Not too much idea about it… If u are convinced about the company then hold on otherwise get out bcos once it comes under periodic auction it gets really difficult to get out.
Hitesh bhai,
Do you have any negative views on Unichem since you seems to have sold a bit or just tactical decision. I am more of wondering from 2-3 years perspective.
Thanks
Chaitanya
Dear Hiteshbhai,
I am new here but about half a decade old in the stock investing world.
I have a question and will be happy to hear your opinion:
1). Based on your current portfolio allocation, is it right to assume that your are more bullish on Unichem than Hawkins for the coming year or two? is it because of your comfort factor with pharma industry or purely based on merit ?
2.If someone new want to make 25% of his portfolio based on valupickr stocks then what combinations would you advise him:
Unichem 15/25, Kaveri 5/25, mayur 5/25
or
unichem 10/25, kaveri ,mayur and ajanta 5/25 each
thanks a lot
-mayekar
**I dont know if i am qualified to advise a person with half a decade of investing experience…**Pl find my answers in bold.
1).
I am equally bullish on both hawkins and unichem mainly for the surprise factor that is possible in both of them… positive surprises which i expect from them.
I would expect it to be kaveri 12.5, unichem 12.5
regards
hitesh.
No change in views about unichem… I remain bullish on it with a two year view.
Change is more of an opportunistic switch bcos I see kaveri running faster and harder.
thanks
Hitesh bhai I have heard some news about ITC seriously considering aviation foray through
international travel house around DEC 2013- JAN14.Presently they are keenly watching TATA’s foray in aviation. I also heard that they plan to basically connect smaller cities and will focus on group corporate flights first. Have you heard any news about this.I know that we do not invest on news any more(that phase is long gone) but still what do you feel about this.I had put up a direct question to a person who works with ITC at senior management level about prospects of ITH) and got this response from him.
Hitesh bhai,
In case of international travel house market cap of company is 110 crs and reserves with the company are equivalent of 110 crs (some websites are giving them at 90 to 100 crs).This is a debt free company.I simply do not understand how one can loose money by betting on this one now.
Its interesting that people talk about stocks where downside is protected when weak stocks already down by 80% line 2003, 2009, 2013 etc.
Nobody talks about protecting downside when weak stocks making continous 52 week high in 2008, 2010 etc 
sameer
When the stocks go up that is the time one should try and evaluate fair selling price for the stock.
When the stocks go down one should try and evaluate fair buying price for the stock (some people call it intrinsic) value.
Unfortunately informed people do opposite and land up in trouble.
Rise in price does not necessarily make a stock strong and fall in price does not necessarily makes a stock weaker.
Identifying opportunities ahead of market is a key to make multifold returns.
Buying in fashion themes can be dangerous if we do not sell on time.
Buying quality stocks at intrinsic value…and bottomfishing there is a very thin line between two.
Hope this helps
Hi Hit bhai,
Want to invest in some consumption co.,seeing the huge market & India’s growth story.Moreover,many of these cos have excellent balance sheets.You would remember I had mentioned Emami a few weeks ago but the valuation comfort is a bit off here.Same goes for others too.However,I am thinking of parking some part of my money to Bajaj Corp.The stock is trading at 30-40% discount to its peers.Also,around CMP there has been some long consolidation(ran up from 220-230 odd to 280s,then corrected to 250) Moreover,there seems to be no problem on the financial side(good cash flow,good RoCE,good RoE,0 debt) or on the growth side(demand,sales growth,PAT growth,leadership position)
Is there something that I am missing?
Hi sagar,
although addressed to Hitesh,just my take,Bajaj Corp would enjoy a lower valuation than its FMCg peers as it has only one product the almond drops one thats doing great,i also see dabur come out with the almond drop one and occupying shelf space.My feeling is it can be a steady compounder like all other ones without a rerating.Among the FMCG ones i buy only ITC ,evry year a fixed quantity.There are times of the year when the price drops based on some random new,macro issues etc.That would be an opportunity to buy.
Hi bj,
Thanks for your inputs(very clearly remember ITC being 275 around Budget day) Single product cos too can command high valuations.Look at Asian Paints,Berger Paints,Page Ind.,Pidilite Ind,Hawkins,TTK Prestige(cooker cos from a long time).So why not Bajaj Corp?
sagar,
bajaj corp will always trade at some discount to other multiproduct companies… But as mentioned before it can be a steady compounder.
If u want to go for steady compounders whats wrong with good banks or gruh?
Absolutely nothing.I just like Bajaj Corp more,understand it better.
i think bajaj corp has abt 55 % market share in almond drops hair oil - light hair oil. To grow at a faster pace from here - that is to acquire further market share will not be easy. Their other products like Kailash Parbat thanda tel - may take time to grow and there are already estabished brands ( Navratna). And there is always fear of bajaj losing share to other fmcg players as the competition can be stiff. Bajaj corp is not in the same league as Page, Asian paints.
Hi Manish,
Yes,absolutely.Bajaj Corp is nowhere in the same league as Page,Pidilite & 55% market share does look high.Still,the good monsoon should help in an expansion of profit margins(lower raw material cost)
In 2010,Bajaj Corp had a market share of 46.8%.Followed by Keo Karpin(21.5%) So,in the past 3 years Bajaj Corp has been able to grow it to 55%.Isn’t that commendable? Moreover,hair oils are re-usable products,having various nourishment qualities.That gives a very reliable market(they won’t go out of business atleast)
Possible drawback: I think the current market has a size of 6000 cr.,up from 5770 cr in 2010.That’s not much of a growth.So,maybe the market is getting saturated & the best times maybe behind us.
You can check out this article:
http://www.equitymaster.com/research-it/sector-info/consprds/consprds-products.html
Hitesh paaji
Cera Sanitaryware and Poly medicure haven’t been in your portfolio. It will help us to know the reasons behind it.
Regards
mallikarjun
Hitesh and Manish Bhai,
Any update about Gujarat Valuepickr meet? Astral’s AGM is on 5th August. Kindly let us know when Donald, Ayush and other senior members are coming to Gujarat (have to plan my leaves accordingly)?
Regards,
Ankit
@mallikarjun-- cera and polymedicure are both good companies but dont figure in my portfolio bcos of concentration… I dont want to let go of any of my holdings due to high conviciton.
@ankit… u can fix up any dates esp sundays for the meet except the week of janmastmi- 24th and 25th aug… who ever can attend can meet up… we can meet over lunch at a convenient location and discuss things or an afternoon at a suitable place … if other valuepickr guys attending the AGMs … ayush and donald and others come over to gujarat we can again meet all of them after we have known each other well. I think lets put up a date and see how many guys are there and then decide and go ahead. I too am keen to meet u and other guys in baroda, ahmdabad and gujarat.