CCL is discussed in details in the respective thread. It has been relatively resilient in this carnage in the small and midcap space.
Business wise the management looks like doing all the right things but I dont see them growing faser than 15 % or at most 20%.
I havent had M&M in my portfolio. It has had a big correction of late but I dont follow it too closely.
Abbott and ITC can be long term compounders. But things like HDFC Bank could be a better choice especially in case of price correction affecting these large caps.
APL Apollo is a company I have followed since few months but results have been disappointing so far. There have been transient reasons for the same and once these near term concerns pass away it looks like an interesting company atleast based on past track record.
CCL discussed before.
AIA is a very niche company dominant in its sector of operations. And it could be one of the best plays in the FMIG space.
Hiteshbhai
What is your opinion of Jenburkt pharma?
As a medico,i think it has good branded generic products.
Last 3 years growth is also good.
But i can not understand why it has very low asset.They have not expanded since very long tine.
With fixed asset of just 11 cr,it has profit of18 cr.
Am i missing any thing ?
Jenburkt growth has been tepid. Its hardly grown consistently above 15-20% cagr. What has happened in last 3 years is margins have improved consistently since March 2016 and hence profits have grown at a higher rate than sales. Plus there was some excitement in the small and midcap space prior to Jan 2018 and probably price overshot into the frothy range.
Now it seems its back to its deserved valuations. If the company can manage to show strong growth atleast 20% cagr or more in topline with commensurate profit growth then further re rating can be seen.
Asset base could be low probably because a large part of manufacturing is outsourced. (dont know the details)
Products of the company are good but in the domestic prescription market its a very fragmented and tough market. For a company to grow fast it would take a lot of smarts on the part of the management. I dont track valuations too closely so not much precise idea on that front.
What is your view on potential of ICICI Bank after Chanda Kochar removed?
@Hitesh2710, sir What is your view on Insurance space specially like HDFC Life, SBI Life and ICICI Pru Life in light of greater share of Protection business and completely different distribution channel like bank, increasing Digital sales ,direct sale than agent dependent LIC.
Also your view on General Insurance space specially on ICICI Lombard , tailwind on retail health insurance and lumpy 3 year & 5 year upfront premium collection for 3 Year and 5 year mandatory Motor insurance package.
I would like your view on Reliance Nippon.
At this price a 4% dividend yield, huge opportunity size, great business model, dividends alone will increase a profits and growth increase.
Even if we dont see any re-rating, dividends alone due to the business model and growth prospects will be great. Nippon will keep a check on governance and make sure that the ICDs dont go overboard and compromise the company. Over time Nippon can buy out ADAG. Even if they dont and perception does not change, dividends and opportunity size can drive returns to a large extent.
Do let us know your views!
I dont know too much about Reliance Nippon. But NIppon keeping a check on ADAG group and then try and buy out ADAG group â this kind of thesis seems too far fetched to me. Just to consider an example, Tata Docomo suffered inspite of Tatas being at one end and Docomo at the other end.
Dividends, opportunity size etc dont mean a thing if promoter integrity is believed by markets to be questionable.
I would rather go with a similar business from the HDFC stable (if at all) if I want to ride the space.
Large opportunity size means something only if I remain invested for a long time and that can only happen if I have the comfort of a decent management at the helm.
Of late there has been a lot of recommendations on ICICI bank based on cheap valuations wrt HDFC Bank. Even axis is being talked about in the same vein.
With the exit of Chanda Kochar it seems a big load is lifted off the company. Atleast thats what a lot of brokerages and advisory services feel.
I personally think if I have to invest in a private bank I would still go for HDFC Bank maybe with staggered buying. As of now I am not invested in any banks. I have kept looking at HDFC Bank and dcb bank.
I have yet to educate myself on the insurance sector. As of now I feel its too complex for me so not trying. But if we think of a lot of wealth created for Buffett, GEICO was one of the big successes for him. So for someone who understands the sector and how to value the companies therein, it could be an interesting sector.
@mahesh1980 I dont track Bosch too closely so not much idea about its 5 years prospects.
Hi Hiteshbhai
Was checking out sundaram clayton as it holds stake in tvs motors , however whats the reason that its pe is 118 ? Dmart is overvalued but still has growth expectations which i couldnt find in Sundaram Clayton . Please let me know if i am missing something here . And the price too is showing a continuous fall . Even roce is not that great . Many thanks
May be the site you were seeing has calculated P/E based on standalone earnings. It is 14.36 based on consolidated earnings.
https://www.screener.in/company/SUNCLAYLTD/consolidated/
Thanks @sujay85. In that case is it correct to assume that if one buys sundaram clayton, one gets tvs motors holding at a lesser valuation. Please guide as i am a novice investor. Hows the business overall ? Many thanks
I am in your league too. 
Havenât studied this sector specifically. But the discount that you might be getting is holding discount which is less likely to go away. So itâs better to invest in the company judging its own operations and growth prospects, given that it is not a holding company overall.
Thanks @sujay85. Am really perplexed as to why some holding companies get better valuations and some languish for long . Is it because of operating vs non operating? @hitesh2710 , Hitesh bhai, it would be great learning for us and request you to please give your view on the holding company query.
Hitesh bhai ,Also am i correct to assume that difference in valuation is because either the holding company is not anticipated to sell the investments in the near term or is it because many a times shareholders may not get the proper values out of such sale . In such a scenario how should one decide on investing in holding companies ? Many thanks
Hiteshbhai, Would like to know your view on Gateway Distriparks. Company in good business of logistics with reasonably good performance. Is it a bargain at current price with very good dividend yield ??
Thanks
@hitesh2710 Bhai, how a company like CARE Ratings thrive without a promoter? Is this because it works in a highly govt. regulated space? Isnât it a high risk bet because of this?
Update: Found this article
What next, Crisil? | Mint
Looks like Crisilâs acquiring of ~9% stake of CARE makes it unattractive for anyone else, except LIC (9.85% stake) to make a takeover. However, both can take their shareholding over 10% and become Principal Shareholders. There is no regulations regarding this!
@SMondal15
on a side note, comparing the growth explosion of GEICO with local insurance wouldnât be fair. The huge growth that GEICO recorded was based on very low base after Buffet took control of it and then its unique business model (at least at that time back in 90s and 2000s) of going direct to consumers (-- resulting in lower cost to consumer and at the same time enabled GEICO to push lower quotes) â and on top it increased technology adaption in US in last 20 years, even if we donât consider the very high auto ownership ratio in US (again various factors come into play for eg. majority of working class, weather conditions and long travels etc.).
