The 5th monthly meeting saw a rather subdued attendance of ~40 possibly owing to the India England match. The session, held at the usual venue and time of KJ Somaiya Polytechnic and Sunday 2pm, saw a slightly different format of fewer ‘full’ PPTs, and more ‘my top stock idea’ sessions of 15-25min, where people discuss their top stock holdings.
The full PPT was by Dhruv Shah @dhruv hich featured Intrasoft Technologies, a Kolkata based company which operates 123storesInc, an ecommerce seller getting 70% revenues from Amazon. The session saw discussions on marketplace model, moat evaluation and debates on growth vs margins vs working capital tradeoffs. The investment thesis relies on EBITDA reaching ~5% of sales(from present levels of ~1.5%, and historic levels of 10%), and it remaining working capital negative and capex light.
The ‘my top stock idea’ session had the following PPTs(comments that follow are MY takeaways/thoughts, not necessary what the presenters said, see the PPTs for that)
Sastasundar Ventures(formerly Microsec securities) by @krishari -a NBFC turned core investment company turned epharmacy. Presently they are Kolkata based but have ambitions to scale up.
Indraprashtra Gas by @sharrmasks has seen things working out well on pricing freedom input costs, raw material allocation, friendly policy environment of PNG/CNG etc and hence trades at historically high multiples that factor these in. While it has a long growth runaway, and has a long track record across economic cycles such priced to perfection stocks could see multiples compression even if 1 engine stops firing.
Poddar Developers by @Samar is a Mumbai based affordable housing company, which has its marquee projects in Badlapur. Promoter has the affordable housing DNA as evident from pricing, marketing and construction decisions, and is debt free, thereby helping him resist the urge to ‘launch new projects at any cost’. It is still considered a story stock, but again has a long runaway due to ~21M housing units shortage by 2021.
Take Solutions by @mvmakadia is a Shriram Group promoted, pharma regulatory data management firm which pivoted in the last 5yrs from the supply chain business. They have a large addressable market, poised to explode due to regulatory factors of patent cliffs, filings need etc, and also as they solve a major customer pain point. This firm reminds me of hidden champions.
Kudos to Chandrasekhar @sekhar for helping with the venue+logistics, and Yogesh @Yogesh_s for the successful idea on the my top stock idea, and also reviewing the PPTs in detail, and to @raahill for PPT review.
Important note: Those interested in attending the next sessions please add yourself to the mailing list on https://groups.google.com/forum/#!forum/valueinvestormumbai Those desiring to join the Whatsapp group please inbox ANY(NOT ALL) of @andy161161 @Yogesh_s @narender -the direct link is suspended for now. DO NOT PUT YOUR MOBILE NUMBERS ON THIS THREAD. Those who wish to discuss their top stock holding can contact Yogesh, or me, and please put your details in this thread too https://docs.google.com/spreadsheets/d/1pEmAKdWglfA52KoX-APQME9xfM7ami9JrUlNJTFmRSw/edit#gid=0
Presentations are below. By downloading them, you agree that all investment decisions are at your own risk, and that this is a business analysis not necessarily an investment recomendation
Poddar Presentation.pptx (89.6 KB)
20170122 - Take Solutions presentation.pptx (109.9 KB)
Intrasoft Technologies - Valuepickr.pptx (2.4 MB)
IGL - Final .ppt (1.4 MB)
SastaSundarVentures.pptx (69.3 KB)