@ Market Cap of Rs. 3600 Cr, CMP 724 If I invert and see, Company is available at 4x P/S. Which is not at a discount from other generic API players. But growth can be the differential here. There are triggers in place, but most of them might start playing out after 2-3 Q. Managment …
@ Market Cap of Rs. 12700 Cr, CMP 798 My first purchase was in June’24 (Market cap of Rs. 9000 Cr), and have averaged since then. Started tracking in Sep’23 when the new CEO joined, but the business at the time was taking a hit on it’s revenue and profitability in all segments. Chemical intermediates …
QSR is more of a macro story in India’s ecosystem due to young population, large population, increasing per capita, changing eating habits, changing family structure etc; which are the drivers for penetration. I am liking Restaurant Brands Asia to play this theme. @ Market Cap Rs. 5200 Cr – July ’24 Over the last 2-3 …
RBA gives a chance to buy into the consumer discretionary space, at a reasonable price Read More »
@ Current market of Rs. 1,02,000 Cr Based on some basic analysis looking at the growth in topline numbers, and considering the standalone business turned PAT and OCF positive, built a tracking position in the business. Bought in Oct ’23 @ avg price of Rs. 119, 1.3% of portfolio Analysing the standalone business @ Current market of Rs. 1,18,000 …
Zomato turns profitable, would that bring out optionalities it has as a tech platform?! Read More »
HDFC Bank has started trading much below it’s long term P/B which is now in line with ICICI bank. At this valuation the stock seems to be a steal. But an analysis on the shift seems important before taking any decision, as there has been a clear change in perception for this to occur. Last …
Initial analysis – 52.2% profit CAGR over last 5 years and a ROE track record of 44.1 % over 3 years, along with operating margin expansion > 1500 bps over past 5 years, EPS has increased from Rs. 11.4 in Mar 2019 to Rs. 106.68 in Mar 23 Brokerage business transitioning from a Brick and …
Invested since 2015, at an average buying price of Rs. 588 (adjusted for splits and preferred share issue in 2020). Compound Annual Growth Rate (CAGR) of 22% in 8 years, excluding the consideration of the de-merged Jio Financial Services (JFS). During this timeframe, the company has transitioned its focus from petrochemicals and refining, into retail …
Reliance plans demerger of Retail and Jio, post JFS. How will it play out?! Read More »
Stock Volatility.. Stock has shown a deep fall since listing. Markets perception of the business was they had no clear leadership in any of their segments. Poor visibility of earnings, high ESOP cost, anchor investors exit during buyback period; has kept investors uncomfortable and wary of holding on to the business. Every upward move so …
SVB looked well capitalised up until the depositors started asking back for their money. Their customers were startups, and thus had requirement of capital due to drying up of VC funding. This led to the bank having to find funds to settle the unexpected high with-drawl requests. As most of their funds were locked in …
Today is an attempt to understand the relationship between liquidity and interest rates – their correlation with bonds and equities, and what to expect in coming times. I have been overly optimist about the markets since I have entered, with too much faith that in the long term the markets will only reward. But now …
Investment has played out differently from how I had anticipated initially. Bought at it’s absolute peak of Rs. 680 and have averaged down since then. With that the company has reached my largest investment by buying cost. The reason I ended up buying at the peak was – I could not see the fall in ARV …
Two of the most growing branches of Indian Pharma have been seeing M&A activities Domestic Branded Pharma CDMO Space – Advent paid 9x P/S for the acquisition of Suven Pharma. Another PE in the running was Blackstone. This interest comes from the brand reconcgnition leading to customer stickiness ( and have higher . And with a …
Banking cycle and it’s impact on portfolio companies Having observed a few events in the past couple of years has helped me understand the banking cycle better. This is how the past 5 years of the industry added up to my understanding. Source: A Rough Book The gist is we are entering a fresh capital …
Banking cycle and it’s impact on portfolio companies Read More »
Tracking the theme to observe in which sectors is India becoming a global partner of choice. Can there be a larger shift of Lifescience Research towards India?! A life science focussed real estate company, setting up large lab facilities for CROs. They have seen a surge in demand from CRO clients and start-ups in the …
17/10/22 Took out gains from Tata Elxsi on 12/08/22 as the P/E crossed 100x and I felt it was getting over heated. This reduced the cost price of stock to Rs. 21. Average buying price was Rs. 1150.Selling price Rs. 10150, making it one of my best returns.In hindsight, it was a great decision as …
Tata Elxsi – Profit booking/ complete exit, what would have been more favourable?! Read More »
I was intrigued by the 80% gain seen in Indian Hotels during the past year, market cap having reached Rs. 48,343 Cr. My first thought was that it could be due to tailwinds from the sharp recovery in the travel industry, which resulted from pent-up demand after the pandemic-induced slowdown. But I was still trying …
Indian Hotels and the positive changes observed in the business Read More »
Initial analysis of the business said it is at the bottom of the earnings cycle due to impact of covid on the industry at large, once the business resumes to pre-covid levels upside would naturally come to the stock. Why should I buy Thomas cook??! – 11/10/22 @ Today’s stock price of Rs. 78 (Market …