In this series of posts, I will share my thoughts on position sizing, how I have approached it in the past, how the results were, and what refinements I have brought about it.
The past results
I benchmark myself against three portfolios:
Nifty 50: Reflects opportunity cost
Banyan tree PMS: Quality and valuation driven firm with one of the best publicly available track record across market cycles (including 2008)
A microcap maverick like Mittal Analytics (public track record starts in 2019)
Here is how returns have fared over this 2-year period.
All the 3-strategies has outperformed Nifty. My strategy is much more closer to Banyan Tree (quality + valuation). A more small cap focused strategy creates much higher drawdowns and produces excess returns in good times.
What do I want? Drawdowns like Banyan Tree and outsized returns like Mittal Analytics which is impossible for someone like me.
What can I get? Behaviorally, I want absolute controls on longer term drawdowns by selecting good companies and not overpaying. However, I want to spice up the returns with positions in bombed out cyclicals which can produce excess returns in good times.
Position sizing
I used to size a position anywhere between 1% to 6%. My expected returns were 15% and I used to allocate 6% into companies that were no brainer opportunities to generate 15%+ returns. These were generally large companies with good institutional coverage and whose performance could be studied across cycles. This is how this part of portfolio has done.
6% companies
IRR Returns until 28.05.2021
Ajanta Pharmaceuticals Ltd.
24.20%
Bajaj Auto Ltd.
20.69%
HCL Technologies Ltd.
38.10%
InterGlobe Aviation Ltd.
19.52%
I T C Ltd.
-0.20%
Larsen & Toubro Ltd.
17.60%
Lupin Ltd.
-1.10%
Natco Pharma
20.70%
PI Industries Ltd.
59.60%
Power Grid Corporation of India Ltd.
19.70%
Reliance Industries Ltd.
0.00%
Reliance Nippon Asset Management Co
26.00%
AVERAGE
20.40%
Out of the 12 companies, I was right on 9 i.e. a hit rate of 75%. For me, anything >60% hit rate is good. As its clear that I have been right more often than wrong in large positions, I should ideally increase my %. This is one change which I am bringing about in my portfolio.
In the next post, I will illustrate my thoughts on position sizing and the refinements I have brought into it.
From now on, I have increased my expected returns to 19%. Earlier, I wanted a doubler in 5-years (15% returns), now I want it to happen in 4-years.
Objective function: Weighted average portfolio returns > 19%
I look at each company from five different lenses which are stated below.
Business quality (high/medium/low)
Promoter quality (high/medium/low)
Financial projections (high/medium/low)
Valuation projections (high/medium/low)
Is it a cyclical business (Yes/No)
Business quality: This is something I have written about in the past.
High quality business:
Over the last 10-years, (#ROCE>20% and #positive FCF) > 14
Medium quality business:
Over the last 10-years, (#ROCE>20% and #positive FCF) < 14 AND
If ROE over a cycle > 12% but < 20%
Low quality business:
Over the last 10-years, (#ROCE>20% and #positive FCF) < 14 AND
If ROE over a cycle < 12% or free cashflow is generated <50% over last 10-years
Management quality: I define a high quality management with the following attributes
Achieved organic sales growth greater than category average
Is able to find new avenues to grow
Treats minority shareholders in a fair manner
The first two criterion can be easily checked by looking at the past, however the third criterion is more subjective as different shareholders have different expectations. I bring in my own subjective judgement and categorize each management as High or Medium or Low.
Financial projections: The important metrics are future sales growth, margins, reinvestment requirements and ROIC. This is more a reflection of my understanding of the business and is a speculation on my part. If I have high degree of certainty in my speculation, I give it a High rating.
Valuation projections: This is done by comparing how market has valued a business or a sector in the past. Some examples are stated below.
An auto-ancilliary company generating 14-16% margins with sales growing at >12%, the business having ROCEs > 18% gets valued at >2.5x EV/sales in a bull market (examples are Suprajit, Amara Raja).
Generic pharma companies with reasonable ROCEs of >18% over a cycle gets valued at >4.5x EV/sales, even more if they have a branded business in some markets (numerous examples like Sun, Lupin, Alembic, Ajanta, etc.).
Good lenders who generate 15%+ ROE over a business cycle trade at P/B > 2.5x in good times.
If I have a high level of confidence in my exit valuation, I give it a High rating. However, if a company has limited track record (such as RACL Gear) or I have applied a very high terminal multiple on that company (like 30x exit EV/EBIT for HDFC AMC), I bring down my level of confidence to Medium.
Cyclicals: If margins are all over the place, it generally implies a cyclical company. This is rather binary and easy to judge.
Now that I have summarized my thoughts on the five different lenses, here are my thoughts on how I size a given company in the portfolio.
4 different position sizes
8%: High confidence bets
2% and 4%: Most discretion is restricted to changing position sizes between 2-4%
1-2%: Deep value + optionality
Hard constraints
More than 50% of my bets should in non-cyclical businesses
<30% bets should be in cyclical businesses
<20% bets should be in special situations
Order of weightage (in non-cyclical): Business quality > Promoter quality > Exit valuation Order of weightage (in cyclical): Promoter quality > Business quality > Exit valuation
Non-cyclical businesses
R means expected returns over 3-5 year period
High on business + High on promoter
o R > 19%: 8% allocation
o R > 15%: 2-4% allocation (discretion based on available opportunities)
High on business + Medium on promoter
o R > 26%: 8% allocation
o R > 19%: 2-4% allocation (discretion based on available opportunities)
o R > 15%: 2% allocation
Medium on business + High on promoter
o R > 26%: 8% allocation
o R > 19%: 2-4% allocation (discretion based on available opportunities)
o R > 15%: 2% allocation
Medium on business + Medium on promoter
o R > 26%: 4% allocation
o R > 19%: 2% allocation
Cyclical businesses
High on business + High on promoter
o R > 26%: 8% allocation
o R > 19%: 2-4% allocation (discretion based on available opportunities)
High on business + Medium on promoter
o R > 26%: 4% allocation
o R > 19%: 2% allocation
Medium on business + High on promoter
o R > 32%: 8% allocation
o R > 26%: 2-4% allocation (discretion based on available opportunities)
o R > 19%: 2% allocation
Medium on business + Medium on promoter
o R > 26%: 2-4% allocation (discretion based on available opportunities)
o R > 19%: 2% allocation
You will see R values are divided into 15%, 19%, 26% and 32%. This reflects doubling in 5-, 4-,
3-, and 2.5-years.
Special situations
There are many different kinds of special situations. My one hard rule here is to sell after 2-years if nothing happens (basically bite the bullet and move on regardless or price). I currently invest in 2 types of special situations:
Companies with in-built optionality
Deep value bets
Companies with in-built optionality
Companies with leadership in multiple areas (like a research based company like Praj or a Natco with multiple Para IVs)? Allocate 1-2% when they are available at no-growth valuations i.e. current earnings stream and cashflows account for their market cap (10-12x normalized earnings). What should be the exit criterion? Can it be price based i.e. sell when <20% of peak price. I don’t have a comprehensive framework here, any help will be appreciated.
Deep value company identifiers (allocate 1-2%)
Sustainable dividend yield of 8%+
Net nets:
o Adjust working capital: Cash & short term investments + 75% account receivable + 50% inventory – total liabilities (including off-balance sheet items)
o Market cap < 0.66 * Adjusted working capital
Cyclically adjusted ROCE and ROE > 20%, P/B < 1 (maximum 1.2)
Cyclically adjusted ROCE and ROE > 12% & <18%, P/B < 0.5 (maximum 0.6)
Further thoughts
All of these rules do not take care of one special scenario which is: How do I make enough allocation if I am able to spot a PI/Ajanta/Avanti early on? For now, I will keep on with my 8% rule for these opportunities and keep thinking about it. In the next few posts, I will summarize how I have applied these to a few of my portfolio companies.
I will give an example from each category of business, I cannot give my projections for all the companies I track because that would be >100 posts!
High quality business + High quality management + non-cyclical + 19% expected growth rate + moderate confidence in projections
Ajanta Pharma
Business quality (HIGH)
Year
ROCE & ROE > 20%
Positive FCF
FY10
No
Yes
Total # years
12
FY11
No
Yes
# ROCE & ROE > 20%
8
FY12
Yes
Yes
# Positive FCF
12
FY13
Yes
Yes
FY14
Yes
Yes
SUM
20
FY15
Yes
Yes
AVERAGE
83.33%
FY16
Yes
Yes
HIGH BUSINESS QUALITY
Yes
FY17
Yes
Yes
FY18
Yes
Yes
FY19
No
Yes
FY20
No
Yes
FY21
Yes
Yes
Management quality (HIGH)
Organic sales growth greater than category level growth: True for IPM
Able to find new avenues to grow: Created new sources of cashflows regularly (malarial tender business, US generics, Franco Africa branded generics, etc.)
Treats minority shareholders in a fair manner: Conservative guidance + 20% payout + regular buybacks
Financial projections and exit valuations as on 05-03-2021
FY20 sales: 2588 cr., @15% growth: FY25 sales: 5176 cr., EV: 5176*6 ~ 31’056 cr. (20% net margins in good times with operating leverage benefits + 30 P/E) (share price: 3588)
Cyclical?: Branded pharma is not cyclical
Confidence in projection (Medium)
Business quality (high/medium/low): High (Specialty business gets high gross margins + branded focus in non-US markets)
Promoter quality (high/medium/low): High (conservative guidance + didn’t pay dividend to fund capex + strongly believes in free cashflows)
Financial projections (high/medium/low): Medium (unsure about 15% growth, sure about 20% net profit margins)
Valuation projections (high/medium/low): Medium (unsure about exit P/E multiple of 30x; sure about 25x exit P/E)
Is it a cyclical business (Yes/No)? No
SUMMARY:
Companies
Projection date
Price
4 years fwd Price (FY25)
Price return %
Dividend yield %
Total returns %
Confidence
Business
Promoter
Financial proj.
Valuation proj.
Cyclical?
Ajanta Pharmaceuticals Ltd.
01.05.21
1’841.70
3’588.00
18.14%
0.50%
18.64%
High
High
Medium
Medium
No
This comes in the 4% position size category (high quality business + high quality management + non-cyclical + ~19% expected IRR)
In this post, I have given my outlook for a high quality business + Medium quality management + Cyclical business
Nippon Life Asset Management
Business quality (HIGH)
Year
ROCE & ROE > 20%
Positive FCF
FY11
Yes
Yes
Total # years
11
FY12
Yes
Yes
# ROCE & ROE > 20%
6
FY13
No
Yes
# Positive FCF
10
FY14
No
Yes
FY15
Yes
No
SUM
16
FY16
Yes
Yes
AVERAGE
72.73%
FY17
Yes
Yes
HIGH BUSINESS QUALITY
Yes
FY18
No
Yes
FY19
No
Yes
FY20
No
Yes
FY21
Yes
Yes
Management quality (Medium)
Organic sales growth greater than category level growth: No (have underperformed growth in AUM since FY17)
Able to find new avenues to grow: Yes (Were able to build ETF business through Goldman acquisition. Need to see if they can grow their foreign asset management business significantly)
Treats minority shareholders in a fair manner: Yes (Very good dividend redistribution).
Financial projections and exit valuations as on 27.04.2021
Quarterly sales will grow by 10% from 300 cr. in FY21 to 440 cr. in FY25 translating into annual sales of 1’760 cr. At 50% core margins and no other income (for conservativeness), PBT ~ 17600.5 ~ 880 cr. and PAT ~ 880.75 ~ 660 cr. At 50x PAT, Mcap ~ 33000 cr. (share price: 535)
Cyclical?: Yes (A large part of AMC business profitability comes from equity AUM which depends on equity markets which is inherently cyclical in nature).
Confidence in projection (Medium)
Business quality (high/medium/low): High (Although inferior to HDFC AMC, mutual fund is still a very good business)
Promoter quality (high/medium/low): Medium (has been consistently losing market share to bank backed AMCs)
Financial projections (high/medium/low): High (Sales should easily grow @10%+ given the underlying compounding of equity + extra inflows)
Valuation projections (high/medium/low): Medium (50x exit multiple is a little stretched)
Is it a cyclical business (Yes/No): Yes (AMC business is inherently cyclical)
SUMMARY
Companies
Projection date
Price
4 years fwd Price (FY25)
Price return %
Dividend yield %
Total returns %
Confidence
Business
Promoter
Financial proj.
Valuation proj.
Cyclical?
Nippon Asset Management
28.04.21
340.65
535.00
11.95%
2.30%
14.25%
High
Medium
High
Medium
Yes
This comes in the 0% allocation range as expected returns are <19%. I will be trimming my stake subsequently.
In this post, I will give my take on a medium quality business + high quality management + cyclical business
Manappuram Finance
Business quality (MEDIUM)
Year
ROE > 20%
FY10
Yes
Total # years
12
FY11
Yes
# ROCE & ROE > 20%
7
FY12
Yes
FY13
No
FY14
No
SUM
7
FY15
No
AVERAGE
58.33%
FY16
No
HIGH BUSINESS QUALITY
No
FY17
Yes
FY18
No
FY19
Yes
FY20
Yes
FY21
Yes
Management quality (High)
Organic sales growth greater than category level growth: Yes (in-line with growth in Muthoot finance who is the category leader, detailed work here)
Able to find new avenues to grow: Yes (have managed to grow other business segments like MFI, vehicle finance, home finance, etc.)
Treats minority shareholders in a fair manner: Yes (In tough years of 2013-16, quarterly dividends were never cut or stopped + management has been very transparent in communications + conservative provisioning)
Financial projections as on 26.05.2021
FY21 Book value is 86:
Based on trailing book, sell price is ~215 (2.5x P/B)
Based on 1-year forward book growth ~ 16%, sell price is ~250
4-year growth of 16% means book value will be 156, sell at 2.5 P/B @390 share price
Cyclical?: Yes (70% of book is gold loan which relies on gold prices which is cyclical)
Confidence in projection (High)
Business quality (high/medium/low): Medium (Cyclically adjusted ROE ~ 18-20%)
Promoter quality (high/medium/low): High (They have a better gold business model compared to Muthoot + High promoter integrity + Decentralized control of different business units + High dividend distribution)
Financial projections (high/medium/low): High (Should be able to grow book at 16%)
Valuation projections (high/medium/low): High (Should be able to get 2.5x P/B; can even get 3x P/B)
Is it a cyclical business (Yes/No): Yes (Majority of book is still gold loan which is driven by gold prices)
SUMMARY
Companies
Projection date
Price
4 years fwd Price (FY25)
Price return %
Dividend yield %
Total returns %
Confidence
Business
Promoter
Financial proj.
Valuation proj.
Cyclical?
Manappuram Finance Ltd.
26.05.21
160.30
390.00
24.89%
1.87%
26.76%
Medium
High
High
High
Yes
This comes in the 4% allocation range. I might increase the position size to 8% if forward returns > 32% (at price ~ 135) and NPAs in other loan books are well provisioned and in-line with industry.
DB Corp has better readership and are the more dominant player compared to Jagran. It was bizarre that at one point DB Corp’s market cap came below Jagran. Although, Jagran is more share holder friendly.
Interested to know that u have invested in Alembic pharma now…It would be very helpful which aspect of the company made u to invest in it now…
Thanks in advance
Last year, there was a lot of buzz around Alembic Pharma because of the sartans opportunity and how there will be consistent shortage in US markets going forward. This was an exact replica of 2016 (the abilify shortage) when there was lots of buzz around Alembic. I never subscribed to that belief, for me Alembic’s business is lumpy in nature but is of high quality (shown in ROCEs > 20% during the pharma downturn despite R&D > 10% of sales). Now, that the buzz is gone, I revisited the story.
The main competitive advantage of Alembic Pharma is their vertical integration and their very nimble supply chain capabilities. This combined with 70%+ gross margins means they can do operating margins of 25%+ despite spending large amounts in R&D. So I was always interested in Alembic but preferred Ajanta over it (and still do) because of Ajanta’s branded business (~68% of sales) and debt free balance sheet.
Last year, I chose to buy shares of Cadila because they were reasonably cheap. Now that the valuation arbitrage in Cadila is more or less over, I switched to Alembic because now Alembic is trading reasonably cheap. For any generic pharma company with 70%+ gross margins (Ajanta, Alembic, Natco, Sun, Torrent), EV/sales of 3.5x is cheap. That’s why I made the switch. Here are my detailed valuation notes on Alembic.
Business quality
Year
ROCE & ROE > 20%
Positive FCF
FY11
Yes
Yes
Total # years
11
FY12
Yes
Yes
# ROCE & ROE > 20%
10
FY13
Yes
Yes
# Positive FCF
7
FY14
Yes
Yes
FY15
Yes
No
SUM
17
FY16
Yes
Yes
AVERAGE
77.27%
FY17
Yes
No
HIGH BUSINESS QUALITY
Yes
FY18
No
No
FY19
Yes
Yes
FY20
Yes
No
FY21
Yes
Yes
Promoter quality (Medium)
Organic sales growth greater than category level growth: True for US and developed markets, False for Indian market
Able to find new avenues to grow: Yes (Created large US sales despite being a late entrant)
Treats minority shareholders in a fair manner: Yes (Dividend payout ~ 20% of PAT)
Red flags:
o Promoter takes very high remuneration (~10% of PAT)
o Related party transactions are also pretty high (>150 cr.)
o Promoter entity has been previously linked in Panama papers
Projections as on 06.06.2021
By FY25
US sales will reach $500mn (~4000 cr. at USD/INR ~ 80) implying 16.6% growth from FY21. This should be achievable given the large number of things they are trying (injectables, oncology, ophthalmology, dermatology)
Rest of world generic sales will grow @15% from 779 cr. in FY21 to 1’362 cr. in FY25
India sales will grow @10% from 1’497 cr. in FY21 to 2’192 cr. in FY25
API sales will grow @10% from 955 cr. in FY21 to 1’398 cr. in FY25
Consolidated sales ~ 8’952 cr.
Sell at EV/sales ~ 4 (given they are mostly in generic sales and not brands), EV ~ 35’808 cr. Assuming debt free balance sheet, market cap ~ 35’808 cr. (share price: 1821)
Confidence in projection (Medium)
Business quality (high/medium/low): High (Produces >20% ROE/ROCE and FCF over 75% of time)
Promoter quality (high/medium/low): Medium
Financial projections (high/medium/low): Medium (US sales of $500mn will not pan out unless they get injectables right)
Valuation projections (high/medium/low): High (In good times, should get >4x EV/sales)
Is it a cyclical business (Yes/No): No
Expected returns ~ 18% which comes in the 4% position size bucket.
As I had mentioned before, I am reshuffling my portfolio significantly which will probably take a few more weeks at the end of which I will start sharing the model portfolio again.
Over the past few months, I have made significant changes to my portfolio. In-line with my portfolio allocation strategy, I have simplified the structure into 5 kind of bets (core compounder, cyclical, slow grower, turnaround and deep value). I am sharing the current model portfolio structure.
Core compounder (44%)
Companies
Weightage
I T C Ltd.
8.00%
Housing Development Finance Corporation Ltd.
4.00%
NESCO Ltd.
4.00%
Manappuram Finance Ltd.
4.00%
Alembic Pharmaceuticals Ltd.
4.00%
Amara Raja Batteries Ltd.
4.00%
Avanti Feeds Ltd.
4.00%
Eris Lifesciences Ltd.
4.00%
Ajanta Pharmaceuticals Ltd.
2.00%
HDFC Bank Ltd.
2.00%
HDFC Asset Management Company Ltd
2.00%
PI Industries Ltd.
2.00%
Cyclical (12%)
Companies
Weightage
Kolte-Patil Developers Ltd.
4.00%
Ashiana Housing Ltd.
2.00%
Ashok Leyland Ltd.
2.00%
SWARAJ ENGINES LTD.
2.00%
National Aluminium Co. Ltd.
1.00%
Jamna Auto Industries Ltd.
1.00%
Slow grower (8%)
Companies
Weightage
Power Grid Corporation of India Ltd.
4.00%
Cochin Shipyard Ltd.
4.00%
Turnaround (6%)
Companies
Weightage
CARE Ratings Ltd.
4.00%
Lupin Ltd.
2.00%
Deep value (6%)
Companies
Weightage
SJVN Ltd.
1.00%
ATUL AUTO LTD.
1.00%
Jagran Prakashan Ltd.
1.00%
D.B.Corp Ltd.
1.00%
Time Technoplast Ltd.
1.00%
RACL Geartech Ltd
1.00%
Cash is a little bit high at 24% and I am looking to deploy it soon.
The broad changes are summarized below:
New additions: Alembic Pharma (4%), Cochin Shipyard (4%), Eris Life (4%), Swaraj Engines (2%).
Increased position size: ITC (from 6 to 8%), Avanti feeds (2 to 4%), Amara Raja (2 to 4%), Care ratings (3 to 4%) and Ashok Leyland (from 1 to 2%)
Decreased position size: PI Ind (from 6 to 2%), Powergrid (6 to 4%), Ajanta (4.5 to 2%), Ashiana (4.5 to 2%), HDFC Amc (3 to 2%), Nalco (2 to 1%)
Among new positions, I have already shared my assumptions about alembic pharma. I will subsequently add my thesis for Cochin Shipyard, eris life and swaraj engines.
Always good to check out ur portfolio updates Lots to learn for novices like me.
The increased position size part that u mentioned in ur portfolio - did this happened bcoz exits that u made or u specifically added to these positions over the previous time period?
Regarding Maithan Alloys, can you please share your opinion on valuation ?
I thought with the current steady high base pricing for ferro manganese & silicon manganese, the potential for increasing EPS QoQ this year along with their record high EPS for recent quarter being around 38, there is distinct possibility of Yearly EPS for FY22 being atleast more than 150 and so at current prices, this would be undervalued.
ITC: Earlier, I used to cap position size at 6% which has now increased to 8%. That’s why the increase in position size from 6 to 8%. Avanti: Sales growth which was missing in the last couple of years seems to be coming back. Its a very high quality business (albeit cyclical) and with growth coming in, makes risk reward more interesting. Amara Raja: Another very good business where growth was missing which seems to be coming back. Also, I have sold a lot of auto companies (bajaj auto, suprajit, maruti) and want more exposure to this space given auto has been in downturn since late 2018 and should rebound at some point. Care: Ratings numbers have stopped de-growing and stabilized. The new management team seems to be doing reasonably well, this is another very high quality business where a cyclical economic recovery can lead to good business performance. Valuations are not very demanding. Ashok leyland: If economy revives like it did in Q4FY21, MHCV players should benefit. My projections suggest ~19% IRR over the next 4-years thus coming in the 2% allocation bucket.
Here is my speculation about the future, this was made a year back on 19.06.2020
Lets assume the next bull cycle comes in 3 years:
Best year → FY21 + 3 years ~ FY24
Topline ~ 3500 cr. (generally topline doubles from last top)
EBITDA margins ~ 18% (can go >20% during a cyclical high)
Depreciation ~ 50 cr. (putting a high number)
EBIT ~ 3500*0.18 – 50 ~ 580 cr.
PBT ~ 550 cr. (let’s say for some reason there were other expenses of 30 cr.)
Tax ~ 25% * 550 ~ 140 cr.
PAT ~ 410cr.
P/E ratio ~ 10
Market cap ~ 410 * 10 ~ 4100 cr. (share price: 1408) (I am assuming that cash of 500 cr. was spent in growing topline)
About Eris vs Abbott, Eris has grown sales faster than Abbott which maybe because of their very strong chronic vs acute mix with acute only accounting for 12-14% of sales. This number is >25% for Abbott. Also, Eris runs a very tight ship which is reflected in their margins. Branded generic is very high gross margin (75-80%) business and efficient players operate at 25-30% net profit margins. Promoters of Eris have managed to create strong brands and seem to be quite growth oriented (reflected in acquisitions made since listing). Abbott trades at much higher valuations and probably donot have similar growth ambition due to their international parentage.
Here is my speculation about Eris as on 14.05.2021
FY21 sales: 1212 cr. will grow @13% to 1976 cr. in FY25. Want to sell it at 9x EV/sales (assuming 30% PAT margins + 30 P/E), EV ~ 17’784 cr. Cash + investments should increase from ~330 cr. to 500 cr. giving Mcap ~ 18’284 cr. (share price: 1347)
Confidence in projection (Medium)
Business quality: High (consistently produce 20%+ ROE & ROCE along with free cashflows)
Promoter quality: Medium (I haven’t done enough work on past guidance of promoters)
Financial projections: High (sales growth of 13% is conservative, plus margins should re-rate to 30%)
Valuation projections: High (all MNC pharma companies get 30+ P/E)
ESOPS. Do you think it does not have a significant dilutive on the existing shareholders? Want to know your opinion.
It seems like they don’t mind their share price languishing. Shouldn’t they take actions such as buybacks, spinoffs, dividend payouts that would make the markets recognise the true value of the company if the company is being traded at well below the intrinsic value, unless they believe the current price is fair value?
Hi @harsh.beria93
Can’t wait to understand your thesis behind Cochin Shipyard. I am heavyweight but the margins going down from FY24 (New Orders coming at low teen margins) is a concern. Also can’t wait to know your return expectation here.
Lots to learn for novices like me.