Market cap of Wheels India is the reflection of lower return ratios and margins. WIL has fairly diversified into to different segments – Renewable Energy (machining and fabrication), Construction, Railways (bogie). Also, they are late entrants into to alloy wheels (entered in 2021 and COVID impact later years lead to lower utilization). Given the track record of WIL and long association with big OEMs in India, feel like they will catch with SSWL in alloy wheel segment. Risk reward ratio seems to be better in WIL.
Posts tagged Value Pickr
HDFC Bank- we understand your world (16-04-2024)
@Hemant_Kumar2 : Thanks for a quick primer on bank basics.
In my opinion, valuations are baking in below negative surprises and management’s intent to not highlight these while talking about the positives of the merger:
- To fulfill banking regulations, some of the incoming loans of the merged HDFC required extra provisioning and downsizing.
- Incoming loans of the merged HDFC have high cost liabilities that will suppress the earnings till they mature. Their amount and duration will be known when FY24 AR is published.
- Loan/Advances growth has outpaced deposit growth. The same is not sustainable. Management has made it clear that they will not chase growth (high cost wholesale deposits to fulfill loan demand) at the expense of profitability (compressed NIMs).
In the near term, price inaction might wear out one’s patience since all the above would lead to slower earnings growth and milder return ratios compared to the bank’s historical benchmark.
HDFC Bank- we understand your world (16-04-2024)
@Hemant_Kumar2 : Thanks for a quick primer on bank basics.
In my opinion, valuations are baking in below negative surprises and management’s intent to not highlight these while talking about the positives of the merger:
- To fulfill banking regulations, some of the incoming loans of the merged HDFC required extra provisioning and downsizing.
- Incoming loans of the merged HDFC have high cost liabilities that will suppress the earnings till they mature. Their amount and duration will be known when FY24 AR is published.
- Loan/Advances growth has outpaced deposit growth. The same is not sustainable. Management has made it clear that they will not chase growth (high cost wholesale deposits to fulfill loan demand) at the expense of profitability (compressed NIMs).
In the near term, price inaction might wear out one’s patience since all the above would lead to slower earnings growth and milder return ratios compared to the bank’s historical benchmark.
Atirek portfolio (16-04-2024)
Mutual fund Update
By the end of the month March, I had some cash left undeployed and considering next month, I was expecting my salary which would increase my cash level to level I did not want. Hence I like to be aware to not guess the market, I deployed the money.
I invested in PPTSF, NPS and few shares.
I also invested some money in Arbritage and SGB.
I still hold more than 20 percent in SGB and Arbritage.
Stock Updates
I bought more shares of NH, Kama Holdings and opened position in Indigo.
I invested some more money in Kama Holdings when the SRF started touching new highs and Kama was near to 2500. I was not planning to put more money in Kama until and unless it has attained some stability but as SRF made new highs, I thought maybe technically things might have changed.
Time technoplast (16-04-2024)
Addition to above points – Most of the building doesn’t proper requirement for gas pipeline connection.For ex- I stay in a society of 250+ house but current design is not ideal for pipeline.So nothing to worry about.
Jkil — jkumar infraprojects (16-04-2024)
I expect JKIL to easily trade above Rs 1400 within next 2.5-3yrs (at a PE x of 15).
There is a high chance that given the accelerating growth rate, the entire construction sector gets re-rated in which case even a PE of 25-30x might be possible and JKIL can go above Rs 2800 per share. Now obviously this is not the base case we can assume today. But as the performance comes through and sceptics become more comfortable and eventually confident, the stock price can easily go past levels that are difficult to imagine today but would be perfectly reasonable when viewed from a different lens, a lens based on facts reflected in the financial statements.
I guess that is what the best fund managers in the industry are seeing and have taken up sizeable position in the stock.
Galaxy Bearings (16-04-2024)
- Interesting insights from galaxy bearing founder stating that expansions plan, key customer , revenue bifurcation
- Link :https://youtu.be/ygyf4W54XCU?si=HqRRh6ihyK-ztMuq
Time technoplast (16-04-2024)
Piped gas is convenient for majorly towers / building . Where there are individual apartments / bunglows the spread is too big and viability of installation cost is higher. So remote places tier 3 and remoet town you will see cylinder as a mode of storage.
There are many companies like where over a very long term business is dead but thats few decades away and new avenues open up for business.
Biased and Invested recently
Va Tech Wabag (16-04-2024)
as envisaged on 1st march
finally being nabbed — stage set
AA – Abhishek’s Attic (place to store stuff to clear my head)! (16-04-2024)
Actually very difficult to comment on any strategy without knowing the details. Using a single dma, that too a 200 dma may not be a very good idea. Of course a lot would depend on the time frame for your strategy. But in general 200 dma is far too long for meaningful exits for a momentum portfolio. If you are picking momentum stocks, it can get 50-100% above the 200dma and if you are waiting till that point to exit, it means in a bad market you will give back most or all of your gains or worst case even make losses.
I can’t think of any immediate book which deals with this topic but you should definitely try out other mechanisms of trend identification.