Vivek Gautam Portfolio

Q&A: Questions & Answers Portfolio Q&A
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Thanks for sharing your portfolio. Have few questions

  1. Syngene - Was it a IPO allocation or a buy from open market?

  2. Syngene - Looks like a great company. Did you buy it as a 30% compounder or a multibagger idea?

  3. Vidhi - What are the growth triggers for this?

Thanks.

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VRL I bought both thru IPO & on listing is led by a street smart entrepreneur Mr Sankleshwar who has 73% stake in co and an enviable track record over last few decades.He started with a single truck & is Now amongst Indias logistics players.The founder has a growth mindset & has built good moat in form of Less then load capacity,reach allover India,relationship with reputed OEMs,Softening crude prices & impending GST passage are the tailwinds.

Omkar,Syngene & Garware Wall have informative threads on VP itself .

Vidhi is operating in the lucrative food color segment.Please go through a recent Edelweiss report freely available on its site.https://www.edelweiss.in/research/Vidhi-Dyestuffs-Manufacturing-Ltd--Expanding-for-the-Future;-Visit-Note/10006419.html

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Thanks for sharing. What is the trigger for Marksans?

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@Vivek_6954

Vivek trust you know best of the choices but just wanted to highlight of VRLā€™s promoters after going through their DRHPā€¦

ā€œOne of the promoters Dr. Vijay Sankeshwar has outstanding criminal court cases and other directors are also facing certain tax and legal proceedings.ā€

Plus the promoters also come from a political backgroundā€¦ So really i would be taking the management credentials with a pinch of saltā€¦

Regards
Sreekanth

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Great going @Vivek_6954.
Thanks for sharing your PF details.

Your PF has large number of stocks and is well diversified. Core stocks seems like good long term compounders. I think last few yrs has been really good for your PF. Its a good strategy to diversify for wealth preservation and grow steadily with limited down side as PF size grows.

I have a very concentrated PF. I am very much interested in your PF returns, YTD, Jan to Sept, this is just for academic purpose, if you can share :smile: , also 1 yr return, as I wish to evaluate conc vs diversified PF strategy both in good and bad times of market.

I think you can reduce no of stocks going forward, Gareware seems to be a great pick, but you can reduce TCS and Mayur, kaveri.

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Santosh How do u calculate YTD returns? I havent gone into much details for it but after your prodding I checked on Moneycontrol which is giving a yearly return of 44%.But several of buys have been recent less then a year.

Yes after PF appreciation preservation of PF gains is also important so diversification becomes necessary imho.

TCS is the only largecap anchor stock in my PF but I hv been holding it since IPO @ 212 in 2004.If we take international context the opp size remains big.Reasons for investing in TCS i have explained earlier in the thread.

Mayur story remains intact due to increasing high margin exports both OEM and in general from low margin footwear,foray into lucrative B2C, high ROCE business under ethical promoter with execution .

Marksans is play on a promoter in right age (in 40s) out to prove himself with growth mindset,operating in lucrative niche segment with less FDA issues,timely acquisitions,amongst the few players n softgel segment,attractive mktcap vs opp size,exceptionally high return ratios.

Santosh why are you not so positive on kaveri?Shudnt we focus on next 1-2 years growth prospects n not be dismayed by a bad qtr which is infact 80% of full year for kaveri?

Srikanth VRL promoter is real smart.he sold of kannada paper to TOI at a high margin,Started another Kannada paper and brought back most of the staff from TOI. Giving a kick to a giant like TOI shows guts.yes he is 4 times ex BJP MP but I take it as a positive with central govt of BJP.

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Vivek:

What is your rationale for exiting Ambika and Gruh?

Is it to do with Ambika in particular or textile stocks in general?

HFC stocks should continue to do wellā€¦is it because you already have Repco so chose to reduce it or you think Gruh is a well discovered stock?

Thanks

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Vivek Gautam, XIRR would be the best indicator of portfolio performance. XIRR takes into account the timing of your trades also and annualizes the return automatically.More recent trades would have less impact on the XIRR number.

Your buy and sell trades will be a series of positive and negative cashflows respectively. At the end of the period (say, year, month, quarter etc.), you would assume that you sell the entire portfolio (negative entry) at the then market price. On the next day you assume that you buy it back at the same price (positive entry) so that you are ready to calculate the XIRR for the subsequent period.

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Hi Ritul

I just wanted to reduce my leverage a bit.Hence the steps.Both Ambika & GRUH are excellent stocks to own otherwise.Your reasoning on Repco & Gruh is correct.

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Happy to see that you are holding TCS since IPO, this speaks about oneā€™s character and long term approach and patience.
Kaveri I didnt like bec of too many variables like monsoon, cotton prices, promoter changing strategy, Gm crop too many variables to track, presently looks like a good value buy !
VRL promoter looks street smart, need to explore more for me

All the best

Santosh

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Hi

@Vivek_6954

I came across below news

Aurobindo Pharma to raise $250-300 mn through QIP, equity dilution of 3-5%
As per the media flash, Aurobindo is likely to launch QIP Issue and is looking to raise $250-300 mn (Rs1650-1950 crore).
The promoterā€™s stake in company is likely to remain above 50%. Total equity dilution to be around 3-5%.

Would like to know your views on the same. (Wont the market take this negatively)

I have entered about a month ago in Aurobindo (seeing thier pipeline of Drug Approvals)
although right now very small position.

Regards,
Kapil Gupta

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http://m.ndtv.com/profit/article-avoid-apollo-tyres-aurobindo-pharma-inox-wind-ambit-1228591?utm_source=ndtv&utm_medium=other-stories-widget&utm_campaign=story-10-http%3A%2F%2Fm.ndtv.com%2Fprofit%2Farticle-avoid-apollo-tyres-aurobindo-pharma-inox-wind-ambit-1228591

FYI

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Hi

@Vivek_6954

I wanted to know your views on it as you are holding Aurobindo Pharma

Regards,
Kapil Gupta

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Big wealth is created imho when perception changes.I converted my yes bank holding @350 into Aurobindo Pharma@125 2 year back .Auro promoters were supposed to be suspect quality with linkage to YSR etc.

Auro promoter has shifted to US & refocussed on US mkt bringing in professionals both in India & abroad.All FDA problems were sorted out & Auro has 380-90 ANDA approved with foray into several promising areas.

Best is to read AR & listen to concalls.There I cam eto know that Auro is RJ is one of core pharma holding for long.

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75

hi @Vivek_6954,

Nice to see Vidhy already in your PF stock is on blast,what allocation you had.
Valuations looks really stretched for a dye comp, How do you see this going forward ?

Thanks

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Vidhi is operating in the lucrative food color segment.Please go through a recent Edelweiss report freely available on its site.https://www.edelweiss.in/research/Vidhi-Dyestuffs-Manufacturing-Ltd--Expanding-for-the-Future;-Visit-Note/10006419.html
[/quote]

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Hi Vivek: couple of questions:

  1. At what price is your entry in Vidhi? Is it a small holding or you have added to your positions?

  2. Satin credit careā€¦52 week low is 296ā€¦is that your purchase price?

  3. Do you think Premco is overvalued ( inspite of good results today)?

I am curious because you seem to have a knack for picking stocks based on non numerical factors like management, sector, fund fancy and it has worked well.

thanks

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My average buying for Vidhi is 40 odd and the price rose from 20 odd few months back. Promoter stake is at healthy 65% n co is moving to expanding its manufacturing from trading. Opp size is large n MOS is there so would stay invested.

Satin listed at 90-100 recently. My entry price is 223. MFI is one of the few sector where opp size is so huge that CAGR is expected to be 30-40%. The co is promoted by a professionally qualified CA who is a first gen entrepreneur with growth mindset. Best n essential part for any finance co is low NPA which a MFI enjoys as average poor retail Indian is very honest compared to an average unethical industrialist.RBI supervision which caps intt charged n credit bureaus specialising in MFIs also helps.

Premco we need to wait til Vietnam plant is commissioned . Co management has been visionary to expand there to take advantage of forthcoming TPP treaty which will deeply impact other India textile cos.

I have also invested heavily in to recent Indigo IPO due to v competent n frugal management , huge opp size which just got multiplied thanks to new aviation policy, RONW of 200-300%, crude expected to remain soft for next few yearns entry of marquee investors including bid of 400 cr by our RJ

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79

Did you apply in HNI category ?

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Vivek:

What is your acquisition price in Triveni Engg? What time frame are you expecting demerger in Triveni to happen ( your holding period for stock)

Of Indigo , Syngene , Satin credit which are you most bullish on?

Dont you think Shilpa is better bet than Syngene ?

We continue to hold Mid-cap in larger % in portfolio but time may be ripe for having higher small cap proportion in portfolio.