Portfolio Update:
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Added Garware Hi-Tech Films: A highly differentiated film manufacturer that is more like a consumer brand. Incredible economics are shown in the low receivable days. Company is in niche high margin segments and has been successful in opening up new opportunities such as Paint Protection Film in its existing and new markets. High growth visibility led by new products and penetration in existing and new geographies. Management has guided for revenue growth of 20%+ over the next 2-3 years. Company does core ROCE of 25-30% and turns almost all profit into CFO and available at ~25x PE. Whats the catch? Truly awful corporate governance. Promoters are openly stealing from the company via RPTs and obscenely high salaries. Took a small allocation here given high visibility of growth. Its one of the best manufacturing companies I have ever seen and would be trading at 2x the current multiple with better governance. However, with no visibility of that happening, I am a fair weather friend here and will try and trade it out before the music stops.
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Added weight in Dollar Industries where more channel checks showed a structural market share gain story here. Also swapped Rupa allocation to Dollar. Some other minor weight changes like Raghav and Faze Three due to valuations.
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Exited Inox Wind. Very quick catch up to fair value and stock already in a amtter of months has started to discount an extremely rosy future. Exited @450/share
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