It could unfold as a flag pattern… Needs to be watched for a few more sessions.
Hi Hitesh …
How do you see SPARC … can it be a multibagger?
Hitesh - In one of the VST threads you mentioned a century EPS was a certainty for FY 14. Have you revised it down to 90-100?
Hi Hitesh,
one question. Which company would you buy at current stock price with 10 yr view (strong moat), >USD400M mkt cap and atleast some short-term upside. TTK comes to mind - anything else that you would consider?
Thanks
Rihsit
Hi Hitesh Ji,
I have to choose and buy only two stocks from Ajanta pharma, Poly Medicure, Unichem Labs, Alembic Pharma, Shilpa Medicare, and JB Chemicals.
I have a time horizon of 3-5 years and I wanted to own two stocks with the best growth potential, scalability, size of opportunity, and integrity of management.
I took into consideration, shareholding, growth rates, future potential (I do not have a very clear idea), return on equity, return on capital, low debt, and management walking the talk.
I was able to invest in Ajanta Pharma at sub 700 levels as I thought it to be among the best two in terms of future growth. But I am unable to take a call on the second option. I am thinking about either Unichem Labs or Alembic Pharma.
I think this will help me and other valuepickrs in concentrating their bets for a more meaningful portfolio return.
Thanks in advance.
Regards,
Amit Goyal.
@ prasanna… vst tillers… the assumption for 100 rs eps for fy 14 remains… mainly based on the last quarter being the best quarter over the years… if not 100 then very very close to it.
@sandeep… SPARC is a lottery ticket with low downsides.
@Aman… Its difficult to take a call on next ten years… but on gunpoint, the answer would be ITC… In smaller cap space, Page and Gruh.
@Amit Goyal… Based on current form, Alembic looks great based on its results… Valuations are currently on higher side which needs to be taken into consideration. …
In all the investments, what investors need to take into consideration is the valuations… its very easy to be caught in the market fever where current darlings are taken to astonishing heights…
1 Like
What do you say on Symphony at current prices?
Buy/ Add/ Hold/ Reduce/ Sell ??
Hi Hitesh,
If one looks at long-term horizon, which would make a better bet in Shilpa vs JB for fresh allocation ? JB valuation provides a certain margin of safety with valuation and Shilpa seems to be better business, though it looks fairly valued and can have some downward pressure in case they fail on execution front.
HOLD… ADD ON DECLINES.
What about Aurobindo Pharma for long run? I am holding it from levels of 216 and kept buying till levels of 470… I think the business is a turnaround candidate and is gaining market share in the anti-depressant segment also in US along with greater visibility and better management…
Along with that I think IPCA LABS has been an awesome compounding machine over the last 5 years and will continue to do so…
What are the stocks to really look forward to in Pharma sector?
from 450 levels onwards i was waiting for correction to add more… but it never happened 
so added some at 505 and again waited for correction…
Not sure any correction will takes place in this stock… i am still missing a substantial Pf in it.
HOLD… ADD ON DECLINES.
@equity,
In pharma I tend to go ajanta pharma… two other stocks I hold are fdc and jb chem.
I dont have much idea about aurobindo or ipca.
hitesh.
Dear Hitesh
Does that mean you don’t have Unichem anymore? I was surprised to hear that you are holding FDC. Is JB pharma a better hold than Alembic?
Regards
Ashwin,
I sold out of unichem during its last bounce during the dividend announcement. FDC is an act of faith… 
. JB Chem may not be better than alembic but I find it more balanced in its revenue streams and valuations wise I am much more comfortable. If they put their cash to good use, it can provide excellent returns… As it is, company has been posting very good growth in last few quarters and if you take out the last qtr extraordinary hit, even profit numbers are very encouraging… the original thesis of margin improvement along with sales growth is playing out.
Hi Hitesh ,
Attached is the chart of M&M showing cup and handle pattern .
I have recently started studying these techincal patterns .What should be the yardstick of deploying cash once these patterns are discovered in any stock ?
Hitesh, Would you recommend hawkins/repco at current price for 10% allocation each over 2/3 years period? Thanks.
@sourabh. cup is too shallow… ideal is rounding bottom cup.
@atul joshi… both repco and hawkins look good if u have a 2-3 year view. and 10% can be allocated to each.
Hitesh Bhai
What’s your view about Amara Raja Battery and Muthoot Capital.
Regards
Irshad
irshad,
I think amarraja is fairly valued and muthoot capital is undervalued.
Hitesh Bhai,
Thanks for your reply. I would like to know about IT sector also. Why is IT sector with tremendous growth prospects not given adequate exposure in the portfolio of most Valuepickrs?
I see good prospects for HCL Tech, NIIT Tech or even TCS and Tech Mahindra for that matter. I guess these companies can provide 20%-25% return p.a with reasonably lower risk.