Hitesh bhai
Can you please let me know your views on Everest industries. I am long term investor. Considering the management quality, whether it can be averaged at these levels? What is your take on materials/infra industry?
Thank you Hitesh sir for your response. Your response is always provides very good insight⌠not only for the stock in question but also for the sector/market in general. I think last line says a lotâŚâSomething that looks cheap currently might look expensive after a couple of horrid quarters.â.
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dear hitesh sir,
it is wonderful to read your views and opinions. they re very informative and guide us to timeful decisions in our investing journey. kindly update your portfolio holdings sir.
thank you 'hari
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Everest is a typical cyclical company and hence not suitable if it is considered for long term investment. Better focus on structural growth stories like asian paints, pidilite, bata, hind lever or such similar companies where visibility for next 5-10 years is beyond doubt and threats of disruption are less. One needs to consider valuations while buying these or any of these.
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Hello hiteshbhai
Please share ur views on Kitex garments and premco global.
Thanks
Dr Hitesh ji, could you please share your views on Shalby hospitals it has build the capacity over the years and part of proceeds of IPO used to pay the debts and available at 2x of earning , How Dr Shah is reputation in Ahmedabad or in gujrat.
Regards
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I dont track shalby hospital too closely. And I am not too excited by hospitals as a sector as it remains an asset heavy business and its very difficult for hospitals to make decent amount of money. Among the listed players maybe a couple of players might do well at some point of time, say narayana or apollo hospital etc but there are plenty of other sectors to choose from especially in current market scenario rather than look at hospitals. The stock price has corrected a lot recently as I can see from charts on screener so one can make money on any bouncebacks but I am not too sure about it being a buy and forget type of company.
@Kuldeepjadeja I used to track and own kitex in recent past but since the correction began I was worried about the fate of small and midcaps and hence had exited. Premco doesnât boast of a great track record of growth. Just like shalby stock price, both kitex and premco have corrected a lot and hence may provide trading gains but in current market scenario, I think these kind of companies are at best trading bets.
In general I think a lot of people are getting carried away by statistical cheapness based on PE or correction in stock price in terms of percentage correction from top or some such other parameter. While it might be a good ground to look out as a filtering space, one needs to go one level higher and try to find out companies which have corrected due to Corona and in all likelihood are going to bounce back once this problem gets over.
Meanwhile in the short to medium term time frame it could be interesting to look at sectors like pharma and speciality chemicals. Pharma sector in particular in last week has seen a lot of stocks posting all time high or 52 week highs. It seems market senses there is something going for this sector in current environment. If one thinks in terms of business prospects, pharma being classified as essential segment, most of pharma companies have been able to continue production to varying degrees even during lockdown. Demand wise, it seems exports can get tailwinds out of supply chain issues in other geographies and strong dollar. Domestic pharma might see some headwinds because all throughout the lockdown (and I think to some extent few weeks post lockdown also going ahead) a lot of doctors have closed down their clinics/hospitals or have curtailed their workload to a large extent. This should affect generation of prescriptions and impact sales of domestic segment of pharma segment.
But irrespective of what is happening on the business front, after a long time I am seeing a lot of stocks from a single segment showing very bullish chart formations and all time highs and 52 week highs. My guess is going ahead, pharma can be a sector to watch/study to uncover potential winners. The sector has a lot of listed companies and hence one can have a big canvas to choose from.
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@hitesh2710 could tell me on eicher motor your point of view⌠they are very positive about post Covid demand will come. Very big brand . Is it worth at current price @19PE for the brand. Or wait for some more correct.
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Sorry to interrupt you Sir, contrary to many think Pharma is the current theme, there are some head winds as you have rightly said which is facing hospitals can also be a hiccup for pharma too.Not only in India BUT rest of the world also many small hospitals are closed and most of the patients were redirected to big private/ Govt, hospitals as this is a global pandemic. So patient footfall will take a hit.So the prescription drugs sales will get hit. Second many are scared to go to hospitals for non emergency illness fearing infection. Third supply constraints for finished products as well raw materials. Fourth many pharma companies are not running at full capacities due to lockdown/corona virus quarantine of its employees.Fifth due to the global economic slowdown the pharma spending will also come down in the future.Plz correct me if I am wrong,
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Hi Hiteshji, can you please share your thoughts on Nesco. Since its debt free, and Market cap is low when compared to the assets it have, how do you see it as a canditate for staggered accumulation. Agreed that Mumbai is the hardest hit, and most of itâs earnings are from exhibitions and office rentals, how do you see it in long term, may be 5 years down the line. Thanks and regards
Hi Hiteshbhai,
Regarding NOCIL, I remember reading in a con-call that the tyres constitute around 60% of the business for them. Rest of it goes to many other products, one of which is medical gloves 
Also on a side note: We never know when a medicine will be suddenly declared as a cure for covid-19. I wouldnât want to time that event. Hence buying on dips (10-15% falls, due to high volatility) makes sense. And the businesses which didnât make it through oneâs sound checklist before, has to be avoided anyway, covid-19 or not. Contrary is also true in my view.
Regards,
Sagar
Hi Hiteshji,
I donât have any technical knowledge with charts, was just comparing 2020 crash with 2006 crash, pattern looked similar, hence the post ⌠Will history repeat⌠? kindly share your viewsâŚ
Regards,
Prabhakar
Nesco is one of the companies likely to remain affected for longer than most other companies by the covid situation. Others like multiplex players also would remain affected for longer. In all these businesses, the social distancing would be difficult to maintain esp in the exhibition business. The rented out space may recover earlier and company can start getting its annuity like income from rentals but the exhibition business is likely to suffer longer.
Overall I would wait to buy such businesses because uncertainty linked to timeline of resumption of full operations is not likely to resolve soon. Maybe at a price all such negatives could be priced in but I have no idea what that price would be.
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Auto/auto ancillaries have been reeling since a long time because of one or the other reason. Covid was the final nail in the coffin for most of these. It doesnât mean these businesses are dead but these would probably be the last few to recover. Medical gloves are commodity products that dont make up for exciting business.
Regarding medicine being found out for Covid, its wishful thinking. The real game changer can be vaccine. But that seems some time away though there are claims off and on by different players about how early they can launch them. First of all though they have to show vaccine to be effective and then think about launching.
I had written earlier also, that the real multibaggers would come from companies where markets have given up hope totally on the business surviving. And inspite of that these businesses after some time start doing well. But I would like to buy these businesses when their stock prices are on their way up rather than on the way down. (same with business prospects)
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I am not too sure how the ongoing correction is going to play out. I like to take things as they come rather than try predictions. As of now inspite of markets trying to climb the resistance of 9300-9500, fundamentally I am not too confident about prospects for companies going ahead in the near to medium term.
If there are any definitive well defined patterns on charts either on way up or down, I would post them but atleast on the indices I dont see them.
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Hello Hitesh Ji,
Whats you take on Indigo ?
My sense is that Indigo can probably turn out to be the last man standing due to the strength of its balance sheet and huge cash in hand.
I agree aviation will take time to recover - even if flights start, they might not have enough bookings and they might be compelled to rearrange seating to maintain distancing.
But all what i said above has been in public domain and so my feeling is that all is priced into the current price.
Hiteshbhai
Please share ur opinion on HESTER BIO after current pendemicâŚ
How to evaluate their 50% rev. Comes from tenders ?
Thanks
hiteshji,
I wanted your advice on as to how we could identify Corp governance issues in a company before or even after we take a stake.In the last about 1.5 years, more than 100 companies have gone bust and some of them are large cap having a market capitalization as high as 1 lac crores.we are loosing heavily in Corp frauds.we, the common investors, are loosing confidence with fear of loosing he shirts
and feel that safety lies only in few may be 50 MNC type companies with time tested promotorâs.But these companies have v high P/E ratios and have around 5 to 6% annual returns.
Could you guide us on this issue?
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Hello Hitesh,
What is your opinion on Gujarat Gas and Gujarat state Petronet. Gujarat Gas is subsidiary of GSPL with GSPL having itâs own transmission business. To enter the Natural Gas idea, which one should be preferred? GSPL or Gujarat Gas? Also, how do you compare Gujarat Gas with Mahanagar gas and Indraprastha Gas?
Thanks,
Dear Hitesh,
Like your opinion on Honeywell Auto. It is an MNC and has been steadily performing and started picking up speed in the last 1 year before COVID crisis put a brake. Mainly catering to Aerospace and Oil/Gas, do you think it is a good co. to hold on to. Request your feedback
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