ValuePickr Forum

Hitesh portfolio

Hi Hitesh !
Aurobindo seems to be catching up now. As per my review of peers in screener.in (now the peer comparison feature is not available there), for similar sales and profits, it seems to be undervalued, even after running up almost 10 times. Its P/E is about 15 compared to peers having above 30. Do you track it and whats your opinion?

@mukesh, I am based in baroda.

@pavan I dont track eicher too closely.

@kailas, aurobindo has been a big winner in past 2-3 years. But comparing only PE without looking at other parameters like debt, return ratios, business quality etc is of no use. Try to read the threads on art of valuation and other business quality thread so that u can get a better idea what determines PE ratios given by market to different companies.

It could be because of its recent stock split / bonus.

Hi Hiteshbhai

I am also based at Baroda. Would be great to meet you and learn from you.

If you are comfortable can you please share your address.

regards

chirag jain

Thanks for reply!
And I agree about art of valuation!

But here are the ratios which are almost comparable to others.
Sales growth: 34.43%
Sales growth 3Years: 37.84%
Market Cap to Sales: 1.92
Profit growth: 1.47%
Profit growth 3Years: 104.14%
Debt to equity: 0.86
Return on equity: 35.64%
Average return on equity 3Years: 30.75%
Dividend Payout: 8.33%
Return on capital employed: 29.45%
ROCE3yr avg: 25.47%

On business quality, I don’t have any details, but higher interest costs was an issue until 2012-2013. This seems to be okay as of now. I could not find any thread on it here, so asked you being a close tracker of pharma companies.

Thanks !

Aurobindo thread

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Thanks for the link Vijay!

Hi again !!
Sorry for the confusion. Screener.in doesn’t account for recent bonus 1:1 on 21st July. Hence P/E of Aurobindo shows at 14.99. Actual, its double = 30, which is at par with other players.
But good thing is that Aurobindo has a big pipeline of ANDAs and we are getting news of new drug approval almost every few days.
Thanks!

thanks a lot hitesh for such a detailed response. thats very useful

Hitesh Sir, can you comment on the recent results of Page Industries? Do you think the topline as well as bottomline growth of 16% as compared to June 2014 quarter and also around 16% growth as compared to previous quarter is an aberration. Also, I noticed that COGS as compared to previous quarter has not dropped, indicating the cotton price drop has either not spilled or Page is not a big beneficiary. Sir, can you comment in Page thread if possible. Thanks

Dear Hitesh Sir.
Can you please comment on my portfolio

Page results have been lacklustre and below expectations. But bcos of stellar past track record markets would take a couple of quarters before taking a call rather than show any knee jerk reactions.

I feel over the whole year things might even out and co might show good growth.

The theory of low cost cotton inventory doesnt yet seem to be playing out. Next quarter needs to be watched for that on how things pan out.

Thanks Hilesh Bhai…I M From Ahmedabad…sir you are practicing as dermatologist…I m from pharma industry.
Regards

Dear Hiteshbhai:

What is your outlook on Indian hume pipes?

Do you think the water/ waste/ land story may take longer ( lesser gross margins) to pan out.

Is it better to trade in this stock than be a longer term holder?

Are you holding this stocks .

Thanks

mukesh, nice to know u are from ahd.

ritul,

I used to own indian hume earlier as a techno funda bet but since the returns from 300 to 420 came too quickly i booked out. The real estate contribution I feel is still a few quarters away.

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Hitesh,

Sandesh Ltd has shown good eps growth in last 2 quarters. Operating income is also showing positive growth YoY. Do you have any insights in this, given Sandesh is from Gujarat?

Sandesh is behind the leader Gujarat Samachar in Gujarat. Another competitor is divya bhaskar.

I dont track its financials so not much idea but its a three horse race in gujarat in gujarati language with gujarat samachar being the clear leader

Hi Hitesh, are you still tracking Gujarat Automative gears ? what is your current opinion on the same.

I never tracked gujarat automotive gears. So no opinions.

Hi @hitesh2710

Whats ur view on Omkar Speciality Chem at current levels?

Last quarter results were rlly good bt worried abt the pledging of shares by promoters.