Why I own what I own!

• Polycab (25%)- Entry Price- 2200, Average Price- 4000, CMP- 5400

• Tailwinds in power, infrastructure and real estate.

• Foray in FMEG- Higher capital efficiency business, natural synergy- May not work but still nothing to lose as invested capital is less.

• Home innovation products with the acquisition of Silvian labs (small company) but shows management’s focus on this big market.

• Setting up capacity for Extra High voltage cable which will get operation in FY25.

• Setting up distribution network/warehouses in US for wires and cables.

• Aspiration to come from Top 10 players into Top 5 players in wires and cables.

• Dilip Buildcon (25%)- Entry Price- 367, Average Price- 330, CMP- 395

• Buying the pessimism strategy- Lot of pessimism in the price.

• Order book of INR 25,000 crores plus gives revenue visibility.

• Target to become net debt free in the next two years through monetization of assets to Alpha Alternatives INVIT.

• Arvind Ltd (10%)- Entry Price- 175, Average Price-200, CMP- 265

• Growth in advanced materials (technical textiles) to improve capital efficiency.

• Tailwinds in the garments and fabric division due to UK FTA.

• Revival of denim with supply side being consolidated and demand slowly and steadily increasing.

• Very huge land bank to further bring down the debt.

• DCM Nouvelle (8%)- Entry Price- 170, Average Price- 175, CMP- 180

• Foray in specialty amines to change the quality of bottom line.

• Mean reversion of margins in yarn business.

• Strong promoter pedigree- the promoter is from Carnegie Mellon and the nephew of SRF MD- Mr. Arun Bharat Ram.

• Arvind Smart spaces (8%)- Entry Price-400, Average Price- 355, CMP-415

• Bullish on prospects of Ahmedabad and Bangalore real estate market.

• Asset light business model, JDA’s with land owners.

• Horizontal development rather than vertical development which makes the project turnaround faster.

• On ground channel checks suggest no dealing in cash- Only bank payments accepted.

• 20 Microns (6%)- Entry Price- 155, Average Price- 172, CMP- 190

• Ancillary to paint- supplier of extended inorganic pigments- Kaolin and calcium carbonate.

• Tailwinds due to lot of paint capacities coming in.

• Reasonable growth, cash flow conversion for the last 10 years above 70% and decent capital efficiency of 15% ROE.

• Consistent compounder at reasonable valuations.

• Carborundum Universal (4%)- Entry Price- 1160, Average Price- 1130, CMP- 1100

• Leader of the material world with Innovation at the core.

• Strong promoter pedigree and a visionary mindset.

• Diversified application of the product portfolio.

• Lot of optionality in the product portfolio.

• V-Mart (4%)- Entry Price- 2000, Average Price- 2036, CMP- 2030

• Buying the pessimism strategy

• Good management in a good business at reasonable valuations.

• Play on value consumption which is the belly of the Indian market.

• Challenges there in online- Limeroad, store aesthetics but management will figure it out !

• Less than 4% position cumulatively around 10%

• Voltamp Transformers

• Bharat Bijlee

• Tata Power

• Chembond

• Vodafone Idea

• SW Solar

• Emudhra

thank you for your valuable input

JKIL Followup
CMP 593

Projected target achieved.

My understanding is that this index is rebalanced twice a year, on 31st Jan and 31st July.
When the index gets updated, I add / delete the stocks in the sheets, “Smallcap 250 table” and “Raw Data”.
Last time several stocks were shifted from Smallcap index to Midcap index. This meant a lot of changes.