Disclosure: Sold completely. Was around 10% of my PF.
Reasons: Fund requirements, Get a feeling that we are peak of traditional infra cycle, wanted to diversify to other opportunities, Valuations at peak and returns will be lower from hereon.
Posts in category Value Pickr
L&T – Bluechip, Value play, Digital giant in making (17-09-2024)
Sanghvi Movers (17-09-2024)
The Solar Energy Corporation of India (SECI) has invited proposals for setting up of a 500 MW capacity ISTS-connected offshore wind power project in Gujarat on build-own-operate basis.
Jerry’s portfolio (B) (17-09-2024)
I have two separate portfolios (A & B), A is mostly passive one with NIFTY 50 ETFs, small cap and mid cap mutual funds and few bluechip stocks. Portfolio B (15% of total net worth) is where I am trying to apply my knowledge and invest. Aim with Portfolio B is to generate 20%+ CAGR consistently, Horizon 10 years. I can tolerate drawdowns of 20% max.
| Stock Symbol | Company Name | Percentage in portfolio B | Rational |
|---|---|---|---|
| BHABO3 | BHARAT BOND ETF APRIL 2025 | 52% | Debt to be deployed when market crashes |
| MIRALP | MIRAE ASSET NIFTY ALPHA 30 ETF | 11% | Indirect investment in high alpha stocks |
| MOTGSC | MOTILAL OSWAL 5 YEAR G SEC ETF | 11% | Debt to be deployed when market crashes |
| NESIND | NESTLE INDIA LIMITED | 8% | Safer stock to balance the portfolio volatility |
| PVRLIM | PVR INOX LIMITED | 5% | Expected turnaround and correspondingly high return |
| PIIND | P I INDUSTRIES LTD | 5% | This is a consistent compounder with good growth |
| CHOINV | CHOLAMANDALAM INVESTMENT AND F | 3% | Safer stock to balance the portfolio volatility |
| OLAELE | OLA ELECTRIC MOBILITY LIMITED | 2% | Bullish on 2W EV segment |
| ZAGPRE | ZAGGLE PREPAID OCEAN SERVICES | 2% | Guidance of 40-45% sales growth over next 3 years, expecting high returns |
| KAYTEC | KAYNES TECHNOLOGY IND LIMITED | 2% | PLI received for OSAT, expecting 40-50% growth over next 5-10 years |
Question:
- I have a lot of funds in debt instruments waiting for deployment, in anticipation of correction which has not happened since last 7-8 months, what should be strategy in current market situation? continue holding debt or deploy in equity?
- Any feedback on the stocks/ETFs?
PI Industries – Superior Business Model (17-09-2024)
PI Industries (PI) has built a solid business model. It has strengthened its presence in the Custom Synthesis Manufacturing (CSM) segment within the agrochemical industry. Going ahead, the company aims to diversify into the pharmaceutical segment and other niche chemistry. It continues to build a strong domestic agrochemical franchise by launching improved products in the crops and pesticide segments over the years.
PI Industries’ focus on CSM export has been the key differentiator from other agrochemical and chemical players in India.
From FY14-24, the company has an industry-beating track record of:
- revenue growth rate of 16% CAGR and
- a sustainable profit growth of around 24% CAGR
PI’s moat (i.e. the ability to maintain a competitive edge over its competitors) lies in its strong export-focused CSM business. No other Indian player offers the width and consistency that PI does. The company leverages this by consistently launching new molecules.
In 2023, the company ventured into:
- life sciences
- Contract Development and Manufacturing Organisation (CDMO) and
- pharma Active Pharmaceutical Ingredients (API)
through the acquisition of Therachem Research Medilab, LLC and Archimica SpA.
Despite a ₹70 crore PBT loss in its pharma segment, PI Industries reported an EBITDA margin of around 28% for the quarter. The company reaffirmed its goal of achieving a 50% to 51% gross margin and a 25% to 26% EBITDA margin for the year. Considering that quarter-to-quarter variations are expected due to changes in product mix and supply schedules.
On the domestic front, the company continues to provide farmers with advanced crop protection solutions with a steady flow of new products.
In Q1FY25, it launched two innovative brands:
- PRESSEDO, a patented broad-spectrum novel insecticide and
- OSHEEN ULTRA, a superior quality stable formulation for controlling sucking pests
With over 20 products in its pipeline for domestic launches, PI Industries is expecting a healthy visibility of growth in the coming year.
It formed a strategic alliance with Koppert to innovate in the Agricultural Biologicals domain. Biologicals revenue grew by 39% year-on-year, supported by a favourable product mix and operating leverage.
What do you think about this?
The SME portfolio (17-09-2024)
Can you provide your opinion on Cadsys India? Is it buyable at current valuation? I know managements have written off receivables in past? But considering valuation, what you can do?
Anyways awesome analysis done by you. I just amazed how deep research you sir do in SME space .
Sundaram Finance Holding – Like a mutual fund of top notch TVS group auto ancilliary companies (17-09-2024)
They will slowly sell TVS Holdings and Sundaram Clayton and invest in current holdings or new biz. It is more like cash sitting on books. As those companies have gone to Srinivasan.
TSF group key businesses are
Sundaram FInance
Auto ancillaries –
Held partially through SFHL and partially directly. SFHL remains the driver holding company for this biz. They issued right share to increase holding in Brakes India when ZF had to exit. This gives me confidence that this is best auto ancillary play in India.
Brakes India is huge with billion dollar revenue.
Turbo energy is a JV with BorgWarner @babu44b Where did you get info about their EV plans. My understanding is that BorgWarner is pursuing that on their own. But this business is still in growth mode in India.
This pic gives out which family group controls what. Some amount of cross holding still exists.
Tinna rubber – recycling a rubbery growth path (17-09-2024)
Yes definitely the revenue from EPR Credits will not be very significant for the company, but the EPR norms overall will help the company improve the top line because the consumption for recycled products like RC Modified Bitumen for road construction, etc might increase. But one thing to consider is that the company mostly imports it’s raw material, and has to pay the EPR duties for that, and they still have better margins in this case than if they were to procure the raw materials locally. In this case the raw material is the End of Life Tyre.
Investing Basics – Feel free to ask the most basic questions (17-09-2024)
Is there a quick way or formula to track SME stock in google sheet… to maintain trading journal?
For example: These are formula from Yahoo Finance for tracking NSE and BSE stocks on Google Sheet where we can choose various tickers.
Sundaram Finance Holding – Like a mutual fund of top notch TVS group auto ancilliary companies (17-09-2024)
Hi,
Thank you very much for creating this thread. I always looked for SFHL thread in value picker. I am also a shareholder of it.
I am also on the firm believer of Brakes India doing well in future also, however real value unlocking will only happen if Brakes India gets listed in Bourses. Don’t see any articles regarding this to happen by management. The other significant investment is in Turbo Energy Company, which is also unlisted. Its listing also not sure. Turbo Energy is currently testing what opportunities they can have in the EV landscape.
The major listed companies include Wheels India Limited, IMPAL which dont have significant market cap and also in terms growth and profitability these 2 companies dont score high.
Other small investments in listed companies are in TVS Holdings(Parent Company of TVS motors) and Sundaram Clayton are good in future growth and profitability margin.
I believe the company has good fundamentals and can create wealth for investors. And listing of Brakes India, Turbo Energy or Axles India ltd can make the real difference.
Disclaimer : Investor, views can be biased.
Thanks,
Deb
Mudit’s Portfolio (Stage Analysis + Price Momentum) (17-09-2024)
Thanks for confirming. I have to take to zerodha coin to understand what it is then.