Hiteshji, no exposure to Alembic or Shilpa Medicare? do you agree that even Repco and Gruh’s business sector has appropriate tailwind?
Thank you.
@rajarashi,cash is close to 20% of portfolio.
@nishant… alembic and shilpa are under watchlist. gruh and repco cater to the small ticket loans segment which is not addressed by bigger players and banks… the purchasing power of these guys is there for anyone to see… So in a segment with underpenetration and companies with a bit of expertise in the segment there is favorable tailwind. Both gruh and repco are not cheap but in current market quality always seems to be coming expensive… be it in small or mid cap space.
Dear hitesh,
Both canfin and repco are govt. Of india enterprise but canfin looks ultra cheap at these levels while repco is trading at a much higher pe. Both are growing at similar rates but market has ignored can fin for more than a year now. What factors do you think will make market realise potential and undervaluation of can fin?
Dear hitesh,
Presence of Carlisle on board of repco provides it some respectability as compared to canfin. Plus return ratios are likely to be much better for repco.
Coming to triggers for re rating of canfin … Its difficult to fathom what will trigger rerating.
But as Lynch says… most of the times with very few exceptions price tends to follow earnings… So its earnings … earnings and more earnings.
Hiteshji:
I am holding hawkins for over 2 yrs now and as is known with hardly any returns.
Good to know your current views on Hawkins.
Given the way the script behaves, what is the maximum allocation you would advice someone to have in hawkins given a 8-10 stock portfolio.
Also, What are your return targets?I know everyone has gone wrong here but one to three qtrs down the road should it not be getting close to 100 eps
Thanks
-Ritul
eviously Hitesh Patel wrote:
Dear hitesh,
** Presence
** repco.Coming **
** rerating.But **
earnings.
**
ritul,
As I mentioned before I dont indulge too much into predicting the figures for hawkins. It is a stock which teaches one the meaning of long term investing. 
Currently risk reward seems to be favorable. The company website also shows induction compatible cookers on display. Plus there seem to be a host of other products displayed on website. So it seems new launches are going on in full swing.
I would give it a couple of quarters before taking a call.
Coming to allocation to hawkins in an 8-10 stock portfolio, I think it can occupy 10-15% weightage.
hitesh.
Two queries, I know you have sold out unichem, however since you know this company well, could you still elaborate on what you think the future holds for it?
Secondly I noticed you dont own Astral. any particular reason?
Thanks!
vidur,
Unichem seems to be gradually limping on to the growth path. How it performs in next couple of quarters should set the trend for the company.
astral… I was never comfortable with the forex issues… Still am not.
Hitesh Bhai,
At CMP, do you think one can start accumulating Repco and Symphony?
Regards,
Ankit
yes to both stocks… both seem attractive with a one year forward valuation. I think symphony might surprise in fy 14 (year ending june) itself. And the beauty of both stocks is that one can easily bet a reasonable amount of portfolio.
Hitesh ji kindly give a technical health check of Can fin.
there is no specific pattern in canfin… stock seems to be undergoing rangebound consolidation between 165-180… breakout past 180 can provide targets of 210 odd.
I would get concerned if stock breaks support range of 165-170 on consistent basis for a few trading sessions.
**
Hitesh ji kindly give a technical health check of Can fin.
there
** odd.I **
sessions.
Hello Hitesh,
I have been regular at valuepickr for couple of months now and your analysis and stock picking skills are superb. I also see that apart from applying value investing principles you are well aware even of technical analysis. My questions to you are as follows
How much importance do you give to technical analysis?
After you identify stocks by applying value investing principles do you check the technical parameters to build a position or buy irrespective of what technical indicators say?
do you segregate your portfolio on the basis offundamentalandtechnicals? It may mean building positions solely on the basis oftechnicalsirrespective of the quality of the company?
Lastly can you pls suggest any good books on technicals for a beginner like me.
Regards,
Chetan Chhabria
**
Hi hitesh,
Was just looking at wkly charts of Canfin. Looks like an Inv H&S abv 158 levels…
Ur take on the same?
Chart attached
Hitesh bhai,went through the Finolex Industries Q3 concall yesterday.They seemed confident of sustaining the high Q3 margins with decent topline growth.This should give a full year EPS of 20+ for FY15.In that case,we can see 240-250 in 8-9 months time.Looks good on dips to 155-160.Any thoughts?
Also,what’s your view on VST T. now,after they posted robust performance inspite of a subdued guidance after Q2.Do you think they are going the Kaveri way? 
And you still feel 1000 is possible over the next 4-5 months?
@sagar… I dont have much idea about finolex inds… regarding vst tillers, yes four figure mark seems possible in next 4-5 months esp with announcement of q4 results. fourth quarter is usually best because of collection of subsidy dues as well as in general terms.
@atul sethia… yes looks like the perfect inverted h &s now you put it up on candlestick charts… there also it seems 205-210 seems logical target if u calculate the depth of pattern.
@chetan… technicals now for me is just an indulgence… I dont attach too much importance to it… Usually its fundamentals all the way. Ocassionally a pattern is very glaring and then it makes me look at the stock in details… for book on technical analysis u can look at the edwards and macgee book on technical analysis available on flipkart. the gold standard remains john murphy’s textbook.
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Hello Hitesh Ji, Do you have any view on Paushak Ltd. I have some @69… Wanted to add more…can I add in this level.
I dont track paushak so cant comment on it.
Hitesh bhai,doesn’t MPS look good after the Q3 numbers? They have declared third interim dividend,quarterly EPS of 9.67 & margins continue to be strong.The topline has also grown at 20%+.Probably makes for a good trade.
The question is not related to a particular stock. But I want to learn about pyramiding my positions. Other board members can also pitch in.
For eg. I bought VST TIller at 640 now after Q3 results I want to double my position by selling some other stock suppose Eicher motors as I think one will grow at 30 % and VST will grow at 40 %.
Now how should overcome my mental models which want me to let the things as they are.
Do you increase your positions after good performance or keep the portfolio allocations same?