Flashback and Future views - 2


One must agree, it has indeed been a wonderful journey for investors following us till now. We don't prefer to check the portfolios on rallying market peaks.Instead take views when markets are consolidating or correcting. 

We might be entering into a period of consolidation with negative bias which is good for long term investors.With all the right things happening in Delhi and all the bad things happening in the border, we advice investors to slow down on investments and take strict decisions based on stock specific ideas with SIP approach.

Many interesting things has happened in many of our recommendations. 

A one liner for everything 

Cera's mind blowing performance continues as usual.

LaOpala surpassed all limits of expectation.

Mayur's consistence performance with high future expectations.

Sequent's change in business model for exciting future.

Dhanuka on the way as expected.

Vardhman average performance expected this year when compared to last.

Patels promoters are more bullish than us.

Gulshan just getting ready for the big leap.

Aro granite undervaluation for a consistent growing company.However we are not a big fan of the business as mentioned in our report














*Adjusted to Split/Bonus.

Regards,
MR

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11 comments:

  1. Sir..Is some FIIs planning to enter Gulshan?.Any other reason for buy call?

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    Replies
    1. FII entry is only a small reason. This will automatically happen when business growth visibility is there. The business is grossly undervalued. As more investors realize the real potential ,We feel Gulshan is in the starting point for a rewarding journey ahead.

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  2. Why 25% sell call on Aro Granites??

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    Replies
    1. As we have already mentioned, not a big fan of the business. the value was purely on the basis of P/E valuations. As we are moving into uncertain times on the global front, It is just that one can make use of the capital in a better way by buying something which can deliver better % returns and has better future prospects. Fundamentally nothing has changed and one can still hold if one has strong conviction..

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  3. sir what are your views on asian granito/

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    Replies
    1. Company is doing all the right things,which will deliver good returns on the longer run. At CMP, buy only if you have enough patience !!

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  4. Sir please can u specify some time frame for gulshan..thanks..

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    Replies
    1. We are expecting Gulshan to give superior returns in a year's time, as its set to get popularity with the investor community. Holding for more duration will only make it better :-) with all the expansion on ground, if everything goes as per our expectation one can hold for 2-3 years. Having said that we should not forget that its still a small cap and have to take the call based on the future performance.

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  5. sarath ramakrishnanOctober 20, 2014 at 10:51 AM

    Hi,

    Appreciate your effort to reviw your recommendations periodically.

    Could you please comment on few questions regarding Gulshan ?

    1. What impact you expect on sales & operating margins due to their foray in to Alchohol division ?
    2. Do the company enjoy enough pricing power since they are providing raw materials to MNC?
    3. Do they face competion from other calcium carbonate & sorbitol manufactors?

    thanks

    ReplyDelete
    Replies
    1. Thanks sarath.
      1) Not expecting a impact from IMFL on EBITA at present. As you know they have started with the brand tiger gold. It will take sometime to see a major impact.They also planning a extra neutral alcohol facility at the same location as per AR.this can add to the profotibality as well. As we see this business has decent competition also in the Indian market. However management seems to have a roadmap ready, and shall execute as time passes !! Remember markets always invest for the future :-)
      2) Company does enjoy a decent pricing power as we understand.
      3)As of now we are not seeing any threat !!

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