@Ankur : I have compared the companies below, though based on their businesses, they are not really comparable since Arvind has a significant business in branded apparel (INR 2000 crore). They are the owners of Excalibur, Flying Machine, and also retail brands such as Arrow, Tommy Hilfiger, Izod, etc which is a high growth segment with the markets valuing them at a significant premium. Examples are Kewal Kiran (18x EBITDA, 25x PE), Zodiac Clothing (20x EBITDA, 35x PE), and possibly Page Industries - Jockey (30x EBITDA, 45x PE).
Thanks for replying, my understanding of the copper sector isā¦ Copper Prices donāt actually impact Business profitability , Usually if the company is adequately hedgedā¦ the prices are passed on to customers as isā¦ The dividend yield is fantasticā¦ and rarely see management with such integrity (They donāt play with splits bonusās etc to manipulate market) ā¦ quietly go about doing what they do wellā¦Barring one year they are consistent performersā¦ Very high book valueā¦ Lots of inherent value in the businessā¦Incase you get a chance to look at it again ā¦ would love to hear your views
One factor you should consider while considering long term investing is whether this company is going to catch market fancy and if so why. If we can figure out a reason for it to catch market fancy, then we can spot winners.
On first look at the profit figures for precision wires at screener.in, it surprises me to see that the company did net profits of 12-15 crores back in 2004-05 and it continues to do net profits of similar levels in 2012-13-14. so I cant see any secular growth story.
Book value without growth is of no use. I dont feel markets are going to value this company at any multiple higher than 10 PE.
The first look itself dissuades me from a closer look.
Modi coming into Power with stable government and India may be witnessing huge growth in the next few Years, Which Sectors do you think will be benefitting the most ?
If we take bull run between 2003 - 2008 one stock with good fundamentals which provided one of the best returns is Titan Industries. Assume if bull run just started which one immediately comes to your mind is going to be next Titan ?
I am holding VST Tiller from 460 levels. its already 3 times. I am intended to hold further full quantity. I see more growth in farming sector with Modi governance.
@pavan, I usually dont take a broad call on sectoral investing. But I think one can think of buying high quality industrial companies. While the frontline companies might have run up one might have to dig a bit deeper to find out good companies catering to these industrial sector.
Coming to finding a next titan, it is often more luck rather than skill that leads to such multibaggers. I cant think of anything that can go up 100 times in 10 years.
Thanks Hitesh for your response. Say you have to pick up only one business which is young and can be bigger in next few years what will be your bet with high conviction.
Thanks Hitesh for your response. Say you have to pick up only one business which is young and can be bigger in next few years what will be your bet with high conviction.
Trying to understand trading. With reference to the VST trading bet or in general, what would one do if the plan does not pan out. Does one book loss on breach of a particular support or book loss if the price falls a particular percentage?
Converting the trading bet to a medium/long term investment may probably not be the solution, I presume.
@kuntal, Booking losses in trading bets is an essential part of strategy. If u get your call wrong, then it makes sense to exit.
@pavan, Its difficult to predict the next big theme. I prefer to take things as they come rather than taking big macro calls. If I were to take a punt it would be housing finance business. Having said that there are no out and out moats in this business except customer lock in. any one who takes a home loan is usually wedded to the HFC for a range of 15-20 years and people usually dont transfer home loans for paltry gains in interest rate benefits.
The best returns are often made in sectors/stocks where there is a lot of apathy/fear which is often more perceived than real.
