• SARDAEN
• SENCO
• SHILPAMED*
• STAR
• SUDARSCHEM
• SYMPHONY
• TARC
• TIPSMUSIC*
• VMART
• WABAG
• WOCKPHARMA
• ZENTEC*

Exits:
PURVA makes an exit.
INOXGREEN, JCHAC and MARKSANS remain within the top 30 and hence stay.

Entries:
ZENTEC makes an entry.
GRWRHITECH, SHILPAMED and TIPSMUSIC cannot enter as there is no vacancy.

Other notes:
While checking the indices, I found that EXICOM, HMAAGRO and RPOWER have been removed.
DCMSHRIRAM and LMW have been added.
However, none of these changes have any impact on our pf.