I have alreqdy mentionedy rational for investment in techno electric here

Apart from that, techno is a debt free ( 1500 cash on books ) company and data centre requires big early stage investment. So that was one of my reason for investment as well, as Balancesheet for techno should not deteriorate even after large investments.

Also please find article below which is helpful in understanding data centre.

Some points from this article…

● 5000 MW of data centre – investment of 1.5 lakh cr. expected in In next 6 years

● Predicted to grow at $ 10.09 BN in 27’ from $ 4.35 BN in ’21

● Goverment providing all possible help to the sector

I havent studied Anant Raj well ( started tracking it recently ). However they also do have big plans for Data centre business.

There is enough room for growth for many companies in data centre sector in india.

Yes, Having our own classification could help.
I am also trying following approach:
Classification based on Market Cap.
Mega Large : > 1,00,000 Crores
Large : 50,000 to 1,00,000 Crores
Mid : 20,000 to 50,000 Crores
Small : 10,000 to 20,000 Crores

Based on these Market Caps, I decide allocation to the stock. This ensures that, my allocation to unproven businesses is less as compared to proven businesses. I do not consider years in the business but I can add this as well, in addition to future growth prospects. I generally allocate same amount to all stocks based on above category i.e. Equal Weight Allocation. This has worked to some extent.

The reason for Equal Weight Allocation among the stock category is to avoid my personal bias and wrong convictions!! Recent example, I had low conviction on HAL, but it has surprised me as compared to Bharat Electronics where I had high conviction. So conviction does not help much in my case.

I am still looking to focus only on Larger companies in near future as I still remember 2018-19 days when small caps corrected much as compared to large caps.
I have seen that, some times Large caps can also give multi bagger returns with less risk.

I’m planning to make some changes to the portfolio. Some thoughts

1. Fluoro chem space is attractive now thanks to short term headwinds. Nibbling into Kama holdings and Gujarat Fluorochem
2. Even agro chem is going through headwinds. Started building position in Sharda Cropchem. Valuations are reasonable. Recovery of business may take upto 3 years or may happen in next 9 months itself (Agrochem demand in target markers and strengthening of Euro vs USD). Downside is limited as per my assessment

Exits : Exited Federal bank to build above positions. Bought little qty of Manappuram finance as well.

No exit in near term : From my PF Angel One seems to be at very good valuation combined with good prospects. May add in near-term

Other than this, GAEL and Arti Pharma labs seems attractive at the moment.
Just a thought on how the following would play out from now onwards:
*1) Buying Angel and holding for next 1 year (valuation comfort) *
2) Buying manappuram (based on momentum and valuation comfort)

I had attended the AGM of Diamines and Chemicals Ltd held physically at their Vadodara plant on June 21, 2023. Some notes taken during the AGM are given below. Apologies for not uploading it earlier.

• We crossed 100 crore revenue for the first time in our history. The growth in revenue and expansion in margins was largely led by realisation.
• We have put up a new pilot plant of Rs.15 crore. We will work on new products and new processes.
• We started trading business to get some returns on our surplus cash.
• Our FY24 target is to sustaining our market share in ethylene amines, strengthening our relationship with customers and suppliers.
• The high prices of ethylene amines are expected to continue in FY24 as well.
• Our focus will remain on ethylene amines and its derivatives in long term.
• Our focus is on differentiation – developing different technologies, pilot plant of this size is also a differentiation – it will help us in creating new products and enhance our capabilities. Once our new products develop on pilot scale, we will go for dedicated plants once we see enough scope for growth. We work on complex chemistry. Wherever we are sure that technology is niche, we will work on those products. We are working on some chemistries like Ketonization, Ethylation, Hydrogenation etc. We are working on wider product range now than earlier.
• We have spent 15 crore on our pilot plant. So you can understand the scale of expansion we are targeting over medium to long term.
• On a lighter note, we can say that we have a target of Rs.1000 crore revenue over the next few years but let us see. Our mid term plan is to reach Rs.200 – 300 crore revenue.
• Lithium amines is a 20 – 30 tonne annual market. There is only one player of these product globally currently but it’s a small market. These is not used in batteries but is a fine chemical. The product is under development and we are in process of stablisation. We might become its second producer in the world.
• We use CPA route in our Vadodara plant and are working on EDC route. If its successful, we will scale it up in Dahej plant. EDC route can be a game changer for us. We are on the path of addressing some of the issues in it. EDC route is our focus now. CPA comes from EDC. It is backward integration for CPA.
• Understanding the process is key for manufacturing the kind of products we make. It is not only chemistry but even the process which is difficult.
• Dahej plant has an area of 15 acres.
• Piperezine is manufactured in house and which all derivatives we will put up plant for expansion will be decided afterwards.
• Volumes declined over the past 2 years on account of higher RM prices and we didn’t want to do higher volumes of final product. We have also improved our process.
• Our R&D team has 20 people currently.
• We are largely in ethylene and piperazine derivatives.
• JV with KLJ: We bring to the table certain process understanding and manufacturing acumen and they also bring their experience to the table. New plant will be set up soon in this – still under drawing stage currently.
• Selection criteria for new products:

1. Understanding of chemistry
2. Complementary to our existing products and synergy of raw materials
3. Differentiation
4. Innovation/niche/low competition products
   • For brownfield capex, we are ideally looking for payback of one year (seems it was in lighter tone).
   • What changed 2 – 3 years back that we have become aggressive now? Change in management with Alkyl Amines selling out its stake to the existing promoters (who also held stake in the company) has given more control to current promoters. Now they can choose right projects, products. We are now free to choose any product. We still have a long way to go. We have added people across the divisions – R&D, operations, top management etc as we have expansion plans going on in the company. We still have a long way to go.
   • Trading will be done on opportunistic basis and utilize some of the surplus cash in the company. Association with KLJ will help us.
   • We make Ethylene Amines and Piperizine. Piperizine contributes 80% to our sales currently.
   • The prices of our products have fallen in current year. On a long term basis, assume 30% EBITDA margins as sustainable ones.
   On the sidelines
   • We have 4 – 5 products which we are pretty confident of commercializing.
   • We don’t make the products which Balaji Amines makes. Those are pretty competitive.

(Disclosure: Holding 1 share to attend its AGM)