Hitesh portfolio

(Tejas83) #2706

Thanks Hitesh!

I understand it better now. :slight_smile:

(aashu24ahuja) #2707

Hitesh Ji,

It seems after PNB scam, market is pushing down PNBHousing also, should we consider this as an opportunity? Requesting for your views on the same.



Is Pnb fraud the tip of the iceberg and can spoil the sentiment of the market ? How do you see the whole episode ? Please share your thoughts.

(Galaxy) #2709

Hai Hitheshji…being a medical professional myself, admire your insight in to the market and the natural ease with which you explain things.
Will be grateful, if can give your opinion about FINEOTEX CHEMICAL LIMITED. They have come out with good Q3 results; consistent growth in revenue/PAT; good profit margin; consistently dividend paying; 38% export; good fundamentals; no debt; consistently increasing promoter shareholding to 72%; huge prospects of aqua strike( unique green, non poisonous mosquitoes breeding controller )…and so on… I have already started accumulating it. Kindly give me your valuable inputs. Thank you.

(Hitesh Patel) #2710

The PNB fiasco highlights the rot that remains in the PSU banks. But such a big blow will certainly make govt and managers at PSU banks sit up and take notice and probably lead to better lending practices. This fiasco itself might throw up some good opportunities if one can figure out which of the PSU banks are the better bets.

About the rub off effect of PNB on PNB HF sentimentally it certainly has hit PNBHF. But business wise I think it wont matter much. PNB might be induced to reduce/sell its stake in PNB HF once the mandatory lock in period post IPO gets over. If and when that happens it could provide a great opportunity. Till then earnings would be key.

@Galaxy, About fineotex chemicals I dont have much idea beyond whatever you have written. But whatever I have gathered about the company seems encouraging.

(morigh82) #2711

Hi Hitesh Bhai, What is your view on rising Bond yield on PNB HF’s profit growth? Also How will it affect the masala Bond yield which it is planning to raise with IFC?

(Sunil) #2712

Hi HiteshBhai,

Why is public sector housing finance companies are well managed, low npas, no corruption but public sector banks are badly managed? What makes the culture difference. I guess the people quality should be similar right?

(Hitesh Patel) #2713

@morigh82, If you listen to the concall of PNB HF, Mr Sanjay Gupta is very categorical and consistent in asserting that all he is worried about is maintaining his NIMs between a certain range. All these variables of rising bond yields and them opting for masala bonds etc are better left to the management rather than us worrying about it.

@sunilsurana, Its difficult to figure out why PSU finance companies have been managed very well and why PSU Banks have been managed poorly. I guess one of the reasons would be that the asset in question for HFC is a house which in the Indian context has a lot of sentimental value and people would not wilfully default. Plus the collateral value is always higher than loan amount and its very difficult to drastically overquote the value of a house. Same things may not apply for businesses who borrow from PSU banks.

Besides in housing finance the portfolio risk is fairly divided. e.g thousands of loans of 20 lacs to 1 crore versus a single loan of say 5000 to 10000 crores.

(Anupam) #2714

That’s a bouncer/googly ! Counter intuitive yet logical. Also it means earnings changes much faster than price that’s why extremely low earning makes PE high and sudden inflated earnings makes PE low…better to plot earnings or NP on a graph and buy when this has bottomed out for 2-3 quarters and sell when peaked for 2-3 quarters. PE might confuse.

(kk) #2715

hi galaxy regarding FCL…its cumulative PAT not converted into cumulative CFO so kindly look it once and if you are getting any input kindly share it…

(kk) #2716

[email protected] ji…kindly help me regarding how to find out reasons if any company is not paying tax

(nowin) #2717

@hitesh2710 First of all thanks a lot for responding to all queries and views in detail. This forum is of immense value for individual investors.

I have queries on 2 stocks -
Motherson sumi :- its one of my favourite stocks and my feel is coming 2 years should be good for sumi mainly because they are planning to grow with acquisitions , have 9 plants that will get activated in coming years. The global growth is expected to benefit motherson sumi. Also ,its has great expertise in auto components and they will have good share in electric cars as well. The management has been great and in most cases delivered what it planned. Infact their 2020 target is expected to be achieved earlier than expected.
In recent time motherson sumi has cracked about 20% and it is being said that this is because of lower than expected q3 result. I have been buying in this fall as well.

Can you kindly share your views on sumi and is there something i am missing.

  1. Hindustan zinc :- it has been a steady compounder for me and has good dividend yield as well. However ,one major risk is its commodity based. Zinc prices have remained high mainly because of closure of chinese mines. I try to track it on regularly but as i am not a commodity expert ,i feel jittery at times.

What can be a proper approach for stocks like Hindustan zinc. Is it something which i can hold for 15 to 20 years ignoring short term commodity jitters? Because Hindustan zinc is one of the cheapest zinc producer and has mines with high life. Or i should avoid it and stick to non commodity stocks ?