The past month was very
good for equities, and we are at all time high, based on broad market. Even
though the market may move to any levels, the comfort zone we had during a bear
market is slowly disappearing, and finding a pure value buy or extreme undervalued
stocks are becoming highly challenging.
Adding to this, we should
not become blind due to the past success and need to stick it on our basics.
This time so we are opting
for an already picked one. EPC Industrie, which is available as a decent buy (but
not an extreme value buy) due to the present quarter bad results. But I believe this stock has lot of promise
going forward in long term.
Key reasons
1. It’s a Mahindra
& Mahindra subsidiary
2. Is a micro-irrigation
system & component manufacturer
3. EPC has recently
ventured into the greenhouse & agri pumps segment with the aim of becoming
a total agri solutions player catering to the needs of the Indian farmer.
In short EPC is a long term
play which can be purchased around these valuation or lower to the desired portfolio
allocation targets gradually.
Bought 30 Numbers at 167 /- per share and
now total number is increased to 120.
PS : Remember, It’s not a
short term or medium term buy.
Present Portfolio
|
Company
|
No. of shares
(Quantity)
|
Avg Buy Price
|
Initial Investment
|
CMP
|
Value at CMP
|
Gain in %
|
|
Arrow Coated Pro
|
299
|
83.06
|
24,834.70
|
274.75
|
82,150.25
|
230.79
|
|
Ashapura Min. Lt
|
80
|
61.50
|
4,920.00
|
72.95
|
5,836.00
|
18.62
|
|
Bambino
|
160
|
62.50
|
10,000.00
|
80.20
|
12,832.00
|
28.32
|
|
Camphor & Allied
|
20
|
217.00
|
4,340.00
|
364.75
|
7,295.00
|
68.09
|
|
EPC Industrie Ltd.
|
120
|
124.25
|
14,910.00
|
165.50
|
19,860.00
|
33.20
|
|
Granules
|
32
|
305.00
|
9,760.00
|
809.00
|
25,888.00
|
165.25
|
|
Kopran Ltd
|
96
|
52.00
|
4,992.00
|
62.75
|
6,024.00
|
20.67
|
|
|
56
|
178.00
|
9,968.00
|
282.45
|
15,817.20
|
58.68
|
|
MarathonNextgenRea
|
27
|
182.00
|
4,914.00
|
190.10
|
5,132.70
|
4.45
|
|
Nath Bio-Genes
|
123
|
81.00
|
9,963.00
|
130.50
|
16,051.50
|
61.11
|
|
Nitco Ltd.
|
330
|
15.00
|
4,950.00
|
28.70
|
9,471.00
|
91.33
|
|
Orchid Chem & Ph
|
55
|
54.00
|
2,970.00
|
77.70
|
4,273.50
|
43.89
|
|
Simran Farms Lim
|
215
|
13.80
|
2,967.00
|
21.20
|
4,558.00
|
53.62
|
|
Tata Chemicals
|
35
|
284.00
|
9,940.00
|
415.10
|
14,528.50
|
46.16
|
|
V2 Retail
|
330
|
15.00
|
4,950.00
|
34.00
|
11,220.00
|
126.67
|
|
|
|
|
|
|
|
|
|
Free Cash
|
|
|
5000
|
|
5000
|
|
|
Total
|
|
|
1,30,000
|
|
245,937.65
|
89.18
|
Hi MVP,
ReplyDeleteI checked some numbers of EPC Industrie of moneycontrol..where, I don't know why it is still mentioned as EPC Irrigation...
It has got a very high PE, the cash flow discrepancy between net profit and operating cash flow is high, with operating cash flow negative for the last2 of the 3 years..the company has diluted equity almost every second year...
What are the factors that give you confidence in this scrip??
Thanks,
Manish
By conventional parameters it may be overpriced.
DeleteBut future share price will be a factor of future earnings and future potential of the company and not past.
On similar lines Sequent is also expensive.
Adding to this EPC is almost debt free and that adds me more comfort on this bet.
rgds
Hai MVP
ReplyDeleteMany thanks for supporting and guiding small investors.
It is really very useful as you publish and explain the future prospectus of scripts you suggest.
I hope EPC has started a momentum after your publish and now take positive journey.
please update time to time on the market conditions and if any to be exit from your portfolio.
best regards
:)
DeleteSure. If I find any stock in the portfolio has any issue, it will be updated.
Sir can you pls express your view on a company called Kilitch Drugs listed on both exchanges which did very well two yrs ago but than sold its plant and gave a dividend of 300% to shareholders but after that for almost six quarters had negligible results but last two quarters showing some turnaround but i believe it has not seen the advantage of this bull run yet. should i invest in it now, pls guide?
ReplyDelete