ValuePickr Forum

Starting my investment journey again!

If you look for above qualities then you should reconsider picks like emami, bajaj consumer and vodafone among your picks. I don’t track others…good thing is these are not significant holdings…look trading bets to me…where management quality does not matter much…

@Investor_No_1

Would like to understand why you think there are problems with management of Emami, Bajaj consumer or Vodafone Idea.

Emami is facing pledge issue, because of promoters’s misadventures in other businesses.
Bajaj Consumer: Heavy pledges which are no longer there.
Vodafone Idea: Solid promoters who has found himself on the wrong side of competition.

Will like your view why you think the management may be dubious.

Thanks

Pls note I do not mean management is dubious or any fraud. I was referring to quality, competence and corporate governance etc. For eg. Would you want your cash rich companies promoter constantly pledging their shares and when pledge released by selling stake…the charm of your single product company which was dividend going away with the pledge… something like that happened with bajaj consumer.
Rest you answered yourself…a company which loses to competetion and external environment so badly, would it be at best traded or invested for long term?
Disc. These are no buy sell recommendation and only my views on business alone… and I can be completely wrong in my assessment with my limited knowledge

How about following companies

  1. Larsen and turbo
  2. TCS / INFY
  3. Cochin Shipyard

Point taken.

You are right. I would have hardly purchased these businesses on a higher valuation. I know there are business which are better than these wrt market share, quality and corporate governance.

For eg, Between Airtel and Voda Idea, I am certain that Airtel is a more stable bet. Between Marico and Emami, Marico is positioned better. Similar for other picks.

I am early into investing, haven’t been able to hold stocks for more than a few days. And I have missed out benefits of compounding because of that.

I would love to buy steady compounders like HDFC Bank, Asian Paints, Nestle India but I am not comfortable with the valuations.

Thank @shridharrathi

L&T looks a good long term bet on Indian infra and defence story.

Cochin Shipyard is definitely worth a look at these valuations. I am just not comfortable holding government entities for long term. They have been biggest wealth destroyers for last 10 years, whatever the valuations.

Info & TCS are safe and mature businesses. I can look at TCS at lower valuations.

Thanks

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Added 3 more stocks to my portfolio :sled:

BirlaCorp : 1.25% >> Prominent cement player at attractive valuations
S P Apparel: 1.25% >> Garment stock with ~2 P/E, financials look fine. Crocodile brand is a call option
Kitex Garments: 1.25% >> Once 50 P/E stock trading at 6 P/E, may be beneficiary of global trade war, with only mild impact of Covid-19, Weak rupee will help the margins