The cookers market is highly competitive.
Knowing the fat that its very competitive and unorganized market, the way spending and per capita income changing, more people will opt for quality and branded products. Rural market size is also very large. In addition, cookware is expected to grow at15% CAGR. Hawkings is tapping this opportunity by introducing more new products in the market. I would say that management was quite conservative earlier and didn’t want to diversify the products line. However, now seems that is not the case. They must have realized that cooker business moat is not sufficient. The way TTK entering into not only cookware but also electronics markets is quite good inspiration for management to strategize the business.
Lets hope coming years it gives decent recent. Personally I am invested and expecting at least 2x return at CMP.
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@hitesh2710 Sir, your views on IEX…
Can it be a long term bet considering its prone to disruptions & govt policies etc…
Can ever it find a place in your core portfolio…
Hitesh Bhai,
If the broader indices correct by 10-15%, will you sell the stock which may also fall by 15-20%, but where you believe the story is good for a few quarters and re-enter when its back in momentum? or you choose to hold?
During last correction Gujarat Fluoro and Schaeffler didn’t correct, if i am not wrong, when the broader market was correcting. But i believe that will not always be the case. In a case where all things being equal, and only price is falling by 20-25% from 52 Week High, will you cut losses and exit?
In recent past ever since correction began from Oct 2021, there have been many instances where indices have fallen 10-15% and have taken many stocks down with it to the tune of 10-15% or higher. I am okay as long as my portfolio stocks fall due to general market weakness, (though I would prefer to see them standing strong. ) The worry is when markets are steady or uptrending and my portfolio stocks are going down consistently. In such situations, I would like to take a closer second look at the investment argument and check my thesis. If there are any chinks in the armour, I would prefer to take necessary action.
The other situation where I often sell my portfolio stocks during a market meltdown is when I see much better opportunities in other stocks which also have corrected due to general market weakness. Idea is always to move into companies with strong business and price momentum. If price momentum is weak all across companies, I would prefer companies where the investment thesis is clear and simple and earnings visibility is predictable and strong.
@Shakti_Srivastava You have already highlighted the big negative about IEX in your query. Its prone to disruptions and govt policies. So why should there be a question of putting it in my core portfolio?
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What is your take on Manaksia ltd?it is trading at 3 pe and about 4 percent dividend yield.It is basically a net net according to graham .The reason i am interested is that their profits have tripled from last year and i expect a increase in dividend payout which will be probably announced by next month board meeting.Also they are at peak promoter holdingat 75 percent.
I am invested in it because it is a netnet with more investments than market cap.
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The worry is when markets are steady or uptrending and my portfolio stocks are going down consistently. In such situations, I would like to take a closer second look at the investment argument and check my thesis. If there are any chinks in the armour, I would prefer to take necessary action.
Hitesh sir,
With the above point, may I query about Vimta Labs. You have mentioned about holding the Vimta Labs and in the current scenario it is some what similar to your above point but not exactly going down consistently.
So how you handle these kind of situation(s)?
Thanks!!
Vimta labs has been range bound of late. Even a laggard we can say during last few weeks, where markets and other stocks have gone up a lot and this one has gone sideways/down.
Fundamentally results have been good and management sticks to achieving target of sales of nearly double the current levels in 3 years time frame. Whether this can be delivered or not needs to be seen.
I had already mentioned earlier that I use corrections to make switches which I feel are likely to be more profitable. In case of Vimta, I trimmed my positions and converted a lot of it to fluorochem and HBL where I can clearly see higher business momentum and stronger chart patterns.
The current market offers a lot of trading opportunities if one has an eye to pick up trading picks and a mindset to play short to medium term momentum trading. We can pick out sectors showing strength and try to look within them for strongly trending stocks.
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Fundamentally I do not track Manaksia too closely, so not much idea about it. Will have to look up the details on this one. However the most interesting part of the equation here is the chart.
The stock price broke out above previous all time high of 86 (made in Sep 2017) and went up to post a fresh all time high of 103 in April 2022. And now its back to retesting the previous all time high zone and currently is around 77. Attaching a weekly GMMA chart which provides a more clearer picture of the rounding formation and breakout above previous ATH and retest going on currently.
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There are a couple of developments in the stock today.
1)They released their annual report which says no dividend for this year,which is strange because they tripled their profits and have always paid dividend for the past 10 years(except one year).I was hoping for a buyback because they were at peak promoter holding.They are 50 year old company with other group companies rated at A,A,BB .
2)They want to increase their revenue by 2025 to 1600 cr from 1150 cr now.
3)They have investment and cash of around 900 crore,which could go up in a couple of years depending on market situation.Let us assume it up by 50 percent,it would be around 1350 crore and the remaining business would also add value to the market capitalization.This is not a holding company.
Their present P/E is 3.10 .I feel this has sufficient margin of safety.
Disclosure:Invested.
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Hitesh sir,
what are your views on kalyan jewellers
Hi Hitesh can you suggest any names in electronics sector and proxies for my study except SBCL. Thanks in advance
In the electronics sector the companies that come to mind besides SBCL are HBL, BEL, Centum electronics. Even Astra micro is into defence electronics. There will be some companies into electronics in auto sector and some in defence and some in other fields.
@hitusohi1 I don’t track kalyan jewellers.
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Do most companies reward shareholders on 50 year anniversary?Manaksia is having 50 year anniversary.They are not paying dividend so i guess they may do a buyback?
Hi hitesh Bhai, few months ago you posted about rbl bank and due to to global sell off it went below 100 and touched 75. From there the stock frow 70% and touched 132. And now consolidating in 120 to 130 range. You told you exited script once it went below 100 and will reneter only when it is above 100.
You opinied that nothing much to lose in rbl bank at around price of 100 and it’s a good bet for a play in banking stocks.
What is the thesis behind your trust in rbl bank management when everyone was very skeptical about its fate few month ago. And with the current strength in bank nifty do you think smal private banks will outperform small PSB or it’s the otherway around.
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RBL Bank all time low stock price was at around 100 and it broke conclusively and stock went below it with a gap down with huge volumes. It then went down to 77 levels and recovered. For me the exit on breaching 100 was a logical thing to do because I usually keep a mental stop loss of where I want to exit. I can allow a leeway of a few rupees but in case of RBL it was a conclusive breach of that level.
Currently banking and financials are making a comeback and my guess is most of them will do well if the sector performs. Now which sub sector outperforms from that is anyone’s guess. But I think these smaller private and many public sector banks are quoting at significant discount to book values and that’s where a lot of delta can be generated. Some of the private banks I track like karur, dcb etc have made significant rallies and there can be more.
In the current market scenario we are spoilt for choices in terms of sectoral upmoves. A lot of sectors like auto, auto anc, defence, power, paper, tyres, financials FMCG, some manufacturing companies (where the theory going around is that with EU in dire straits due to high production costs due to high energy and other costs, production can shift to countries like India.) etc. While index may not do much, individual stocks will sizzle and we have to pick and choose. I keep sharing charts on 52 week highs thread whenever I find something interesting and actionable.
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hi hitesghbhai your view on j&k bank
Hi Hitesh Bhai,
Troubling you with Chart of India cements for your view. To me it looks like it has broken out of the big pattern and can go higher. One of the strongest Cement stocks as of now (primarily due to their Chennai Superking stake). If you have any view, pls share.
Thanks/ Nikhil
Hello Hiteshji, Sorry for spamming your topic but I am not allowed to have more than 3 post consecutively without any reply.
Adding 2 stocks for your inputs as well.
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Schneider: Touched YH today on impressive volumes. Company is fundamentally ok, though still slow. However will benefit from tailwinds to the sector.
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Raymond - Seems to be breaking out after 3-4 month tight consolidation.
Disc: Invested in both
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Hello Hitesh,
I think, “Why a lot of investors fail” aptly describes various traits of the investors, due to which, in spite of so many opportunities in Indian markets, they may not have made significant gains.
The point which I liked the most is - Execution. After doing lot of analysis, I also often have failed to hit the Buy button when required, and might have missed many opportunities. Off course, I can say this in hindsight. At that time, when the buy price might have entered my Buy zone, I would have had some concerns about the business and/or its valuations. But when I look back, I realize that, it was a lost opportunity.
Another important point is “Losing balance and poise at precisely the wrong time”. Probably, this happens with many of us, during periods like 2018 & 2019, when index kept going up but many Mid caps/Small caps were in correction phase. At that time, it was challenging to keep faith in the story even though fundamentals were in tact in many cases.
Overall, this is very useful post for all readers and investors.
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