Hello sir ur view on inox leisure?
1 Like
Inox Leisure remains one of the interesting plays on the discretionary spending space. The top pick would of course be PVR but one can also decide to play a basket approach if convinced about the merits of the sector.
Both Inox and PVR have recently hit their all time highs and now seem to be consolidating sideways. Overall chart structures of both look interesting.
3 Likes
Hi @hitesh2710 . I was looking at all the ppts of goa meet. Terrific work by all members. But most of the companies discussed there dont inspire any confidence. ( I understand that these are not recommendations. And we are not expecting recommendation either. But its the process thats more important). I think this kind of reflects the state of Indian market. Even the smart guys are forced to compromise on quality. Because most of the quality companies are very expensive despite poor earnings growth.
In this context, I wanted to ask why veterans like you have not considered international market investment?. ( As you know, these days well knows US brokers do have an option). I understand there is some issues like rupee fluctuation, slightly more tax etc. But at least, one can find decent growth companies in (especially in tech etc) the US. Moreover, not many corporate governance issues there. Do you see any other issues?. Also, have ever thought about this?
3 Likes
Respected Sir
Donāt u think inox is better placed as it has outpased pvr in last few quarters in terms on better margins. Debt free status etc?
Regards
Ashish Agarwal
Hi Hiteshbhai ,
1 Whatās your view on Sundram Fasteners , Endurance technologies and Page industries
2 Which other companies can be considered in the ranks of hdfc bank, bajan finance , Asian paints and pidilite that have huge opportunity size and runway for growth ?
Many thanks
1 Like
As you say and infer there dont seem to be any screaming buys in the markets even in the small-midcap markets. But if enough digging is done its possible to uncover some gems or atleast something which looks like a gem.
Regarding venturing out into international markets, my view is that its highly likely to get growth machines in a country where the growth is likely to be good. And thats where India gets preference.
Plus as you mentioned, there are issues of currency fluctuations, tax problems and the whole lot to address. The US markets also have their fair share of crooks in the corporate world though they might not be as blatant as in India as I guess crooks there are fairly quickly dealt with and the judicial system is much more efficient and quick.
My preference as of now remains for Indian markets.
8 Likes
Whenever I talk to fellow investors tracking the sector, the feedback I get about the promoters of PVR is top notch. Inox not so but without any specific reason. Hence the preference for PVR. But inspite of preference I would prefer to buy it as a basket so that company specific risk is minimised.
4 Likes
- I dont track Sundaram Fasteners or Endurance technologies. Auto ancillary in my view might not be the place to be as of now with the auto slowdown. I think when the cycle turns, the frontline auto stocks will be the ones to bounce back first. So one has to keep looking out for strength in names like Hero, Bajaj auto, TVS, M&M, Maruti, Eicher, etc.
Page remains one of a kind but seems to be in the midst of some kind of demand slowdown and that is reflected in price correction from 36k to 20k.
- Companies which can be considered in the ranks of Hdfc bank, asian paints and pidilite are hdfc bank, asian paints and pidilite themselves.
Hiren Ved in his talk highlighted that there can be only one HDFC Bank, only one Asian Paints, only one Bajaj Finance and so on.
20 Likes
Thanks so much Hitesh bhai for the guidance.
1 When the cycle turns, would it be worthwhile buying tyre stocks like Balkrishna tyre /MRF tyre?
The only thing that puts me off are low return ratios and constant high capex requirement . But surprisingly the returns given by such stocks are quite high over a long period . How do this stocks go so high despite such low return ratios and high capex requirement ? And they donāt seem to correct as much as pure commodity stocks . Request your help in understanding this sector dynamics .
Are this stocks to be sold before down cycle and whether can they form a permanent part of the portfolio ?
2 Between Chola and Sundaram finance , which is better ?
1 Like
Hi Hitesh, Did you get any feedback on the promoters/corp governance ? Thereās been few controversies/fines surrounding them. Few areā¦
[2016 violation and settlement in 2018]
[2017 casee]
http://www.businessworld.in/article/FIR-Against-PVR-s-Directors-Promoters-For-Cheating-Forgery/23-11-2017-132696/
1 Like
Hiteshbhai
Please share ur views on Midcap banks specially Federal ,City union, south indian and Karnataka bank ?
Which one do you like?
Thanks
Among the midcap banks, among the private sector south indian bank (correction here. read city union bank instead of south indian bank.) and dcb bank seem to be doing well. Asset quality esp of dcb bank has been very good over the years and in successive concalls murli natarajan the ceo exudes a lot of confidence in growth prospects of the bank.
The numero uno however remains hdfc bank.
10 Likes
Dear Hitesh sir,
Whatās your views on PEL after recent flurry of news. Though he claimed boys can be separated from men in a crisis, the current flood of news I donāt know if shows signs of distress or signs of trying to exploit favourable situati one to their advantage.
Are you holding PEL now. I remember at one stage you had taken a position in it.
Going through the links provided, it seems the complainant had an issue regarding falsely inflated stock prices in nov 2017. As of now, nearly 18 months down the line in such an edgy market, pvr recently hit its all time high and appears relatively resilient as compared to most other midcaps.
I have a friend who produced a gujarati superhit movie who worked with pvr people and was all praise for business ethics and regular payment from pvr people.
5 Likes
I used to hold pel few quarters back but had exited it and most of nbfcs like equitas, jm fin, magma etc as i felt the sectoral move in these nbfcs was weakening.
As of now, i think marketmen are divided about the situation at pel. Some feel pel is headed for trouble while others still trust him blindly. I am not too interested in the sector and hence not tracking it too closely
2 Likes
@hitesh2710 sir, are you tracking Bajaj consumer ? Management is guiding for 4x profit in next 5 yrs. Any insights on management quality as shares are pledged.
Thanks Hitesh bhai for the input ! Good to hear the clouds are clear. As you stated earlier, the basket approach is something will work in the case of PVR & Inox.
Hi Hitesh bhai,
1 Bajaj Finance is one of the established nbfc players . However they dont have access to CASA like pvt sector banks like HDFC bank . In such a case , how would they keep their cost of funds low without ECB etc ( ECB etc could it not be a risky source of funding ?). In such a case , going forward, would growth prospects of banks like HDFC bank be better than Bajaj Finance?
2 How does Sundaram Finance compare with Cholamandalam?
Many thanks
@A_shah, Bajaj finance has top rating and hence can access funds from banks or any other institutions at very competitive rates. The key to monitor remains the spread between the borrowing and lending costs.
I used to track chola but exited some time back. Not tracking sundaram too closely so cannot give an opinion which is better.
6 Likes
Hitesh bhai,
1 Whatās your view on honeywell automation and kotak mahindra bank?
2 Like how we have limit in portfolio allocation for different companies , is it necessary to have group exposure i.e limit exposure to same group stocks although companies may be different ?
Thanks in advance