amey,
based on cmp, I am more bullish on unichem with a 1-2 yr perspective.
about medium term, its a difficult guess to make based on 4-6 months prediction.
Hiteshbhai,
Any views on Ballarpur Industries. It has come to around 18.50 today. Will this be a good entry point?
Thanks
chaitanya,
ballarpur seems to be close to support region of 17.50-18. One can keep a strong stop of a couple of closes below 17 if one is buying this one technically.
Fundamentally the margin improvement expected has not yet materialised due to higher interest and depreciation charges. Things should fall in place going forward but the wait might be longer and frustrating.
I have found that buying nearer to bottom is often frustrating because of the whipsaws and time taken for consolidation. e.g of such stocks are techno electric, BILT, Blue star etc.
Hitesh bhai, Thanks for the advice
Are you paying attention to the sugar de-regulation and the possible re-rating of Sugar stocks or you keep distance from them as they are cyclicals?
Thanks you Hitesh bhai. I am too frustrated with Blue Star. Exited Techno. I guess will wait for further downside in BILT before taking any position. Thanks again.
Hi Hitesh sir,
I know very little about pharma. But I want to hold 2 companies in this space. Currently I have a smallexposureto Unichecm. ( borrowed conviction from you). I want to add one more pharma company with > 5000cr market cap. I have zeroed down to Lupin. Do they have any strong moat?. Do you see any negative in Lupin. If not Lupin, any other pharma company >5k cr mcap, with some earning visibility ( 3 to 5 yrs)that yourecommend?.
Not too much idea about sugar or its cycles. Will consider entry if charts suggest an entry.
smallexposureto yrs)that yourecommend?.
I think in larger companies in pharma space, Lupin seems a good bet. It has a strong presence in US markets, Japanese markets and also Indian markets.
debt equity is around 0.7. Valuations though are not cheap at around 22-25 times fy 13 expected EPS of around 25.
But in the past growth has been consistent and there are various research reports suggesting good times for lupin ahead.
Other good bet can be sun pharma though it has run up sharply recently.
Personally I dont hold Lupin (or Sun pharma) nor track it too closely. So please do your own diligence and decide.
Hiteshji,
Do you track Core education. Are there opportunities in the recent midcaps that have fallen hugely.
Thanks
Supratik
Thanks Hiteshbhai for yr timely reply… Also out of two housing finance companies… Gruh & GIC, which of them according to u is a better pick at current market valuations for longterm core portfolio?? Sandip
Hitesh , Finolex cables has corrected again by 10%? Does it look more attractive now to buy?
yes looks attractive around 50 levels.
Page Industries has taken price hikes during last quarter. Talked to a dealer, he said that the old inventory with old MRP is still in stock and is gradually being sold. Soon the new prices would kick in (upto 20% higher prices)
This doesnt augur well though. The price hike was done last quarter probably and there are unsold goods. Is this a Tier1 city and can you please disclose the location/area like residential, market place or a mis-located shop etc?
~Supratik
Hitesh ji,
What is your opinion on the following purchases?
Amara raja: Purchased at 255…will keep on purchasing in a staggered manner in range of 255-225
Unichem: Purchasing in range of 169- 155(although it is unlikely that it shall cross 160 levels)
Finolex cables: will keep on Purchasing in range of 50-45
Poly medicure: Range shall be 429-400
RS software: Range shall be 125-110
This was in the heartland of Kolkata - Burrabazaar.
Infact I was sold the old MRP Stock
Not much idea about RS Software but rest of stocks seem good stocks. What range to buy is one’s own decision regarding valuations and risk reward potential but broadly I agree with the levels you have put up.
Please drop the ji in hiteshji.
regards
hitesh.
Ok hitesh bhai…From here on I shall be addressing you as Hitesh bhai if that is fine with you.
Regards,
Rajarshi
The current budget has waived Excise Duty on Cotton Products. Jockey shall be directlybenefitedby it. I know this because, my father does the complete packaging for Rupa and Lux. He says that none of the undergarment manufacturer will pass on the benefit of excise duty waiver to customers, because they never want to reduce established prices. Especially Jockey (which is a premium product). The excise duty was roughly 4%.So thats an addition of 4% to operating margins directly
hey ashwini,
have they given any period for the excise duty waiver on cotton products?is there a fine print on what is a cotton product and what is not? just to fit textile companies and prevent others?