Nitin's small/mid cap portfolio analysis

Respected ValuePickr members,

I began following the VP forum two years ago, and during this time, I have learned a great deal from this platform. I am truly grateful to all the members who contribute to making this space so valuable.

I would like to share my portfolio here, in the hope of receiving valuable insights from the community. Any advice, suggestions, or guidance would be greatly appreciated.

Alternative better idea in the same segment/sector is welcome.

90 pc of the portfolio is made up of these 17 companies.

Investing period: 1 year

Investing style: vision to hold these small caps/mid caps is for 3-5 years given business keeps on growing.

I dont mind taking high risk but aim is to optimise returns.

Thank you!

4 Likes

Wock pharma: seems like a turnaround story after the management has given decades towards R&D.Approvals of various patents and upcoming drugs with approximate TAM looks lucrative

Ami organics: segments like electrolyte business and speciality chemicals makes it a favourable business as far as growth is concerned.

Man Industries: one of the rare company to be approved for green hydrogen transportation pipes with continuous expansion zeal for oil and gas transportation

HBL: direct beneficiary of train TCAS(kavach) with limited competition. conventional battery business and investment in new technologies like FUZES and retro fitment of heavy vehicles in to EVs…

Kp energy ltd : wind power generation play(renewables)- futuristic

Guidance is to grow at 40-50% till FY30.

Even in the Q2 concall (which is their first), management said they have a revenue visibility of 3,500 crores for the next 2-3 years. sector

HSCL: The company is a key player across various product segments, including battery materials, coal tar pitch, carbon black, naphthalene, refined naphthalene, SNF, and specialty oils. It serves a diverse range of industries, such as lithium-ion batteries, paints, plastics, tires, aluminum, graphite electrodes, agrochemicals, defense, and construction chemicals.

Salzer : The Co is the largest manufacturer of Cam Operated Rotary Switches with 25% market share. Latest entrant into smart meters.

SG Mart :seems to be a big monopoly.Trying to move everything under one roof.Guidance and execution looks achievable as well as lucrative.

VPRPL, Para cables, indo tech : selected emphasizing on pure water,cables,transmission sectors.Following companies are selected after detailed analysis and comparison with peers on their business,valuation and size.

3 Likes

Railtel : data centre + railway infra.

Websol: manufacturer photovoltaic crystalline solar cells and related modules.

Ceinsys tech : Enterprise Geospatial & Engineering Services.
Political backup
Decadal promise.

Netweb: high entry barrier business and tie ups with Nvedia.

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Any insights into Indo Tech please. Information around Indo tech has been scarse so looking for anybody who might have more information into the prospects here given its into transformers

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Unfortunately the company hasn’t started giving concalls,investor presentation.Theres hardly any management interview available.The only entry point personally was valuations(wrt industry)with decent fundamentals.Now,i just track the order book and their execution.IMO,it is very important to track as per order book and their execution rates what revenues they can produce and ofcourse keeping an eye on supply demand mismatch.

Disclaimer: i am invested from lower levels so have a good buffer available with me.

Same here. Invested at lower levels when MoS was decent.

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Man industries looks Lucrative at current valuations

PE (ttm)-20
Sector PE-28
Ev/ebidta-8

Management is guiding for a revenue of 6500 cr by FY27.
PAT can be conservatively somewhere around 350cr

Mcap calculation =25*350=8750 cr(FY27)

Doing capex in jammu and saudi plant

Green hydrogen transportation bet is not only for india but is also for Europe’s ambitious plan of producing 20 million tonne of green hydrogen every year by 2030.

Strong order book-4000 cr
To be executed in 12-18 months

One good quarter and the share price may show good rally
Q3 is critical

Disclosure: Invested
Long term play

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J&K plant should provide them with lucrative margins coz of electricity rates, tax rebates etc

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Looking at current global cues,decided to cashout 20 pc. Increasing dollar strength,US 10 yr bond yields, trump taking over the crown and chances of de dollarisation got me a bit cautious
I may end up look stupid but just wasn’t getting the kind of mental peace i wanted

Exited HBL(not happy with the size of their order-might convert to kernex in future looking at their mcap)
Netweb-mcap is already around 15k
Not sure if it suits my investing style.
And exited VPRPL-may enter again after dust settles down…

Currently companies that I am studying are interarch building,enviro infra and tembo global.

HBL engine Should keep grasping orders in the long run too. Railways still seems to be one of the better themes to play out Domestically.

1 Like

I know hbl have a strong business
Other verticals apart from kavach are also promising
It just doesnt fit my investing style.
Mcap is already 15k cr
I am just not sure if it can be a multibagger for me from here on…
Nothing wrong with the business…

2 Likes

During this fall,i have added my strongest convictions ie wock pharma,ceinsys,ami organics,kernex systems.

I feel the market tried to resist today
Looks like the havoc is over

A good budget can turn the tide around…

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There was a lot of randomness in the past 2/3 days which was like a soft opportunity. But thesis remains the same, bottoms up you need to pick stocks where earnings and only earnings are the triggers. Coz at the end of the all this havoc Good earnings will be rewarded.

Cartrade came out with great results today highest ever rev quarter. The growth engine seems to be great. Operating leverage picking up. And you would have noticed relatively Cartrade fell a bit less vs others stocks with this kind of beta.

^ This is just a framework to gauge 2 things :
How earnings get rewarded
How relative strength even in weaker matter has to be noticed

2 Likes