Over the past year I’ve gotten too conservative. I’ve been watching and let go of too many opportunities ie irfc at sub 20, ptc at 70 rs, manappuram at rs. 80, zensar at rs. 201 among others. All of which i was sure were undervalued but I decided to not take any chances but decided to chase conservative bets like embassy and debt(grrr). Today I’ve finally decided to dip my toes in again with Everest kanto. results are expected tmrw and I’m expecting horrid results ie margins and pat compressed to a point where they’ll just hit single or low double digits pat. However, I’m not going to wait on the sidelines for further drops. I’ve divided my investment up into 5 tranches and bought one tranche today fully expecting the price to crash tmrw to supports around low to mid 70s… at which point il be adding my second tranche. infact I’m fully expecting the next 2 quarters to be a whitewash too so won’t be surprised if the prices fall further(at which point il add my last 3 tranches). Is the company cheap now? At book price… definitely. Is there potential here? Just a year ago predictions were for a 40 eps year and that year will still happen though it will be delayed to FY25/26. I was interested early last year and nearly twice the price so I’ve got a discount here by waiting. The management isn’t nimble enough, the sector has question marks around it… all in all its a horrible investment. But at current pricing I’m willing to begin loading up in anticipating for a huge opportunity over the next 2 to 3 years. I’ve realised my main strength is patience . So I’m willing to use it to chase bigger than normal returns in companies like this.
Disc: not a sebi advisor (and most probably an idiot too)
Subscribe To Our Free Newsletter |