Hi Karan,
I am tracking DP wires
one concern I am looking at is they have more trade receivables about 25 cr and trade payables as 4 cr. which I understand working capital is stressed
Also, They don’t have the advantage with their raw material suppliers in terms of credit.
what are your thoughts on this
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Karan please check Kuantum papers
Hi Praveen!
I wanted to express my gratitude for recommending JK Paper. It’s great to know that JK Paper is a much larger company compared to Andhra Paper. However, considering the specific nature of this portfolio, I would personally prefer Andhra Paper.
Regarding Agarwal Industrial, I believe the recent increase in their stock price is primarily attributed to their cargo business performing well during the time of supply-side issues and rising freight prices. Their bituminous business, on the other hand, has relatively low margins. I will keep an eye on them, but it’s unlikely that I will actively participate in their future growth story.
When it comes to Gravita, I feel like I should have discovered them when they were a Rs 1500 Cr company. Currently, their market cap has already exceeded Rs 4000 Cr. Given the nature of this portfolio, I would be interested in finding a smaller competitor that is well-managed. If you come across any such company in your scans, please let me know. Nonetheless, Gravita does seem like a good company overall.
Thank you once again for your suggestions!
Best regards,
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Understood that u need the company to be smaller for you to invest. Yeah JK paper and Gravita are great businesses even if they are a little bigger, but they will be bigger in the future, that’s all I need to know to invest them in currently.
I do agree about the risk you mentioned about Agarwal Industrial corporation, I need to dig more into it.
Hi Venkata!
I wanted to share a different perspective regarding our choice of DP Wires at this stage. One of the reasons we considered them was because their working capital cycle has actually improved over the past year. I understand your point about smaller companies lacking pricing power, but I believe that as DP Wires continues to grow, this aspect should also improve.
Thanks for your input and let’s keep discussing!
Warm regards,
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Hi Hitesh!
Just wanted to mention that we have a preference for our portfolio companies to have shares that are not pledged by the promoter. It’s something we take into consideration when making investment decisions.
Thanks for your understanding!
Best regards,
Curious to know your take on Maan aluminium and Dp wires. Maan aluminium is commodity price dependent and cyclical, correct? Why are you bullish?
Also what is the growth potential you see for DP wires?
Hi Karan, any reason for selling Cenlub Industries??
I am positive about the commodity cycle. Please see the thesis here -
Commodities Outlook:
One of the key drivers of my investment thesis centres around the promising outlook for commodities. Global economic recovery, increased infrastructure spending, and rising demand from emerging markets are expected to bolster commodity prices. Commodity sectors such as metals, energy, and agricultural products offer attractive investment prospects.
DP Wires,
I believe there should be a rerating of the cap goods space. If DP Wires grows the way it has over the last 10 years and if there is a rerating, it makes a good case.
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Just was in need of cash.
However, last quarter results are not something to be excited about.
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Maan aluminium profits are mostly stuck in receivables every year while they have to invest money for maintenance and growth
Hi Praveen
I am comfortable with them being 5% of sales. 4-5% is the upper band, I guess. The company has been well run over the last few years. I am positive on commodities. I am fine holding 
Regards
Karan
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hi karan today i am checking your portfolio of 2019 and saw that if you hold that portfolio until today you have 3-4 multibagger in your portfolio i want to know that what was a difference you created after changing stocks in your portfolio.
| Stock Name | Position Size |
|---|---|
| Associated Alcohol | 15% |
| Waterbase | 6% |
| Kuantum Paper | 6% |
| Rajratan Global Wires | 7% |
| Cenlub Industries | 6% |
| Lancer Container | 9% |
| Alufluoride | 17% |
| Astec Lifescience | 9% |
| Pradeep Metals | 7% |
| Sandur Manganese | 4% |
| Beekay Steel Industries | 4% |
| JTL Infra | 11% |
this is the portfolio i saw of 2019 , i am asking it because i started investing in 2019 with small amount after watching my first portfolio i saw i have 3 multibagger out of 7 but i did not hold it.
i am just queries what was other invester have a same experience .
thanks
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Investing is about:
- Picking the right stocks
- Buying them at the right price
- Holding tight
#3 is the toughest part. People trade in & out all the time. Real wealth is created when you hold good stocks for decades
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Hey there, I’m sorry for the delayed response. I have to admit, you guys are absolutely right – if I had stuck with the companies in my initial post, I’d be sitting on a few real winners. It’s actually the first time I can proudly say I have a knack for picking the right stocks. I’ve mentioned before that I really need to work on my ability to hold onto my investments.
I went back and crunched the numbers, and if I had held onto the original list, my CAGR would be a fantastic 48% (which, believe me, I’d love to have). However, with all the buying and selling I’ve done, my CAGR stands at 35%. So, it’s clear that constantly tinkering with my portfolio has been detrimental.
I’ve generally been good at making the right picks, especially since out of the 12 stocks in my initial list, only 1 (Waterbase) has given me negative returns. I hope that over the last 5 years, I’ve improved my ability to hold onto my investments.
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Hi Karan,
Can you share your thought on Cupid Ltd?
Thank you!
Hey! I wanted to share that @dineshssairam has put some serious effort into researching Cupid, and you can find his comprehensive study right over here: Cupid Ltd – Helping the world play safe! - #1634 by Chandragupta
I truly value Dinesh’s insights on this company, and I don’t have any additional information beyond what he’s already provided.
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Hello Karan
I noticed a great 35% CAGR over the past 5 years, especially with the market corrections in 2022.
I’m curious, Which would be 3 small/micro-cap names you would like to look into by the end of 2023?
What specific factors or criteria would you to study for those 3 names ?
I’ll try to study and analyze those parameters and put across.
Warm regards
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Hi Karan. Interesting to see the name of Cochin Minerals in your list. Would really appreciate if you can throw some light on the thesis behind it given the constraints wrt sourcing ileminite. Thanks.