Thanks Shakti and Sandeep for your responses. Thanks to all who keep liking my posts.
@Shakti_Srivastava construction and capital goods is the area where I have not built my competence. However, I will keep my eyes and ear open for any future opportunities.
Sandeep, I do not look at the cost when looking at % allocation, I look at them from current market value levels only. Warren Buffet also answered this recently Warren Buffett: Ignore Original Costs When Reviewing Your Portfolio | The Acquirer's Multiple® . However, people who just spray and pray (like having 100s of stocks) they should look at cost allocation only.
My rationale on XPRO India (3% allocation, 67% profit): First time I bought XPRO in February 2023 at 550 rs. My average cost is 560 rs. My last transaction (buy) was in March 2023.
First time I came across XPRO was when I was screening for Malabar Fund’s investments may be in February 2022 or March 2022 that time its price was ~1000 rs. The price had shot up some 40-50x in one year. So I did not muster the courage to buy it. I kept reading about the company. Valupickr (Xpro India - getting bigger? - #5 by sahil_vi) and Sahil Sharma on Twitter (https://twitter.com/sahil_vi/status/1614152532946821123) has good content on analysis.
XPRO historically been in commoditized Coex plastic films which accounted for over 70% of the revenues (I think single digit EBITDA margins). However, revenue mix is changing towards biaxial dielectric films which are used in capacitors. EBITDA margins of dielectric films is 25%+. Capacitors growth is going to be exponential given so much of electrification and increase of electronic items. Further, this product is straight away import substitution as everything else which XPRO does not manufacture is getting imported.
The business seems to have great moat as to expand one line business it takes about 3 to 4 years. Many customizations to SMT lines are required for production. Additional comfort was that it is from Birla group.
I kept eyes on stock and was able to buy it at ~550 rs. Lucky to get that price.
Disclaimer: I am not a financial advisor and nor a SEBI registered Analyst. The content shared here is only for learning purpose. All the names mentioned here are for example and learning purpose. I may buy more, exit or partly sell the stock/bonds without any prior intimation.