Portfolio Update:
From my last udpate 24 days ago, I’ve made small changes to my PF and this is how my PF looks currently
| Company | Weight |
|---|---|
| PDSL | 8.43% |
| REDTAPE | 7.18% |
| KRSNAA | 7.08% |
| XPROINDIA | 6.50% |
| KERNEX | 6.40% |
| NIITMTS | 5.82% |
| ANGELONE | 5.62% |
| Vishnu | 5.61% |
| KAMAHOLD | 5.32% |
| MTARTECH | 4.92% |
| CIGNITITEC | 4.70% |
| NSE:MCX | 4.04% |
| FINOPB | 3.91% |
| Goodluck | 3.66% |
| CONFIPET | 3.64% |
| MANAPPURAM | 3.42% |
| DODLA | 2.67% |
| MOLDTECH | 2.59% |
| ULTRAMAR 506685 | 2.47% |
| IGPL | 1.91% |
| DEEPAKFERT | 1.71% |
| SBCL | 1.45% |
| SHARDACROP | 0.89% |
| WIPRO | 0.06% |
Sell: Pitti engineering as the stock seems little expensive and relatively expensive when compared to goodluck india (I consider both of them to be equals and prefer whicheve is cheaper)
Buy:
- Bought Fino Payments bank and scaled up the position to satisfactory levels. Mentioned the thesis here in earlier post
- Bought Vishnu Chemicals as the it’s one of the very few chemical companies that are able to maintain margins, when most of the industry is seeing margin pressure. The valuation is attractive at mid teen P/E. Moreover the management targets to double revenues by FY26 (from FY23). I expect this profit growth combined with valuation rerating to offer good return in medium term
Minor changes: Other than this there are minor changes including partial exits in Angel One and Goodluck India and bought additional qty in PDSL, NIIT MTS, Kama Holding, Xpro India, Moldtek Technology.
Additional thoughts:
- Valuation wise Chem/Speciality chem seems attractive. The recovery for the industry is awaited. SRF Q2Fy24 earning press release highlighted the visibility of recovery and need to check the commentary from peers in the industry
- Agrochem is also attractive and many cos reporting loss at PAT level. Need to see when the industry recovers. May not be in Fy24 and probably in FY25
- Sensex/smallcap index ratio is close to historical lows. Possible reasons include the small/mid cap rally in recent years and negligible returns for sensex over last 2 years (because under performance is big weights like HDFCBANK, Reliance, ICICIBANK etc)
- SRF is entering Capacitor film business and may be a competition to XPRO India. Need to listen to the concall to confirm their capability (what kind of thickness they can produce ) and the target markets/customers
- Angel one delivered solid numbers (probably becoz of market rally in past few months and other structural reasons). So, I changed my FY25 PAT estiamte from 1300 to 1500 and confident that the co will achieve. Moreover recent comments from the concall saying broking would be 50% of the business (?) is next 3 years. So, with this revenue mix change the co may be rerated to 25x P/E from current median P/E of 18 PE (PE band being 12-25x in last 2-3 years)
Disc: No recommendation to buy or sell. I may have missed or wrongly mentioned some changes.
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