Ramana’s Portfolio – Feedback most welcome!

Thank you fellow members for comments. Here are my personal learnings and observations in recent times

• I am always struggling to hold on to cash. Somehow I get tempted to buy (my watch list stocks) at the very first decline. I guess this is what called FOMO
• I am failing to practice “Waiting for the right opportunity” to buy only on considerable declines and key support levels. I know basics of technical analysis and trying to learn more.
• I may have to sell companies with less conviction to buy high conviction companies in case of decent correction.
• Fortunately I have a habit of deploying cash in small trenches.
• Financial companies (NBFC, Housing finance etc.) are harder to understand than manufacturing companies, hence less weightage in my portfolio.

I am sharing my notes for three more companies below. I know this information is available in public domain but helps me reinforce my thoughts/opinion on these companies.

Deepak Fertilizers and Petrochemicals:

• A well-diversified leader in Industrial and crop nutrition chemicals.

• Industrial Chemicals (25%), Technical Ammonium Nitrate (34%) and Crop Nutrition (41%).

• Largest manufacturer of Nitric Acid and Bentonite Sulphur in India.

• ROC & ROE are ~20.

• OPM is improving progressively and currently stands at 24%.

• Debt to equity is 0.69 which is not bad.

• Promotors 47.5%, FII 16%, DII 1.7% and Public 34.8%. FII’s have increased their stakes over last few quarters.

• China+1 theme along with Europe gas crisis should create more demand hence higher revenue.

Devyani international Limited:

• A quick service restaurant player which operates KFC, Pizza Hut, Costa Coffee and few less known brands such as Vaango and The food street.

• Ravi Jaipuria (promoter group) also owns Varun beverages. This is the reason why you find Pepsi (only?) in KFC and Pizza Hut.

• ROC & ROE are 16 and 42 which are quite healthy.

• OPM is pretty stable and currently stands at 23%.

• Debt to equity is 1.83 which is high but this is understandable with aggressive growth plan.

• Promotors 63%, FII 7%, DII 6% and Public 24%.

Happiest Minds Technologies:

• An IT company works on disruptive technologies such as artificial intelligence, block chain, cloud, digital, internet of things, robotics/drones etc.

• Founder Ashok Soota is an inspiration for many leaders in IT industry who severed Mindtree and Wipro in various roles.

• Both ROC and ROE are standing at healthy 31.

• OPM is pretty stable and currently stands at 25%.

• Debt to equity is 0.37. Cash reserves are at healthy ~600 crores and consistently growing.

• Promotors 53%, FII 4%, DII 1.5% and Public and others 41%.

• Both FII and DII’s have reduce their stakes in recent quarters, is this due to high PE (~77) compared with its peers? However both sales and profit in increasing consistently hence decided to hold on.