Mylu long term Portfolio


(SMondal15) #21

Mylu…do you think Indigo and CDSL has pricing power?CDSL is at best a stable compunder. Pricing as per SEBI.I understand new stream coming up like education sector,demat for unlisted company, commodity trading
But Indigo ,is not this company in between transition. Where is the increase in yield even in this time when atf is trading higher, where will they deploy so many capacity in domestic routes.

What is your thinking if you can share.


(mylu) #22

Last time i had it for 30 months as after it , I felt the stocks are very high priced and time to book profit. so closed out all the holdings. Currently my plan is to continue SIP and no plans to sell. I will post the progress :slight_smile:


(mylu) #23

As you correctly pointed , CDSL is a very stable componder and patient accumulation is needed with long term vision.

I chose Indigo based on its market leadership and its management . They are in a stiff competition field and has been performing very well till date, I hope they continue this in upcoming days as well.


#24

If we could know if it is high, then we can sell when it is high and buy again when it has come down.

Please do post, thank you.


(1.5cr) #25

You seem to be adopting a coffee can approach. Usually you would want to bet on leaders in an SIP format. Businesses that in a sense always stay expensive due to their quality and their moat/market position. Companies with big pricing power and the financial ability to aquire disruptive cos. For eg: If patanjali was owned by VCs and an “entrepreneur” they would probably have been aquired or one of the big FMCG guys would have bought a stake in them and leveraged manufacturing and distribution.

CDSL: Does not have pricing power. SEBI decides whats what with them. There are better ways to play finacialisation of savings.

Interglobe: If indigo hike up their prices, they will lose market share. Where is the pricing power? Also where is growth going to come from for Indigo. The whole idea of a low cost carrier is built around short travel. The moment they go international they are competing against air asia and other nationlised quality airliners who can burn cash/make meagre profits/breakeven as they have no pressure to be profitable for the most part. We then have vistara coming in as well. Again there are better ways to play tourism. You can play it via forex cos like thomas cook, who have Prem Watsa at the helm.

V guard: I would request you to read into the business further. Look at other players in the consumer electricals space. For eg: CG consumer electricals.

I would say dont miss out on compoudning. Compounding even at 10% for a long period of time will result in very fruitful gains. Dont miss out.

I would say SIP into a portfolio of something like this: pidilite, asian paints, nestle, HDFC bank, RIL, ITC, Titan/3M, Kotak/maruti suzuki/3M , Crompton Greaves Consumer electricals and a Lupin/pharma leader. Go in for a simple 10x10 approach.


(tkmagesh) #26

I am a frequent traveler, and trust me even if price is not a deciding factor, I find myself traveling in indigo at least 95% of the time. They seem to have their services and schedules planned to well meet the market requirements. And they also have the best food and beverages among their peers. Most of the time indigo is packed to its full capacity but I have noticed other airlines are not so much. As long as the government regulations don’t crush them…


#27

Wouldn’t you choose another airlines if they offer a less fare?


(tkmagesh) #28

Provided they offer the services at the time of the day that suits my requirements, dependable, good food and customer centric, I will. But I haven’t seen anyone doing these in the past few years, to the standards established by indigo at the least


#29

Good to know that, thank you.


(mylu) #30

Thanks for your elaborate analysis . I have no intention of relooking on the stocks for now .