Hitesh portfolio

Hiteshji, Since you track Pharma so much, have you a chance to look at Strides Arco?

never looked at strides so not much idea.

Hi Hitesh,

Just wanted to know your views on Visaka, given that the results of HIL and Everest Inds were not so encouraging. Can/should we still take any position?

Thanks

better wait for results and then take a call. with recent carnage in mid and small cap space, there might be better opportunities available.

Hi Hitesh,

What is the reason behind adding anuh?is it a long term bet ?

What is your take on unichem post results?

anuh investment rationale i have put up in the thread on anuh. investment horizon will depend on how the fundamentals of the company pan out.

unichem results are good. I think the thing to watch out would be how fy 14 shapes up. I expect the company to do well in fy 14 as most of investment and rejig of distribution etc has been finished and going forward, company is expected to reap the rewards of the same.

Hello Hitesh,

Did you hear the greenply con call? I had a few queries, if you can provide some light, it would be great. Few things which I noticed:

  1. Why is the management skeptical or not bullish regarding MDF? in the beginning of the con call, they say it that its very new to say or comment anything…me thinks MDF should really be the game changer going forward (provided there is no cheap import of MDF)
  2. Secondly, the volume sales of other 2 segments (excluding MDF) is not so encouraging, one of them registered a minor decline if I remember correctly. Its the realisations, which is making the sales number look good. So how long is this sustainable? Given that the management said that no further increase in margins can be expected because of industry environment and more competition.

anil

I have not gone thru concall of greenply.

basic theme of investment in greenply was extreme undervaluation as compared to its prospects when it was quoting at around 310 levels.

This undervaluation is now corrected with the stock now up close to 40-45% at around 430 levels.

Now onwards stock is likely to move in tandem with earnings growth it can show.

I have been booking profits in the stock after the recent run up.

Exited greenply with good gains within a short period of time. Basically I dont like the debt part of the company. Undervaluation which was there at around 310 levels is now gone.

Sold some ajanta around 600 levels. As mentioned elsewhere there seems to be a frenzy in the stock.

Bought a small quantity of liberty phosphates just to keep track of things on delisting front.

Cera is a stock which has come under my radar but no positions in the stock. I think based on fy 13 estimates of around 38 or so, stock trades at close to 11 times earnings. Based on q2 fy 13 results, and statement of accounts provided, total debt comes to around 76 crores which seems okay for such a fast growing company. While stock is not as cheap as we are used to buying stocks, it does not seem too expensive.

Technically if stock breaks 397, there could be further downsides. cmp around 410.

Nirmal Bang has come up with a target for 669 for Ajanta - must have added some to the frenzy. Had a question - what would be a fair P/E for Wimplast? Is it still undervalued?

ajanta scaled 650 today. NB target almost achieved.

regarding wimplast, one can hope for PE of 10-12 in bull markets and around 15 if there is mad frenzy.

Hitesh ji,

Checked results of GSFC-sales has increased 172943 Lacs(Dec)-141602(Sep) Lacs

But Purchase of stock in trade has alsoincreased44863 Lacs(Dec)-20051(Sep)lacs because of which the NP and EPS has come down? This counter has not had any appreciation even though markets have moved up…Keeping this in perspective what is your take on the results and would it be wise to quit this counter and invest elsewhere?

Also what is you opinion on results for Indoco remedies.EPS has come down if we compare it with the quarter of last FY as well as previous quarter of this FY.

Regards,

Rajarshi

rajarshi,

gsfc is a value pick and in pure value picks, the patience of investors is often tested. If your time period is 2-3 years or more you can stick on or else if you consider opportunity costs, then exit – depends upon your investment approach.

about indoco, results are lacklustre but going forward, with exports likely to contribute meaningfully, things are likely to improve. But in short term stock can remain range bound.

Hitesh Bhai,

What is your take on Shasun Pharma considering the communication of the MD yesterday?

I did not particularly like the tone of the letter. Coming from an MD it should not have sounded like a PR show.

But at the current price doesn’t it look attractive again?

Cheers

Vinod M S

Rajashri,

GSFC is going for the expansion at Dahej. Also they are foraying into Canada venture for the potash. All these would mean more capex and being a state govt owned company, the likelyhood of over budgeting, poor execution are the key risks going forward.

Rajashri,

Sorry to have mis-spelled your name. Please correct it to Rajarshi.

Hitesh bhai,

What are your current views on Granules?

Would it be safe to enter it around 120-130 with a medium term view?

Regards

61.8% retracement of earlier upmove comes to 124 levels. earlier tops are in region of 110-115. I guess these should offer support atleast for a temporary bounce.

but if u are buying fresh, why not look at something more solid like unichem or maybe hdfc bank which is correcting – cmp 638-- maybe some more downside can make it attractive.

regards

hitesh.

**

Thank you for the advice Hiteshbhai.

And by sheer coincidence I have re-entered Unichem today.

Regards

Hitesh bhai,

What are your current views on Granules?

Would it be safe to enter it around 120-130 with a medium term view?

Regards

61.8%

** bounce.but **

attractive.

regards

hitesh.

**

Not too much idea about what the MD said but it seems below 100 levels there are a lot of committed buyers.