One possible reason could be, anchor investor lock in period getting over (1 yr since listing), so to improve liquidity, and give them a smoother exit without having a lot of downward pressure on share price.
Posts in category Value Pickr
Nykaa – The Make Up Company (04-10-2022)
@Surender Thanks for taking the effort and explaining.
IMO, it doesn’t seem to be a red flag as per your explanation. But I can see lots of folks talking (on Twitter) talking this as a negative step by the company.
Ksolves – a newage software development firm (04-10-2022)
@Pankit
Any details on the nature of diversification?
Understanding IT sector (04-10-2022)
Hi Mudit,
I am not holding LTI so no views on that as of now. Though it is a high growth story.
I was holding Tata Elxsi, since late 2019, and added little more during April 2020, but my position size was small. After about 900% up move in stock price, I decided to exit mainly due to over valuations. Having said this, it is niche business and one can hold it for long term based on your temperament. P/E of above 100 this year was looking too high for me hence booked profit.
I am holding HCL Tech since past six months, so I am holding it due to reasonable valuations of P/E of close to 18. I was not able to buy it earlier during April 2020, but decided to buy if in this year 2022, with moderate expectations. HCL Tech seems to have focused more on their Products & Platforms business and it is some thing which looks good to me. ERD revenue is growing better which is high margin business. I am not expecting it to be a multi bagger or 20% Price CAGR story, but mainly holding it for good dividend yield and reasonable valuations. Most of my investments are from 3-4 years perspective, including HCL Tech. Now I believe lot of patience will be required as tail winds of 2020-21 are over. Now EPS growth will be mainly in lower range like during 2017-2019, as per my opinion. Rupee depreciation will be one of the positives but to a limited extent.
Disc Holding HCL Tech only. There could be better options like LTI, LTTS and others but I am not holding those. I have worked in IT sector for about 24+ years.
KRBL- The King of Basmati rice (04-10-2022)
Good analysis, to figure out secular themes… but the reality of world presents short term opportunities too, especially for a cyclical industry like this. Like this year, global food shortages (due to war in the Ukraine-Russia wheat belt), floods in Pakistan, drought in China creating supply-side windfall opportunities resulting in price increases. This will translate to windfall gains which can be reinvested in Brand Extensions, Portfolio expansions which you mentioned, to smoothen out the cyclicality in the long term
Ksolves – a newage software development firm (04-10-2022)
Have you considered any empirical data/analysis to arrive at the OPM figures for the different cases?
Yes bank (04-10-2022)
Numbers are very good was not expecting this from them. QoQ and YoY both of them are fantastic. This quarter for all bans will be good but next 2 quarter are in trouble.
You can see their LCR coming down which is a concern. CASA is growing hand in hand with deposits. Actually yes bank has lot of attractive and creative products in FD so they get lot of money there that is one of the reason for CASA ratio being flat despite growth.
Went through this article yesterday and I feel Prashanth kumar is extremely underrated. He has done a phenomenal job and is continuing to do so.
I saw the recent interview of IDFC bank CEO and he says that the market is so huge and under catered that banks will not be competition with each other. The share of the PIE is getting bigger.
I also remember NIRMALA SITARAMAN saying that we will need 5 SBI to cater this growth.
My overall point and basic idea of investing here is that in next 2yrs this bank is going to be above 4 lakh cr and there is no way a profitable private bank with such huge balance sheet and heavy tail wind form the industry can trade at a Mcap of 40000 cr.
Thankyou
Hitesh portfolio (04-10-2022)
@hitesh2710 Sir, how much importance do you give to P/B ratio…what P/B ratio do you consider in your range…
For example : Easy Trip Planners has a P/B of 51.5 …will you ever consider such stock for investing…
Nykaa – The Make Up Company (04-10-2022)
Hi Surender, can you explain how you got the shareholding data in a structured way? Is there a platform which provides such information for every company?
Thank you in advance!
Understanding IT sector (04-10-2022)
I also hold TCS and Infosys in my Portfolio. What are your views on LTI, HCL texh and Tata Elxsi? And do they fit innyour category of short term holding of 2 years?