Have congratulated you earlier for holding Trent for last 2 decades and I am sure these petty reasons like inclusion in any particular index/funds buying etc. were never the main criteria for your hold.

Why I call them petty is because LTIM exclusion does not warranty its bad performance and neither Trent’s inclusion means anything over long term. While its a good feeling to see the companies we hold grow in size and get included in bigger & bigger indexes with time, point to note here is that LTIM if now getting excluded was once included so its a cycle and what’s important is the business to remain on right track and promoters to remain true to their vision & ethical…I think these were main reasons that you could held for 2 long decades…or they were something else or add to these reasons…would be good to know…

Now valuations rating & de-rating is another animal which no one is able to tame and it happens when it happens…many momentum investors enter or exit at these times…I am yet to fathom how to prepare for valuation de-rating or if there is any need to consider this in my investing strategy…

Disc: Trent has become top holding recently, hence highly biased & critical. Hold LTIM also. Thoughts are personal and only for learning purposes. Not a buy/sell recommendation and I can be wrong in all my assessments

Safari industries CMP 2375 , potential to become double. – go to any good showroom and check for yourself . Co. has done fantastic rebranding & repositioning of their products in comparison to VIP industries. In March 2024, SIIL received as investment of Rs.229 Crores from Lighthouse Funds (Alternate Investment Fund -AIF). Group has announced capex of Rs.215 Crores for setting up a greenfield manufacturing unit in Jaipur, Rajasthan. Capex would lead to doubling its hard luggage capacity from ~6.5lac pieces per month to ~13lac pieces per month. The new capacities expected to become operational in H2FY25 and will help group to further penetrate in to North Indian market. With the capex expected to come online around December 2024, the revenues and margins are expected to see a further improvement from fiscal 2026

BLS E services – we should keep a watch on this stocks – Parentage – BLS International. if we get weekly close above 254 then we can see the IPO launch price …420 also

Dhanuka Agritech –

Q1 FY 25 concall and results highlights –

Revenues – 494 vs 369 cr, up 33 pc ( massive jump, volume growth was 39 pc !!! )
Gross Margins @ 35 vs 33 pc
EBITDA – 72 vs 44 cr, up 64 pc (margins @ 15 vs 12 pc)
PAT – 49 vs 33 pc, up 48 pc

Guiding for 20 pc topline growth for FY 25

Three of company’s newly launched products – Purge, Lanevo and Mycore – are doing exceedingly well in the marketplace and exceeding even the company’s expectations

Plan to launch two – 9(4) “me too” and two – 9(3) “exclusive” products in current FY

Product wise sales breakup –

Insecticides – 25 pc
Fungicides – 10 pc
Herbicides – 50 pc
Others – 15 pc

Rains have been much better than last year but still not as good as was expected. In July, the rains were erratic affecting the sales of herbicides. IMD forecasts for Aug,Sep are above avg

RM prices are largely stable

Company has approved a stock – buyback worth Rs 100 cr at a price not exceeding Rs 2000 / share

Because of erratic rains in July, expecting low double digit topline growth in Q2

Guiding for an EBITDA margin of 18 pc vs 19 pc in FY 24 ( LY, the margins were exceptionally good )

Currently, 9(3) kind of exclusive molecules ( launched in collaboration with Innovators ) contribute to 25 pc of company’s turnover

Company is working with some innovators to get CMO opportunities to make patented AIs. Nothing has been finalised yet

Currently, the Dahej plant ( making AIs ) is operating in negative EBITDA zone. To start making one more AI from Dahej before FY 25 end. Also exploring opportunities for CMO of patentented molecules from Dahej facility

In collaboration with Kimitech ( Spanish Company ) – should bring in few new Biological products in India by end of FY 25. Bio – agri inputs are a fast growing area and can potentially be a large mkt going fwd ( in long term )

Expect Dahej facility to start making money in FY 27

The patented products ( that the company in-licesnces ) from Innovators contribute to aprox 500 cr of company’s topline at present

Disc: holding, biased, not SEBI registered, not a buy/sell recommendation

Session from Prof. Bakshi

From “Untouchable” to “Irresistible”