Hitesh portfolio


(A shah) #3639

Thank you so much Hiteshbhai for the crystal clear explanation as always .


(A shah) #3640

Hi Hitesh bhai,
Whats your view on 3m india stock for long term condidering high pe ratio ?
Many thanks


(vchhajed) #3641

Hi Hitesh ji, do you track Rajoo Engineers? Any views on the same? Thanks!


(Pragnesh) #3642

Hiteshbhai
Your views on mold tek packaging,apcotex industries?


(arpitjain512) #3643

@hitesh2710 Hitesh Bhai, are you tracking KEI industries ?
I see it had fallen close to 50% from 52wk high in the recent small/mid cap carnage and now has recovered well just 15% away from its 52wk high. The company has a diversified product portfolio of Cables and EPC projects with Retail forming close to 32% of revenue. From past returns point of view it has given stellar performance and its been a multibagger in last 5 years. However one concern I see it has always had a high debt with current debt to equity being 1.4. But this industry is capital Intensive, so may be debt is required. Also its a small cap currently but among the top 5 cable companies in India competing with havells/Polycab/Finolex etc. Let me know your vires on it ?


(sumit680) #3644

I checked up the annual report…total net profit for previous year was around 3 cr while promoters are taking home 1.93 cr home…is it not too much


(Hitesh Patel) #3645

@kumars1672

Multibase has the following products.

Silicon based thermoplastics, thermoplastic elastomers, masterbatches, etc. It has a range of products some of which are commodity type and others are specialised products. The user industries include automobiles, personal care, stationery, wires and cables, consumers and industrials, telecommunications, personal hygiene etc.

Market cap is still small because the company, its revenues and profits are small. It has grown well over the years but in last few quarters has hit a road block which is nothing unusual for small companies. My guess is company probably was affected by volatility in raw materials and currency fluctuations.

Since the company doesnt divulge much AGM remains the only source of asking questions about the business.


(Hitesh Patel) #3646

@arpitjain512

I was invested in KEI inds having bought it during the market correction. It doesnt qualify as a great company for me. Its more a laborious business with strong industry tailwinds and a strong positioin in the industry. But every concall you hear, the management keeps mentioning about some or other capex going on.

I recently exited the stock utilising the rally as my returns expectations were met. On the charts it seems strong but since my targets were achieved I exited. I dont consider it to be a buy and sleep kind of company. These kind of companies have to be bought cheap and sold when they approach fair value or exceed fair value.


(Hitesh Patel) #3647

@Pragnesh I dont track mold tek or apcotex.

@vardhmanchhajed I dont have much idea about rajoo engineers.

@bullrun1988 I dont track sankhya info or ducon infra. If there are doubts about management integrity its better to stay away unless its bought as a trading bet. There too I would prefer good quality companies.


(Hitesh Patel) #3648

@A_shah

3M is one of the better companies to buy for the real long term. The parent keeps introducing new products suitable for the Indian markets and a lot of these are innovative products where there is literally no competition.

Once these kind of companies are recognised by markets they will always remain expensive but if bought at reasonable prices or accumulated over a period of time by staggered purchases it can be a good anchor stock to give stability to the portfolio.

One needs to get out of this PE ratio mindset. PE ratio is only one of the parameters to look (if at all) while evaluating the company. One has to first see the opportunity size in relation to market cap, business quality, management quality and lastly valuations.


(rockabhig) #3649

Sir, What’s your view on Pokarna and Acrysil India ?


(bullrun1988) #3650

Sir are you tracking Godrej Agrovet?? From fundamental point of view i am confident about the company growth (my personal view) but sir your valuable comment will help me. Sir could you share potential list of stocks for real long term bet. :blush:


(arpitjain512) #3651

Thanks for the views Hitesh Ji. Agree it was available cheap during recent correction and has jumped a lot. Anyways then I think better to put money in Havells only in this sector and be rest assured.


#3652

Above is commendable. It’s uncommon to find people who publicly acknowledge limit of their know-how circle. A request if you do not mind to full-fill- do share the list of businesses that you follow due to excellent management or business qualities or both. Regards


(A shah) #3653

Thank you so much Hitesh bhai . [quote=“hitesh2710, post:3648, topic:658”]
One needs to get out of this PE ratio mindset. PE ratio is only one of the parameters to look (if at all) while evaluating the company. One has to first see the opportunity size in relation to market cap, business quality, management quality and lastly valuations.
[/quote]

This is great learning for me . Thank you so much for sharing your knowledge Hitesh bhai

Hitesh bhai,
Request you to please suggest as to how to go about calculating this with an example

How are hawkins cooker , La opala and TTK prestige stocks ?

Many thanks


(aashu24ahuja) #3654

Hitesh bhai,

I remember you have shared your inputs on Avanti Feeds, what do you think of the company now ? Last quarter results were good and show some signs of turn-around.

If we look at the price action, it is holding the base of 400 levels, do you think it is the right time to accumulate ?


(Hitesh Patel) #3655

@aashu24ahuja

Avanti still remains in my watchlist. The margins have been in the range of 12-13% barring the spike in 2018 when they shot through the roof due to favourable business environment.

The question we need to ask is at these kind of normalised margins what kind of valuations can the company command. As far as I can recollect it used to quote at around 10 PE and lower before it caught market fancy during fy 18. So I would like to watch some more time before taking a call.

On the charts also since the fall has been very sharp from a high of 970-80 in Nov 2017 to the recent lows of 306 in Jan 2019 there ought to be a lot of consolidation which could take form of some kind of range bound movement or long sideways (without any specific pattern) movement before it can start a meaningful uptrend.

I see people still interested and asking questions on avanti. The time when it stops and majority of people stop getting interested in it might be the time to get interested in it. :grinning: As of now it only remains in my watchlist.


(Hitesh Patel) #3656

@rockabhig I dont track pokarna or acrysil.

@bullrun1988 I dont have much idea about godrej agrovet.

@A_shah Its difficult to get an exact number to opportunity size. But even rough calculations can be rewarding. Consider around 130 crores population and find out approx no of households. Out of that remove 50-60% of households who cannot afford these products due to poverty or unavailability of gas etc. from the remaining try to figure out how many households would merit a cooker in their household. And one needs to replace a cooker every 6-8 years or more but because of more and more nuclear families coming up extra demand will be there. This should give rough idea about opportunity size.

Some companies which articulate well in their annual reports also give rough figures of market opportunity size. And then there’s always google to fiddle around with. :grinning:

Even company and sectoral research reports even if they are dated would provide some idea about opportunity size. One doesnt need to pin it down to the last decimal but a working hypothesis can be made using various tools. Sometimes the opportunity size is so big and apparent that one doesnt need to take it to the next level of investigation.


(S_Banerjee) #3657

Hello @hitesh2710 ji, It would be nice to hear from you about Deepak Nitrite(if you track) after recent IT raid incident. It was my big bet but after this IT raid incident I reduced my 80% allocation from this company. I prefer Promoter integrity above everything. Thinking to exit using this up rally.Please share your view.


(A shah) #3658

Thank you so much Hiteshbhai for explaining the oppurtunity size concept. I was finding it difficult but you made it simple now. Just one more thing how do we link the calculated oppurtunity size to market cap .
1 Another thing that i wanted to ask is i have seen theres a crash in every stock cycle. Was 2008 crash the most severe compared to others or was it similar in other crashes ? I mean does crash like 2008 happen every 8 years approx like 2000 crash etc or was 2008 rare event ? Should one expect 2008 like crash every few years or is it like 1930 a just one off and not expected to recur frequently at this magnitude?
2 Whats your view on multibase and MAS financial , hows the management quality and business quality ?

Many thanks