Disc : initiated tracking positions in MCX and Lux industries. Both on Margin.
Just a disc. Not a buy / sell recommendation.
Hello Ranvir, can you share the reason to enter into both Lux and MCX… as I see the MCX sales is down 12 percent in the last twelve months (screener.in) and it’s trading at high pe ratio… And there was a recent insider trading issue in Lux industry, what are your views in this?.. did you add both stocks for long term 
Hi…
Lux Industries - I personally believe that it was a small issue which led to an outsized fall in the stock price. One or two Qtrs of good results … and the mkt would forget everything. There is hardly anything wrong with the business, in fact its doing really well.
MCX - had a big handicap of not having the permission of allowing options trading from the regulator. With that permission in place, I think that volume growth should come back. This can be the spark which can light the fire under the stock price. Rest …its a semi-monopoly platform business.
Both these are tracking positions. Will add / reduce going fwd depending on company results.
3 Likes
Disc: Intend to buy Alembic Pharma and Nilkamal Ltd on margin tomorrow. IMO …both look ripe for a descent up move.
Alembic Pharma - as management commentary post Q3 indicate worst being over in the US business. Plus the India business is firing on all cylinders.
Nilkamal Ltd - due robust demand scenario for home furnishings. RM prices are a concern. I am backing the company to deal with it in a satisfactory manner.
Only a disclosure. Not a buy/sell recommendation.
1 Like
Hi Ranvir, How do you compare Alembic to Zydus Lifescience(erstwhile Cadila Healthcare)
For Zydus the Covid vaccine business may not mount to much but still the stock seems to be trading at decadal low valuation… Recent fall may have been due to the USFDA Observations. But it seems its all already priced in… your thoughts pls…
Hi…
I agree with your observations on Zydus Healthcare. IMO … both Zydus Healthcare and Alembic Pharma are trading at lower end of their valuations band. Both are factoring in extreme pricing pressures in US and not so buoyant India business. There seems to be ample room for positive surprises as both these stocks are kind of factoring in most of the bad news.
I hope that the US pricing pressures will start to ease off a bit from Q4 onwards and India business for both these companies should continue to do well.
So… lets hope for a descent to good Q4 results.
Disc: holding both. Biased.
2 Likes
Notes from AR - FY - 21-22 iro NOCIL Ltd -
- Company is largest Indian rubber chemical manufacturer with broad customer base across 40 countries. Company is a part of esteemed Arvind Mafatlal group. Company strives to continuously improve processes, efficiencies, quality, pricing and environmental standards.
- Company has over 40 yrs experience in the rubber chemicals industry. Has strong position in high value added products. Exceptional R&D capabilities lead to significant reduction in production costs. As the business is scaling up, operating leverage is kicking in.
- End user industries - Tyres and Tubes, moulded components for vehicles, industrial belts, gloves and other latex applications, hoses and footwear. Company produces 20+ variety of rubber chemicals.
- Last 8 yrs performance highlights -
Sales growth - 8 pc CAGR
EBITDA growth - 26 pc CAGR
Dividend payouts - 30 pc of PAT for last 5 yrs
- Company is witnessing clear echo for a China plus one strategy wherein global tyre majors are considering de-risking their value chains away from single county dependence. India and NOCIL stands to benefit from this trend.
- Company’s plants -
Mumbai plant - set up in 1976. Has state of the art technology to make entire range of rubber chemicals for tyre and other rubber products.
Dahej plant - started production in 2013. Is located at synergistically important proximity to petrochemicals industry and Hazaria port. Has fully automated process plant developed completely with in house technology. - Over and above China +1, increased environmental compliances levied by the Chinese govt is increasing the cost of production in China. This is creating a level playing field for NOCIL as the company was always complying with these norms.
- Company’s major product lines -
Anti - Degradants / Anti - oxidants - Deter ageing and inhibit degradation of rubber compounds due to oxygen attack on rubber compounds
Accelerators - Increase the speed of vulcanisation. Allow vulcanisation to proceed at lower temperatures with greater efficiencies
Other applications - Pre-vulcanisation inhibition, post vulcanisation stabilisation, improving cross links in rubber products.
- Company had approved a capex of 470 cr in FY 2017-18. The entire capex ( on intermediates and infrastructure ) came to an end in FY 21. Capacity expansion is likely to scale up going forward.
Disc: initiated a tracking position. Biased.
1 Like
Disc : had trimmed a lot of my margin positions when the markets rallied in March post the fall due Russia - Ukraine war.
Now …. As the mkts are correcting again, i ve started building margin positions again.
Added the following stocks today on Margin -
Kopran
Bajaj Finserv
NOCIL
Zydus Wellness
Just a disclosure. Not a buy / sell recommendation.
3 Likes
Disc : added -
Kopran Ltd
NOCIL
HDFC Ltd
Nilkamal Ltd
Bought on Margin. Intend to keep buying on margin as the mkt falls.
Just a disclosure. Not a buy/sell recommendation.
Good results from ICICI bank.
DISC: holding ICICI Bank and ICICI Securities
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Disc :
Added - Axis bank, La Opala RG on margin.
Trying to benefit from stock price falls in both. Yet to analyse Axis Banks’s Q4 results in detail. Prima facie, they look OK…specially on the asset quality side.
Plus I am expecting descent results from La Opala RG. Lets see how it goes.
Latest interview of Ms Kiran Majumdar, post Biocon and Syngene’s Q4 results. Lots to take away.
She is guiding for double digit growth in generics, mid teens growth in research services and north of 30 pc growth in Biosimilars.
Disc: holding both - Biocon and Syngene. Biased.
Disc :
Added Axis bank, Eris Life sciences, Mishra Dhatu Nigam… On Margin.
Eris and Axis bank’s Q4 results were encouraging. Expecting a good set of results from Mishra Dhatu ( selling specialised steel for making Defence equipment …due to the Atmanirbhar push )
Eris’s recent acquisition of Oaknet Pharma is an added positive …IMO
Have hit 20 pc leverage of my total portfolio value. Aim to max out leverage at 30 pc of portfolio value.
Just a disc. Not a buy / sell recc.
2 Likes
Disc : added the following stocks today ( on margin ) -
Axis bank
La Opala
Eris Lifesciences
Lux Industries
JB Chemicals
Have hit 30 pc leverage on my portfolio. Not looking to increase leverage beyond 30 pc.
Just a disc. Not a buy / sell recc.
2 Likes
pls correct me if wrong, does this mean you have taken loan of total value = 30% of your today’s Portfolio value?
What is the interest rate you would pay on this loan?
Hi…
I have pledged shares and used the Margin trading facility at ICICIDIRECT.
ICICI Securities charges 9 pc annual interest on the same and allows me to hold these shares for a maximum of 365 days after which I either have to square off or convert those shares to delivery.
2 Likes
Hi, You use MTF buy mode were in you pledge the same shares you buy?
Hi…
Yes… I use MTF buy mode. But its used to buy new shares against shares that I have already pledged with ICICIDIRECT… ie my portfolio stocks.
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@ranvir Try getting OD against shares, It’ll give you reduced interest rates. Even though not much but reduced nevertheless. Mine on Kotak is at 8% now.
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@ranvir Thanks for providing disclosure, gives little bit of courage to newbies
Apart from these, could you please suggest some other companies which you think are at good levels. does CDSL, Naukri, Piramal, Manappuram qualifies for good entry point? Appreciate if you can share your latest watchlist please, based on price correction.
Thank you.