Hi everyone,
Hope you all are doing great.

I am planning to enter markets with my partnership firm. In this regard, I have identified few investment opportunities. I would like if you all could provide your views on the same.
Below is the list of identified businesses which according to me are good for 5-6 years time frame.
1. Piramal Enterprises
2. Vaibhav Global
3. Mayur Uniquoters
4. Atul Auto
5. Accelya Kale Solutions
6. Ambika Cotton
7. Ashiana Housing
8. Oriental Carbon
9. PTC India Financials
10. Shriram Transport Finance
11. Thomas Cook
12. Symphony
13. Relaxo Footwears
14. Cupid Ltd.

However, according to me, most of them currently trade at fair / expensive valuations. I am briefing my current views on each of them.
I plan to invest a total of 80% of my investible money. Of this 80%, I am looking at investing in 8-10 companies. 20% to stay in cash for any opportunities, which may arise.

1. Piramal Enterprises - Betting on Mr. Ajay Piramal. Looks like a steady 18-22% investment for 5-6 years. Plan to invest now with 8-10% allocation.

2. Vaibhav Global - Good economics - Cash generative business - Nice ROCE - Growth visibility - Looks cheap (if growth picks in the H2 of FY 2015-16). Plan to invest now with 8-10% allocation.

3. Mayur Uniquoters - Proven business - Steady earnings outlook with revenue visibility (auto, footwear, furnishing) - However, looks appropriately valued. Plan to invest 50% of planned allocation of 8-10%

4. Atul Auto - Proven record - Steady earnings outlook with revenue visibility (export of petrol vehicle) - However, looks appropriately valued/ overvalued.

5. Accelya Kale Solutions - Good business - ROCE - Cash generative - Dividend Yield - Dividend payment history - Operating leverage play. However, I am not able to foresee any major growth in revenues. Until then, no planned allocation. Wait n watch.

6. Ambika Cotton - Decent business history - Cash generative. However, looks appropriately valued. No plans to put in money until it is available at deep discount as I am a bit skeptical regarding the 'textile' industry's economics.

7. Ashiana Housing - Great business model - Cash generative - Great past record. Real estate slow down may hurt the company and the stock bad. I find no MOS at the current price. Hence, no allocation as of now.

8. Oriental Carbon & Chemicals - Good business economics - good past record - Revenue visibility. However, currently operating at 95-98% capacity. Next capacity expansion to kick in from 2017. Hence, I think this will be available cheap in the near future (1-1.5 years) as revenues / profits gets flat / negligible growth. No allocation as of now, but keeping a close watch.

9. PTC India Financials - Good past track record (though on low base) - good ratios - Seems to be a little less than appropriately valued - Plan to invest 50-70% of planned investment of 10% allocation.

10. Shriram Transport Finance - Great business economics - Management - currently hit with slowdown due to auto slowdown, coal mining stoppage - NPA issue. Keeping a close watch on NPAs in coming quarters. Will invest if available at 1.5 P/BV or less. 10% allocation.

11. Thomas Cook - Decent cash generative travel business - Management - Quess Corp to bring in growth in revenues and profits. However, finding it difficult to make projections and hence valuation. No planned allocation.

12. Symphony - Great business model - Great Ratios - Revenue visibility for 5-6 years at least. However, very very pricey!! Keeping a watch on quarter earnings. Might be available cheap due to bad quarter. No planned allocation.

13. Relaxo Footwears - Great business - Great Ratios - Products will never go obsolete - Revenue visibility for xx years. However, very very pricey!! No planned allocation.

14. Cupid - Revenue visibility - good numbers - However, looks appropriately valued. No planned allocation.

Hence, as of now, I plan to invest in Piramal Enterprises, Vaibhav Global & PTC India Financials as mentioned above.

Would be great if you all share your views on the companies and investment plan as mentioned above. I am also open to look into other companies.

What I generally look for in a business -
a. Past track record
b. Growing revenues and profits
c. Growing / steady margins and improving ratios
d. Cash generative
e. Some uniqueness towards its products/services or business model (finding moats).
f. Management (Have shunned Amar Raja, Kitex, Pokarna, etc due to this)
g. Less / Nil Regulated businesses.

Apologies for the long post. Thanks in advance for the contribution.

Thanks @varundarji for sharing notes. I have two question, may be little late to party.

1) If they are expecting decline in Supima and Giza cotton, why they are thinking to increase the capacity of spindle? Is it because even in the decline they will have demands for new one as they have good relationship with existing customer ?

2) Does the same spindle can be used for other cotton blending also because you wrote "In future, if there is a shortage of Supima/Giza, the buyer will understand and Ambika can blend other cotton varieties as per the requirement of the client." . If yes, this means they can grow in other segment but I guess they don't want to because it is already overcrowded?

@vardharaj Sir any comments on the 2015 Annual Report? Aren't they diversifying too much ? Suddenly everybody wants to ever PVC segment. In the report, they said that they have already started production but I did not see any revenues from that division. I hold it as a conviction stock with 10% of my PF. Added all at 675 price recently

Vardha,

One more point to highlight is some comparison with suzlon, Opto and EPC companies. Please cheque gearing and free cashflow and dividend payment. While control print is not A+ business model, it is definitely fit B grade and not D grade model which are cited for comparison. EPC countries need to infuse capital in business and Sulzon Opto has constant debt funded acquisition. Both these issues are absent.

Again, my view may be biased due to my holding and investor shall do their own due diligence before investing