Hi All Seniors,
Holding these followings for, from 5 years (longest) to eight months (shortest). Can hold for next five years. Please share your valuable opinion -
Precision Wires, holding since 2017, from price 33. CMP 90. Sales growing… Very very regular and timely dividend payment and fully focussed Management. Will this be a 20% Compounder for next five years ?
Mirza International, a consumption story with strategic demerger coming up. Entered at 140 and added more at 180. CMP 360. Sales growing but dividend not paid this year, possibly because of the demerger issue. Will it become a Compounder?
Maithan Alloys, the steel exports duties have diluted sentiment here, although sales is growing. Purchase price = CMP. They are expanding. Where will this go ?
Sree Rayalseema (SRHHL), entered at 140 in 2016, added some more at 400 two months ago. Exited 80% of holding at 660. CMP 750. It has been a Compounder. Will it keep compounding in next 5 years ?
Bought SRHHL sister TGV Sraac Ltd at 50 in 2016, got impatient and sold at 72 in 2021. CMP 150.
Ram Ratna Wires, strated watching at 90 in 2016, entered at 140 in 2017 and holding since…CMP 440. Will this keep compounding based on India’s power consumption story / consumer electric items story? Management recently gave good dividend and announced 1:1 bonus, after listing on NSE…
As far as I know mirza international is shoe trading company they dont make shoe they buy from outside and sale in India. Plus, why I dont like this busssiness when i was researching it 3 year back i got to know their promoter is corrupt, and i forgot the exact reason. But I guess that what bcz related party transaction. I am kind of sure on that. So pls look out.
Mahindra Holidays is one of the stock which has all components of a great investment stock – Value, Growth, Stability, and Management.
I invested in the stock at 2200 Market cap and think its still worth investing.
Value: It has assets of 1200cr, hard cash 1170cr, deferred revenue of 5000+cr (of which 75% is profit as major expenses are already booked in first year). ~200cr+ free cashflow/year and growing.
Stability: It has 270K+ members out of which 70% have already paid entire membership amount, rest of them are paying in instalments. Good visibility for their membership tenures as most of them are members for 25years. This results in better prediction of future business and in worst case of covid the occupancy was very very high. Only for the lockdown periods it could not earn resort income.
Members in instalments will pay all instalments in 4 years and the money is safe as unlike other loans here the asset (rooms) are with MHRIL only so no credit loss.
Growth: As the membership grows the company is building room inventory. I think the pace is less but they can easily add 10% inventory per year leading to more members and thus resort income.
Big sum (VO) is taken in advance to build the inventory, and then money is taken annually for maintenance. So, company is practically paying nothing to build the hotels (biggest cost in hospitality business) and pay staff… everything is paid in advance by the members themselves. As there is no investment… consider the ROIC? On top of that ROCE is high, and when the membership ends the same membership is sold to another high paying members which results into much much higher ROCE as property life is 5-10x the membership life.
Management: Mahindras, thats it.
In my opinion, the stock ticks all the right boxes as explained above (Value, growth, stability, mgmt) and all that comes with risk free (or read less risk) environment and longevity of the business. I consider it as a compounding machine where practically no investment is done by company themselves.
Thanks Viresh, but not really looking for any Tier I company (it’s my personal choice), rather looking for Tier II companies, which is relatively unknown today. Basically looking for not the market leader, but a suitable challenger to the market leader.
Ok, sure. Just one idea from my side. Its one of the unknown company is Max India which is into untouched market of Senior Living. Ample opportunities considering the rising income and emergence of nuclear families. On top of that children moving overseas or busy with the dual jobs.
Company is available at just 350cr Market cap. They have 300cr of cash equivalents, debt free property in Dehradun, 170+ bed care living already established in NCR, few equity in Noida senior living project and land in greater noida.
All in all, company is available way less than the cash / assets it holds and the management (Max Group) has already proved themselves in Insurance and Medical sector. Their is no organised pan-india player in this space and they are surely going to succeed.
Hi
You may like to look at Nikhil Adhesives. Touted to be a challenger to Pidilite
May fall in your scheme of a stock to dig deep into
Thanks
HIten Lala
Hi Dib Pramanik
I think we need to do a deep dive in this company and check much more than the PE or mkt cap
It need to be studied for its
future prospects
Governance / management quality
Financials
As regards PE as an evaluation tool, it is better used for companies already having an established record according to my view
I just suggested Nikhil Adhesives as you need an upcoming competitor to well established giant🙂
