Hitesh bhai,
Just curious to know your views on high PE consumer centric stock with good brand value like Pidilite, Asian Paint, Berger Paint? I know there won’t be any wealth creation because of pe expansion, but we can be assured of decent rate of growth in eps for these company, given their branded consumer centric business.
both look decent bets.
they will be steady compounders at best. Esp if bought at the right price.
**Just to give you an example, someone who had bought titan in june 2011 at around 230 is up by a measly 10-15% and it has been one of the most talked about stock in last two years. **
Nestle was around 5000 in april 2012 and now languishing below it.
Just compare returns of the stocks we track and you will get a drift of what I am talking about.
If you are ready to turn a lot of stones around, the aim should be to generate returns much higher than these steady compounders.
. Link: Centrum says use corrections to buy midcaps, lists 20 picks
They have given a list of twenty stocks so I guess proper stock selection would be the key to making good returns.
Hitesh,
.
like
** They returns.
i see jai corp in that list , what is the reason for including jai corp in that.
**
Hi Hitesh,
Have you made any changes to your initial portfolio that you shared in this thread??
Regards
Yes, exited greenply, mayur, almost completely.
Stopped out of the undervaluation plays in asbestos sheets companies. Exited hyd inds and ramco in marginal profits, and anuh, visaka, careerpoint, goodricke, with losses.
Ajanta has run up almost 50% since last update. Had exited around 630 and picked up around 560 avg price.
Portfolio has become pharma heavy but I have decided to stick to top three of my holdings namely ajanta, unichem and fdc.
Recent buys include GRUH around 217-8 and gic hsg around 121, finolex cables around 55. Gic hsg with its growth and div payout looks interesting as a dividend cum growth play.
Will update the portfolio in april.
Are you holding on Indoco?
the q3 fy 13 results have been lacklustre. have been gradually reducing the holding in indoco and increasing in unichem about which I am much more convinced.
Hitesh Sir,
would request you to have a look at Aegis thread… It seems we can see some quick gain here coming form the next quarter…
Thank You…
I have put the comments in aegis thread.
@ vivek bhauka, I dont feel like answering your comments because most of the times I cant figure out what you intend to convey by the** crap** you have posted in your comment just as you do in other threads.
**@vivek bhauka, just for the record try posting a recommendation on the stock you are most convinced about and let people understand your investment arguments. And in that recommendation, just avoid posting the general comments and garbage you tend to post in all the threads like “**pharma should not be seen from return and balance sheet equations as many other things play out in this sector…but then also sales growth is just normal…nothing exceptional.”
I dont know what to make of the comments you have posted above which I have put in inverted comma.
You have been told by a lot of forum members about the quality of posts and I think you dont understand what they mean or frankly dont care about others’ reactions. In either case, what you are doing is going to make people skip your comments altogether. Most of the times people tend to avoid being nasty and keep bearing with whatever you write on various threads but it seems you dont intend to learn and hence the outburst.
**
Hi Hitesh,
What is the reason you exited Mayur ?
Vinod.
Yes, completely.
**
iamvinod,
At levels close to 480 plus, mayur was quoting at the upper end of valuations of around 12 PE based on fy 13 expected eps of 40. I was holding mayur since a long time and hence had no tax issues to contend with while selling.
Now with stock drifting lower, it again seems to be entering attractive buy zone. I intend to buy it again once the price stabilises or starts showing some strength.
regards
hitesh.
Hi Hitesh,
Just curious to know how did you conclude on the upper end of the valuation? Any reason to assign 12 PE to mayur as peak valuation? The stock has been growing reasonably well though.
Any lower end valuation you have in mind for re-entering the stock?
raj,
there is no cast iron formula for calculating peak PE for any stock.
If you look at mayur and its business, it is a somewhat better placed manufacturing player exposed to demand supply situations based on its user industries. With consumption (footwear) and auto slowing down, it would be difficult for mayur to grow at rates higher than 20%.
Plus I was not too happy with the way the small and midcap space was being butchered.
These were the factors leading to decision to ease out of mayur.
Regarding lower end valuations also there is no definite answer. Maybe below 10 PE should be good levels to start accumulating on dips.
Thanks Hitesh for sharing your perspective on Mayur.
Hitesh sir,
Any technical entry point based on charts which one should watch-out for to enter Mayur in current ongoing correction, if u happen to look at the recent chat, for those who want to play it for 12-18 months perspective?? One another assumption based on yr observation of PE below 10 as a good starting point for buy-on-dips roughly translates into sub-400 levels from where one can look to buy in a staggered way… Does this assumption finds any technical support based on the chart pattern if any?? Thanks in advance…
Sandip
Read the link kept at TED abt Mayur Uniq.
@sandip thakrar,
regarding mayur I think levels closer to 400 should offer good entry point. Since it is an illiquid stock it may make sense accumulate gradually on dips.
@hemant, in near future there might be slight slowing of growth but overall mayur remains a good story. thanks for the link.
hitesh.
hitesh,
your advice on mayur is well-taken. i will keep myself latched to any price falls in Mayur around 400 levels.
Going by today’s CMP= PAGE - 3327, Mayur - 433, Titan - 255, Hyderabad Ind - 401, Unichem - 174, Ajanta Pharma - 605
Where does one see scope to invest and look for medium term gains till the time Q4 results are announced in April. It looks like a lot of retail investors are waiting on the sideline.
