Hitesh portfolio


(Hitesh Patel) #3659

@S_Banerjee

There has been no follow up about the outcome of IT raid on deepak nitrite. I had an interaction with a friend who had visited the plant and his feedback was quite positive about the quality of the company’s plant.

Regarding the business of the company phenol/acetone remains the space to watch out for. The company aiso is doing very well in the original businesses and profitability and revenues is increasing in those businesses as well.

Regarding promoter integrity I have not heard anything too negative about the promoters. IT raid can happen in any company and that should not put any doubts on any promoters. If something hanky panky comes out of it then only one needs to take a call.


(ankitchandra) #3660

Sir, may I know your views on trident Ltd in case you are following it. Products are really good.


(Gagan) #3662

hello @hitesh2710 ji, can you please share your view on Unichem at current prices(~194), MCAP= 1,366.
i see you use to track Unichem, lately they sold India Business to Torrent… so they have surplus cash(1500), no debt and they plan to invest some cash for growing International business + API’s… currently International business is loss-making… and Unichem already did 1 buyback(430) and management indicating another one… specifically what is your assessment on management…? as in such slump sale cases management can easily siphon of funds…
Thank you!


(ValueInvstr) #3663

How do you see Avanti’s valuation multiple in the context of Peter Lynch’s take on cyclicals? The P/E multiple of a cyclical company should rise at the bottom of the cycle as the ‘E’ in P/E hits bottom before it starts to revive. Would you start getting interested in Avanti when the price-earnings multiple peaks?


(kapilgokharu) #3664

Hello Hitesh Bhai,

I have just created one topic on Value picker for a company named 5paisa capital would like to see your replies on the same.

Thanks
Kapil


#3665

Sir, Stay away from Sankhya., one of those companies which much be not touched even with barge pole


(ankitchandra) #3666

Sir, may we know your views on Tridents Ltd ?


(bullrun1988) #3667

Sir, Could you share your points regarding sankhya?
As in past so many positive things happened in sankhya infotech like

  1. Mr. Bhaskar Pramanik joined the sankhya board as a Independent Director - Bhaskar Pramanik was the former Chairman of Microsoft India joined the
  2. The Audit Committee consists of Mr. Bhaskar Pramanik,
    Chairman
  3. Recent development- US Defense Major, General Atomics Collaborates With Sankhya Infotech For Providing Simulation Training Technology.
  4. LATEST NEWS : Sankhya providing training for upset recovery for B737-MAX

(sgkfinance) #3668

Hitesh,
I’ve always wondered how big individual investors acquire large share positions in individual companies. Is it through demat accounts (with trading and related fees) like everybody else, through bulk deals (don’t know how they work and how one can get into it) or is there some other way.

Is it ok to ask which option you prefer.


(Hitesh Patel) #3669

@gagandeep

I had looked at unichem some time back since it was a cash bargain. The enterprise value comes almost equal to cash and equivalents in balance sheet and the usfda approved plants and the export business comes nearly free.

Concern here would be how much can you trust management not to siphon off money a la LEEL. But in unichem i feel management conduct till now has been above reproach.

Triggers could be another buyback/dividend, improvement in export business numbers. Till these triggers play out stock price could remain sideways


(Hitesh Patel) #3670

@ankitchandra

I dont track trident or any other textile company


(Hitesh Patel) #3671

@sgkfinance

I would love to be a big individual investor before answering the question. :grinning:Just hope I am in a position to answer you as quickly as possible :grinning:


(A shah) #3672

@hitesh2710 Hi Hiteshbhai,
Which according to you is a better company for long term amongst Hawkins and TTK prestige ? Hawkins is having great ROCE of about 60% plus but not that great growth and TTK prestige is showing good growth but decent ROCE of about 20% ? How do both companies compare in management quality and which is better for long term ? Many thanks .


(narenarora) #3673

Hi
There is some contingent liability of approx 100 cr related to its UK subsidiary. I remember reading about this in quarterly result notes.

Regards
Disc. Tracking


(Hitesh Patel) #3674

@A_shah

Roce without growth creates little value. And this is amply reflected by the difference in wealth creation by both companies in past 5 years. While ttk prestige has shown near consistent growth, hawkins has been patchy in terms of growth and hasn’t created much wealth in last few years.

Markets are usually obsessed by fast growth for long periods of time and thats where wealth is created.


(zulfiqar) #3675

This year Hawkins could see a growth of nearly 20% could there be a investment case, or v have wait for 2 years of good growth for it come into investor radar


(sjain_13) #3676

Hitesh ji, as per my discussion with company, sales from existing clients of mercator will be split between Mercator and Accelya and that too if and when the new platform of Accelya is deployed at the customer of Mercator. Also, major part of this revenue shall go to Mercator and a smaller part will accrue to Accelya.

However, the sales is institiutional and sales process is usually long and lumpy. Given the fact (as stated by you), non customers would also be tied in to competitors, it may become all the more difficult to break away the customers from competitors. A competitor can easily offer a lower rate on existing product as incremental costs are not there.

I think incremental revenues will come from more tickets with increase in passenger growth and also shift from legacy - owned software being used by other airlines + new s/w development work that may be offshored by parent + mercator.

I think a small part of incremental revenues (owing to growth in passenger traffic) + bulky revenues from one off lumpy deals is the right way to look at this stock. Happy to understand your veiws


(A shah) #3677

Thanks so much hitesh bhai . hows the management quality of ttk prestige compared to hawkins ?
Another reason i am asking is that i find lot of discussion on hawkins but not on ttk prestige ? am i missing something in ttk prestige. Many thanks


(shikhar mundra) #3678

Hi Hiteshji,
Are you looking at commodity companies like sandur manganese , prakash industries, godawari power , etc. right now. Most of them are availlale at very low P/B . When the market emerges from a bear cycle these low value dirt cheap stocks are normally the first ones to rise or rise the fastest. Even if we assume most of them are at peak margins , due to low valuations they still provide a margin of safety. There seems to be a wonderful opportunity here or am I missing something?

Regards


(Hitesh Patel) #3679

@Shikhar

I have looked at the commodity companies. Analysing them fundamentally is beyond my undertstanding. But I find charts provide a good clue to the direction of stock prices of these companies can take. As of now I have seen inverted head and shoulders pattern in tata steel, sail, jindal steel and power. I also like the charts of godawari power. Overall if the chart patterns in these companies play out then these can provide decent and quick returns.

I agree with your assessment of these cyclical companies but cannot dig too deep fundamentally. Charts of most of them esp steel companies look good.

rgds