Thoughts on Investing
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APL Apollo – A 5-Bagger in 2.5 Years
We bought APL Apollo at Rs 1,269 a share, in Oct 2018, and recently exited at a price of Rs 1,258 a share, however after the stock split of 5 for 1. At an unadjusted price of Rs 6,300, the stock has been a 5-bagger for us in 2.5 years. It’s been a great ride […]
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An Update on Gujarat Ambuja Exports Ltd.
A couple of years ago I had the opportunity to present on Gujarat Ambuja Exports Ltd. at Tamil Nadu Investors Association’s 20:20 conference held in Chennai. I had under half an hour to explain the entire business model, investment thesis along with upside triggers, management assessment, valuation, the risk & concerns, among other pertinent factors. […]
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Is Real Estate the next Pharma?
A few years ago I had made a thematic presentation ‘India’s Consolidation Wave’ at Flame Investment Lab, Pune. The basic idea was to demonstrate using actual data from multiple industries that how some of the better-run companies were consistently growing faster than the industry and hence winning market share from their smaller/weaker/inefficient counterparts. At that time, […]
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Memo: Let’s Brace for P&L Accidents But Not Overestimate Impact on Intrinsic Values
(Following is a copy of Memo shared with subscribers of SA’s Model Portfolio) Starting this earning season i.e. of Q4FY20 (& beyond), we would hear a lot of exceptional items in the form of loss of revenue and profits due to lockdown, increased operating expenses, changes in the way businesses operate, etc. For some businesses like […]
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Financial & Mental Preparedness For What Lies Ahead
The global economy has locked down and experiencing unprecedented uncertainty & volatility. Accordingly, it is ideal for everyone to ensure we are mentally and financially prepared to face what lies ahead over the next few months. Feel like exiting equity? Some of us could be thinking it feels like the end-of-the-world so better to cash out whatever is […]
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10 reasons why long-term investors shun real estate stocks, and why its time to do the opposite
Whether it is real estate as physical assets or as stocks, there has been a lull for many years now. Will the two always move in tandem? Can real estate stocks do well even without real estate assets picking up? Before that, let’s understand why the real estate business and stocks are so out of […]
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Only 2.5% of 8,000 Listed Indian Stocks Are Investable; Here’s The List
A lot of us have the quest to unearth those high-quality stocks which will create wealth for us, but how do we figure out which are those 15-20-25 stocks worthy of being in our portfolio from over 7,800 stocks listed on the Indian stock exchanges? Looking for the ‘right’ stocks from this vast universe is akin to looking for […]
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Corporate Tax-Cut: Implications on Markets, Portfolio & Economy
(This is a slightly edited copy of Investor Memo shared with subscribers of Stalwart Advisors’ Model Portfolio) The corporate tax rate (including cess & surcharge) in India has been slashed to 25% from earlier 35% giving a stimulus of Rs 1,45,000 Cr ($20bn). This is a flat rate with no further incentives; companies which are already enjoying some […]
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How to Identify Fraudulent & Fragile Companies
Who knew that the liquidity crunch which began in September 2018 would kick start one of the most sweeping clean-ups in Indian corporate history? Slowly, all cockroaches are coming out one after the other. Fraudulent business, over-leveraged or fragile, the sudden drying up of liquidity has now exposed them all. Stocks of these businesses have […]
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Nifty at record high: Don’t get carried away; real opportunity lies in these stocks
My April’19 Article Written For Financial Express While Nifty is at a lifetime high, the average fall across 3,000 traded stocks is still 40-50% from their 2018 highs. Smaller the market capitalization bigger has been the bashing its stock has taken. Though there is nothing unusual about it – small companies swing wildly in both directions depending upon […]