any particular reasong for exiting CCL prod, APL apollo
2 Likes
@spatel, brief articulation of each stock in itself provides the reason and story behind it. Thanks for sharing. Would like to know your preference of Alkyl Amines over Balaji Amines please.
2 Likes
Thanks for sharingâŚ
1 Like
Nothing specific. At one point in time had increased cash level to 30%. Couple names fall off in the process - low MoS, profit/loss booking, late entry, uncertain near term, etc reasons. At a high level, CCL and APL Apollo are good businesses.
- CCL: 5000tn greenfield freeze dried plant will support growth in medium term and retail venture in long term. Own blend stickiness makes it an interesting business.
- APL Apollo: Should do good as and when volatility in steel prices turn in favor. Decent runway ahead. Management has illustrated scaling capability.
Thanks @Advait_6270. Strong management pedigree, past capital allocation record, skin in the game (promoter % holding), product range (~100 v/s ~25), recent capex and growth momentum are primary reasons in selecting one over the other. Overall, both are great businesses - oligopoly, closely guarded technology, consumed in high growth pharma & agrochem sector, good cash conversion, relatively consistent margin, low import threat - because it is hazardous chemical (read difficult to transport) and opportunity to expand in amine derivatives and specialty chemicals.
15 Likes
Hi Sandeep ji, could you share the updated portfolio?
1 Like
Hi Ranga Kiran,
Will do it over the weekend. Time is flying - 6 months passed so fast.
Cheers,
3 Likes
Waiting eagerly for your portfolio update, esp w.r.t Ambika Cotton.
Thanks
Apologies, could not post on last Sunday (a great day of world sports).
High level update (non-exhaustive) on past six month activity follows -
OUT: Piramal, Sun, Transpek, Ambika
IN: Ion Exchange, Kotak Mah Bank, Hester, Bharat Rasayan
New set of information I felt uncomfortable about triggered three out of four exit. May or may not mean risk. Preferred to let go these to protect gain/minimize loss. One of the exit was >7 year holding. Had to let go fourth as found better growth opportunity when seen from short-term lens.
One of the four new entry has been an opportunistic bet - a pinch hitter (of Cricket world; not baseball). One is parking space, for now. And the other two are businesses I like since while. Didnât had valuation comfort earlier; thanks to market correction got chance to enter.
I strongly believe there are opportunities in market. Problem (if any) is within me/us to spot/reach to it.
Am mindful many cos in PF are trading at high valuation currently. Fingers crossed.
Happy investing. Hope we all have a great second half 2019. Cheers!
25 Likes
Can you share the reason for exiting Ambika Cotton.
Thanks
2 Likes
Hi Sarthak,
Ambika is on a solid ground. High regards for promoter. However, unfortunately this sector has zero tailwind and seems facing headwind currently. Sales growth fizzled out in last two quaters after five consequitive quarters of QoQ growth from Q2Fy18 to Q2Fy19. OPM% in last quarter was one of the lowest (though by small bps) in last 28 quarters. RoE trend is downward for now. Most likely temporary issue. This too shall pass.
Reason for exiting Ambika? I found other attractive situation into which to place fund.
Ambika will do good in days to come. If one is happy with growth trajectory of Ambika, then no reason to worry.
5 Likes
Hi sandeep sir,
I am new to investing and forum. As you exited from ambika cotton and entered in Ion exchange , it seems you like more momentum stocks. If yes how we can merge value investing principles with momentum stocks. Please tell us about this.
Regards,
Abhinav
1 Like
Hi Sandeep ji,
Looking forward to your updated portfolio.
2 Likes
Will love to see your current allocations!
5 Likes
Never heard anyone say being born in India akin to winning the ovarian lottery. But you are right. We are all blessed to be born in India as per your logic of gdp growth, long run way and low base. So true on the value pickr part too. All the best for your investment journey . Cheers
Sir any update? any new names added with changed allocations?
1 Like