ValuePickr Forum

Hitesh portfolio

I dont like the way management has steered the company and hence not too interested in crompton inspite of the de merger.

Hello @hitesh2710,

What about the Pennar Industries demerger of PEBS?
It looks very interesting.

DRHP has been filed.

Hi Hitesh,

Can you please let me know your views on Lumax Auto Tech. How do you see the Automatic gear ancillary demand pickup in the coming days in Indian market. Also if you give your advice on the current valuation of this stock.

@vishnu, Pennar demerger looks interesting but I havent had a close look at it. Will need to look closely into it.

Sagarbhadury,

I dont have much idea about lumax auto tech as I have stayed largely away from auto ancillary stocks. But the feedback from some customers of maruti’s celerio seems very encouraging and it seems automatic gearbox could be a good trend to follow in India as it could be disruptive event.

@Hitesh… at a time when all quality stocks in general have run up a lot- what would u advise… should one continue to keep investing in these quality stocks at a periodic interval, or wait for a correction, or venture into slightly lower quality names but better valuations (albeit more risky )… I guess the struggle that Im facing is the inability to find quality+right valuations at current levels.

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Posting Hitesh’s reply on similar question in another thread

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Hitesh with the core sector showing a growth of 4% could cummins india at the current pe of 29 fulfill the criteria of a parking space cum cyclical growth business?thanking you

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Tiger

You asking me this question appears superfluous. :smile:

But if one were to play the recovery cycle then Cummins definitely remains one of the better bets.

You have given me a new insight into a new kind of parking space. Till now it was only well established non cyclicals. But things like Cummins should be interesting.

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thks for your reply,learning is a continious process irrespective of age and years of experience.i many times ask pretty stupid questions :smile: cummins as i write is up 4% today.it has almost trippled from its lows but eps growth hasnt,the problem with our mkt is how much of the good news is in the price ? pe has grown in anticipation of growth in the capex cycle hence the dilema.it appears the same is the case with many businesses.in todays internet world discounting happens very rapidly so getting a gr8 business at a very low pe could be something of the past.

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Hi Hitesh,

Are you now a full time investor or it is still an alternate work for yourself?

I was thinking of minimum requirements which need to be fulfilled, after which people move from job to take up full time investing?

Regards,

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nikhil,

I am not a full time investor. Still practice dermatology. And I love the latter. :smile: , having opted for it by choice.

There are no specified minimum requirements for a full time investor.

I feel investing does not consume too much time if you have a low churn portfolio.

A few ideas a year is all that is needed to suceed.

I have been thinking about full time investing but stumble when it comes to what I will do in my spare time (besides sleeping) which should be 20 hours a day.

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Hi Hitesh,

Wanted to know ur Views on PC Jewellers seems to be one of the fastest growing company.
Was Contemplating ivvseting in it from past 3-4 days finally joined in with the jump today.
The only negative point is the Goverment regulation but is that a BIG hindrance.
What if they have to pay for the Gold upfront usually companies adjust to these type of things.
Also could not understand how this thing can make it Cashflow negative.
I understand that there will be interest cost but how can the company become Cashflow negative by this interest cost.

Regards,
Kapil

kapil,

I stopped following the entire jewellery sector since I exited TBZ which I had entered a long time back and exited too a long time back…

But from interaction with some guys, I get the feel that PC Jewellers seems to be better placed to benefit from jewellery sector growth in India. Even the price pattern seems to suggest so.

Hi - Nice to know that you are a dermatologist! Will be very interesting to get your view on Marico Kaya business. I am already invested in it for last 1 year. Stock is currently not trading (amalgamation to Kaya limited) but market cap is around 1800 Crores , zero debt .

  • Are they offering a good value proposition to the consumer?

  • Does Kaya have a competitive moat in their business?

  • Is their product business scaleable?

Maybe it merits a new forum on this topic

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Hi Hitesh,

Please share your view on Suven LifeSciences for 2 year hold perspective.

Regards.

NIkhil Jain,

You seem to be misquoting me. Marico Kaya was only an example of how a de merger can create shareholder wealth. And all that was in hindsight and only to provide an example of things in recent memory. I never had holding in Marico Kaya or KTIL. But these examples have alerted me to the fact that de mergers if studied in details can provide good potential winners.

And above statement also has to be taken in context with the fact that I was discussing fertile areas for unearthing winners and just providing examples.

I had no positive views on Marico Kaya as a business … in fact had a negative view about it all the while and the stock price continued to fly. :weary:

For my part I was always sceptical about Marico Kaya’s potential bcos of stiff competition provided by dermatologists and plastic surgeons. Buying lasers and all other artillery for cosmetology practice is nowadays no big deal for doctors. And patients at the end of the day want to be treated by a qualified dermatologist or atleast in his supervision and will have more confidence in approaching him rather than a corporate entity like Marico Kaya. MK also employs dermatologists but there might be churn in doctors and patients might not be too comfortable with newer doctors.

But at the end of the day markets have their own logic and we will have to monitor what kind of numbers it keeps reporting.

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We already have a thread on Suven Pharma where a lot of knowledgable folks are providing great insights.

I tried looking at it but could not make much headway and hence gave up following it.

My apologies for the error. I’ll remove the post

True. That is a concern that even I have and actually I am more keen on their products business.

Argument against your view is that it takes years for a doctor to establish a brand whereas here even a new doctor becomes part of the process and therefore direct supervision may not be such a big issue if their services are standardized.

In terms of revenues - I think major part is led by bridal business and hair removal - not sure if the latter is catered by doctors at their clinics? Pl correct me if I am mistaken.

I think the valuation is also partly driven by high operating leverage and the potential of the Products business becoming sizable - they have allocated much more capital to Kaya Skin Bars of late.

The company will evolve from Skin Clinics > Skin Bars > Retail distribution of their products and the potential for that is definitely huge

Hair removal is the main cosmetology procedure in most dermatologists having lasers. So I felt that Marico Kaya may not make much headway there.

Regarding products business there are a lot of companies like VLCC and such similar companies besides MNCs like Vichy etc promoting their products. Plus pharma companies have hugely increased their focus on cosmeceuticals.

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