Thanks for the suggestion, Ashok Leyland is going through a cyclical uptick and I dont think its appropriately valued. About Krsnaa, @Chins has done amazing work and has kept sharing his thesis around the company. I haven’t invested in it because I dont feel comfortable buying at 17x earnings when there are so many opportunities available at cheaper multiples, and growing at similar rates. One such co is Caplin Point where again @Chins has done amazing work!
I havent done much work on cement cos. I actually dont get why cement cos trade at a premium vs other commodity cos given they dont have higher growth rate or better ROCE. Its just wrong in my opinion.
Hard to tell, I have also been surprised that they have been struggling with margins despite having a strong competitive position. Even Care downgraded their rating due to this reason.
However, I have seen problems like these persisting for a few quarters in a lot of small cos and then they get resolved. The idea is to buy at very cheap multiples in expectation for a mean reversion. Sometimes, it happens quickly and other times it takes more time. Lets see what happens in Modison.
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