RedTape: Bought as it was going to be demerged from Mirza Int, and the valuation was reasonable. Redtape is growing well with corporate governance in improving trend. Growth is topclass among the peers and recent focus on apparel ensures that the growth doesn’t slowdown. Plan to exit using technicals (on break down from 20/30 WMA) or if and when the industry reaches historical high valuations
MTAR Tech: Only hyper growth co in the PF, with high valuations. The management targets to achievve 3000cr revenue by FY28, which I believe is possible as the management always delivered on revenue growth. Diversification of revenues from Bloom Energy takes out one of the risks.Things to look out for include Working Capital days, Cashflows and execution of future international plants (for Fluence energy). May need fundraise via QIP or rights issue, which won’t be a problem as long as it’s done at higher valuations. No exit framework at the moment and plan to add more on dips or bear market if any in next 1-2 years
NIIT MTS: One of the largest companies operating in CLG business. Short to medium term outlook is bleak, but 3-5 term outlook is good, with management giving more than 25% profit growth target. Personally don’t expecting a div yield of 2-3% or a probable Buyback. However all the cash may be used for Inorganic growth
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