Hi Hitesh Sir,
Can you please share your thoughts on Tata Elxsi.
All the things looks good but if you at there CFO(Cash Flow from Operations) it looks like a big negative.
Thank you.
Hi Hitesh,
What do you think about âkilburn engineeringâ. All time high breakout after 2017. Very interesting stuff happening in the company.
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Hitesh Bhai are you tracking Dreamfolks. They are into airport aggregator services, mainly managing airport lounges. The business seems to do well in coming times and to some extent reflected in numbers
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Regarding agrochem sector its difficult to take a blanket call on the sector. There are a few companies like PI Inds which seem to be doing well and are rewarded by the markets. But in many others like bharat rasayan, UPL, just to name a few , the picture is not so clear and we need to watch for more time.
I usually want to look at a sector when I am sure that a bottom is in place and I can see early signs of momentum, say breakout from a 3-6-9 month trading range, or stock price moving and consolidating above 200 dema or 30 WEMA, along with management commentary promising good times, or scuttlebutt indicating that worst if over, or early signs of good numbers having been reported.
There is a very thin line between being too early and wrong. I donât want to be in either situation.
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In the current markets, its difficult to take a call for too long. Sectoral preference and fancy seems to be changing very fast. Real estate sector seems to be gathering some momentum, and looks good. Defense seems to have had a good run and looks like a sector that is over owned, and one needs to be choosy about which companies one buys. Auto is a cyclical sector, having a good time, but I donât know how long it can last.
@harshal_vinayaka I donât track Affle.
@shubham_juyal I dont track sequent scientific fundamentally. On charts, its too early to say it has bottomed out.
@kk_6091 I donât track tata elxsi fundamentally. It is a company that has provided phenomenal returns in past few years and then has disappointed⌠Whenever these kind of situations happen, it takes a long long time for the stock to make a comeback in terms of price performance. There can be the odd dead cat bounces and counter trend rallies, but big money is not made in these kind of names. But it is in these very names most people try to find the next multibagger and get stuck. There can be the odd one or two companies out of ten past big multibaggers which again starts moving fast, but these are exceptions and rare.
@kbsangha I donât have much idea about Kilburn engg. Or the interesting stuff happening here.
@ram1984 I had a look at dreamfolks some weeks back and the company seemed to be interesting. It comes across as a company which has strong tailwinds and is run by capable people. Valuations seem to be stretched, but companies with recent listings having strong tailwinds will always attract investor and operator interest alike and can move much beyond what they deserve before they fall precipitiously. How dreakfolks does is something I donât have much clue about, but I liked whatever I read about the company. But I could not bring myself to buy it mainly because I was not too comfortable with the valuations and now with the run up, I find it even more expensive. It seems okay to play momentum, but one needs to be nimble in such positions.
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Vedanta is a cyclical company which has to be played accordingly. Plus it gives out hefty dividends and that is another angle to consider. How long it is able to pay these dividends needs to be seen. I think one can play short to medium term bounces here, but its important to know the cycle here and play accordingly. I dont track these kind of cyclical companies too closely so not much idea about it.
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Thanks hitesh bhai. Just to add to the discussion, and I donât know how much these sort of things actually work in stock picking, but i being a frequent flyer, have found that these lounges are packed. Recently at Mumbai airport, at 6 in the morning the lounges are fully occupied. Some carry so many credit cards, and keep others waiting in the queue, till finally one credit card works. Same with Delhi and Ahmedabad airport. So business wise, as one sees with his own eyes, this is a decent business to be.
The problem here I find is that they may be squeezed by credit card companies. Also the credit card companies have reduced the complimentary access ( i used to get 3 per quarter before COVID, which I recently found out has been reduced to 2)
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Most of debit card also has access to airport lounges. Also the idea of free snack lures one and all. Having previously worked in credit card dept few years back people buy credit cards to access airport lounge.
With domestic travel going up and people mindset of having a card changing. It looks structurally a long term trend.
Hi Hitesh sir,
Did you get a chance to look at VST Tillers? Company reported excellent numbers and confident of achieving 3000 crores of revenue in the next 3-4 years which is approximately 3x from current sales. Although, they have made certain claims in the past but failed to achieve it. Technically, charts started consolidating before results and gave a strong breakout after it.
I would like to get your views on this, and thanks for all the guidance.
Disc: Tracking closely.
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Hi Hitesh bhai,
Thank you so much for all the precious knowledge that you share here always.
What are the market conditions in which technical works and in which, it doesnt work ?
Also what care should be taken by a novice person learning technical
Many thanks.
Hi Hitesh bhai,
Which one you suggest is better - momentum or technical investing ?
Also the books you mentioned - do they cover only momentum or technical too ?
Thanks
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Momentum investing is one of the discipline of technical analysis. So there is no apple to apple comparison here, as to which is better.
Any strategy that entails any bullish position will obviously need a stable or a bull market.
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Sir - many a times we wonder whether to put PI in agrochemicals sector or we should put it in CDMO space !
Agro chemicals sector is a cyclical sector ( especially generics ) whereas in CDMO space, one gets long term stable orders/contracts (though majority of PI CDMO is also in agro-chemicals ) .
Many a times if we put this company in pur agro-chemicals sector, we might misead this company. What are your views 
PI inds has got agrichem plus CDMO business. And CDMO business has now achieved scale with order book consistently remaining above 1 Billion dollars and company showing good growth in segment.
This factor has lent a lot of stability to an otherwise cyclical agrichem business. Hence PI inds is akin to a consistent compounder inspite of having a cyclical segmentâŚ
In many cyclical sectors, there will be an odd company that will be an outlier, which will have that X factor that seperates it from the rest. PI is one such company in an otherwise cyclical sector.
Bharat Rasayan did seem to hold promise based on its capex plans, but has not delivered yet. So the next PI inds still remains PI inds. ,
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Awesome distillation about P.I. industries. I share your views and thats why sold UPL and increased the allocation to PI.
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Dear @hitesh2710 ji,
Thank you for your wisdom time to time.
Whatâs your reading on Natco Pharma results yesterday post market hours and market response today for it. If I remember correctly, you are also invested there.
Whatâs your insights in to sectors and names changing as you observe this result season? Do you think that Pharma is on the verge of moving up?
Hello hitesh ji ,
Do you invest in nifty bees for long term or short term trade ?
Nifty bees are not meant to be traded as it is an ETF. Itâs usually considered a good alternative to investing in a MF. And time horizon should be decided accordingly.
Hello Hitesh Bhai, I was researching about dividend investing. And looking for some clarity on the below questions.
âLets say if a Stock X, price-100rs which gives 4rs as dividendâ. Letâs assum that the stock X as ITC then investing in that will be great coz it gives capital appreciate and also dividends more over the companyâs future looks good and growing.
But now, lets assume the stock X as IOCL, BPCL or, HPCL. These stocks did gave dividends but the last 5 yrs returns where less than -10%. In such case is it good to invest for dividend of 4% (as said in example of stock X). Moreover the companies future are not great reason being EV.
- Same goes for vedanta, 0% returns in last 10+years from 2009 till date.
- Both REC and Vedanta are like twins multiple years of ups and down with no capital appreciation but only dividends.
- ITC is exceptional
So, assume that in 50s or 60s in order to get 1L as dividends investing in companies like this with bad futures and without captial appreciation sounds little not okish. For 1L monthly dividend in IOCL we have to invest around 25 times which is 25L in IOCL. Is this fair, investing in companies with no future scope.
BTW, even if wanted to create a dividend port then considering CA and future scope and also dividends there are companies like PIDILITE, ASIAN PAINTS, M&M, BRITANNIA, CRISIL, INFY etc etc most of these companies comes under LCAP.
Concluding, Iâm confused or stuck b/w investing in companies just for dividends and investing in companies along with dividends (personally feels like if we built a core portfolio then dividend automatically becomes a part of it).
Throw some light on this experts
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