Hitesh Sir, kindly share your views on Mayur.
Sales has been flat in the last few quarters and promoter holding is consistently decreasing. Even though bottom line is growing, the market price has been flat in the last 3 Yrs! There is update on the share buy back plan they announced last month.
Is there anything covertly cooking up ?
Disc: Invested
Hitesh,
I have been reading your posts and have learnt few things from your stock picking style.
I also happen to have invested in HMVL and Sonata recently.
While building my conviction on Sonata, I came across few pointers which could be of concern:
I have only 2.0% allocation to this at the moment due to above concerns and studying the business.
I have been investing in IT industry for long time, but still would like to know your views.
Thanks.
Disclosure: Invested.
Sirji any particular stocks which you track in the 2 wheeler segment . Thank you.
@pradip,
mayur seems like a waiting game. Stock is consolidating sideways and giving time for triggers to play out. I have been surprised at steadiness in stock price.
@gsapte, Sonata remains a low downside bet due to dividend yield. Management has been talking about growth coming through in the international business. I dont have any fixed expectations in terms of growth rates.
@finrahul,
I track and own hero moto and mahindra in the auto space. Hero mainly bcos of resurgence of rural demand due to good monsoon and benefits of pay commission and mahindra again bcos of good monsoon and a possible defence spending hike in view of the IndoPak tensions.
Hiteshji
Is it advisable to give Mayur for buyback? Since the buyback size is 7.31% only, chances are low for all the shares being accepted.
Hi Hitesh,
Since you mentioned reading AR on Suven, wanted to get your thoughts on the prospects of the company (2-3 yrs from now). I have been holding it for sometime a little higher than the current levels and feel the opportunity cost as it may take time for things to materialize (probability also being low).
How do you view the risk reward ratio, especially considering their flagship candidate SUVN502? Also what kind of growth can we expect in the coming years?
Thanks HItesh for your response about Sonata. I also believe that, this is good dividend yield story available at attractive valuations thus protecting downside.
Hello Hiteshji,
Given the price of Canfin has significantly shot up , How do you look at companies like GIC Housing Finance from the HFC space. Would request your view on the same.
The new rules for dividend tax above income of ~10L came into effect from April 1, 2016.
So I think we have to wait and watch for how much dividend Sonata pays.
Mayur, R Systems are two companies which are doing small share buybacks instead of dividend based on my tracking.
Disc - hold Sonata, do not hold Mayur or R Systems, not a buy or sell reco
Hitesh Bhai how do you see praj Ind after 2nd quarter results. Eventhough lots of positive things happening not resulting in performance.
I view Praj as more of a thematic play with it expected to benefit from tailwinds of higher ethanol blending mandate. Any meaningful growth from newer businesses should be another avenue of growth.
Having said that till now company has now shown any meaningful growth in topline or in order booking.
But many a times these thematic plays take long time to play out but when they do play out the returns can be quite good. I would keep monitoring developments in the ethanol blending space.
In fact today I saw on cnbc Ambarish Baliga recommending Praj as one of his picks based on 2G ethanol theme.
Thanks a lot Hitesh Bhai
HiteshbhaiâŚWhatâs your input on Torrent Pharma after Q2? Is it good to hold it?
Sorry to bug in. No doubt the results are bad even after excluding the GAbilify gains but we see increase in Domestic, Brazil and European Business. They have also acquired Glochem. Considering the current downfall [9.34%], I think more quantity can be added. Long term business still looks intact and do expect more depressed earnings going ahead.
torrent results are lacklustre but I would tend to view torrent as more of a 2-3 year story atleast. So these quarterly results would not mean too much.
Prices would of course fluctuate depending upon these quarterly results but overall I expect the company to do well over next few years.
Thanks for your input. Mayur is in consolidation since long time. What is your analysis about uptrend possibilities
Hitesh,
I also have query about Mayur.
It has been stagnant after run up in 2014, since revenue growth was low (5% or so) and operating margins were expanding translating it to reasonable PAT growth of about 20%.
Going forward, will there be boost in revenues due to improvement in auto sector, footwear and export business OR do you foresee that it will take substantial time for revenue uptick?
I am observing it for long period of 1 year and can see that, now it is trading at much more reasonable P/E as compared to 2015 days and gives me more comfort if I have to buy, from 3-4 years perspective.
Any thoughts from your side will help.
Disc: Not Holding.
@gsapte, I dont follow Mayur too closely but a look at the price pattern suggests that Mayur is undergoing time correction before a major move. Fundamentally I think the PU plant was the big trigger which is long pending. The other trigger could be a major improvement in earnings trajectory.
rgds
hitesh.
Thanks HItesh for your prompt reply.
