Thoughts on Investing

  • 3-wave framework & its implications on growth potential

    In the long run if there is one key variable that determines the return we make on any stock, it is the earnings growth of that company. Earnings can grow through growth in sales, sales-mix change and profit margin expansion. However, it is the first variable; sales, that is most important in the long run […]

    read more….

    , ,
  • Significance of Management Quality in Long Term Investing

    What would you do if I give you the following information about a listed B2C company: The brands of the company are jointly owned with promoter’s private entity. The most premium brand owned by this company which brings a third of the revenue and bulk of the profitability, is under litigation, filed by company’s closest […]

    read more….

    ,
  • Obsession with P/e Multiple

    Maruti says we are a country obsessed with mileage; see its famous NASA ad ‘Kitna Deti Hai’ Indians are known to be very smart consumers; always looking for value-for-money offerings. Fortunately or unfortunately, that should make us very good ‘Value Investors’ as defined by Ben Graham. However, how do we know if a stock is […]

    read more….

    ,
  • Decoding Business Model of Meru Cabs

    Since a long time, I have been a loyal customer of Meru Cabs whether I am in Dehi, Mumbai or Bangalore. Being a value investor and somebody who strongly practices scuttlebutt, I generally find it hard to resist interacting with the driver. In fact most of these guys turn out to be pretty interesting and knowledgeable. […]

    read more….

    , ,
  • NESCO: What an Exhibition!

    I first looked at Nesco around 18 months ago when it was ~700 and had love at first sight. They have an annuity business(rentals); the company owns and runs Bombay Exhibition Center, Commercial towers built on adjacent land and some pretty valuable surplus land around it (overall ~70 acres) in Goregaon, Mumbai. If one does the […]

    read more….

  • FY14 updates and new ideas

    Thanks to a great and powerful mandate to Modi sarkar – markets are making newer highs and sentiment has turned bullish after a very long time. All our top picks have been multi-baggers and they continue to do well. Here is an update on how FY14 panned out for them along with what future might […]

    read more….

  • Micro Irrigation in India – A Macro View

    I was speaking to a fellow value investor when he mentioned how frustrating it is to look at the shrinking universe of value stocks with which I couldn’t agree more. Most of the good small & mid caps have doubled and trebled over last 3-4 months. Its a great thing to see your portfolio go up […]

    read more….

    ,
  • The unanswered part of KILLER PUZZLE (Kewal Kiran Clothing)

    The unanswered part of KILLER PUZZLE (Kewal Kiran Clothing) :  Read Here Background: On Sep 25th 13 Prof. Sanjay Bakshi wrote on Kewal Kiran Clothing (Killer Puzzle) I have tried to dig deeper into the story. I will be sharing the probable answers for the questions raised in my next post on KKC. Views invited

    read more….

  • DFM Foods_Crax going pan India

    It is hard to find somebody in north India who hasn’t had Crax as a kid; many even have it today after growing up just like I do 🙂 Crax brand is owned by a listed company called DFM Foods Limited. DFM stands for Delhi Flour Mills which was their original business and later got […]

    read more….

  • What my neighbourhood jockey dealer has to say about the brand

    Earlier jockey was into premium range only, now its available at all price points Indian brands like Rupa, Euro would cost you 90-100 for an undi whereas you can get a Jockey at 120 There are five separate distributors for different segments/range So, out of the 6 working days in a week, five days you have a different Jockey distributor sitting […]

    read more….