Vivek Gautam Portfolio


(Vivek Gautam) #344

To those who says IPOs imply Its Probably Overpriced see some eg of wealth created by IPOs even if one bought on listing & mentioned as good stocks to buy by me inthis thread itself.

  1. MRSS FPO @ 114 in Dec 16 .Listed at 140 now 525

  2. Dilip Buildcon IPO @219 in Aug 16 listed at 225 now 605

  3. Sheela Foam IPO @730 in Dec 16 listed at 855 now 1314

  4. Shankara Building [email protected] in April 16 listed at 555 now 1184

  5. DMart [email protected] in listed at 590 now 1039

  6. PSP Projects IPO @210 listed at 190 now 331

  7. PNB Housing [email protected] LISTED AT 850 NOW 1635

  8. ENDURANCE TECH [email protected] LISTED AT 570 NOW 993

  9. ICICI PRU [email protected] LISTED @300 NOW 433

There are several other examples as well . So one should not have the mental bias against investing in IPOs.These IPOs if bought on fist day first show to use colorful language of BM create huge wealth as can be seen over last several years.

I think Apex Frozen Foods IPO @175 getting listed on 4 Sep 2017 could be another such good wealth creation opportunity where I applied in HNI category as HNI subscription was less .

These quality T2T IPOs of size less then 250 Crore at time dont get much subscription in HNI category due to lack of IPO financing & one can get good allotment. PSP PROJECTS WAS ANOTHER such example.

Offcourse one needs to thank current bull mkt due to Modi govt & domestic liquidity for the good run.

Apex Frozen has good n rare combination of 25% + RONW & CAGR plus low valuation,huge n increasing opp size and sector tailwinds .Company to be closely tracked.


(Santosh Dave) #345

Pl share your views about Aditya birla capital being listed on 1st Sep


(Vivek Gautam) #346

Dont track it closely. already lot of NBFCs in portfolio,Around 175 cud be a buy


(Kumarsids) #347

Hi Vivek

I was expecting Sintex Plastics to do much better since the laggard Textile business got demerged. However seems street has a different view altogether. The selling by one of big FII also didn’t help the cause much. What are your views ?

thanks
Kumar


#348

With the kind of corporate governance Sintex has, market is unlikely to value it higher.


(Vivek Gautam) #349

Sintex Plastics issue cud be of FCCB holders who have held it for long selling this laggard of their portfolio.

I believe one last tranche of conversion is still pending.Once this selling is finally done the overhang should be gone.Dec 17 qtr results should be good specially in view of poor Dec 16 Results due to DM.

Promoter quality remains a concern.Hopefully they have learnt the lesson & realise why market is giving them low PE. Once the perception changes PE cud rise.Valn any way is v cheap with fy 18 EPs cud touch 9-10 imho. Views invited_

Discl- Invested since Jan 17.


(Vivek Gautam) #350

Did any buy Apex Frozen in preopen or subsequently when it was available ?

I bought in preopen at 199.9 and 202 at BSE & NSE?

With tripling of capacity what will be the EPS estimate of FY 18 & 19?


(Shareking) #351

I bought Apex on the listing day just before it hit circuit. On a conservative basis, I am hoping the EPS doubles due to capacity expansion in the next couple of years.

Vivek sir, after MRSS - this is the second stock that I researched and bought into after your comments on the thread. Thanks a lot for sharing your views here. Your portfolio has been a big inspiration!

Edit - Bought MRSS around the FPO in Dec’16.


(Vivek Gautam) #352

Good to know that you benefited. Bull mkt n gush of liquidity is on.

Whats your take on Capacite infra ipo opening on 13 Sep 17 ?


(chets) #353

Capacite indeed looks good. Good return ratios, marquee client list, strong order book, sectoral tailwinds in place, debt under control and not too expensive pricing. However since it is a small issue, getting allotment may be a problem.


(Shareking) #354

Capacite has Godrej, Lodha and other high profile clients which gives confidence in the management. PE seems to be on the higher side, but considering the CAGR over the past 3 years - I think there is still something left on the table for investors. Rather than going after overvalued HFC’s, I think this could be a better way to play the housing for all theme. Management has also indicated that as a focus area in the RHP.
I am planning to apply with not much hopes of getting any allocation :slight_smile:


(Finrahul9) #355

Capacite Infrastructure :

Observation : 1) The working capital requirement was a concern in the past as highlighted by India Ratings in their report . They have revised their rating( Negative outlook) to A- in January 2017 . If the ratings deteriorate in the future then the banks could lower their credit .

  1. They will be raising around 400 Crores in the IPO, out of which they will use 250 cr for working capital requirement . They had raised equity in January to the extent of 60 crores . As their working capital requirement is going to be high , company might liquidate more equity in Future .

  2. The order book is allmost 3.8 times the annual revenue of 31st March 2017- Positive along with a good reputed client base .

  3. The gap between the Ipo price and the intrinsic value ( FY 18 earnings ) is very marginal , however I believe there is a big tailwind of ( Housing for all by 2022 initiative by the govt.) which can give good value for money , if kept for the long term and If the mgmt manages the working capital well .

( I read somewhere management saying that they are buying Immovable assets with the purpose of keeping it as a security against Loan .)


(Vivek Gautam) #356

Nindrajog: We didn’t want to do what everyone else was doing. We want to be contrarian. We want to come in where valuations are attractive, where we can work with businesses and scale them up. We also felt that if we want to attract investors, we had to differentiate; to demonstrate that, we choose sectors that might not be in favour now, but can be growth engines in the next few years.

For instance, the EPC sector has not done well but Capacite has done well. The company was formed 3-3.5 years ago and it was touched Rs 1,000 crore in top line. It has orders in excess of Rs 5,000 crore and the company is liked by its customers. It is very customer-focused and quality-conscious. This makes the firm stand apart. It will grow 50 per cent next year. It’s an incredible team, with a professional background. We believe there are gems in every industry. Our objective is to find such firms.

Deepak Parekh son co Paragaon Partmers & Uday Kotak co Newquest have invested in Capacite.


(Manohar T. Patil) #357

Hi Vivek, How do we know if the IPO is T2T?


(Vivek Gautam) #358

IPOs below 250 cr are compulsarily T2T on main board


(bvr007) #359

Vivekji, please share your views on recent issues like icici lombard, matrimony, sbi life etc… SBI life launched at Rs.700 looks noteworthy… Thanks…


(Vivek Gautam) #360

Why do u like SBI LIFE?


(bvr007) #361

Life insurance and Mutual fund sector in india is very exiting & having tremandus growth opportunity. icici lombard deals in general insurance where Chances of fraud in general insurance is high, specially in india as compared to life and therefore evaluateing non life companies is tedious. Where as in life insurance, Due to long term nature of life insurance contract, profit by investing the large pooled amount is very high in comparison to underwriting profit 3)SBI life has backing of bancassurance network of SBI and it carries a nice image in general public compared to other private insurance. Claim rejection ratio is decent- about 97.98%, ULIP policy % is less (good product mix). Only 4% market penetration till 2017 in insurance sector of india provides immense opportunity for all the players. Though price of 700/ Rs. may be on highr side but considering only few players around - SBI, HDFC life and ICICI pru. will provide meaningful fight to mighty Life Insurance Corporation in long run… Let me confess i am novice and learning from all you, so pardon me for any mistakes…thanks & Awaiting your valuable input Sir…


(Vivek Gautam) #362

I skipped Icici Lombard & SBI life IPOs .Will see on listing.

Have been allotted a few lots of Worth peripheral. Anyone tracking this co?


(Jiitt007) #363

Sir Very small INF.Me too applied but not lucky enough:thinking:Planning to buy on list