could be difference in calculations. gross margin vs opm.
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Hello jiten bhai.are you tracking chamanlal setia.roe to price to book look attractive.
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This company has a massive capital allocation issue. Its into too many businesses. Now a Power plant in Zambia is struggling for receivables. The stocks is extremely cheap but dont know what they aspire to be in 5 years. Hence, it will remain de-rated. Some near term catalysts exists though.
By the way, S. Naren sees value in Metals & Mining…he is know for his value-investing philosophy. Worth reading the below mentioned link
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Inox Wind stay in this bad busineess cycle where almost all player are going bankcrupt , and promble are solving slow . can it become turn around. When Cycle turn can it become leader
@jitenp View on this
No view on wind power plays. Don’t track it.
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Hello jiten bhai are you tracking BASMATI exporters and steel companies
yes. quiet a few basmati exporters are definitely interesting. of course, short term pain can be there.
steel, I need to have a re-look.
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Hi Jiten,
In the steel sector, have you come across Maithan alloys? They have a net cash balance sheet ~ 500 cr., market cap ~ 1000 cr. Worse case PBT (at cyclical low margins) ~ 180 cr. I have done a detailed analysis in the maithan thread (Maithan Alloys Ltd). My only concern is steel companies are at their cyclical low margins, but are still profitable, meaning that profits haven’t seen their trough yet. I would love to hear your thoughts.
Cheers
Harsh
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There will be many attractive bargains in the markets now. Risk is amplified now in high debt companies. In this market, there are companies which are available at almost cash, where one can be reasonably sure that most of the cash will come to you as dividends in the future, and also at a decent yield. Core biz may struggle, but when tide turns, these can also give handsome returns. Classic high reward-risk ratio.
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Hello Jiten Sir. Are you tracking the poultry industry? Last 2 yrs were as it is bad for producers due to high feed costs, but after coronavirus rumours in chicken the prices have crashed beyond half of marginal cost of production. Lots of producers are culling hen and chicks. If situation persists for bit longer than many small producers will be out of business. Venkys is to my mind the only pure play poultry company selling broiler, chicks and animal feed. Similar down cycles have been superseded by more than 10x returns in stock eg: 2006-2010 starting with bird flu scare and 2016-2018 ending with favourable soybean and chicken prices etc. Even some others like Godrej Agrovet are operating in the industry with better corp gov practices.
Many thanks in advance.
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Don’t track this sector nor invested ever in this sector. For personal reasons.
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Jiten sir are you tracking igpetro its worth to buy in this price?
@jitenp - I think due to Corona virus and it’s 2nd order effects on people’s income it might delay real estate pick up further which will create problem for cement cycle pick up for next few years…
Is my assessment correct ? What’s your current view in cement stocks ?
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Hello jiten bhai.Are you Tracking paper sector?.few ace investors invested in this sector in past but how is outlook in present and as investment for next 3 to 5 years.particularly companies giving Dividend yield of 5% and price to book of 0.30.
It’s a sector which looks interesting. Have a few investments there. And added more in these falls.
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An interesting webinar from CARE on the current state of steel sector.
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An interesting presentation from Chetan Phalke where he gives a good overview of the current status of steel sector and asset-heavy companies.
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@jitenp - Jitenbhai - what’s your view on Steel and Sugar Industries?. Is it good time to enter in this to play-out up cycle of the sugar & steel Industries?
what’s you view on (1) Dalmia Bharat Sugar and Balarampur Chini (2) Tata Steel and JSW steel. Kindly share your view and possible company which will come out stronger
@jitenp - Jitenbhai - When do you see commodities bottoming out ? I have identified Vedanta (around Rs. 60), Hindustan Zinc (~Rs 130), MOIL (~Rs 95), Coal India ( ~Rs. 130). These are monopolies in India and amongest lowest cost producers in world / having guaranteed local demand. I can hold for 2 -3 years with return expectation of at least 20% CAGR.
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On sugar, I had aired my views many times. Had a cautious approach. Steel also in mid-cycle. I don’t have any major investments currently in both these sectors.