Hitesh, in the hindsight, this was a superb post you wrote beginning of the year. The market in the last 8 months has behaved so close to what you wrote in the post!
Will be helpful if you could share what’s on your checklist at the point of time and why.
Below is my checklist. Please do share your thoughts-
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Kajaria tiles - The stock has corrected 50% YTD and is reasonably valued on historical valuations. Though the tiles market is very competitive and no player has pricing power, Kajaria has always stood out in terms of branding, new products, vast dealer outreach etc.
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Eicher motors - The stock has corrected 20% YTD & looks reasonable too. While there are concerns on workers strike in their Tamil Nadu plant, competition, brand fatigue etc. Eicher has always stayed ahead of the curve by launching new products, entering new domestic & international markets etc
3.Britannia - The 100 Yr old company is up 23% YTD despite market pendulum swinging wildly in recent months. The moat the business has is undoubtedly strong, justified by their 100 Yrs of existence.
4.Relaxo - It has one of the simplest business models. The business is immune to rupee depreciation, oil prices, trade wars, Trump etc etc.
5.Balkrishna tyres - Despite 20% correction YTD, the stock is still expensive on historic valuations. The recent decision to set-up a manufacturing facility in US has raised a few eyebrows. Nonetheless, Balkrishna has stood the test of time. It has clean balances-sheet, geographically diversified customer base & great growth plans for future.
Gruh Finance, IndusInd Bank, Bajaj Finance & TV Today are also on my check-list. Any further 10-15% fall in current price makes them good buy, in my understanding.
I am more a data-excel guy like @Yogesh_s! I have looked at the Cash Flow, P&L and Balance Sheet of these companies and haven’t found any major concern.
I am all ears now to hear from you 