I’ve tried to understand IT well, and despite watching seminars from SOIC and Ameya, it isn’t intuitive to me how to play the cycle, or what capabilities deserve a higher multiple. I’d prefer to either play a basket here (when Infy/TCS fall below median valuations), or find outright cheap plays like a Black Box.
On the latter, I’m interested in Piramal’s financial arm again. I swapped out of AB Capital into Piramal Enterprises for a 5% allocation. Below 800 it looks supremely cheap, and at this price one is effectively getting the Shriram stake for free.
I’ve also given up on the idea of only looking for great businesses – Piramal and Arvind Fashions are horrible businesses, but Piramal Enterprises currently looks like a great candidate to make 30% returns.
None of this is investment advice. I could be horribly wrong with my assessment of value.
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