@veerbhartiya93 i agree and as mentioned i feel that is the only concern..but new supply agreement announced give hope on new products are also getting accepted which might offset ATBS loss to some extent...

Discl: Not invested, but inclined to add

Dear @akbarkhan

Your argument as I understand from the above is that the current constituents are better than historical constituents because historical non-performers go and only the performers stay. So we need to take the current constituents' historical performance and infer growth in the future from that.

But the historical performance of current constituents has the benefit of hindsight. Suppose I create a portfolio today of stocks that has given a high earnings growth say in the past 5 years by choosing them obviously after I know their results, I cannot say that their their future earnings growth will be high. If you think about it, say the Nifty 5 years ago would also have thought the same as you are thinking now; 'that I have removed laggards and only the performers stay'. But laggards continue to be there and Nifty continues to be revised; 2 - 4 changes every year. Even today's Nifty will have laggards, no one knows which ones. For instance no one long back would have thought that RIL will be a laggard, and today I am sure you would laugh if I told you that Jet Airways was a part of Nifty. Similarly companies have been removed and brought back into the Nifty (Zee Enterprises, for instance) after a while!

So the best way to measure anchor earnings growth is to take Nifty portfolio as it was at that time in history and see how it did until the Nifty was changed; and again do the same.

Thank for the update guys.

I think information about volume is important as it is reflective of demand for ATBS. Vinati has a strong low cost competitive advantage in the ATBS business. ~56% of the operating profit comes from the ATBS business and it has been the main growth driver in recent years.

If demand for ATBS does not get significantly impacted by the fall crude prices, and the ATBS market continues growing at 10-15%, then it would give me comfort as an investor as I know that Vinati will be able to reinvest (by adding capacity) in its moat, sustain a very high ROC, and grow earnings accordingly.

Vinati is also diversifying into other products that it expects will contribute significantly to its topline, but I don't know if Vinati has or will be establish a moat in these products.

A company that has a wide moat business, is able to reinvest in that wide moat business due to strong demand prospects, and is trading at 16x earnings, sounds like a bargain.

However, a company that has a wide moat business that it cannot reinvest into, and must deploy capital elsewhere, is a more uncertain investment. In such a case a 16x multiple may not be a bargain price.

Hi,

Please help to modify the below query, as the below query is not giving any stock:

Sales growth >15%
and NPM last year >8%
and Tax last year > 25%
and Interest Coverage >3
and Debt to equity <0.5
and Current ratio > 1.25
and PEG Ratio < 1
and Price to Sales < 1.5
and Dividend yield > 0%
and Promoter holding > 51%
and Earnings yield > 10%
and Price to Earning <10

Thanks
Mahesh