I am currently working on:
Indiabulls Ventures( Undervaluation, Moderate Conviction, Invested @ Rs.12)
- It is quoting at around 7 TTM P/E.
- High dividend yield of 10.5%.
- Acquisition of India Land and Property’s IT park in Chennai with a leasable area of 2 mn square feet can give them a consistent rental income.
- Markets perception towards Indiabulls group promoters is changing lately.
-The traditional brokerage model is getting challenged by online discount brokers such as Zerodha and RKSV, the brokerage business is cyclical in nature and disruption is already happening in this space.
KSE( Moderate Undervaluation, Moderate Conviction, Invested @ Rs.680)
- Available at P/E of 8 times TTM earnings.
- Company is engaged in cattle feed producing and marketing.
- Raw materials(Rice Bran and Copra) prices have been stable for some time.
- Dairy farming is becoming a lucrative business for rural households as the demand for milk and its derivates such as cheese, curd, butter and paneer is rising.
- Milk and its derivates are considered discretionary spends and with rural incomes rising, their demand will further rise.
- Limited pricing power, can’t pass much price increase in Raw Materials cost to customers.
Edelweiss Financial Services(High Conviction, Fair Valuations, Invested @ Rs.50)
- The size of its AUM is increasing at a good pace over the last 3 years.
- It has positioned itself as a credit lending NBFC, catering to both retail and institutional clients.
- The company has nearly grown it’s profit 50% over the last year.
- Rakesh Jhunjhunwala holds this stock(Purchase Price: Rs.55), cloning strategy.
- It’s promoter Rashesh Shah is very efficient and has weathered the dot com and 2008 crash.
- Their Asset Reconstruction business can add to the bottom line if they are able to scale it up.
- Their insurance JV with Tokio Marine Life Insurance is still in loss.
- Insurance companies are selling promises, and when insurance premium is same, people tend to trust bigger names such as HDFC, SBI, LIC, Icici Pru.
Vaibhav Global(Undervaluation, High conviction, Invested @ Rs.803)
- Discount jewellery retailer with high growth opportunities.
- Exceptional inventory management, As Warren Buffett says, Inventory management can make or break a retail business.
- Good Management quality, promoters have learned lessons from the past.
- Sales through its web channels are growing.
- Zero debt company.
- Sales growth have been flat.
Kesar terminals and Infrastructure Limited
Have to start working on this, Will add the details soon
I am invested in all these stocks so my views may be biased, this write up is not a recommendation to buy or sell any of these stocks.