Maharashtra Scooters

This is part of book value investing

PB<.5

Book value growth 10Y and 5Y more than 10%.

Book Value: 20309

Buy date: 30-Nov-2022

Qty: 2 Price: ₹4974.75 EPS: ₹171.8 PB: 0.26

I will sell at book value and plan to update the GTT order in Zerodha every week by checking Tradeview. If the book value decreases I will lose money otherwise hoping the company can increase book value and sell it at book value a few years from now. Usually, book value investing takes at least 5 years and in some cases can hit PB =1 once in 10 years. In this case, it may not hit PB=1 and hope to collect dividends. I will not average this stock if earnings fall.

Ishan Dyes & Chemicals Update

Reasons for buying:

Buy PE was reasonable at 10.57 and above 10 years PE median of 8.56.

Earnings have increased 3 times since 2012.

Return on equity is ok at 21.45%.

The market cap of the company is ₹159.20cr.

The debt of the company is ₹2.41cr with ₹1.16cr in cash.

Buy date: 21-Sep-2021 

Qty: 106 Buy Price: ₹94.02 Buy EPS:  ₹8.89 Buy PE: 10.57

The price of the stock is up about 5.86% from my buy price.

Sold Date: 29-Nov-2021 

Qty: 106 Price: ₹66.9 Buy EPS:  ₹2.23 PE: 30

I have lost -₹2874 on this after holding for 434 days.

The company manufactures chemicals. A very low market cap company but I am hoping earnings will improve.

Rail Vikas Nigam Update

The stock came up on the HDY screen. These trades are short-term.

***

Buy date: 22-Nov-2022

Qty: 166 Price: ₹60 Buy EPS: ₹6.48

Sell date: 23-Nov-2022

Qty:166 Price: ₹61.7 Buy Eps: ₹6.48

Profit: ₹282.2

***

Buy date: 24-Aug-2022

Qty: 325 Price: ₹30.7 Buy EPS: ₹5.99

Sell date: 17-Nov-2022

Qty:325  Price: ₹63.75 Buy Eps: ₹6.48

Profit: ₹10,822.5 including ₹81.25 dividend

***

Will sell if the stock is out of HDY screen even if it is at a loss.

Kwality Pharmaceuticals

Reasons for buying:

Buy PE was reasonable at 7.9 and the 10-year median PE is 22.

The 5-year earnings average is 104% and earnings increasing since 2014.

Return on equity is good at 99.05% but the 5-year average is 37.25%.

The market cap of the company is ₹3,560 Cr.

The debt of the company is ₹54.01 Cr with ₹12.95 Cr cash.

Buy date: 23-N0v-2022

Qty: 29 Buy Price: ₹343.5 Buy EPS: ₹43.46 Buy PE: 7.9

Will add to stock only if earnings rise and price drops.

Kwality Pharmaceuticals is an India-based pharmaceutical company. it is principally engaged in manufacturing finished pharmaceutical formulations in a dosage form. The company manufactures and exports pharmaceutical formulations in liquid orals, dry syrups, tablets, capsules, sterile powder for injections, and small-volume injectables. It also manufactures veterinary pharmaceutical products.

Polyplex Corp Update

I may have purchased at high PE of 12.75 considering the 10-year PE median is 6.75.

Buy Date: 28-Jun-2022

Qty: 4    Price: ₹2,311    EPS: ₹181.79    PE: 12.75

The reason for adding is EPS has increased from ₹181.19 to ₹211.29

Buy Date: 21-Nov-2022

Qty:5    Price: ₹1,845.9    EPS: ₹211.29    PE: 8.73

ROE is 18.87 and 5-year ROE is 12.66

Debt/Equity is 0.25

5-year EPS growth is 21.22

Polyplex Corp is an India-based company engaged in the manufacturing of plastic films. The company diversified its business under Polyethylene Terephthalate films. Cast Polypropylene films, and Biaxially Oriented Polypropylene. These products act as raw materials for their product applications like packaging, industrial, and specialties, electrical, roofing, and others. Geographically, it derives a majority of its revenue from Outside India.

Mangalam Organics Update

Reason for buying:

PE is reasonable and with more than 10 years PE median of 5.52.

Earnings have increased although unevenly in the last 5 years.

Operating margins have improved in the last 3 years.

Return on equity has improved in the last 3 years.

Debt is low at 20 cr and cash is 0.69 cr.

The threat of the company’s solvency is less; Altman Z-Score is 12.52

The market cap of the company is 648 cr.

 

Buy date: 05/14/2021

Buy Price: ₹704         Qty: 14         Buy EPS: ₹75.08        Buy PE: 9.37

27^th May 2021:

Q4 results: Current EPS is 99.21 and increased by 32.14% from my buy EPS.

Buy date: 07/13/2022

Price: ₹600.75    Qty: 16    EPS: ₹62.75    PE: 9.57

Sell date: 11/18/2022

Price: ₹534.75    Qty: 30    EPS: -₹13.84    PE is negative

It is making losses for the last 2 quarters so sold it. I lost ₹3,359.5 in this stock.

Disclaimer: The video is for educational purposes for my family and friends. I am not a financial advisor and do not consider it as buy or sell. Taking advice from a random guy on the internet is harmful to your portfolio. I do not do a deep analysis of stocks I buy them just as a hobby.

GIC Housing Finance Update

The stock came up on the HDY screen. These trades are short-term.

Buy date: 18-Nov-2022

Qty: 67    Price: ₹148    EPS: ₹38.98

Sell date: 18-Nov-2022

Qty:67  Price: ₹151.5 EPS: ₹38.98

Profit: ₹234.5

***

Buy date: 29-Aug-2022

Qty: 69 Price: ₹142 EPS: ₹38.98

Sell date: 17-Nov-2022

Qty:69  Price: ₹151.7 EPS: ₹38.98

Profit: ₹979.8 including ₹310.5 dividend

***

Will sell if the stock is out of HDY screen even if it is at a loss.

Tanfac Industries Update

Reason for buying:

PE is reasonable and less than 10 years PE median of 12.9.

Earnings are ok in the last 2 years.

Operating margins are above 15%.

Return on equity is good for the last 5 years.

Debt is low at 0 cr and cash is 0 cr.

Altman Z-Score is 9.72 and above 3.

The market cap of the company is 229 cr.

Buy date: 05/10/2021

Buy Price: ₹231         Qty: 43         Buy EPS: ₹21.2        Buy PE: 10.89

Q4 results were released on May 11th and EPS has dropped 17.36% to 17.52

Sold Date: 11/17/2022

Price: ₹1,188.6 Qty: 43 Eps: ₹39.62 PE: 30

Profit: ₹41,563.8 including ₹387 in dividend

Disclaimer: The video is for educational purposes for my family and friends. I am not a financial advisor and do not consider it as buy or sell. Taking advice from a random guy on the internet is harmful to your portfolio. I do not do a deep analysis of stocks I buy them just as a hobby.

Nava

The stock came up on the HDY screen and will hopefully sell in a short period of time.

Buy date: 16-Nov-2022

Qty: 53 Price: ₹187.05 EPS: ₹60.41

Will sell if it is not present on the screen

Permanent Magnets update

Reasons for buying:

Buy PE was reasonable at 18.54 and above 10 years PE median of 15.26. I bought it at a high price and PE.

Earnings have increased since 2015 and revenues increased by 6% since 2012.

Return on equity is good at 28.84%.

The market cap of the company is ₹343.72cr.

The debt of the company is ₹1.85cr with ₹22.78cr in cash.

Buy date: 12-Nov-2021

Qty: 23 Buy Price: ₹417.00 Buy EPS: ₹22.48 Buy PE: 18.54

The price of the stock is down about -6.44% from my buy price.

Buy date: 30-Nov-2021

Qty: 26 Price: ₹375 EPS: ₹23.69 PE: 15.82

Buy date: 20-Dec-2021

Qty: 30 Price: ₹333 EPS: ₹23.7 PE: 14.05

Sold Date: 14-Nov-2022

Qty: 79 Price: ₹670 EPS: ₹21.49 PE: 31.17

I made a profit of ₹23,694 on this stock actually, the EPS is ₹25 but googlefinance was not updated and in the GTT order sold it, wanted to buy it back but did not and will remove GTT orders for sale, and will place aftermarket orders after checking EPS in tickertape.

Permanent Magnets Ltd is an Indian-based company. It is engaged in the manufacturing of cast magnets and parts and accessories of electricity meters and their application. The magnets are used in electronics, electricity meters, automobile industries, telecommunication, defense, space research, aeronautics, railways, and electricity generation industries. Its product portfolio includes magnetic assemblies, shunts, brass terminals, magnetic separators, electromagnets, alnico magnets, and others. The company derives the majority of its revenues from sales of parts and accessories of the electricity meter.

Divi's Laboratories update

Reasons for buying:

Market Cap: ₹87,556 Cr (Bluechip stock)

Debt to Equity: Zero

Return on Equity 5Y Avg: 23.14%

EPS - 5Y Growth: 28.16%

Price-earnings to growth (5Y): 1.41

5Y RoE Consistency - Sustained without losing 20% in any year

Buy date: 28-Jul-2022

Qty: 2 Price: ₹3786.45 Buy EPS: 111.52

Buy date: 07-Nov-2022

Qty: 2 Price: ₹3407 Buy EPS: 116.97

Divi's Laboratories is a specialty and generic drug manufacturing company. Most of the company's sales are generated in Europe, followed by North America, India, and Asia. Divi operates two segments: the first is Generic APIs and Nutraceuticals, and the second is Custom Synthesis of APIs, intermediates, and specialty ingredients for innovators. The company considers merger and acquisition investment to be a potential component of its operational growth strategy for expanding its research, development, manufacturing, and marketing capabilities.

Sharda Motor Industries

Reasons for buying:

Buy PE was reasonable at 13.37 and the 10-year median is 18.46.

The 5-year earnings average is 19.63% and earnings increasing since 2016 with a slight blip in 2020.

Return on equity is good at 29% but the 5-year average is 21%.

The market cap of the company is ₹2284Cr.

The debt of the company is zero with ₹454 Cr cash.

Buy date: 04-Nov-2022

Qty: 13 Buy Price: ₹765.15 Buy EPS: ₹57.19 Buy PE: 13.37

I will stop adding when EPS drops below ₹38.25 or R1 does not satisfy.

Sharda Motor Industries Ltd is engaged in the manufacturing and assembly of Auto Components and White Goods Components. Its product portfolio includes Exhaust Systems, Catalytic Convertors, Suspension Systems, Sheet Metal Components, and Plastic parts for the Automotive and White Goods Industries. The operating segment of the company is the Manufacturing and Trading of Auto Component Parts.

The 52-Week Low Formula book

Recently read The 52-Week Low Formula book below are filters, will go through companies if any pass.

Filter 1: Durable competitive advantage 

Achieved a consistent ROIC in excess of its COC over a 10-year period

Filter 2: Free Cash Flow Yield twice that of 10-year GSEC.

Operating Cash Flow − Capital Costs of Maintaining Current Capacity = Free Cash Flow

Market Capitalization + Debt − Cash = Enterprise Value 

And free cash flow yield: Free Cash Flow/ Enterprise Value = Free Cash Flow Yield

Filter 3: ROIC of 15% is a good start

ROIC > COC = Passes the third filter and moves on to filter 4. 

ROIC < COC = Fails the third filter and is disregarded.

Net Operating Profit after Taxes (NOPAT)/ Invested Capital (IC) = ROIC

NOPAT = (Operating Profit) × (1 − Tax Rate)

IC = (Total Assets) − (Excess Cash)  − (Non-Interest-Bearing Current Liabilities)

Filter 4: Total Long-Term Debt)/Free Cash Flow <= 3

Filter 5: 52-Week Low (near to 10% of 52-Week low will do)