Hi @hitesh2710 sir,
What’s your view on Tata Power? Does it look good fundamentally?
Tata Power comes across as an integrated player in the power space.
GENERATION
It has been into power generation business since ages. Now focus is to shift majorly into renewable energy and reduce the proportion of power generation from coal.
DISTRIBUTION
With the govt opening up power distribution under the Electricity amendment act 2021, there can be migration from public (discoms) to private players and this could emerge as a theme. However how many states allow these kind of things needs to be seen.
ROOFTOP SOLAR
Company is a market leader in rooftop solar in solar EPC space since seven years in a row.
SOLAR PUMPS
Solar pumps also remains a focus area for Tata Power.
EV CHARGING
Tata Power has big plans to set up EV charging infrastructure in colloboration with one of the oil marketing companies and an announcement to the effect also has been made.
Above are the broad bullet points that come immediately to mind. Company’s annual reports, presentations and concall transcripts provide a lot of relevant details for anyone interested in digging further.
A good long term chart pattern along with a positive change in business model augurs well for Tata Power as an emerging story. I have put up the chart of tata power in the 52 weeks high thread. disc: invested.
30 Likes
Thank you. I had a very similar question as I’m invested in TataPower from longer term perspective, but I raised that question on the 52 wk high thread and it got moderated out. Appreciate your views.
Thank you so much, @hitesh2710 sir. What are your views on the renewables business getting listed separately, if and when that happens? Is it going to dent Tata Power’s story?
Hi Hitesh bhai,
Do you have any thoughts on Arvind Fashions?
Company has gone through a huge restructuring where most of the unprofitable tail brands have been closed off; 860 cr has been raised to fund losses in the last 18 months and another 400+ cr funding round has also been fully subscribed by some marquee investors including promoters. It seems company is well poised for for things normalizing and now even has enough ammo to fight off a third/fourth wave.
2 Likes
I had posted a chart depicting a strong breakout from a base pattern in 52 week highs thread. In that arvind fashions was breaking out and I had a techno funda position. I exited with profits as my trailing stop loss was hit post the strong rally in the stock price.
Fundamentally, the story is about sharpened focus on what they call focus brands. They have gotten rid of their tail brands and are now trying to get the most out of six brands. A lot of cost cutting measures were implemented to reduce overheads. Non profitable shops were closed, slow moving or loss making brands were sold off and in an effort to reduce debt, a lot of fund was raised and a large part of debt was retired.
Now we have to see how the efforts made above play out in terms of growth and profitability. According to management comments in q1 fy 22 concall, company is likely to see good times from q3 fy 22.
What I did not like was the kind of mess they created for themselves in the first place. And they could not make much of acquisitions like Hanes and other brands which they eventually had to sell off. What I liked was their proactive steps to re invigorate the business.
I do now have any positions as of now but stock remains in my watchlist.
@navonline7 Tata power management keeps harping on a strategy to make the most of its renewable assets. Earlier they tried the REIT route but now seem to be commenting that they have a better option to monetise the assets. We will have to wait and see what they come up with. In rest of the areas they seem to be doing all the right things. I remain invested and think if they get their act right, this could be an interesting story unfolding.
14 Likes
Hitesh sir, please share your views on Rossarri Biotech. In the last 2 months they did two acquisition and focussing on the health and personal care.
Dear Mr. Hitesh
Can you share your views on Raymond, if it’s part of your list?
Raymond is able to manage the covid situation better than Arvind Fashions and even turned out actual profit in Q4 FY21. They seem to be more organized and their real estate business seems to do quite well as well. They plan to expand the RE business much more than what it is today but somehow I feel this is not taken into account by the market. Thanks
Hiteshbhai, Firstly I would like you to compliment on this extremely valuable thread you have created and also for sharing your insights with us genuinely.
Secondly, I have been tracking 2 main themes currently and would love to hear your opinion on them.
1 - Shipping - A lot of Companies, both in the indexes and Broader markets have confirmed this issue and the skyrocketing rates. The rates are climbing and are sustaining even at higher levels and CNBC/JP Morgan state that the problem does not seem to be solved anytime soon. I am also quite bullish on this industry and think that quite some gains can be made. My current watchlist include Shreyas Shipping, GE Shipping and Shipping Corp. Ill be frank here and tell you that I have taken a llittle bit of exposure to Shreyas Shipping at since it has the best fundamentals and Lowest adjusted Valuations out of the 3 and also that Shipping Corp being a PSU. I would love to hear your opinions on this industry and Shreyas Shipping, if you have tracked it.
2 - Steel Industry - I think that there is a lot of steam left in the steel supercycle since India is transitioning into a 5trn Economy along with heavy infrastructure spending for the next few years. Steel prices have corrected a bit, not drastically, but they are still quite high compared to the last 3 years avg price. I have again shortlisted a few stocks to play this cycle out but as a disclosure, have not invested in any of them. Raw Materials/Billets - Godawari Power & Ispat (very hectic recent developments) and Sarda Energy and Minerals. Finished Products - Tata Steel Long, Tata Steel, Mankasia and Scan Steels (Value Play). I would love your opinion on this industry!
Thank you
3 Likes
Shipping certainly seems an interesting theme to look at. Global freight rates are as you say through the roof and these companies can end up making big profits. There are only a handlful of companies worth looking at. GE Shipping remains the best company in the sector. I had a look at shreyas shipping because of change of ownership but could not follow up on it and now it seems stock price has run up a lot it remains in my watchlist. I own SCI since past few months, it being a techno funda pick. But in case of SCI, rather than the shipping cycle, divestment could be the more pertinent trigger. Of course, if the govt does the right things with a stipulated time frame, it could get good value for stake sale, looking at the strong cycle. But knowing the workings of govt, I dont know when this trigger materialises. I do not have too many insights into shipping sector so havent looked at these companies in detail.
Steel cycle has played out very well and all those investors who rode it well made lots of money. But for me, its difficult to predict how its going to play out. Near the top of the cycle the picture always remains very rosy.
@newone I dont track raymond.
@Akashdeep I dont track rossari.
10 Likes
This is a very detailed blog on the shipping industry, with a focus on GE Shipping. Boarders may find it help full.
6 Likes
Sir,
Do you track GNA Axles? Would like to have your views.
Its a small cap components manufacturer for the four-wheeler industry, primary product being Rear Axles, Shafts etc. Its showing great quarterly sales numbers and price action.
Hello Sir,
What is your take on lincoln pharma currently?
Management appears bullish.They are carrying out capex. Is it worth researching for investment.
Lincoln is a Gujarat based pharma company mainly involved in exports to non regulated markets and some presence in domestic markets. I was briefly invested in the company some years back and this is what I recall about it. Not much information was available about the company back then and I exited amidst a frothy run up during the pharma bull run back I think in 2015. Overall looking at the numbers the company seems to be doing okay. But I still cannot figure out where the company’s growth focus is and how things can pan out. Its stock price has had a good run recently taking out its all time high, and seems strong amid weak sentiments for pharma stocks. As a candidate for research, I think anything is worth a punt as long as there are not glaring negatives.
@amishra I dont track gna axles.
@Gothamcapital I dont track pnb gilts.
7 Likes
Hitesh Bhai,
I am getting tempted to buy Kaya, Burger Kings and recently listed Devyani international all loss making companies but with seemingly good future prospects.
It is a bit weird to buy loss making companies in current roaring bull market but I understand that as they are loss making that is why they are available at bargain price.
Wonderla too looks interesting in post-covid scenario.
I would like to know your views on those of the above mentioned businesses which you might be tracking.
Thanks & Regards,
Ramesh Patel
There is a slight difference between loss making businesses of Kaya and that of Burger king and devyani intl. The latter two are relatively new businesses in India and hence we can give them some time. In case of Kaya, the concept of cosmetology clinics across the country has not really worked till now. And I do not see things changing soon for Kaya. I think it will need a drastic change in treatment seeking behaviour on the part of patients.
Burger King has only recently set shop in India and could be an interesting business to watch. Devyani Intl is a owner of franchises of KFC, Costa Coffee, and Pizza Hut. While Pizza Hut has not exactly set the house on fire in India, I think KFC could definitely be interesting to watch. And it needs some fixes by a smart guy to set things right for these businesses as we have seen in case of Dominoes Pizza. However it might be a thematic investing and not based on any numbers as predicting numbers in the absence of profitability is difficult.
Wonderla I have always felt is an over rated business. And to top it, it has been hit by a series of mishaps, be it floods, Covid etc. In a country like India where your business depends upon disposable income of the middle and lower middle class, (I assume the rich guys are going to go to Disneyland or some other such exotic locations) its often difficult to survive natural (floods, famines, hurricanes, etc) or man made disasters. (Covid, demonetisation, economic downturns etc) If bought at the right price and exited at the right price, there could be money to be made in Wonderla kind of businesses, but I do not consider them the high quality compounders kind of business. Unless they pull a rabbit out of the hat.
38 Likes
Hitesh Ji ,
I dont know if anybody has asked this Question before …but I am a very perplexed about the trading/investing software I should invest in apart from the default ones given by Zerodha …what has been your experiences with some of these softwares like Spider / Metastock / Amibroker …( if any ) …& do they really add value if one is not a short-term trader ( no intraday /1 or 2 week kinds ) but a longer duration swing + Long term investing type set-up.
Have looked at Youtube videos etc but not getting clarity if its a MUST to have this or this is additional ‘good to have’ kind of investment . Am already a paid subscriber to Screener.in & am happy with zerodha default + Screener.in + in.tradingview.com …whats your take ?
Thanks in advance .
1 Like
I often use screener to have a first cut look at charts of stocks. The benefit of it is it gives a simplistic view of the price movement across time frames without any complicated imagery. Plus the benefit of ease of access. I find it most useful.
For someone who uses technicals as only ancillary to fundamental analysis, I think screener itself or maybe tradingview etc might be more than enough. For those involved in hard core technical analysis and those who want to plot loads of parameters, it makes sense to get any of the other platforms like metastock, or amibroker etc.
My take is if you are not too much into technical analysis, it does not make sense to go into too many expensive options for TA.
13 Likes
Chart link also good software free aswell as paid.We can use and build our own scanners .
1
2 Likes
@hitesh sir how you think the TECHNOELECTRIC ENGINEERING LTD in present scenario as company is acquiring more skills and advantage of being first mover in various domain as now it is acquiring land parcel near Chennai an Hyderabad for EPC Of data center as this will be game changer for them and for the industry . they are also aiming for delhi and noida .
second is related to this as the company has settle the legal suite of NCLT of McLeod Russell ( listed tea company age old tea company once largest tea company of tea ) and help tea company to move out of the clutches of NCLT how this will help the TEA company and the TEEL
regards