Any link of this news?

Hdfc demerger again, 6 months back they said it was a good call,

Hey everyone! Lets talk about the Noida-based manufacturing firm in the Electronic Manufacturing Space (EMS) that is now popularly known as India’s Foxconn globally. Almost every major electronics equipment manufacturer (think Apple, Samsung for smartphone producer, or Google in Television), are either in talks or have inked deals for manufacturing in this space.

They are present in 9 verticals – LED bulbs, televisions, refrigerators, washing machines, security surveillance and others. They have over 17 manufacturing factories and 3 R&D labs to build and grow their business. Another 6 factories are in pipeline which gives it enough capacity to thrive in FY24-25.

Their current deals with Philips, Xiaomi, Panasonic are all helping it grow its own R&D through series of joint development programs. It is also entering the new high-margin areas like drones, electric vehicles etc.

The fundamentals of this company are strong and are expected to rise with the new Capex investments in improving capacity and streamlining operations. However, the share price has grown by 260% already in last one year which creates a skepticism on its future price growth.

There is modest upside that still remains in the share based on my valuation models. However, as it reacts on every news, the rise can be even more meteoritic.

I have done a company analysis and included my valuation models here.

The Next Big Stock Idea | Has this manufacturing star become a trading stock? | Dixon Technologies

Let me know your thoughts on it. Thanks!

Hey @sameernics, for the reply!

You got me completely right I believe that with GDP growth in longer horizon, there would be outperformance from finance sector. Adding on top of that interest rate reversal is a macroeconomic aspect I would like to play, with decrease in interest rates the spread for banks would become favourable. So that’s my style of investing I guess, additionally I find them in sweet spot regarding valuations, HDFC Banks (for sure going through issues LCR, LDR, NIMS and what not) at lifetime low P/BV, I’ll buy that, same for Kotak Mahindra Bank too. Bajaj Finance (Yes, RBI is strict on NBFC but 30% growth is something which can not be taken for granted at this base), I believe that the culture in india is changing from saving first to buy first on loan. BF would be the biggest beneficiary for this. Aavas is my proxy play to Home Loans, I downward averaged a lot but would make sure it comes down in the weightage. Everyone is using cards so SBI Cards and the Life Insurance exposure would increase, the biggest story in next 10 years (whenever a persom would get job and get out of poverty, it would be the first finance instrument they would buy) hence HDFCLife

Well, this is my proxy to realestate and with paints being stuff on which families would spent for premium. The rationale, I had IndigoPaints and Berger as core holdings, one small cap for growth and another large/mid for stability in consumer durables, with recent slump in Asian Paints (getting under 10 years average PE, I mean 20% cheaper then it’s median price), started increasing my position, might exit from Berger and move completely to Asian but would definately hold Indigo Paints as it’s growing in some pace.

Yes Sir, I completely align to that, currently my portfolio is 65% in Large Caps and another 20% is stock which is trading at bare bottom, with maximum fall if can get of 10-15% (Aavas – SBIMF brought at current price, approx 8% of equity).

Yes, I have recently shuffled and booked profits, IT and RealEstate were the sectors I booked from. Currently sitting on considerable amount of cash. Can deploy around 10-15L if 15-20% fall is there in Large caps. Which I’m not expecting, having elections in India and USA.

Thanks, I would love to get some suggestions from your end on what sectors and companies are you targeting or watching to build positions.

Thanks, @Shashank_Mohan for the message.

1. Recycling sector – I have tried looking for all the relevant players, the issues I find is, either they are expensive for my risk tolerance or they are small and don’t have enough information, most of them are SME. I would surely appreciate some suggestions.
2. Ancillary to companies related with power generation – Same as Recycling and other hype sectors, i feel high valuation and not great players. Or it is my inexperience in the market that I don’t value it over the aspects I should. Here also I would appreciate some suggestions.
3. Paushak and Alkyl Amines – They are currently under my observations, I feel the valuation comfort in Paushak and will start building positions soon but for Alkyl Amines still need a bit more valuation comfort for me.

Thanks for the message, will wait for the follow up!