Hi Hitesh, do you think it may be worthwhile getting into recently hit ‘bluechips’ like wockhardt, tata coffee, titan etc from a long term / core portfolio perspective ?
All three of them suffer from shorter term issues and we need to see how the companies tackle them.
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Hitesh Bhai,
What are best asset owner infra/const stocks ???
like Punj Llyod, Pratibha Ind. etc are CONTRACT based Cos
on the other hand
Oberoi Realty, IRB etc are ASSET based cos
Hitesh bhai,
What is your opinion on Tata Steel? Since june 09 till date the lowest price was 261 which it reached a few days ago and currently at 271. Today read in ET that a JP Morgan analyst has talked about the prices of steel increasing in Northern Europe by 20 rs and also globally iron ore & scrap prices picking up…the stock has beenbeaten out of shape and downside from here looks limited.
@samir, I think we need to see signs for infra pickup and then find out the best stocks to play the theme…Picking stocks 20%-30% up from the bottom should not be a concern if we could clearly see signs of economic recovery bcos good infra stocks would then double.
@rajarshi, I am not a big fan of these cyclicals but some experienced and veteran investor friends are suggesting tata steel to me. Not fully convinced about it though. Could be interesting for tradable bounces of 20-30% though but I would rely more on technicals for these positions.
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Bought more kaveri today… Now its almost 25% of portfolio.
Sold gruh and part of unichem to fund kaveri purchase.
Nothing wrong with unichem or gruh here but it seems kaveri is likely to generate better and more importantly quicker returns looking at the data points available from kaveri thread and feedback from team hyderabad.
Thanks Hitesh Bhai for reply.
But question is not about “Should we buy infra stocks now”
Question is “What are infra/const stocks that own hard assets”??? Just want to keep track of these list of companies so that I can buy at better time
For example:
Adani Port: Owns Mundra Port
IRB: Owns important highways in India
Gatway Distripark: Own some container depos
etc
samir s,
looking at the asset owners, although some companies are there which have a hold of good assets, there are associated problems of debt, governance, or some or the other issues.
I think in these situations, l&t could be the best bet as it owns assets as well as does contracting also.
adani ports is a good example of asset owners but I have my doubts over promoter adani group… IRB infra and Ilfs trans are good asset owners but have big debts to service.
gateway distriparks seems a good company if one has a view to accumulate the stock…
But I think in current scenario, its better to stick to the stocks we track and are knowledgable about bcos these provide us with atleast some edge in the markets.
Dear Hitesh Bhai hope you are doing well.
Just wanted to check if you have ever looked at Zee learn and Tree House education. I am looking for some good stocks to play the education story in India where i see a lot of potential over the next decade or so and am just trying to understand the different companies better so was wondering if you have any view on these two or any other cos in this space that you like.
Many thanks as always for your inputs in advance
Kind Regards
Unichem up 10%.
**Tata Steel - Main problems are recessive environment, Corus’s underperformance and the high debt (undertaken to buy Corus). China is dumping its surplus globally thereby ensuring substantial pressure on realisations.
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If at all one is betting on recovery (if at all), isn’t Hindustan Zinc (non ferrous) a better bet with its debt free status, high free cash flow generation (almost 1/4th of sales), ROCE of 20 to 25% consistently over the last 5 to 6 years, cash rich status (half of market cap), mining assets that very few companies can boast of and smarter management (no Novelis or Corus type of takeovers/purchases - atleast till date)?
**My guess is it will outperform big time if and when we see recovery.
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Regards
Meet
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who takes final decision in hzl … agarwal or goverment 
Tata
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If **
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Regards
Meet
@samir, I think we need to see signs for infra pickup and then find out the best stocks to play the theme…Picking stocks 20%-30% up from the bottom should not be a concern if we could clearly see signs of economic recovery bcos good infra stocks would then double.
@rajarshi, I am not a big fan of these cyclicals but some experienced and veteran investor friends are suggesting tata steel to me. Not fully convinced about it though. Could be interesting for tradable bounces of 20-30% though but I would rely more on technicals for these positions.
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Hiteshji,
Any idea about Vadodara-based Alembic Ltd. It’s been rising sharply. Promoters have been buying from open market. Two businesses: APIs (minor losses) and Real Estate (contributing profits but volatile)
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why not Hindalco? Tatasteel making new lows but Hindalco is holding well. Also Noveliis has positive cashflow.
who takes final decision in hzl … agarwal or goverment 
Tata
** realisations.
If at **
** date)?My **
Regards
Meet
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I dont know much about Novelis’s cash flow figures. Hindalco (consolidated) has high debt (interest exp is 1/5th of EBIT), negative FCF (capex has always been more than cash from operations in majority of last 10 years). ROCE has rarely exceeded 10-12% in the last 10 years. I prefer to stay away from such capital guzzlers.
typical real estate company with murky details and balance sheets. I doubt if all the earnings are even reported.
Pickd tata steel at 290 levels.
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Found from MC messageboard. Seems interesting to me as their holding in Alembic pharma is worth 770cr. The rest of their business is available at -470cr (wow). To me seems like a case of pure undervaluation. Am I missing something?
Buy and accumulate Alembic ltd. reasons to do so
1- Alembic ltd has market cap of 299 cr and very low dwbt even after it is into real estate buisness.
2- Company as promoter of Alembic pharma holds 5.5 cr of that company ( see share holding pattern of Alembic Pharma )At 140 rs these shares are valued at 770 cr.
3 Alembic ltd will get 2.5 rs per share dividend for those equals to tax free 13.75cr ( which is more than 1 EPS from this dividend)
3 Alembic limited is a more than 100 years old company and it holds ( not Alembic pharma ) nearly 100 acre of land in prime of Vadodra. This is bought at approx at 2-3 cr .
4-From this land just 16 acre is monetized on books and company is undertaking 2 reality projects SANGRILA and SAMSKARA. which are nearly 70 % complete.
5- When cash flows come from selling of flats 2-5 BHK in these towers constructed on free land a huge rerating will be given to stock.
5- Last but not the least pronoters hold 63.76 % (NIL Pledged) and stil buying slowly from open market
“Happy Investing in Alembic ltd”
Hiteshji,
Any idea about Vadodara-based Alembic Ltd. It’s been rising sharply. Promoters have been buying from open market. Two businesses: APIs (minor losses) and Real Estate (contributing profits but volatile)
typical reported.
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Hi Meet,
Yes, Hindustan Zinc keeps coming on the value screens and on the face of nos looks very interesting. Haven’t done much work on it and the sector (because of cyclicality n all)…but it seems some of these large caps warrant a good look
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If
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Regards
Meet
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Hi Hitesh,
I am holding technofab engineering and have large quantity too… just thinking as it has come under illiquid stocks… what’s need to be done… please advice…
Thanks,
Milind