Hitesh portfolio


(Hitesh Patel) #2441

@gautham,

Some pharma stocks have given good rallies, to name a few, divis, aurobindo etc. Most of the rest like lupin, sun pharma etc seem to be languishing near their recent bottom levels. Fundamentally there seem to be some positive developments in individual company levels. Since there has been a continuous slide in most pharma companies since past few months, there is bound to be some bounce. I still cant figure out whether the correction in the pharma cos is over and a new bull market has begun or not. My feel is it would be a while before a strong bull market would begin. Indivisual cos might sizzle based on newsflows but overall sectoral bull market seems some distance away.

Stocks which have rallied recently and those that have managed to post 52 week highs need to be watched closely and their fundamental triggers should be monitored closely.

In my personal view I like cos like Lupin, Dr Reddys, Ajanta etc.

@sanman, I dont track SML isuzu.


(Hitesh Patel) #2442

@Paraache,

I think you mean movement from unorganised to organised in point 1. Nice line of thinking though. That theme has been playing out in different sectors and has led to a lot of winners in the past. It will continue to provide winners in future too.

Financialisation of savings is a very ineresting theme. In the listed space there are a handful of companies worth looking at and they have in the recent past been growing at a fairly decent rate and are likely to continue to grow. Many of them have run up quite a lot but there could be more. These could provide good returns.

Govt spending on infrastructure is likely to be a big theme and will keep accelerating. Sectors like roads, bridges, ports, railways, waterways, smart cities, electrification etc will be the places of interest. Finding good quality companies which can or have grown well would be interesting.

Currently I see the financialisation of savings them to be interesting mainly because it is easy to find good companies in the sector. In govt infra benefeciaries its difficult to find out good quality infra cos which could be winners.


(mntolia) #2443

Hi Hitesh.
I like to read your analysis on companies and sectors.

I wanted to know is the 1st post on of the topic your current portfolio as on this date?


(Yushma) #2444

Hijeshji,

Do you still think PI is in the buying zone if we are looking from a 2-3 year perspective


#2445

Hi Hitesh. are you still tracking Mold Tek Packaging ? please share your views


(shabeer) #2446

Hai Hitesh,

I’m New to share market. I have a doubt. Can I buy shares from NSE and Sell through BSE on delivery basis? Now Nitin Fire in quoting 8.85 on NSE and 9.58 on BSE. I have holding which I have bought from NSE.

thank you in advance


(Nitin D'Souza) #2447

Hi Shabeer,

What you want to do is called Arbitrage Trading. Please google for it. This link might help you, https://shabbir.in/arbitrage-trading/


(Divyanshu Taneja) #2448

Sir
What are ur views on ccl products and premco global
Thanks


(Hitesh Patel) #2449

CCL products is one of the better b2b companies in coffee space. The success of retail venture remains an optionality that could play out.

I dont track premco or mold tek.


(Gary) #2450

I happen to come from engineering background so won’t call my fellows as laymen but in our whatsapp group I see many a discussions that were absent a year ago.

The other thing I am worried about is how equity is becoming new real estate. Most people I know from middle income bracket have nowhere to put their savings and unless a big crash happens, most such people would have ability to hold… So I expect a lot of time corrections


(paraa) #2451

Hi Hitesh bhai…Thanks for answering…Yes i meant movement from unorganized to organized players especially in sectors like realty (RERA impact) .

For govt spending on infra i would like to know if you track dilip buildcon…(Fantastic exedution record,Strong order book and decent balance sheet )


(Ankur Lakhia) #2452

Hitesh bhai,

Housing finance is leading sector of this bull market and Canfin homes is one of the leaders. Stock has corrected by 20% or so in last 3 months. I heard many times that one can not expect more correction, price wise & time wise, from leading bull market stock. So can we conclude that stock has taken enough rest and is ready for the next phase of its bull run? I would like to know your views as you put across your views in such a way that it removes lot of doubts on the subject.


(Hitesh Patel) #2453

@ankur Lakhia,

First of all there are no rules of thumb that the markets need to follow in any aspect. With that disclosure, I think it is usually observed that stocks which are in strong uptrend and which are in sectors leading the markets usually dont correct more than 20% from their tops.

In case of Canfin it has corrected close to 20% from its top and is now very close to its 200 day moving average which is a sort of buying zone for long term investors whenever a stock corrects intermittently during its long term uptrend.


(Ankur Lakhia) #2454

Hitesh bhai,

Thank you for super & quick reply.


(newrb) #2455

Hi Hitesh

After noticing JM Financials in one of your portfolio updates, I wanted to take a closer look as I have not invested in any asset management and investment banking company till now.

Having gone through JMF FY16-17 AR, it appears that most of their revenue and profit is through fund based/lending business rather than asset management business. They have a decent size loan book Rs. 11K crore with Rs. 8K Cr to real estate developers. Real estate loan book is going fast - 5.6 K cr to 8K cr. between FY6 and FY17. They have also applied for Housing Finance and SME lending.

There are two tables on page 85 in the AR that provides segment wise revenue, profit and capital employed. 74% of capital is employed in fund based business (mainly lending) generating 80% of the profit. Invest banking provides 15% of profit, remaining businesses chipping in the rest.

I want to look at -

  1. previous years AR to see if the business mix has changed over the years.
  2. compare with other asset managers like MOSL.

In the meanwhile, wanted to get your views - Do we value JM as another lender or asset manager?


(khushi) #2466

Views invited on Vikas Wsp, equitas, jyothy labs, etc.


(gkg) #2467

If we could do the post·mortem on the rise of Astral to 760 level now?


(Hitesh Patel) #2468

@khushi, I dont follow the companies you mentioned.

@gkg, I exited astral a long time ago mainly due to the oft repeated forex issues that used to plague the quarterly results. I couldnt do a post mortem because I dont remember the morphology of the body.:grinning:
I dont follow it too closely now.


(amitjain2711) #2469

Hi Hitesh,

On another note, are you still holding Manappuram Finance. Disappointing results vis a vis Muthoot. Muthoot NPAs have increased tho. Next quarter should be better or do you think there is still more pain ahead. Will it be wise to still have high allocation to Manappuram?

Cheers
AJ


(Hitesh Patel) #2471

amit,

I exited Manappuram some time back as I did not like the spike in NPAs due to the microfinance arm. Although co remains cheap on valuation basis, I felt that it might incur opportunity costs.