Omkar's Portfolio Analysis and Discussion

Very interestig to compare the capital allocation decisions. There is nothing good or bad here. Each company is playing based on their strategy

Strategy 1 - Be really good at the basic product and use that as an advatage to acquire competitor cheaply (this is my judgement). Try to be a global champion in something really basic as cable

Strategy 2 - Build up the future capabilities. Front load cost now. If my product clicks - I will reap the benefits.

Suprajit Endurance
Target Company Konsberg - LDC Maxwell Energy
Business Mechanical Cables + Electro Mechanical Actuators Battery Management system
Deal ~315 Cr - 100% stake 135 Cr - 50% Stake (That’s 270 Cr for 100%)
Revenue of Target company ~750 Cr 20 Cr
EBIDTA 10% Not mentioned. May be Ebidta negative
Key aspects of deal Penetrating global supply chain Future play on EV demand
Bonus Electro Mechanical Actuators business which is 15% of the target company business. Supplying Tesla Can not find as of now

I am going to revisit this decision of stopping additional SIPs as the dust over front running case slowly settles. If my judgement is right, I want to capitalize on the period of underperformance of the fund so that my returns are better than fund’s returns. I am keen to restart these booster SIPs till fund continues to underperform

#unnecessary data analysis

In Last one month FIIs are back and guess whos back

Axis long term equity performance -

image

Overall mood/behaviour meter - Green

What I am feeling about front running scam - forgotten
What I am feeling about underperformance - very comfortable. Convinced that XIRRs will improve