Thanks for starting this thread.
Small cap stocks which I hold and some in tracking:
- Shivalik rasayan
- IOL pharmaceutical
- Oriental Aromatic
- Blackrose industries
- Bajaj health
Views and suggestions appreciated
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What I know so far about IOLCP is that their main product ibuprofen is having a good market share as due to shortage in BASFā¦
BASF is currently working on creating plant for ibuprofen and roughly the price of ibuprofen hold about 18 USD
Now coming to their new chemicals/API : one such example is metaformin wherein India has the highest market share - there are lot of players which deal with itā¦
Once if BASF plant ibuprofen commercialises itās safe to keep the triggersā¦ till then iolcp can do well
PS this is my view as I was invested before and exited due to one product pricing the company was making high margins and had dependencyā¦
I donāt know about their new 3 ongoing product pricing power and client baseā¦ my rough estimates are that new 3 chemical are about 1 to 2 usd pricingā¦
Which when you multiply by opportunity or the size of quantity wonāt make much impactā¦
Plus Point having ibuprofen to playout and also sell the new 3 chemicals we would see some traction in Marginsā¦
Secondly on OAL am invested : camphor prices are sky rocket
They have good customer base and they are planning to add about 2000 customer base coming to peers Kelkar is their competitiorā¦
Kanchi and Mangalam organics can also benefit due to camphor commodity prices but to be safer side I chose oal wherein has pricing advantage and also itās a boring business which when you capture/latch a market share or the clients and the clients would not likely give up that flavourā¦
So itās sticky business but margin wise yes there can be ups and downs but company is sticking on contract agreement for prices to be make it stableā¦
Going ahead I guess it will goodā¦
You can also look fairchem if you are interested ā¦
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Basf plant will start in 2021 as per below
Vinati supplies raw material to basf for their ibuprofen plant
To get exposure to basf ibuprofen Iād probably buy vinati
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Usually Germans are very paranoid about timings
Even Indian companies when they usually give a date for plant going live, they generally stick to it
Vinati has built a big ibuprofen raw material plant in anticipation of demand coming from Basf
Itās only a matter of time and possibly before end of 2021 that vinati revenue will start hitting highs
I am expecting it to start from current quarter
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Solara also setup a big plant (VIZAG) for Ibuprofen I am not sure it is formulation or Intermediate or API , can someone please connect dots and give some insight please ?
Keep an eye on Polymedā¦65% of the revenues comes from govt suppliesā¦with govt planning to spend more on healthcare, it might be a beneficiary.
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Vinati organics any day
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Some good resources for making strategy to invest in micro caps it is really good
1 ) Varinder bansal interaction with Ashish Chung a veteran
https://youtu.be/nfeebFUBRCU
- Varinder bansal with Ian Cassel
Micro cap investment is very tricky and risky some rules
1)Not to invest more than 1% to 3 % of total portfolio
2) Read the Mangment Discussion for at least 5 years Dont bet on any expert advice everything and anything is questionable
3 ) Psychology play a vital role be ready to see 50% correction with your conviction bet
4 ) one must take minimum 5 year view as investment horizon flipping may reduce your capital
5) Decide time frame for exit based on performance of company or changing competitive landscape .
6) Look for incresing market share with improving margins with importance to top line
7) See the history of execution of promoter and strong parents DNA
8) Look for Focused approach of Mangment
I am learning and not pro yet INDIAN main sebse sasti EK cheese MILTI HAI ā¦ wo hai PHOKAT ki advice ā¦ Yet these are Minimum which one must do ā¦ in order to invest in Micro or small cap as the life and investing is full of randomness and Future oriented so stay vigilant as there is very less information is available online on these caps ā¦
Regards
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So since mid Jan to last week, we have sold 55% of our small cap portfolio, considering targets for 1 year were being hit within few weeks. Wherever triggers were playing out we were taking out small quantities, thus hedging against massive falls. Also, there were some wrong picks(5 out of 30), which were sold at a minor loss. Did not want to be too greedy, plus I feel market is in an over optimistic phase. Even if markets go up by another 10-20-30%, I would not feel bad on missing out but If stocks tank by 20-50%, it would have hurt badly. So now we have some quality stocks(but only 20-30% of original allocation) and some new additions which have triggers lined up in Q4FY21 & Q1FY22. If market crashes within next 2 months, we are ready to deploy it again. If not, we enjoy the ride on our 45% of remaining portfolio and keep adding stocks with triggers.
We have completely exited from Transpek(loss), Kitex(loss), Frontier Springs, Monte Carlo, HG Infra, Cords Cable, HPL Electric, VIP Industries(Intend to shift to Safari, at an acceptable price), WPIL, Vipul Organics, Vardhman Acrylics, GNA Axles, Happiest Minds and Lancer Container.
Also exited partially from many stocks such as Kanchi Karpooram, Mangalam Organics, OCCL, Sarla Performance etc. wherein we reached our targets or I was not confident of further rise(Sarla).
Since we deployed cash in December, our returns on the 55% of PF that we have sold have been 22.37%(Dec 2020 to mid Feb 2021), i.e. 89% annualized(this was possible due to a massive bull run but on a sustainable basis, hoping it would be 40-50% annualized over a longer period of time). Current 45% PF is up by 3-4% wherein triggers are yet to play out(should play out in 3-6 months). So now we are waiting, for our quality stocks which ran up way before December/January or we missed out, to finally come down by 20-30% and also to deploy more in stocks we have entered but would experience a fall.
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Vipul I think you should have waited 2 more months
Only time will prove if Iām right or wrong 
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Anyone looked in this company plans ?
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50% profit in less than a month was a good enough return. Would enter again at appropriate levels, if it looks rewarding. Also, have found some other interesting companies where I would like to allocate capital. I have actually faced the issue of exiting too early(Happiest Minds) or too late(Integra), just within the last 5 months, but taking it as a learning lesson on a case to case basis and will evaluate these decisions on a quarterly basis to understand how I can improve my timing.
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I do have Shivalik rasayan and Blackrose industries. I exited IOL after the last quarter results wherein revenues continue to be flat and ibuprofen prices have corrected a bit. So, I would enter IOL after another two quarters or so. Orient aromatic is doing well. I missed out on that. Plan to add now. But isnāt it risky now given the capmhor prices are skyrocketing and if prices correct substantially, we will see a collapse in share prices?
All these 4 stocks Iām holding from very low level. All are 2x plus up . So I have margin of safety.
Camphor stocks are highly volatile. Manglam, kanchi , oal . But in long term Itās gives good returns.The trick is at what level u get into these stocks.
I prefer OAL as my bet in camphor and aromatic.
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Hi, is anyone tracking d p wires ? Apparently amitabh bachchan has a shareholding of 2.5% in this small cap.
Company numbers good reasonable.
Pls give your views who have studied this small cap.
Thanks.
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Just curious, if we invest only 1-3% of portfolio in entire microcap basket - Is it worth the efforts? say we chose 5 microcaps and they make 2% of portfolio and one out of those 5 become a multi multi bagger and we managed to hold on - Will it be a meaningful change to our portfolio? Thanks
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Some top quality stocks are up by equal percentage in last two months. Not undermining the efforts and picks, just thinking on the humungous efforts you made on tracking, buying and selling some 20 small/micro caps along with huge risks that come with it whereas say only a single Tata Motor or Tata Chemical or even L&T gave similar returns where we track just 1-5 medium/large caps with triggers and achieve same result?
Pls correct me where wrongā¦Thanks
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Just curious, if we invest only 1-3% of portfolio in entire microcap basket - Is it worth the efforts? say we chose 5 microcaps and they make 2% of portfolio and one out of those 5 become a multi multi bagger and we managed to hold on - Will it be a meaningful change to our portfolio?
It would depend on your entry. I personally like searching for stories of growth within the microcap space. As an example, I invested 1% of my portfolio in November on Digispice Technologies at an entry of rupees 7.6. Since then it has grown 1110% to be the biggest holding in my portfolio, despite withdrawing all of my initial capital in a partial sale. Youād need the right triggers and luck, but even if one of your stocks hits the mark, itāll make up for the risk.
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Came across this company while screening for small cap. Look good on paper. There latest announcements looks encouraging as well.
Price has ran up quite significantly recently. Looks like quality company but afraid to enter at this price