Ranvir's Portfolio

Disc:

Mild trimming in Crompton Greaves Consumer Electricals.

Added -

Acrysil ltd
Royal Orchid Hotels ltd

Both these stocks were down today. Thought that it was a good opportunity to add today.

Recent management commentary from both these companies has been really bullish.

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Disc : Trimmed CG Consumer products.

Bought tracking positions in Dodla Dairy and Akzo Nobel India.

I am hoping for a turnaround at Akzo Nobel India. Sunil Singhania’s Abakkus fund also bought into Akzo Nobel 2-3 days back after meeting the management.

Dodla Dairy - the financials look good. Margin pressures in Q1 should get resolved in Q2 as the company has taken some price hikes. Plus their African subsidiary is performing really well. Plus the share of value added products like Curd, Lassi, Sweets and Flavoured Milk is inching up with every passing year. Currently at 32 pc of overall revenues.

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What kind of turnaround are you expecting or in other words what kind of turnaround this company needs? Is it financial/balance sheet issue or distribution/marketing or something else which needs to be turned around?

Basically aggression in the marketplace. Over the last decade, their performance has rather been laid back wherein they have consistently conceded marketshare to Asian paints and Berger paints.

Recently they have turned aggressive at least on advertising. Dulux was one of the most advertised brand in the recently concluded Asia Cup ( T-20 tournament ).

Akzo Nobel India has all the ingredients in place to embark on a great growth journey - healthy balance sheet, profitability, good brand. The only thing they lack is the fire in the belly. Hopefully, they r making efforts to rectify the same.

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Disc : exited Saregama Ltd due rich valuations.

Added the following -

Dodla dairy : has nice business momentum specially after the price hikes that company has taken towards the end of Q1. Plus the share of value added products is continuously rising.

Akzo Nobel : A turnaround bet with falling crude prices as a nice tail wind.

HDFC bank : with system wide credit growth picking up to 15 pc, I hope the days of underperformance at HDFC bank should be near. Asset quality has been pristine as ever. Once they get their technology ecosystem right, it can do really well.

South Indian Bank : a pure turnaround bet. Management has guided for slippages of 1600 cr and recoveries of 1100 cr. If this materialises, the bank may be in for some re-rating.

Added to existing positions in - KVB , Mayur Uniquoters and Royal Orchid hotels

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Disc : trimmed Rushil Decor ltd due falling sea freight rates causing a threat of import of cheap MDF exports from China.

Added : AB Capital. Their NBFC business seems to be growing at a rapid pace with stable asset quality. Their life insurance business is also doing well. The health insurance vertical is well on track to profitability by FY 24. With the recent change in top leadership, this may well be a dark horse to bet on. Intend to monitor its Qtly performances and avg up if it sustains.

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