ValuePickr Forum

Dinesh Sairam's Portfolio: Requesting Feedback

Unfortunately, no. I have gotten so many requests for a video. I have passed on the feedback to TIA, if they’d consider it in any future meetings.

Sorry for the delayed response.

Ion Exchange mostly does B2B. For instance, their current bids are for Refineries, Steel, Food & Beverages, Oil & Gas companies. Their B2G is a tiny portion (I think they do 1-2% business with IRCTC).

I think ‘Eco Recycling Limited’ is the only listed waste management company in India. But I have not done any research on this.

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These are really good and legit. Specially liked the example of “Godrej - Cinthol” redundant brand asset. Thanks.

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Done :slight_smile:

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Thank you so much :slight_smile:

"Ion Exchange India Limited - An Idea Whose Time has Come" (20-20 Ideas Summit, TIA, 2019) Presentation and Notes:

Downloading option is at the top right corner. Yes, you can even download it without having a DropBox account. Size: 5.3 MB.

@aveekmitra ji, here you go.

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Great notes and information. Very helpful
Been invested for last 18 months . Bought a good chunk between November 2018 and may 2018 and been doing SIP ever since till today.
Disc: invested , 2nd highest holding in portfolio

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Hi @dineshssairam It seems report has been moved from drop box. I got message that report is missing. Can you please double check and share the link again?

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Try this: https://www.dropbox.com/sh/5hdfa3iscnoqys7/AACvNusvrGDC_aIysh6fx6cwa?dl=0

If it’s still not working, instead of clicking, copy-paste the link into your URL tab.

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Portfolio Update

Deployed the remaining cash mostly in IndusInd Bank, DHP India and KMCH (I did buy a little bit of Heritage Foods some time ago as well). I have also added a tracking quantity in Shivalik Bimetal Controls, but the exposure is too small to warrant a special mention.

Top 3 holdings now form slightly more than a 50% allocation.

Looking forward to Q2 results season.

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Hi Dinesh,

Are you only tracking Shivalik or are there any other Auto ancillary stocks that you are tracking too? What are the main points you shortlisted Shivalik over others? I am looking at JBM Auto, Minda, Shivalik and RACL. Not even tracking quantity yet. I will decide after next OR dec. quarterly results of complete auto sector whether to invest or not.

My current watchlist / tracking list is as follows: Eicher Motors, GCPL, Grauer and Weil, Marico, Mayur Uniquoters, NESCO, SIS, Shivalik Bimetal Controls and Timken India. I also track Motherson Sumi on and off, but mostly interested in seeing how their next couple of acquisitions go.

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Dear Dinesh,

I can see you are very bullish on IndusInd Bank and that is the only bank or financials stock you have. What makes you think this bank is best of the lot in terms of valuation and future growth prospects.

A quick look at screener, I could see compounded profit growth is coming down over the years.

image

Disc: Not analysed closely and not invested.

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What would worry me is the claim that it provided around 2000 cr unsecured loan to ILFS in early FY19. Like the credit rating agencies, they were also incompetent in analysing the publically available financial statements of ILFS.

As I had mentioned earlier, IndusInd has an inherent strategy of having a riskier loan book than most banks of their caliber. So during a debt downcycle, they have to suffer. The decrease is profits is largely due to provisioning.

The double whammy from auto sector has also hit them, since a considerable portfolio of their lending book is auto loans.

Provided there are no new negative surprises, it should get fixed once demand picks up.

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I think Mr. Hazari’s posts are sometimes useful. But mostly he is always negative. He even tweets about trivial things like “CEO of this bank was awarded this title and he should not have got it.” and so on. I consider his posts for taking out facts, but completely ignore opinion (The same way I do with research reports).

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He does not tweet about trivial stuff. In banks perception of CEO and top management largely determines the valuation multiple accorded.

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Quoting Buffett does not make anyone correct. Do you even know how long he has been analysing and writing about the Indian banking sector.

This is completely wrong and misleading. Berkshire Hathway has Deferred Tax Liabilities which is similar to negative working capital while HDFC Bank has Deferred Tax Asset which is the complete opposite of DTL and leads to a decrease in cash flow. When accounting pre-tax profits are less than the taxable pre-tax profit you pay more tax than you should leading to Deferred Tax asset (HDFC) on the other hand if accounting profit is more than taxable pre-tax profit you pay less tax than you should increasing your cash flow leading to DTL (Berkshire). Criticizing an expert is fine but don’t use wrong examples to do that.

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I stand corrected. My example was wrong.

I follow Mr. Hazari on Twitter too and consume his research to a good extent. But my point still stands that he writes about a lot of trivial stuff too (In my opinion), while also having a high negative bias.

Thank you. Good to know.

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