I have a question regarding acquisition of EFC(I). company could have bring a ipo directly by name of EFC Ltd . Why they acquire Amani Trading and Exports Limited and then change the name to EFC(I)?
Posts in category Value Pickr
StageInvesting +Elliot Waves (18-07-2024)
Bajaj Finserve CMP 1630
Are we starting next leg after 3 years of correction!
If yes, then it is going to be very big as per EW technical chart.
Anyone having any deep insights about the company? What can be the fundamental trigger here?
Monthly Chart ( Monthly charts teake 2-3 years to play out)
Disclaimer : Views are personal. No buy/sell recommendations. The projection is based on our technical -probability study methods and chances of success/failure depend upon various factors.
Trent — A value unlocking story from the house of TATA (18-07-2024)
For position sizing i had met some one who had a few crs of shares ( 80% ) of networth he was CFO when he retired. Stock was at 100 and came down to 20 due to debt and macro headwinds .
Inspite of being worked so closely he coudnt see it may be thats true for HDFC bank as a stock and share holder ( disclaimer a long term holding for me )
From that time my learning was nothing should be so substantial as a part of my portfolio that loosing 50% of that or stock not moving (time correction ) affect my portfolio in negative way.
Personally if a stock is a very high allocation for me i will have a hawk eye will use fundamental +technical to take a call on it .
@hardik_shah1 uniqulo is good brand and so is H&M . I feel zara segment is quite different (luxuary wear ) .
You will hardly get daily wear or casual wear in zara .
I think there still exists a gap where there is a segment above westside which is not captured which H&M very well captures .
This could also be a big opportunity if westside can capture this space with good quality and not very high price. Slowdown of westside i feel is because of trying to place product between the 2
So lower strata will not buy from.westside and affluent (rising middle class) will want to be more aspirational and go to higher brand.
Management has been very sharp lets see how they can steer the growth going forward
Trent — A value unlocking story from the house of TATA (18-07-2024)
Thanks for your comment. Actually I was a share holder of Lakme Ltd and the Brands were sold to HUL and a lump sum was distributed to the share holders. The management created Trent with remaining money from the sale proceeds. All shareholders of Lakmé were given equivalent shares in Trent I invested lumpsum received in Trent, then there were rights issue in 2005 and 2006 and I built my position then, after that there was no addition. I recovered my investment by selling some quantity during Covid. I always had faith in Mrs. Simone Naval Tata, a Swiss-born businesswoman married to the Tata family. I was fortunate to meet her in person twice. She was the main architect of successful brand Lakme. She had great vision of launching a female centric fashion retail business in India in early 2000 when nobody even thought of that. I actually thought of selling my position during 2008,but those days it was difficult to sell as the shares were not in DMAT, the procedure was cumbersome for person residing in a tier 2 town. The time was full of gloom and I stayed away from stock market for next 3 years. Fortunately for me I did not sell any of my share holdings by sheer luck. The stock was already a multibaggar & became 6x during 2003 to 2006. I am old school type and I don’t sell any of my stock as long as the business model is intact, and I am not in need of money. Only exception was during Covid, as I built a big corpus in my savings account for emergency hospitalization to take care of 4 persons responsibility. I have seen 2-3 bear markets and experienced that if a business model is good eventually, you beat NIFTY in the long run. The problem I face is of position sizing during a bull run so as to have a downward protection of gains before the cycle turns. This problem I am facing again. Like most of us, I am unable to predict, when the cycle will turn and analyst are bullish on earning growth of Trent. I keep things simple ( I have limited knowledge) and track ROCE performance in the long run and if it goes down I reasses the business model. Please share your suggestions on position sizing.
KEI Industries Ltd – A consistent performer over the last decade (18-07-2024)
It has gone under very high PE re-rating…Now that is rationalising.
Sealmatic India Limited (18-07-2024)
Any investors presentation should be published before concall, but management of Sealmatic, firstly done a concall then one month after publish a investor presentation. In earlier concall, on corporate governance, they told that they will be among the top 5% of Indian listed companies. But in one concall they guided earning growth of 30% for fy24 and 60% for FY25. But in latest concall their memory was lost about this guidance. As a long term investor, we are invested here for your so called golden period which will starts from fy27. we don’t want short term price appreciation and short term profit growth, we want long term sustainable earning growth. we want more investment in project business even if short term profit is compromised but we don’t want excuse of low profit because of selling and distribution expenses. We are not bothered to capex like expenditure to be debited in profit and loss account. we want capital expenditure, research and development expenditure even if it is treated as revenue expenditure in profit and loss account. Because it is necessary for long term sustainable earning growth.
Disclosure:- invested.
Samhi Hotels – Turnaround with Tailwinds (18-07-2024)
Modelling Samhi Hotels - Complexities around the business
Highlighting some of the risks-
Accounting:
- You cannot go with directly PAT here, because there can be chance of again write offs. ( Only Ebitda is predictable )
Write-Offs:
- Samhi has history of write-offs
Business Model Risks:
- Samhi has sold of few hotels in 2023 why ?
Expansion Delay:
-. Samhi is having ongoing expansion of hotels which are not up in past 3 to 4 years ? Why it’s being delayed.
Caspia Pro Hotel , Bangalore expansion, Hyatt Regency etc…
ACIC Portfolio: ( Good or Bad )
One of the bad side is they have diluted lot of equity,and got the land bank in Navi Mumbai and that’s written off ( 70cr )
Good part - They have added 950+ keys.
Shares in Supply :
Lock-in of shares is also near March 21st 2025
My Top 5 Investment Basics Books, & why? (18-07-2024)
- Why stocks go up and down by William Pike
This book provides a sound understanding of the fundamentals of investing in stocks and bonds. The book explains the basics of financial statements and analysis, cash flow generation, stock price valuation, and more. It goes well beyond most introductory books. It is perfect for readers with little or no background in investing and is certain to add value for experienced investors as well.
Who should read this book? New investors who want a solid background in stock and bond fundamentals. Anyone planning to take an introductory accounting or investment course. Readers of popular investment books who encounter terms or concepts they do not understand.
2. The Big Short: Inside the Doomsday Machine is a nonfiction book by Michael Lewis about the build-up of the United States housing bubble during the 2000s. It was released on March 15, 2010, by W. W. Norton & Company. Wikipedia
KEI Industries Ltd – A consistent performer over the last decade (18-07-2024)
KEI Correcting from 5000 levels to 4200 now, Fundamentals not changing!! what is the reason for this sharp fall? any takers please.
Sealmatic India Limited (18-07-2024)
But, on a lighter note, promoter is acting like a retail investor and we retail investor, in contrary, are behaving like what a promoter should do…