Balms

Why we bought Amrutanjan Healthcare and continue to like it!

Posted by | Stocks | 4 Comments

‘While, I was reading about this company I literally fell asleep’ said a smart analyst during one of our Chai pe Charcha meetings sometime in mid 2014. ‘You know.. it’s a 120-year old company and still does only about 140 Crores in sales, and by the way who really uses balm these days? I guess it’s a dying business’ he continued.
That’s what really got us interested to study it more as we had some idea already that it’s an owner-operated FMCG business with a net cash balance sheet, and zero institutional ownership- seemed like a classic Peter Lynch type boring story which nobody wants to even talk about. The only missing part was growth potential and over next few weeks that one question kept us busy.
Amrutanjan until 2012 was mainly

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