Ambika Cotton Mills

Reasons for buying:

Buy PE was reasonable at 5.08.

The 5-year earnings average is 26% and earnings increasing since 2013 with a slight blip in 2020.

Return on equity is good at 27% but the 5-year average is 16%.

The market cap of the company is ₹931Cr.

The debt of the company is zero with ₹279 Cr cash.

Buy date: 27-Sep-2022

Qty: 6 Buy Price: ₹1,625.45 Buy EPS: ₹319.51 Buy PE: 5.08

I will stop adding when EPS drops below ₹81.27 or R1 does not satisfy.

Ambika Cotton Mills engages in the manufacture of cotton yarns for hosiery and weaving. The Textiles produces compact cotton; hard and soft twist; cylindrical dye cone; and s and z twist yarns. Geographically, the company's business is spread across the world including Asia which accounts for the majority of its revenues.

NMDC Options

Date: 26-09-2022

Sold NMDC SEP 105 PE at ₹.10 for a premium of ₹335.

Margin required ₹57,394 but added ₹60,000 to the brokerage account.

Reasons for selling:

The previous close was ₹127.9

The strike price is 105 which is 17.9% lower and there are 4 days for expiry. The company yield is more than 10%, and even if it gets allocated I will try to do a wheel strategy with options.

Max loss is ₹3,51,750 if the company goes bankrupt.

Date: 30-09-2022

The option expired worthless and I made ₹311.2 after ₹23.8 brokerages.

Mastek

Reasons for buying:

Buy PE was reasonable at 17.17.

The 5-year earnings average is 46% and earnings increasing since 2016.

Return on equity is good at 30% but the 5-year average is 20%.

The market cap of the company is ₹5,239Cr.

The debt of the company is ₹190.26Cr with ₹781.9 Cr cash. I have bought this stock previously.

Buy date: 20-Jun-2022

Qty: 5 Buy Price: ₹1,951 Buy EPS: ₹103.81 Buy PE: 18.79

Buy date: 27-Jul-2022

Qty: 5 Buy Price: ₹1,740.65 Buy EPS: ₹101.29 Buy PE: 17.17

I will stop adding when EPS drops below ₹87.03 or R1 does not satisfy.

Mastek, along with its subsidiaries is a provider of vertically-focused enterprise technology solutions. The company's offering portfolio consists of information technology consulting, application development, application management outsourcing, testing data warehousing, business intelligence, and application security. It also focuses on agile consulting, legacy modernization, oracle cloud, Oracle ERP cloud, product-as-a-service solutions and machine learning, and digital e-commerce. Geographically the company exports its services to the United Kingdom, North America, the middle east, and other regions. The united kingdom region generates maximum revenue for the company.

Zensar Technologies

Reasons for buying:

Buy PE was reasonable at 12.98.

The 5-year earnings average is 12% and earnings increasing since 2012 except in 2017, and 2020.

Return on equity is good at 16.56% but the 5-year average is 15%.

The market cap of the company is ₹5,045 Cr.

Zero debt company with ₹1,019.50 Cr cash. I have bought this stock on three different occasions.

Buy date: 13-Jun-2022

Qty: 35 Buy Price: ₹277.95 Buy EPS: ₹18.27 Buy PE: 15.21

Buy date: 27-Jul-2022

Qty: 40 Buy Price: ₹249.65 Buy EPS: ₹18.27 Buy PE: 13.66

Buy date: 22-Sep-2022

Qty: 45 Buy Price: ₹221.8 Buy EPS: ₹17.08 Buy PE: 12.98

Will stop buying when EPS drops below ₹13.89 or R3 does not satisfy.

Zensar Technologies Ltd provides a range of information technology services and sells IT-related products. The company segments include Digital and Application Services (DAS) and Digital Foundation Services (DFS). It generates maximum revenue from the DAS  segment. The Digital and Application services (DAS) segment is engaged in CUstom Applications Management services that include Application Development, Maintenance, Support Modernization, and Testing services across a wide technology spectrum and Industry verticals. The majority of revenue comes from the United States.

Quotes

 “Unless you can watch your stock holding decline by 50 percent without becoming panic-stricken, you should not be in the stock market.” —Warren Buffett

“Time is the great healer. It is the investor’s most powerful ally. You may be without luck or wealth, but stay healthy and you will always have time. Unless, of course, you buy a bad stock in which case an eternity won’t help.” —Unknown

“I’ve never bought a stock unless, in my view, it was on sale.” —John Neff 

“Invest at the point of maximum pessimism.” —John Templeton

“Wall Street has become fabulously successful at separating capital from its owners.” —Ted Aronson

“I recommend index funds for people who don’t want to spend time studying the market. They are good for 95 percent of the population.” —Warren Buffett

“I have enough money to last me the rest of my life unless I buy something.” —Jackie Mason

“By working faithfully 8 hours a day you may eventually get to be boss and work 12 hours a day.” —Robert Frost

“Prayer is your biggest tool when dealing with investments that are managed by someone else.” —Harry Newton

“Never invest in any idea you can’t illustrate with a crayon.” —Peter Lynch

Housing and Urban Development Corporation Ltd

I bought 271 shares on 19-09-2022 at ₹36.9 when the book value is 72. I noticed that from 2018 the book has risen from ₹45.79 to ₹68.39 in 2022 which is 49% raise and on top of that it provided a ₹3.5 dividends this year.

Stop loss or take profit will be at book value will monitor the value every quarter, this investment is part of my book value strategy.