Hi Vinod,
First of all,having bought it much cheaper,I have a greater margin of safety.Secondly,Mr.Jasti has overdelivered so far in FY2014,still,taking even 30% topline growth over H2FY2013 & assigning 25% NPM it is still a steal(to me,atleast) Giving a P/E of 10,it can easily top 100.SUVN-502 is the next BIG trigger,I am very bullish on SLS.
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Hi Sagar,
Looks like you have deep conviction. Story looks interesting too.
It would be nice if you can start a thread on Suven as per the guidelines from Admin, so that we can expect valuable opinions from Seniors/Experts.
Thanks,
Vinod.
Hi SLS.
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I had started a thread on PVR sometime back,donât know if it covered all the facts well.I still donât think I am good enough to start a thread.Though Iâll keep updating whatever I get to know about the developments in SLS,here.
P.S.: Yes,its high conviction.But a relatively low-allocation-high-conviction stock for me 
Exited SPARC & UPL completely & took a starter position in Zensar Tech.Looks solid to me.Available cheap & growing at a very good tick.High dividends & return ratios are icings on the cake.Also,added VST Tillers recently & exited Ceat partially.Had run up very fast(>50% in a month!)
Hi Sagar,
Just had a look of zensar techâs results .If we subtract the other income (fx gains) from the net profit of last two quarter then the number does not look that attractive .
Am I missing something?
You are right Sourabh.Apologiesfor having wrongly mentioned the âgood tick growthâ.But one canât deny that margins have expanded drastically.Toplineâs growing at 15-20%.It may not look that attractive on the growth front,but thatâs why you are getting it at 8X! I have a hunch that good days are ahead.Only taken starter positions hereâŚwill wait for another quarter to see how the âhunchâ plays out. 
Hey no need to apologize ,we are all here to learn 
Coming back to zensar.Generally I compare same period results to calculate growth at least in case of IT companies .Soin the two quarters for this year the income has been 1121 crore and income was 1081 crorefor the same period last year .That gives us a top line growth of 3.7pc .(If we drop the other income from our purview .).
Sourabh.Apologiesfor 
After a few flip-flops of late,finally zeroed in on Himatsingka Siede.Margin expansion,some exclusive brands,cheap valuations & good order book.Will add on dips.Took some healthy positions today morning.
Interested folks can download the Q2 concall transcript from the BSE website.
Hi Sagar,
Can you elaborate a bit on Himatsingka Siede. Margin expansion is only due to the high utilization in one of its businesses . Once they expand the capacities, margins might come down. It is facing challenges in the other business of Draperies. More importantly the stock has run up in the last 2-3 months.
Margins can expand many ways,they want to up the utilisation levels at other plants tooâŚthe RoC may also receive a boost.I liked the fact that the management was pretty candid about its negatives in their AR.For me,thatâs a big boost on the corp. governance front.The negatives are the weak RoW performance & the not so pretty debt picture.But all this IS priced in.The stock trades at <8X on a consolidated,TTM basis.The risk reward seems very favourable.The payout is pretty good too.
US GDP was much ahead of expectations,84% of HSâs revenues come from North America.Once they fix the Bellora brand,upsides could be very good here.Please read their Concall transcript too.
Hi Sagar,
Good analysis and congrats on your investments My email is nrshari@gmail.com. Please share the attachment you had mentioned.
Thanks,
Hari
Took a trading position in Vaibhav Global today morning.
Good call on Vaibhav GlobalâŚBut who did you arrive at it? Was it a purely technical call?
There are a lot of âtriggersâ for VGL.First of all,the uncertainties on the corp. governance issues seem to be getting cleared now(they had applied for CDR,some years back) Secondly,they cater directly to European & US audiences,selling designer jewellery online/through TV.Even without the recovery,their performance was very good on the earnings front,if a recovery REALLY kicks in there could be windfall gains.Customer service seems good.Now,last year same quarter,âSandyâ had hit the US,leading to a drop in Sales for VGL.So,this quarter(Q3) the business pickup should be well refIected on their books.VGL has been reducing debt steadily & they expect to become a debt free company by FY15.By all that I have seen/read,the management seems focussed & determined to get on with the full potential of their biz.The EPS for FY14 should be atleast 54-56,so at 480,it was trading at even less than 9X TTM! For FY15,we can see 70-75 kind of EPS.The rally has been sharp,but as long as performance on the earnings front continues,there is little reason to worry.So far its a trade,as my conviction grows,I WILL convert this to an investment.I donât know much about technicals.
Exited UPL completely.Satisfied with the gains and in any case,my holding was a bit too low to have any material impact on portfolio.Exited Zensar a few days back & entered KRBL.Though a cyclical,the company seems to be the best bet in the Rice space.Growing demand,backed by a good quality product should drive earnings for 3-6 more quarters.Valuation wise,seemed cheap,inspite of the run-upâŚthe growth I foresee(10 EPS for FY14) may even warrant seem re-rating.Looking at adding Cox & Kings & exiting PVR.Partially exited AKale & bought JB Chem.(already well discussed on VP)
The results season is over for me today with Cox & Kingsâ numbers.The earnings again have been satisfactory to exemplary for all companies I own.Though HSeide seems like a mistake now,given the continuous fall it has seen from its high, inspite of decent numbers.I guess poor ForEx management has got something to do with this fall.Cera posted another mellow quarter & has started to look a bit expensive,but thatâs all for the market to decide.From the Concall,its clear that they want scale,and will take advantage of that scale & brand equity to improve margins.So,staying put.PII may stay rangebound for sometime but looks good from a 1 year perspective.Staying put here as well.JB Chem seems to be turning the corner.KRBL,C/K,Ajanta,Alembic,Suven,TechM,Marksans,VSTT,VGL posted excellent numbers.The real surprise was Avanti And the stock was rewarded in tons.Way to go.
Hinduja Global looks very interesting now,since the margin improvement is sustainable & Europe has started looking up.High growth,good dividend yield,available at single digit multiple.Also,Finolex Industries//MSumi/Dhanuka/Ceat are other interests.
Exited ARBL today.
Exited Cera completely.Added Ceat & Thinksoft to my portfolio.Have some cash for Avanti.Remains a buy for me,around 400-410.
Current portfolio status:
Ajanta Pharma: 5% (5)
Alembic Pharma: 12.5% (8)
Avanti Feeds: 11.5% (8.5)
Ceat: 5.5% (8)
Cox & Kings: 4.5% (6.5)
Finolex Cables: 4.5% (4.2)
Granules: 7% (9.8)
Hinduja Global: 5% (6.5)
KRBL: 6.5% (6.5)
Marksans: 8.25% (7)
Suven: 5.75% (6)
Swaraj Engines: 4% (5)
TechM: 5% (5)
Thinksoft: 5.4% (5.5)
Vaibhav Global: 4.6% (4.5)
VST Tillers: 5% (5)
Made some adjustments to the portfolio.Added Avanti after it went down post T2t âre-inclusionâ.Will possibly add some Ajanta on Monday.Recent purchases: KRBL,GranulesCeat,Thinksoft have all done well & am satisfied with their nos.KRBL is due on 8th.
Stocks on watchlist: Federal Bank,Everest Ind.,Gujarat Pipavav,JBM Auto,Adi Finechem/Atul Ltd.,Firstsource,Arrow Coated.
Wow great picks n performance Sagar. The only complaint is that you post very infrequently on VP . Please post more frequently.
Please give your take on speciality chemical sector n cos like Atul n Camphor Allied in it.
Also your take on PFS, Natco, RS Software , Cera at CMP n any other picks you like?
Hi Vivek,
Thanks.
I have already mentioned stocks I still like,at the end of the last post.I would add Vmart to that list too.
I always found Natco expensive.Copaxone expectations had been built in too fast & now that the stock is retracing,it may give a trading opportunity but I would still be wary of âinvestingâ.I am more than happy with my current Pharma holdings.
Hitesh bhai has already endorsed RS Software for a 270-280 target.
I am uncomfortable with Cera at 27X.With competition from Jaguar/Kohler,an imminent gas price hike,lowering margins(due to faucetware foray) & with marketsâ 0 discounting of these facts it seems expensive.It maybe a speculative move.I exited around 850-900,& I donât regret it one bit.Having said that,the stock may continue to move higher.Who knows? Logically,I thought 25X was the ceiling,but Cera has torn that already. 
No idea about PFS.