Disclaimer: This writing is intended solely for educational purposes and to foster an understanding of differing perspectives.
Updating on my thesis shareholding
Some style which suite for me
I look for a peaceful framework basically long term investments
In the long term, I seek a value-plus-growth style. This entails identifying companies poised to double their business and profits over a three-year period and entering positions only when shares are underpriced. Theoretically, this approach should result in shares doubling over an extended period
Another style a turnaround story
another a future trend
*Exited positions
- Swaraj suiting’s – Value plus Growth
Brought when company market cap was 40 t0 50 crore and share price was Rs 25 and book value of share was Rs 50.
and saw company putting capex of 70 Crore.
Brought at 25 and exited around 90
- Zee and Rajesh Exports (Swing trading)
Made 20% profit in zee and Rajesh export a loss of 35% and cumulative loss was 15%. Realised Swing trading may not work for me.
Holding/Partial Exit
- ITC – Dividend plus value buy
Brought at 205 by looking at dividend yeild and cheap valuation.
Expectation – No exit or expectation plan
- Max India (Future theme)
senior care may be a growing business
Brought Max India around Rs 80 Range.
Expectation – No much because i see this model should go for a long period of time may be many decades in India due to migration and nucleus families.
- NTPC (Value plus Growth)
Brought by looking dividend, future plans, value. Purchased at 90
Future – No plan on exit wait and see how power business gear up in India
- Satia Industries (Value plus growth)
When I brought Satia it was almost doubling the business and my calculations was right and the sales from 890 crore went to 1800 crore and PAT also doubled from 100 cr to 200 cr. And paper companies were trading at 10 PE. And thought Satia will also trade at 10 PE. If then Satia should trade at 200 to 250 range.
Not disappointed because share went from 80 to 160 and back to 120 range. Will hold for few more years seems it is a marginal bet at 80. Let’s see how things goes in the future.
- Supriya Life science – Growth story
too much impressed on management integrity and their future road map over 3 years. They are planning 500 crore capex (current + future) in next 3 years so normally pharma may have 3 time assets turnaround. so expecting sales around 1000 to 1500 crore and PAT of 300 to 400. and valued at 30 P/E. so market value should be b/w 6000 crore to 10,000. So market should be valued at Rs 1000 to 1500 per share. would be happy if share goes over 600. ( I brought around 290/-)
- Gulshan Poloys – Growth – Ethanole business
Brought at 200. company is expanding ethanol business. already having sale of 600 crore (doubling the business). Risk i see Raw material price.
- Kitex – Value + Growth + Turnaround story
Existing unit in kerala near my home. Market punished this company from 5000 crore valuation to 1000 crore value. Major reason MD’s entry into polities + few corporate issues.
what interest – Company is 2nd largest kids wear manufacture in the world. Company putting 3x business expansion and exited from kerala and moved to telegana (received many incentives almost 60% of their investments comes from govt as subsidy etc.)
Company has already put one factory which is world largest manufacturing unit
when company is expanding its business into 3 times in a investor friendly state. expecting share should trade above its peak value in 2017.
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