As a business to invest for the long term its a poor business… Second quarter results have been tepid…I think there are better options available.
**
Any reason for calling it poor business?
http://www.screener.in/company/?q=526797 Link: http://www.screener.in/company/?q=526797
Good growth, Decent ROE (though boosted by high debts, ROCE is Okish only).
Things like Monsanto & Shilpa Med have nearly same ROEs.
Disclosure- Not invested but just curious.
As available.
**
jatin kalra
If u look at greenply sales growth over the years it is impressive. But look at the OP figures or NP figures and it shows a not so consistent growth… That goes to show it does not have sufficient pricing power.
These are the kind of businesses you buy when the chips are loaded in your favor … when its available at extremely cheap valuations amid widespread pessimism and then when there is a lot of optimism you have to be on your toes to get out.
ROE and ROCE etc will come into play after you decide on the business quality.
And dont get stuck with this ROE and ROCE thing… With Shilpa you have to look at what the future holds for the company… If shilpa fires well for next two years then all the parameters will improve.
Same with Monsanto… Monsanto is sitting pretty due to the improved prospects for maize.
hitesh
1 Like
Hiteshbhai,
Whats our point of view on Jyothy labs post merger with Henkel? Do you there is potential for rapid earnings growth here.
Also, what how you think about Cera/Kajaria Ceramics.
Thanks
rishit,
jyothy labs has been reporting good numbers and it seems the initial teething problems post merger are getting over…
cera and kajaria are good companies likely to give steady returns.
Thanks Hiteshbhai,
One other question - would you exit Mayur at current valuations? Its gone up quite a bit but dont have good latest porjections to decide whether its frothy or there is still meaningful upside left.
Thanks
Rishit Desai
I think it makes sense to keep riding the stock… It seems in a strong uptrend… results are due on 12 nov… so some more time to go for that… I think results will be good.
Sirji,any views on Ceat?
Great brand in its sector,demand seems good on the replacement side,decent cash on books,investment plans,decent profitability & above all,the stock is trading at a very measly 3X TTM.With annual sales of 5000cr.,the MCap is only 662cr.Just 7-8% higher than Mayur!! The only concern is the high debt.
its a classical cyclical… if u are comfortable with timing ur exits and entries right then its worth looking otherwise avoided… the time to buy it was around 100 odd levels when things were looking gloomy.
hitbhai,
Happy Diwali to you and to all fellow boarders! May we all prosper 
Speaking of cyclicals, how about cement stocks like JK Lakshmi? Things are looking gloomy for that sector right now. I have been buying little quantities of JK Lakshmi but wondering if this is the time to load up.
regards
HG
**
its gloomy.
Thanks 
**
Dear Hitesh,
Do you still track Omkar specialty chemicals? Its been little over a year since you initiated a thread on it; an update would be welcome.
The promoters are actively buying from the open market, but i could not make out the reason/ need for recent pledging of shares with money wise financials (moneycontrol.com disclosures)
Have initiated a small position at 84 and planning to add more.
HG…I dont track cement sector or any other cyclicals too closely so not much idea.
Mithun raj…Omkar has been out of radar for me…
Wishing all valuepickrs a very happy new year.
Hitesh,
Wishing you a Happy Diwali. Saw you logging in on Point and Figure two times yesterday, but did not receive any comments. Please check from your side.
Tony
Hi Hitesh
Do you see value in entering VST Tillers and Shilpa at current levels?
Also what is your take on Navneet’s results announced yesterday?
Thanks and Regards
Sudheendra
sudheendra,
navneet results have been lacklustre but the price is reflecting a lot of this negative sentiment… I think it could be range bound till next qtr.
vst tillers has broken out of a flag pattern with targets of 1000 (looks improbable but the pattern breakout is on monthly charts so given time may be achieved.) Coming to fundamentals, I think it can do eps of close to 60-70 for fy 14 if the momentum shown in q1 is carried forward. And then with some rerating in a bull market things can get interesting… I think the stock is consolidating before making next move.
Shilpa is a difficult call to make but if the view is for next 2-3 years its a great buy even at cmp…
tony… I see point and figure specifically to read your updates but since I dont know too much of p&f, there is not much to comment upon…
regards
hitesh.
Hiteshji i have been looking for opportunities to invest recently.
Based on dsicussions on valuepickr forum, I am looking at accumalating Dhanuka agritech, Canfin Homes, Shilpa Medicure and TV18.
Whats your take on these companies at CMP.
Regards
ankur,
dhanuka is discussed on a seperate thread… Stock price has run up from around 128-130 levels to around 148-150 levels but I think there could be some more juice left… As a company it is not in the league of PI or Rallis but is a decent company in its own right.
Canfin … valuationwise is quite attractive… Again its not in a league of gruh or hdfc but seems to be churning out good results with good visibility.
Among others, shilpa is a tricky call. Better wait till the quarterly results and take a call. tv 18 I have no idea.
Kaveri seems a good buy at current levels and on declines.
Hit bhai,
VST Tillers came out with a very robust set of earnings today.TTM EPS at 74.Run rate of 21 EPS has been maintained So,with a <8 multiple,doesn’t it make for a good trade?
Hitesh Bhai,
Like Sagar, even I wanted to ask you about VST Tillers… Also, if I look from long term perspective (at least 3 years) which is a better stock to buy, VST Tillers or Dhanuka? I know its a tricky question, but would like to know your views on it.
Regards,
Ankit