Hitesh portfolio

Rits,

If one has a 2-3 year view it seems both ajanta and alembic could be offering good entry points. But in short term due to market volatility there will be some jitters. Ideal thing is to stagger buying in lots. (although i personally buy my fav stocks in a single or at most two lots.)

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Hitesh bhai - any views on Vishnu chemicals and Vadilal Industries?

Not any idea about either of them.

Hitesh Bhai,

Is it right time to Sell HFCs at 3x P/B value and Buy PSU bank available at ~1/4x P/B or Private Banks available at ~1/2 P/B. with a view of medium term 2-3 years?

Thanks,
Vishal.

hi

Yours might be an interesting strategy. As I see on screener, sbi book value is around 220 and cmp is around 170 or so. But risk is sbi might go even lower if it has to incur more write offs.

But who would want to let go of his growth machine like canfin or repco?

But at a certain price point the switch might make an interesting strategy but since I dont have too much expertise in pricing the worst case scenario for banks I usually refrain from these bets. You can read a well written article by rajat setia/rohit balakrishnan on their blog armchairinvesting . u can google it and find the link.

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@hitesh2710, How about AB Nuvo? Another NBFC kid growing rapidly. There is a separate thread for it. They created a Housing Loan book of 1000 cr in a year. Seems very undervalued for the future plans they have.

Hitesh bhai not able to find the blog of “rajat setia/rohit balakrishnan on their blog armchairinvesting”. Will you please or anyone please help me ? I want to read the article.

@catchsudipto

Not much idea about ab nuvo or its HFC subsidiary. there are plenty of players like sundaram finance, l&t finance etc which have an HFC in its fold.

Gradually the space might get crowded but till the pure play HFCs keep reporting decent growth figures, it seems the music might be on.

Hiteshbhai. Very keen to know your view on this. Will this be death knell for API exporters ?

I tried searching on net…didn’t find any such article. This is a big news if true and not sure why only Hindu will publish:confused:

One should not panic unnecessarily. This is only for US Government contracts. The US Government procures medicines directly for army, war veterans etc which are given at subsidized rates. For these contracts formulations had to be made in the USA. They are now trying to make sure the APIs are also made in USA.

This is not relevant for normal business. If you have an Indian API holder selling to someone making formulations to US Government you have to worry. Otherwise you are okay.

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here you go

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Thanks a lot Sanjay.

Hitesh bhai can u Pl Guide what happened to midcap pharma Eg shilpa,granules,aarti sudden fall. there was enough clarification regarding us API that it’s only for government tender business. Difficult to understand logic…kindly guide

Mukesh,

I guess the market reacted to a report on Hindu Business Line about US banning API’s manufactured overseas.

Here is a clarification post. http://capitalmind.in/2016/02/misleading-reporting-indian-pharma-company-apis-are-not-banned-in-the-us/

Cheers,
Praveen.

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Hitesh bhai - Both Torrent and Alembic has declared good results. While Torrent has low pipeline in US (management has been giving strong guidance for more ANDAs in US) has better presence in Germany and Brazil. Alembic has better pipeline visibility in US. According to you if one were to pick one which is a better play from a 2 - 3 year perspective?

I like Ajanta more as compared to both Torrent and Alembic - Ajanta is yet to start its Journey in US - where do you see Ajanta from a 2 - 3 years perspective?

Cheers,
Bhavesh.

Disc: I am invested in all three - Ajanta, Torrent and Alembic - names are in the same order of my investments in them.

I have replied to similar queries before. Each company has its own merits and drawbacks. If one is confused then it would make sense to hold all three.

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Hi Hitesh Bhai,

What is your technical view on the stocks you hold/broader markets?
Thanks

hi hitesh,
i remember you were tracking hawkins. company reported good no’s. (bottom line may be because of low base. but top line is decent). even ttk reported good result. hawkins looks somewhat attractive now even on PE basis. do you think one can use hawkins as a parking place now?. or perhaps even consider investing with a 10-12% cagr expectation?