Today sold my entire stake in JB Chemicals at Rs 270/share, after modest gains of 20%. Converted the holding in JB Chemicals to- TGBL and Rallis.
Reason-
1. Both TGBL and Rallis had modest to bad last 4-6 qtrs due to one off events.
Exceptional expenses in case of TGBL and droughts in Brazil and India in case of Rallis.
2.Both are quoting at historically low valuations.
3.Both should turn around in medium term.
4.TGBL has recently launched TATA GRAND….a filter coffee brand in India. Also its JV with Starbucks is progressing well with 80 stores across India and avg yearly sales of 2.4 cr per store which is 0.2 cr more than Dominos and more than double of CCD.
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Very promising seeds business of Rallis with more than 300cr yearly sales growing at 50% cagr….as of Mar 15.
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Both Rallis and TGBL are liberal dividend paymasters.
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TATA brand
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Wanted to make my portfolio as consumer facing as possible.
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In fact all the stocks that I own now are consumer facing. I find it easy to analyse consumer facing stocks as compared to B2B stocks….as you can do the scuttlebutt.
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Policy of betting on businesses facing short term head winds with other wise good track records and healthy financial positions has always yeilded good results for me. It however does take some time.
Regards,
Ranvir Dehal
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