IT- FY 23
HCL Tech
Rev growth – 18%
EBIT growth – 14%
IT continues to remain illusive sector to me in order to understand the “uniqueness” of company offerings but at the same time hard to ignore because of its track record,business and management quality. Therefore i will wait to ramp up position at right valuation. At current rate low teens eps growth and 3-4% dividend yield does not cut my threshold requirement of high teens earnings growth that is why allocation level remains low single digit
Pharma – FY 23
Ajanta pharma
Rev growth – 12%
Ebidta growth – (-16%)
Lowest ebidta margin in decade but ROE still 18% and 40% increase in CFO
Abbott india
Rev growth – 9%
Ebidta growth – 11%
Roe – 32%
Reinvestment rate – 4%
Ebidta Margins keeps creeping up. Now at 23%
Though pharma is not a flavour of market at present, I feel Ajanta pharma can deliver high teens earnings growth next 3-5 years. Abbott india, i am still monitoring. Either it will go to higher allocation or i will sell as mentioned before
Following is my watchlist
Narayana Hrudayala and Krishna Institute of medical science
Cera and astral
Poly modicure
Tube investments
I will update my views once I do some more work on these. Having said that, this is a prep for next cycle as I dont think current valuations give good risk reward in this cycle
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