Just to add to Hitesh Bhai's point: Currently the pharma sector (large caps) are going through some kind of re-rating. People have seen what USFDA issues have done to IPCA, Dr. Reddy's and Sun Pharma. Most of the time market tends to overplay the negative/positive news. In case of Torrent multiple factors such as the sectoral derating, perceived absence of long term pipeline combined with the overall decline in equities is playing out. FDIs have pulled out massive money from the markets and Pharma was their sector. At the same time torrent with a market cap of nearly 25000 crores is actually a large mid-cap and it will not move into a different orbit without institutional interest (a 25% movement requires 1B $) unlike the sub 2000 crore market cap companies.

I have found a strange kind of herd mentality in how funds behave, they are fine being collectively wrong instead of taking a risk of standing out and being right. As far as numbers are concerned, for torrent it is relatively easy to work out (rough idea of marketshare of various formulation their prices the taxes paid etc.) As Hitesh Bhai said a rise in earnings will be followed by a rise in money paid out to investors and sustained performance and other superior business parameters will force the market to notice it. The same funds which shun companies come around again with a different set of reasons. I would advise you to go through their conf calls where they talk of their dividend payout ratio and upcoming surprises. Finally quoting Buffet "In the short run the markets are a voting machine but in the longer run they are a weighing machine". Go through the story, build your own conviction, assess the risks anxd take a call.

DIsclosure: Invested. Forms more than 10% of my portfolio.

Having listened to multiple confrence calls from the management, absolutely delighted with the great information disbursal by them despite being such a small player limited to only Gujarat and MP

Hi All,

Please have a look at Somi's competitor,Continental Belting,a private co. The following article and video provide some vital info on the industry.

I'm trying to understand what is a belting player's edge over its competition and where does Somi stand on these parameters? Is it the belting fabric? Is it consultation on optimum installation of belts,because its not a plain vanilla application for all and seems lot of customisation is involved? Or is it providing every efficient solution on lowest energy cost/tonne of material handling?

Also,why has Somi given such aggressive targets,we know industry is not so robust both in India and globally? The new product steel cord belts is already being provided by a few players,Continental Beltings being one.

Views invited.

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