The Anti-Portfolio

Kilpest has two things in progress, one being the reverse-merger and renaming which will help it to focus on biotech only. Another being the use of cash reserve to buy a suitable european target company. Maybe the recessionary trend helps them get a better deal. Export performance looks as expected. Price is very close to fair value due to small scale and high level of competition. Bottomline is that they may need to do 1-2 years more of consistent results, having come out of the covid bump, for a re-rating. Currently at close to fair-value, it looks little tempting but it’s already in my top 4 holdings, rest being all banks (which make money irrespective of the funded target profitability ).

Satia is resting like the rest of the paper pack, market is not looking beyond the elevated margin cycle for paper. Satia is different, it always managed a flat margin profile which will improve when they finish with the many efficiency improvements regarding fuel, feedstock, mill, boiler etc. Also cutlery is showing decent progress and loans are being paid off early. Satia has always been a little over-priced, in expectation of large capex kicking-in or maybe coz of overall biz quality. So it is just resting a little bit, so is the market in general, next kick comes when topline and margins both increase within a year or so.

As long as biz is performing as expected and valuations are reasonable, it is good to hold and sleep soundly.