1000+ posts on hitbhaiās thread 
Keep going strong!!
views on sintex are purely technical and I dont give too much importance to only technicalsā¦ When technicals indicate good upsides in fundamentally good stocks it provides good opportunities.
Most of infra/cap good stocks are loaded with lots of debt. you can think about high quality stocks like thermax/cummins etc. if u are interested in infra/cyclicals.
Hitesh,
As Donald repeatedly quotes you saying ādifferent stocks must be ridden differentlyā. I am little bit confused, how differently I shhould handle GRUH & Canfin.
After going through the complete threads of the two. My conclusions are:
Gruh is a established player with competent management in place and supported by eminent promoter. A constant compounder at 20-25% CAGR But seems to very high on valuations and is trading at 52 Week high.
Canfin extremely under-valued even at CMP. Market has not recognized/appreciated it to date. Management factors in a lot in current growth and the question remains if they can implement/achieve the aggressive growth plan, without continuity in the team.
How do you rate them in terms of fresh allocations in ones portfolio? In which order and why? What are the pro and cons accordingly?
Thanks, Vamsi
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Hiteshbhai,
Is it possible to know your view as to whether it is now advisable to have a some allocation to the capital/cyclical/infra sector?
Read you view on Sintex. Any other stock you may track? Or stocks like Sanghvi Movers, CONCOR, Thermax, Ador welding?
views
** opportunities.Most **
infra/cyclicals.
Hi Hiteshbhai,
What is your view on Cummins India at CMP around 450 levels. This is one of many quality stocks and going through rough patch in terms of sales and profit growth. Though Ibelieve bounce back is assured once economy will improve. I loaded few shares around 400 levels before few weeks.
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Hi Hitesh,
Is there any competitive advantage here or is this just a low valuation play?
Came across this link which also has pdf report on JB-
Request you to share your views on this.
I margin.
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Hi Vamsi,
I hold CANFIN but not convinced about its long term ability. The management can change any time and therefore, no one knows its future. But for now it is very under valued, they seem to be growing and I hope to make a 20-25% and exit. Not a growth stock, but an inefficiency play.Thanks.
Hitesh,
@vamshiā¦ gruh finance is a class company for all seasonsā¦ If for some reason you get it at lower levels due to any reason you latch on to it and forgetā¦ Its a steady compounderā¦ Better than most large caps and perhaps even more stableā¦ And since it is now well recognised, less likely to get butchered in bear marketsā¦
canfin is an undervaluation play as mentioned aptly by subbuā¦ here u take your desired profits and get out.
@jatin Kalraā¦ JB Chem is an undervaluation play even at its all time high. Its niche is brands like rantac, metrogyl and nicardia which are almost synonymous with OTC brandsā¦ and these are the very brands which are going to get benefitted due to the new drug pricing policy. for further details you can get hold of indianivesh report on jb and go through it.
regards
hitesh.
Hi Hitesh,
Are you tracking FDC? This company seems to have good operating margin and negligible debt with around 800Cr in reserves.
Regards,
Sunil
yes fdc is a good companyā¦ growth has been tepid but the current valuations do price in tepid growth bcos of around 10 PE accorded to a company with very high marginsā¦
There can be two kind of triggers hereā¦ either company starts showing strong growth or some other company acquires it.
In either of scenarios returns can be very handsome.
If neither of them plays out stock can remain range bound.
Technically it has given a breakout from a very long consolidation between 75-104 and seems to be consolidating above that rangeā¦ Lets see how it goes.
I hold it.
Hitesh,
good combination of fundamental and technical skills !!
a couple of questions to learn from u about technicals - no idea as of now so pls bearā¦
1). which chart patterns in ur experience have best success chances - cup & handle or which patterns you follow mostā¦
2). with so many stocks how do you know which stocks are making which pattern - any website/ software which shows this ?
hi ash,
regarding patterns with a higher degree of success, I think head and shoulders, inverted h&s, cup and handle etc have a high degree of successā¦ even triangles, range breakouts etc offer good risk reward. Important thing is to spot these patterns in fundamentally good companies.
I feel these so called structures offer good tradable patterns as compared to trades based on momentum indicators and other indicators.
regarding tracking stocks I usually look at only those which I follow fundamentallyā¦ Only sometimes I go outside my circle of stocks.
I dont know about any website which offers these technical patternsā¦ But in some weekly and monthly picks from vivek patil, hdfc guys etc, they often mention such patternsā¦ We often get ideas from these.
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Sirji,Cera is seeing a spectacular rally.It had corrected after Q2,but the price touched 745 today! The mutiple has expanded to 18X.Even Kajaria,Somany are having a good run.Isnāt 18X TTM expensive for Cera? Or can it be that expectations about some economic recovery have led to this? Or can the whole sanitaryware segment be getting re-rated?
Your thoughts.
sagar,
Its no use wondering what kind of valuations a stock in strong uptrend commandsā¦ just enjoy the ride if u hold itā¦
hitesh.
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Hitesh bhai,
Average cost of Cera is below 510 levelsā¦ Do you suggest to book partial profitā¦ Havenāt booked yetā¦ Or can i wait for Q3 results and then take a callā¦
Regards
mallikarjun
hitesh.
Thanks for that perspective.And yes,I do hold it 
Hiteshbhai,
You may not answer to whether you are still holding Navneet Publications; but would you recommend holding it at least till the next Quarter results? Buy at 59.
If the syllabus change scenario pans out as discussed in the forum, the charts at least indicate good risk reward ratio.
Hello Hitesh Bhai,
1). You clearly are a Pro at stock picking. Am not surprised that this thread has crossed 1000 comments and still counting. So congrats.
2). It would be great if you could share your learning on the art of timing the entry and exit of the stocks for the readers - so i have devised a small questionnaire.
A] Stocks Entry Points
1). Having identified a fundamentally good stock - how do you decide appropriate entry points. Do you look for Price & Volume Breakouts, or wait for a correction or Breakout above a particular moving avg.
2). Is it wise to average the stock on downside.
3). When do you add on to an existing stock on the upside - especially if it has run up sharply.
4). Some good books you suggest to improve trading skills.
B] Stock Exit Points
1). Do you follow stop loss philosophy. If yes, Can you lay down some principles to objectively define the stop loss
2). Lot is said and done about stock entry - but little about stock exits - How do you define when to exit the stock - both in a profit and loss scenario.
3). Some books which could throw light on profit booking points.
4). Your experience on whether Buy & Hold Philosophy is better than Trading.
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Hiteshbhai,
What do you think of Mayur at current price, can one make an entry at 350/share with a view on next 3 years. Stock is currently at 15x LTM earnings. Or would it be a good time to book some profits?
Thanks
Aman
@kuntal, navneet I had exited some time back when there was a brief spurt in stock price. Nothing wrong with the company but at that time I was more bullish on things like dhanuka and polymed etc among others and I felt i was incurring a big opportunity cost.
risk reward remains favorable for anyone contemplating fresh entry but time horizon to get returns might be longer than anticipated.
@aman, If your view is 3 years and more in mayur it makes sense to buy. And you have to have a mindset to buy on declines if any.
ronak
Interesting queries.
On when to buy, usually a particular stock comes under my scanner only when it is fundamentally attractively valuedā¦ I dont do too much work on stocks which have run up beyond comfortable range. And in these stocks if after the initial entry, stock goes down I sometimes average it if I have the funds for itā¦ Most of the times I buy in a single shot. So usually there is not much money left to average.
Adding to an existing stock is a strategy I have got comfortable only since past 1-2 years and that happens when after initial buying the fundamental story of the company plays out as expected or better than expected. I applied that to good effect in mayur and in kaveri.
Regarding selling a stock I have been found wanting having sold out of stocks too early too oftenā¦ I guess most of the times I am quite early into a stock and having picked up a stock at 5 and 6 PE the moment I see 10-12 PE I usually feel that the stock has become expensiveā¦ But now the thought process has been to enjoy the full ride and in that aspect if at all I feel the need to sell something I sell only a small quantityā¦
Other thing I have done now is not to look at too many new ideas so that I dont get caught in them and feel the urge to buy them at the cost of existing stocksā¦ Plus keeping a very very concentrated portfolio helpsā¦ Bcos the merits of the new stock to be added has to be more than the existing ones.
regarding stop loss, I follow them strictly in technical picksā¦ But technical picks occupy very small part of my portfolio.
Regarding buy and hold philosophy, it depends upon the kind of stock you buyā¦the valuepickr portfolio picks and the category C stocks which is a hot potato in terms of discussion in the relevant thread make for good buy and hold philosophy.
About books dealing with buy and sell decisions, I follow Lynch most of the timesā¦ esp one up on wall street.
regards
hitesh.
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