I just started researching about this company. Hindware is a great brand. No doubt. I do think that management will realise about diworsification sooner or later. But what really dampens my enthusiasm is their working capital management. Unsustainable quick ratio, high debt. Are they using long term borrowings for working capital. Can they pay principal when they have to? Will cash flows be good enough at that time ? etc. I understand that if everything is fine such brands won’t be at such low valuations(p/s). Feel free to counter. Thank you.

@ChaitanyaC Good point that needs further explanation. I am not looking at this as application of discretion.

1. My look back periods are 6m and 1y. This does not fulfil both.
2. In my sheet, I use the latest available date for look back. If 1y look back is not available, I take a date that is closer than this. Similarly, for 6m.
3. In the case of DOMS, the latest available data is for 3 months only. When I take this, in effect I am comparing a 3m performance with a 6m / 1y performance of other stocks.
4. May pf managers actually don’t take into consideration stocks that are less than a particular look back period.

Fyi, SIGNATURE just makes the 6m cut; otherwise, that would also have been removed.

Update for entry on 1st April 2024

As a result of index being rejigged, 36 stocks have been changed. Some of them have gone to the Midcap index and some Microcaps have been included here. There are nearly 10 changes in our pf mainly as a result of this rejigging.

Based on ranking:

1. JAIBALAJI
2. ANANDRATHI
3. SIGNATURE
4. INOXWIND
5. BSE
6. SCHNEIDER
7. MEDANTA
8. MRPL
9. DOMS
10. SWANENERGY
11. BSOFT
12. CHALET
13. ACE
14. HBLPOWER
15. HUDCO
16. SOBHA
17. MOTILALOFS
18. NBCC
19. TATAINVEST
20. CHENNPETRO

Based on A → easy tracking

• ACE*
• ANANDRATHI*
• BSE
• BSOFT
• CHALET*
• CHENNPETRO*
• DOMS*
• HBLPOWER*
• HUDCO
• INOXWIND*
• JAIBALAJI*
• MEDANTA
• MOTILALOFS
• MRPL
• NBCC
• SCHNEIDER*
• SIGNATURE*
• SOBHA
• SWANENERGY
• TATAINVEST

Exit:
EIHOTEL, INFIBEAM, IRCON, KALYANKJIL, KAYNES, MCX, SUZLON, WELCORP exit.
COCHINSHIP and INTELLECT stay within the top 25 and hence remain.

Entry:
ACE, ANANDRATHI, CHALET, HBLPOWER, INOXWIND, JAIBALAJI, SCHNEIDER, SIGNATURE make an entry. DOMS should have entered as it has a higher ranking, but I have chosen not to, as it has a history of just 3 months in the market. Instead, HBLPOWER is being added.
CHENNPETRO and DOMS cannot enter as there is no vacancy.

Prior to the 3% stake sell, they were majority shareholders with 51.3% holding.

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