IRCTC, Affle, and India mart have had wonderful moves post their listing and the underlying theme in IRCTC and Indiamart remains platform presence in their business model which can lead to non linear profitability if revenues keep growing. Affle not much idea.
Looking at these missed opportunities should be a cause of too much worry because markets keep offering opportunities provided we keep looking in proper direction.
@tommy123 I had posted my views on both HLE and GMM earlier in the thread.
@hitesh2710, this was my request in August, somehow it missed your attention. I kept buying both the stocks for their business model. The concalls during the last two quarters helped in building conviction. The volatility, of late is little unnerving. Slow and steady rise in market cap would have been more comfortable. Holding the nerves for the present. These two shares (Affle and Indiamart) reached about 58.3% in my PF. Is it advisable to keep holding at these valuations. Please share your thought process on holding these stocks, considering 1. The percentage of > 50% in PF.
2. Carrying >100% appreciation.
3. The tax implications.
[quote=“bmsingh76, post:452, topic:16722”]
, in bandhan bank at present equity cap is showing 1610 cr. and share capital in March 2019 showing 1193 cr. In screener.in website.Where as in many companies both parameters shows same numbers.
Please elaborate why such difference is and what does it mean in terms of bandhan bank.
Thanks in advance.
Sir please explain it.
Its due to Gruh Finance merger with Bandhan Bank.
There was amalgamation took place on basis of swap ratio. It means that by merging gruh with bandhan, promoter of bandhan allotted certain amount of bandhan share to hdfc and gruh’s shareholders but there was no equity dilution as for as I think.In amalgamation process only promoter’s holding has decreased near about 21%.
Hi Hitesh,
What are your views on godrej industries?
I have one more query regarding godrej appliances(not registered in stock market).Are they under godrej industries or who holds stake in that company?
Thanks,
Deb
Stocks running up to form a big proportion of the portfolio due to the sheer run up is a good problem to have. Regarding valuations when stocks are in strong uptrends as the companies like affle and indiamart obviously valuations will be high and tend to go even more higher. The scrip usually follows a familiar pattern most of the times.
The business model is described as invincible and is quoted to have a very long runway for growth. And with the run up, the valuations are bid sky high with a lot of fanfare. But as happens most of the times, a pin always lies in wait to prick the bubble. When and how that happens is anybody’s call. Personally, if a stock’s weightage reaches to uncomfortable levels and if I feel valuations are not sustainable, I would tend to cut the position to levels where I can have peaceful sleep. This will mean different things for different investors.
Tax implications should not be worry anymore becasuse difference bewteen long term and short term capital gains taxes is 5% now.
Carrying a stock post 100% appreciation or any percentage rise for that matter, we never know how high it is going to go. So as long as valuations are comfortable one can remain invested.
@babu44b Not much idea about godrej inds.
Godrej appliances is not part of Godrej Industries. Jamshyd Godrej is chairman and managing director of Godrej & Boyce, the privately held consumer durables arm of the Godrej Group. The $1.6 billion (revenue) firm is best known for its appliances, furniture and security solutions. He is the cousin of the Adi Godrej.
disc - invested in Godrej Industries
@hitesh2710
Thank you very much for sharing your thoughts. It helps a lot.
Regarding tax implications, IMHO it is not just 5% tax difference between short-term and long-term that is at play. Suppose, if we sell a stock with 100% profit, say for Rs.2,00,000, and Rs. 1,00,000 is profit in it, we will have to pay around Rs.16,000 (including surcharge or cess) towards tax. The net proceeds of Rs.1,84,000 would only be available for investment in another stock. To benefit from investing in new stock, the new stock should out perform the existing stock by at least 8-9%. Is it the right way to look at the option of shifting to better stock or am I missing something. Your views on this will be very helpful. Thank you
Hi sir,
Please give your views on Bharat electronics limited on current valuation.
@prawat I dont track bharat electronics.
@nagesh_reddy I thought the question of tax implications was asked keeping in view profit booking as sometimes these high flyers have wild swings and its often difficult to make out when a top is made. If the latter is the case, then booking profits is okay. If one is convinced about the story for long term, there will be no issue of profit booking and hence no taxes. With levying of long term taxes, the case of having our cake and eating it too is not possible. 
Govt wants a pie of your every cake.
Dear @hitesh2710 sir, How do you view IOLCP currently? It is trading at lower PE on the back of higher earnings, did not go down in last 2 years, posting new highs and still trades at much lower historical PEs after some run-up. As per them, they are one the track of becoming debt free by Q4 or by Q1-21. Also they claim to have sufficient raw materials and will benefit from china troubles and increased demand for Ibuprofen.
Hello @hitesh2710 Sir,
With the current carnage due to the Corona situation and since it seems to be spreading faster than ever, do you think the initial read of situation still holds good? I feel unless the disease is contained and some normalcy returns the market may bleed more due to the uncertainty. How should a retail investor act in these type of situations on a portfolio level? Should we sell out and enter when there is some order. We have all heard buy low, sell high and I often see you advising to stocks where only growth is visible and not to catch falling knives. Looking forward to hear your thoughts on it. Thanks.
How to approach investing in the current Corona virus situation is something everyone is vexed with and I think nobody has the perfect answer. As investors most of the stuff we do is take educated guesses and stick to basics.
While one aspect of investing is about finding winners, the other and probably more important aspect of investing especially during market meltdown is about cutting the losers from the portfolio. Market corrections are good times to be dispassionate and remove non performers from the portfolio so that they make space for any new/existing good opportunity.
Personally I am surprised at the kind of cuts markets globally are experiencing. But with the kind of rallies that preceded this correction the markets probably were quite heavy and any reason is good enough for them to go down. And Corona came about as a reason to add fuel to fire. We have had viral pandemics in the past too and as usually happens this too shall pass. It is only recently that far off geographies like Italy and Iran are reporting outbreak of the viral disease. Thankfully with summer coming through in most geographies, there should be some respite from the problem. China itself seems to be normalising in past couple of days according to reports emanating from there suggest. (though with China you never know quite what to believe.)
Whenever market corrections occur, panic selling accompanied with extremely negative newsflow occurs closer to bottoms. And it is nearer to bottoms that the stocks which have held strong all during the correction start correcting. Whenever these things happen, one can be reasonably sure that a bottom is nearby.
I got stopped out of Bandhan Bank as I had a mental stop loss of 400 level which got violated and hence I cut my position. Here business might be okay but I often place a sort of stop below which I will exit. Similarly I had bought Bajaj auto as a trading bet which did not work out and hence exited. Now will deploy as an when I get levels in stocks which I want to buy.
The buy list during such corrections is easy to make as we have to find out businesses which are likely to remain resilient during such turmoils even though stock prices may not do so. One company I am looking at is Aegis logistics which seems a good business to ride on the CGD and LPG theme. No positions as yet.
Thank you sir for penning down your thoughts lucidly. It certainly helps. And I completely agree with you on cutting the loosers during times like this as I have benefited from the same immensely in the past.
Hi Hitesh,
I have purchased shares of HDFC(The parent company) recently.I want to make hdfc part of my core portfolio with long term horizon.(7% of my portfolio)
Its business like AMC,Banking & Insurance are already listed.So value unlocking has already happened.Now it is left with lending activities.It is already a 4 lakh crore market company.Kindly let me know your views for the company and how it can scale up in future.
Thanks,
Deb
Hi Hitesh,
What’s your view on south indian Bank. It is trading @ multi-year low.
Dear sir,
What are your views on Abbott India
Hi Hitesh Sir,
I have noticed you multiple time talking about parking stocks.
Could you please give some examples which you think are good parking stocks.
REgards, Saurabh
Dear @hitesh2710 sir,
What’s your current view on Paper industry in general and Shreyans Inds, West Coast and Seshasayee Paper in particular?
I believe you used to track Shreyans and possibly few others sometime back. The PE compression is making them look attractive but margin sustainability, dumping from Asia and pulp prices are key risks.
Thanks in advance for your answer.
