Today VP audience and readership consists of different kinds of folks with possibly different ideas of how to use a platform like VP to the best advantage.

Should you want to just POINT to a new idea with growth momentum or turnaround in fortunes, or change in Management, etc and find that there is no existing thread on that, please use the Company Q&A section, that is free-format and does not impose any limitations. This section is for those who feel they are unable to find time/put in effort to analyse in-depth, but would still like to point to a promising opportunity for the Community to take forward.

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b) respond/examine counter-arguments (to one’s invested/tracking ideas)
c) make the TIME to work further on his/her proposed idea in collaboration with others

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There was a full page article on Patanjali some two days back: http://www.thehindubusinessline.com/specials/the-monk-who-wants-abilliondollar-company/article7958593.ece

During the flood that ravaged Chennai, I happen to visit Big Bazaar and found that Patanjali biscuits were flying off the shelves due to panic buying/perception of scarcity and by volunteers/relief workers. The other brands of ITC, Britannia and Oreo were still available. People like ITC, HUL, Nestle and others need to be worried and they have started to advertise also.

Disc: Do not own any FMCG businesses.

Fresh Trouble

I haven’t tracked any previous cases, where seed companies have been asked to compensate for suspected defective seeds. So this case might set a precedent ?

Disc: I have exited KSCL around 500 levels.

@nagpal, yes that is true. Also it has has started incurring higher depreciation from new factories where as full top and bottomline benefits are yet to accrue. Better valuation metrics would be to consider Price to Sales which makes it look cheap .

Just to add to Hitesh Bhai’s point: Currently the pharma sector (large caps) are going through some kind of re-rating. People have seen what USFDA issues have done to IPCA, Dr. Reddy’s and Sun Pharma. Most of the time market tends to overplay the negative/positive news. In case of Torrent multiple factors such as the sectoral derating, perceived absence of long term pipeline combined with the overall decline in equities is playing out. FDIs have pulled out massive money from the markets and Pharma was their sector. At the same time torrent with a market cap of nearly 25000 crores is actually a large mid-cap and it will not move into a different orbit without institutional interest (a 25% movement requires 1B $) unlike the sub 2000 crore market cap companies.

I have found a strange kind of herd mentality in how funds behave, they are fine being collectively wrong instead of taking a risk of standing out and being right. As far as numbers are concerned, for torrent it is relatively easy to work out (rough idea of marketshare of various formulation their prices the taxes paid etc.) As Hitesh Bhai said a rise in earnings will be followed by a rise in money paid out to investors and sustained performance and other superior business parameters will force the market to notice it. The same funds which shun companies come around again with a different set of reasons. I would advise you to go through their conf calls where they talk of their dividend payout ratio and upcoming surprises. Finally quoting Buffet “In the short run the markets are a voting machine but in the longer run they are a weighing machine”. Go through the story, build your own conviction, assess the risks anxd take a call.

DIsclosure: Invested. Forms more than 10% of my portfolio.