_Hope u remembered on ccl. _
When I started my investing process I was looking for high RoCE, RoE, +ve cash flow from operations and positive free cash flows,zero debt, no share pledging, high dividend yield. As the list of companies with all the above things started getting exhausted I started relaxing some of the above filters. Like I was ok with slightly less dividend +ve CFO but no FCF if growth capex was happening and so on.
CCL might have faltered on one of those filters. Or it could be something as innocuous as stayingaway from a Hyderabad basedcompany.Anyway I dont like owning 15 to max 20 stocks. I already own 17 stocks. So everytime I buy something I need to compare it with something else. And I get it wrong multiple times. For eg. I did not buy Ajanta Pharma in May 2013 because it had share pledging. Instead I bought Alembic Pharma. I came back to Ajanta in Sep 2014 and bought it even though it has share pledging when I read on value pickr that they are pledging shares to buy more shares. I am still uncomfortable with this. So if your research is solid on CCL Products I guess there is nothing to worry about.
Waiting for your inputs.hv u studied premco.
I glanced at Premco Global. Looks like a promising micro cap. The tiny market cap worries me though. Will be difficult to get in and get out. Have had a bad experience with Premier Explosives in 2012-2013.
any other scrip u like at CMP?
There is no margin of safety in 99.99% of stocks now.
Amongst stocks on my radar there is valuation comfort on Swaraj Engines. 1105crs market cap trading at 16x P/E trailing FY1434% RoE, 48% RoCE pre tax, 4% dividend yield, zero debt. Company running on full capacity so growth in 1HFY15. Capacity of engines will go upto 105,000in April-Jun 2015 from 75000 which will give you growth next year. Solid promoters (Kirloskar and Mahindra). Supplying tractor engines to Mahindra and Mahindra. Last year base of tractor sales was very high. So this year no growth on high base. Next year market expected to growth 10-12%.
I analyzedNirlon and regretted missing it (especially given I holdNESCO and could appreciate Nirlon).The stock has run up now.
I also workedon Mayur Uniquoters. Looks pricey and looks like I have missed it.But I still hope to buy it sometime.
Given the expensive markets even Vardhman Acrylics looked promising when it first was brought up for discussion on Valuepickr. Before I could make up my mind it ran up.
I also bought some more MPS at Rs760 yesterday at 20x FY15E.
A bubble is forming in small and mid caps and honestly I dont know what to do. Valuation wise I have comfort on only 1 stock in my portfolio "Swaraj Engines"