I am not trying to find holes here. I know it’s commendable how the company is growing and that combined with margins expanding makes it a great stock available at good valuation. But I can’t just ignore what I see and not try to understand the reason behind it.

To elaborate, look at the stand-alone financial statement. The sales for the first half were 379 crores while the receivables increased by 140 crores (from 88 to 228). Now I know that company is doing some B2G business which even the management said was the reason for the rise in receivables. But if almost half of your sales are on credit, that certainly calls for the explanation regarding when will the company actually receive payments for these. Because what I see that the receivables number both at standalone and consolidated basis has been increasing.

If anyone knows more about what might be the reason for this, please feel free to clear the doubt. I am just trying to understand every aspect of it as that is what helps you build the conviction required for a meaningful capital allocation.

I also bet on International Conveyors looking at the results which just came out. Even with lower revenues, the company managed to increase MARGINS, which tells me that they have a pricing upper hand.

Also, the business is niche and possibly cyclical in nature. Mines which are restarting or mines which need upgrades, would require new conveyor belts.

Interestingly, the public holding is kinda coming down, which is a GOOD thing.

Forward PE of 5, means there is a good valuation comfort as well.

The headline is wrong.

This should be called Anti-Investments.

In line with the idea of investing in companies that are not involved in violence at large scale, some ideas can be borrowed from the Jain principles of non-violence.

Jain Pratikraman talks about the idea of 15 कर्मादान, basically businesses which one should know but should not engage in. Dont just look at the definition below as it is but try to get an essence of what that company could be primarily engaged in and could it possibly violate that principle since you are going to be a part owner you are partner in the essence involved.

१५ कर्मदान शेयर (देखें प्रतिक्रमण) कंपनी:

Furnace → companies like SAIL, Tata Steel, Casting companies, distillation companies like Refineries.

Paper companies etc., Tyre companies

Auto companies. Should auto ancillaries be included?

Mining companies like vedanta etc

Liquor companies, Chemical companies

Godrej consumer company

Companies involved in forging process, heavy engineering.

Apart from these

1. Companies engaged in fishing, sale, purchase transportation of Animals like meat, fish, fish oil

2. Defence: Hindustan Aeronautics Ltd.,Bharat Electronics Ltd.,Bharat Dynamics Ltd.,Mazagon Dock Shipbuilders,Cochin Shipyard Ltd.,Bharat Earth Movers Limited (BEML),Solar Industries Ltd.,MTAR Technologies,Paras Defence and Space Technologies, Bharat Forge Ltd.

Process

Look at the main process (primary process) of the company and if it violates 15 कर्मादान then avoid that company.

Secondary process if significant contribution to primary process then avoid that company. For example paper manufacturing (primary process) involves cutting (secondary process) jungle.

Questions:

1. What about companies that are holding companies? Again primary revenue if more than 50% from the main subsidiary violating 15 कर्मादान then avoid that company.

You answered your own question.