Vivek Gautam Portfolio


([email protected]) #364

Hi, can you please let me know the listing date of Worth Peripherals.
To be honest I haven’t heard the company but the financial performance showcased above looks promising.


(Jiitt007) #365

Here Listing Details of Worth


(Ram Arvin) #366

Hi Vivek,

Regarding worth peripherals…the financials are quite good for a small company and working capital is managed well…but looking at the sales growth % decreasing for last some years and last year its’s only 3% sales growth…I also read articles which says the demand for corrugated boxes are reducing due to increase in Kraft prices and people are moving to other packing options…can this company sustain the sales in future…can you please advise me…

Also the debt to equity ratio is .45 and why is company raising 18cr in equity of it can raise through debt…


(bvr007) #367

Downtrend in the market can provide a great opportunity to enter in both the companies, I skipped them for the same reason…IMHO Strong bancassurance network of SBI & HDFC Life will grab the large share of insurance market in coming days, Thanks…


(Vivek Gautam) #368

Worth peripheral on 20% UC today. How is it at 60 odd rupees which is expected to be its price tomorrow.With sales of 130 cr vs mktcap of 50 cr at IPO price & 13% ebidta margins we need to dig this quality nanocap further.

Founder a first gen entrepreneur with good execution & reputation. Only Son MS from UCLA who was working as software engg at Cisco before coming back shud take the co to next orbit.

Corrugated sector was reserved until recently for SMEs so first pureplay box co. Superb clientele like HLL,Parle,Adani wilmar, Cargill, and others. own fleet of 70 trucks .Centrally located in Indore can cater to all corners of India,Great capacity vs piffling capacity of other smaller players,GST beneficiary as shift happens to org players,reasonable valuations.

Views Invited

Risk remains poor liquidity in SME,small size of co.discl- allotted few lots in IPO.


(Vipul Bathwal) #369

All these are great positives. One of the things I noticed in the RHP was that the family (mother, father, son) together draw ~1.2 crore of salary which is high relative to the PAT of the company (<10cr). They have also given some loan to the company for which they get 2% interest from the company. I am assuming these things will take care of themselves as the business scales, provided the promoters are able to execute.
Also, I was not able to figure why one part of the capacity (which builds partition boxes) is completely under-utilized (<10%) and how will that part scale. May be someone can help understand if this is okay in case of corrugated boxes.
Disclosure: Applied in the IPO; not allotted.


(Vivek Gautam) #370

Bought few more lots of Worth peripherals today morning in preopen.


(Rajneesh) #371

The minimum quantity one can buy is a lot of 3000 shares, correct?


(Vivek Gautam) #373

yes. as such liquidity is also a problem in sme till it migrates to main board in 2 years


(Ram Arvin) #374

I am not getting this stock in ICicidirect, how are you buying


(Vivek Gautam) #375

Better have one more ac with a small brokerage who deals in. SME stocks like Choice .DM me I will share the no of RM of choice.Gives excellent service like punching sme ipo application in physical mode even after online applying option is gone after 3 PM.

I applied using this facility today in RKEC IPO seeing HNI 30 times n retail only 6 times.

Guys name is Piyush n his no is 9899624913.he can open account anywhere in India.u can give him my reference.


(Rajneesh) #376

Thank you. I was able to find it in my trading platform with Reliance Securities.


(Whipsaw) #377

@Vivek_6954 What’s your view on the -Ve cash flows of worth peripherals?


(Vivek Gautam) #378

https://www.nseindia.com/products/content/equities/equities/bulk.htm

HSBC MF BOUGHT 4 LACS WORTH PERIPHERALS TODAY


(Rohinipathi) #379

@Vivek_6954
I really admire your investment success in sme stocks. I have never invested in these fearing the unknowns. How do you track and research these companies? what has been your success ratio of these stocks? Agree that we cant always be right while investing in unkowns. please enlighten us. will eagerly look forward for your reply.


(Vivek Gautam) #380

Best wealth is made when a nano or small cap turns into a midcap due to it quality growth.My check list comprises as told earlier in the thread

  1. 90% bet on ethical preferably first gen technocrat promoter with execution track record n who wont shortchange his minority share holder.

  2. Go through old ARs & see if the promoter has executed what he promised ie is he walking the talk

  3. Do scuttlebutt to ascertain promoter & business quality thru his customers,competition,employees n ex employees,distributors,his community members & residents of his native palce have to say abt him n company.

  4. Good ROCE

  5. Good Opp size which gives good cagr

  6. Some USP or Moat

  7. Low mktcap vs opp size

  8. High promoter stake

  9. Low or zero debt

  10. Invest for 3-4 year POV as best returns come in 3rd to 4th year of investment.

  11. Patience which is the single most imp criteria to hold the scrips

  12. Closely monitor the co & sector & be prepared to exit if facts change or some doubts on ethical behaviour occurs


(Susindar) #381

Hi Vivek

What is your most preferred small or nano pick currently? I am looking to buy one or two small cap to diversify as I only have large caps In my portfolio at the moment.


(kartik.jajal) #382

Hi,

Is it possible to get detailed information of subscription of sme ipo on last day before ipo closing ?

I am interested to apply sme ipo after studying the business and respose of investors of different categories.


(jeyakumar) #383

Hi Vivek.

Looking forward for your opinion on beta drugs . New offering is priced at reasonable P/E of 14


(Vivek Gautam) #384

I have not studied. Liquidity a big concern in Sme. Be v cautious n choosy in sme stocks