I would like to understand your investment thesis on National Peroxide and Mahanagar Gas Ltd.
I would explain my ideas behind stocks in a step by step manner.
Criminal Undervaluation
First I would start with the stock which I believe was criminally undervalued (still very undervalued)
Finance:
PFC/REC/IRFC have historically grown at 15%+ cagr. For PFC, the revenues and profits became 5x while the stock had just doubled (extremely cyclical in nature, but the underlying growth was not cyclical!! Just stock market things). P/BV was 0.4 and P/E only 2.2!! Dividend yield 10 perc. It was an obvious buy for me. But since there were some NPA issues with it, I bought some IRFC also which historically had 0 NPAs, since it doesnt lend to private sector. Its valuation was also very comfortable.
I recommended 30 % investments in them.
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