Vivek Gautam Portfolio


(Finrahul9) #161

@v4value @Vivek_6954

Some info Abt ipru -ON 31st Dec 2015 and 31st March 2016 ipru had sold in secondary transactions , 4 % and 2% stake to PREMJI INVEST and Temasek @226 approx.


(Amey Desai) #162

wonderful ppt, appreciate the time taken out by you in making these slides which will serve as a guideline for all of us


(Vivek Gautam) #163

Thanks. So nice to not that u find it useful


(JKS) #164

@Vivek_6954 any view on the margin reduction in Dilip Buildcon’s Q2 numbers?


(Vivek Gautam) #165

lets listen to the concall on tuesday. axis direct has given a buy report on 21 oct with a price tgt of 310


(Vivek Gautam) #166

Axis direct erstwhle Enam gives a target of 310 to Dilip Buildcon.

I missed listening to concall of Dilip Buildcon.Did anybody listened to it ? whats were they saying.Q2 is generally tepid for road construction cos due to monsoon.


(Vivek Gautam) #167

I have applied with full force in the recently closed IPO of Sheela Foam the makers of Sleepwell brand of mattresses and industrail foams due to following reasons

  1. Highly Ethical promoters enjoying stellar reputation.All their vendors get payment through RTGS on the promised date without any follow up.

  2. V well educated promoters from IIT ,RPI & Purdue University(2nd Gen) with superb execution track record over last 40-45 years.

  3. Huge opp size .Its Indias leading brand in a sector where unorganized sector still has 70% market share implying huge opp for organized players thanks to Demonetization & proposed GST.Organized players are already growing at the rate of 11-13% vs vs 6-8% and taking market share away from unorgnized players

  4. Negative working capital

  5. Reasonable PE of 25-27 for FY 17 for almost zero debt(DE-0.2) branded FMCG play

  6. Asset turnover of 5.2 & Receivable days of 28 days

  7. Invested capital has shrunk by 33% in 4 years while sales have gone up by 50%

  8. Ronw has improved form 14.6% to 31 & EPS to 22 from 5.7 in last 3-4 years

  9. IPO came at approx 3500 Cr mktcap vs proposed 4000 Cr Mkt thanks to DeMo fears

  10. Australian subsidiary Joyce foams give sits tech edge in making better quality mattresses

  11. Co has started taking more frequent price hikes & discounts to channels gradually being reduced.Mix also improving every year.

  12. Existing block can sustain 30% higher sales every year

  13. Also operates in B2B business where again opp size is huge like in sectors like Auto seats,Bra cups,Insulation etc

  14. High quality anchor investors like GS,MS,Premji Investment,Fidelity,Kuwait Govt and a host of MFs like HDFC Icici Sundaram,Kotak,IDFC

  15. QIB portion oversubscribed 16 times & firm allotment in retail category

  16. Main competitors Kurlon performing poorly & is on block as per grapewine

  17. Risks remain delay in GST implementation,impact of Demonetization in short term,RM volatality.

Enclosed Angel broking &HDFC sec report covers main point about Sheela Foams nicely.

http://www.hdfcsec.com/Share-Market-Research/Research-Details/IPOReports/3020283

http://www.angelbroking.com/research/sheela-foam-limited-research-report-25-11-2016-78659


(Rohit Balakrishnan) #168

Hasn’t the growth been tepid and the margins in this year abormally high? The IPO may open on a high given all what you have mentioned, but these are important questions one needs to understand.


(Vivek Gautam) #169

The margins have been good because of operating leverage ; brand giving them pricing power Raw Material softening yet retaining the price reducing margins for channel distribution . company has again increased the prices post TDI price increase and have been increasing the same consistently. RM price expected to reduce post commissioning of Aramco plant in Saudi Arabia; Co is moving to higher margin product range.

Though current demonetization impact might hit the company in short term story remains intact IMHO.I intend to hold it atleast for 1-2 year POV and then take a call.


(Vivek Gautam) #170

I am thinking of applying in Laurus Labs IPO on 8 Dec 2016.

http://economictimes.indiatimes.com/markets/stocks/news/laurus-labs-ipo-opens-on-tuesday-10-things-you-must-know-before-subscribing/articleshow/55828252.cms

http://www.capitalmarket.com/

Views Invited


(Vivek Gautam) #171

Due to mixed reviews I generally decide on applying in IPOs after 4 PM on closing day after seeing the response of QIB & HNI response using physical forms.

This has been my RamBaan which has made IPO investing a rewarding experience for me.

In case of Laurus Labs too I will wait till last day 4 PM.


(sta) #172

How do you check if hni have invested or not


(Vivek Gautam) #173

its available on nse n bse site.


(RamanTiwari) #174

When you apply, do you apply under retail with multiple family accounts or as a HNI… reason for asking is that there is not much point applying for these oversubscribed IPOs for a retail esp if the portfolio size is big


(Vivek Gautam) #175

both options. depends


(Sourabh Agarwal) #177

Hi Vivek ,
Can you post your current portfolio structure after the demonetization changes .I remember you were positive on nbfcs .Hence would like to see the changes you did


(Vivek Gautam) #178

I am an eternal optimist.Still hold on to most NBFCs.

I have recently applied in 3 ipos Sheela Foam MRSS India & Laurus labs

Sheela foams & MRSS were firm allotment of Rs 2 & 1.4 lacs per app in retail category


(NAVNEET KUMAR) #179

Hi Vivek
Any insights on MRSS India.: The financials seems attractive. I have gone through the presentations of the management on youtube but fail to understand the opportunity size and the rationale behind the further issue of shares/ equity dilution. Can you kindly throw some insights why they are in need to raise further funds in a short span of 1.5 years. Can u throw some more light on the Management, Business & Opportunity Size.
Kind Regards


(Vivek Gautam) #180

I have recently started tracking MRSS.Liked it due to

  1. MD Mr Panchal being an ex Nielsen Asia Pacific head & now starting this Mkt research co

  2. Similarly other 2 main promoters Punit Bhatia an UCLA & Duke University passout & Raj Sharma an accomplished speaker & doer in right age of 40s

  3. Good team recruited like one heading Auto practice whoe once headed Tata Motors MR division and worked there for 35 years.

  4. 75% promoter stake

  5. Long term debt zero

  6. Variable pay structure where fixed pay is 30% and rest variable which is paid after client gives satisfactory feed back n collections happen

  7. Indias only listed mkt research firm.Opp size huge & mktcap abroad for MR firms is 3 times the sales

  8. Growing at 100% cagr

  9. Mktcap only 50 odd crore vs huge opp size

  10. ROCE is high in range of 50-60%

  11. Good client lists like Maruti HPCL ,Google,Myntra and others

  12. Specialist in digital MR n have introduced technologies like Eye movement tracking,pulse tracking;webcam based face reading

  13. Reasonable valuations with fwd PE of 10-15 for fy 17
    Risks are debtor days high ,limited track record;severe competition .:big cos like Nielsen competing

All in all a start up sort of option investment for me.


(Peabody) #181

Are you still holding Repco Home