How is revenue related to Raw material prices
Posts in category Value Pickr
Mudit’s Portfolio (Passively Active) (17-08-2023)
In my portfolio , I have only 3 small cap stocks
alkyl amines, KEI and Mold-Tek-Packaging, and even out of these , I am contemplating about selling alkyl amines, so I can safely say that my change of strategy has nothing to do with small cap companies performance. You are right, they will average out.
Rather I am not at all confident about finding good small cap companies which I can hold for very long time, without losing my capital. Precisely for that reason, I am investing in small cap through active small cap mutual funds. I am AMFI certified advisor from 2005. So i have seen the small cap mutual fund performance from last 18 years from close quarters, and I know these AMCs have resources to find such small companies and study them better. We dont have that much resources as well as reach to management. But of course, this is not the right time to invest in small cap funds. These funds themselves give us a hint to stop investing into them, when they stop Lumpsum investments and start accepting only through SIP. Going forward returns will revert to mean.
Dividend Growth Investing (17-08-2023)
One of the advantages of direct stocks dividend growth investing including reits (atleast they way I see it IMHO) is that it doesn’t really matter what’s happening in the market and to stock prices. Whether market is at a high or crashing, as long as the dividends keep coming in and keep growing and the underlying assets are solid companies. It just enables a long term orientation and reduces the need to keep tinkering with the portfolio based on market movements to capture capital gains. To each his or her own
Mudit’s Portfolio (Passively Active) (17-08-2023)
My Portfolio thread has a heading “Passively Active” , but after my reading of Pulak Prasad book and from my own experiences, I have come to the realisation that “Passive” doesnot mean Index. Rather Indexes are very active , to think of it. Every 6 months, they do modification of indexes, Some stocks enter into index, while some exit from index. Its quite active.
My definition of Passive is, buying good businesses and hold them for very long time, unless their business deteriorates.
And since almost all Active mutual funds, have very high turnover, as their investors demand them to buy and sell frequently, they are not holding good businesses for decades, which is now my requirement. So i decided that, I will sell all Flexicap and hold direct stocks only, so that I needn’t sell them under any pressure. Now I am not worried about CAGR returns, I am aiming at how many times my investment becomes over a long period,…
So now I dont want to hold elephant stocks like HDFC bank or Infosys or HUL as they will give me Index returns, Since my time horizon has become permanent owners, I want growth companies. Even among Large cap I want Bajaj Finance, Chola Finance, SRF, Titan, Polycab, LTIMindtree type of companies which are even after becoming Large caps, they are fast growing companies.
I dont want to hold companies, just because they are big names and their past history has been stellar and ppl have written books about them. I want to invest in companies which are performing today , their sales are increasing , their profits are growing, margins are improving and ROCE is consistently high.
Mudit’s Portfolio (Passively Active) (17-08-2023)
Laurus Labs , I am holding from 600 levels. Its a company which has many variables which I cant live with. Of course, it may come up again, but I don’t have stomach to digest such volatility in business performance. I am okay with stock price volatility but not business volatility, Businesswise, i want secularity in sales, net profit as well as margins too.
Uno minda i liked because its return ratios ROCE etc are very good. It has consistent sales and profit growth. I have not studied Pricol .
I have a weakness that I cant hold cash. .I hate cash. So I immediately deploy the cash among my existing stocks in portfolio. I fear that if I dont deploy immediately then I might spend it on shopping. Or somebody may borrow from me, whom I cannot refuse.
If you dont have such psychological problem then you can wait for stocks to go down and then slowly deploy it. To each his own
Auto Ancillary Stocks (17-08-2023)
Hi …
Can you share study on these companies?
Thank you
Pitti Engineering Limited: Is it on an inflection point? (17-08-2023)
Q1 FY24 concall :.
Shouldn’t look at revenue for the Co, as it depends on raw material prices
Ebidta / ton is moving upwards with more share of assembled products
80% of 72000 ton capacity to be used up by FY26
Co. Doesn’t want to make full motor. But looking for opportunities in contract manufacturing
Current Co. Tonnage is 10k ton, q2 would be 11k and there onwards adding 500-600 ton for remaining 2 quarters
Export for renewable to start in q2.
Pitti casting merger to be completed by q1 next FY (fy 25)
Net debt is aroung 280cr, and Working capital is around 70 days
Opportunity for direct export to EU is opening up. Potential of 150-200 cr in next 2 yeras.
Disc : Invested
Not a comprehensive coverage of the concall. Please refer to concall record on company website
IDFC First Bank Limited (17-08-2023)
Please find below the link for personal loan interest ranges charged by different banks and factors that affect personal loan interest rate. Usually loan amount and interest rate are decided based on risk profile of a customer.
52 week highs and all time highs strategy (17-08-2023)
Attaching a 5 day chart with 5 minutes ticks of Time techno plast. Major resistance was around 135 for major part of recent correction in price. Today an attempt was made to cross that level in the last hour of trade. Volumes uptick also seen. Another important observation is the very tight consolidation before this last hour breakout happened for several 5 minutes tick… Its an example of VCP – Minervini pattern on a much smaller time frame. Its too early to say that correction is over, but I have tried to use smaller time frames to see how they can predict end of correction. Fingers crossed. disc: invested as disclosed before.
