With the FY20Q3 results for my companies, I am giving a brief snapshot of the portfolio results. There are not changes in position sizes.
- The way market is de-rating shemaroo says that market has lost all confidence in management. Either corporate governance problems will crop up soon (will exit if that happens) or it is a really undervalued stock
- Lupin continues to disappoint on US business, lots of write-offs taken against one time gain from Japanese generic pharma divestment. (Will give a couple more quarters to see if management can resolve FDA issues)
- Care rating results is in-line with my expectation. Whenever growth comes back there will be very strong operating leverage. For now, I keep reinvesting the dividends to buy more shares
Ajanta Pharma -> Strongly growing US business along with recovery in Africa business
Ashiana Housing -> 9M booking growth ~45%, will probably meet the booking target of 2M sq.ft in FY20, should contribute to sales in 2-3 years
HCL Tech -> Fastest growing large cap IT company (~15% revenue, ~16% profit growth) on back of acquisitions
Indigo -> 25% revenue growth with rapid expansion in higher margin international markets
Manappuram -> 30% NII growth on back of 35% AUM expansion, NPAs under control so far
NESCO -> 26% topline growth on back of leasing of new IT park
PI -> ~20% topline growth on back of strong domestic revival (~21% sales growth) and 19% export growth
Bajaj auto (exports saved the day), Cera (no real estate recovery), Divis (good FDA compliance, expanding capacity), HDFC (higher than industry growth, controlled NPA), IEX (slight degrowth on back of soft electricity demand), Infosys (SEC probe still an overhang), ITC (awesome hotel business performance, FMCG margins picking up), Kolte Patil, L&T, Natco (continues to invest in agro chemical and focus on diversification away from US), PowerGrid (lower CAPEX would mean higher freecashflow), Reliance, Nippon India life (drop in debt fund AUM continues to be a matter of concern)
Care ratings -> 23% sales de-growth, valuation reflects this well.
Lupin -> 5 facilities under FDA scanner, US business still not doing well, India business doing well
Mahindra logistics -> Auto keeps top-line subdued (~8% degrowth). Continues to diversify out of auto. Very strong operating leverage play whenever growth comes back
Shemaroo -> 50% de-growth in traditional broadcasting a howler, continues investing in new business avenues with launch of a new free to air marathi channel.