Managing Partner, Ampersand Investment Advisors

Rahul Singh

Managing Partner

Ampersand Investment Advisors

Thematic (Sector/Industry)

In the ongoing earnings season, we have witnessed narrowing of the segments/stocks which are performing. While good results have failed to generate enthusiasm, weak numbers have been punished though somewhat salvaged by the positive management commentary regarding H2FY17. A lot therefore seems to be riding on the broader demand recovery in consumer spending as well as infrastructure spend in the near term. Expectations continue to remain high given the favorable macro tidings in H1 – good monsoons, lower rates and 7th pay commission implementation. On the balance, we maintain our view that markets will undergo a corrective or consolidation phase which could last a few months, and thereby offer better investment opportunities. As a result, while we continue to scout for new ideas (we focus on <a href="https://www.smartkarma.com/entities/3613" target="_blank" data-smartkarma-citation="entities:3613">Bajaj Auto Ltd (BJAUT IN)</a> in some detail), the new stock selection criteria should become more stringent rather than less. We recommend remaining fully invested in cement (Shree, Dalmia &amp; JK Lakshmi are our preferences) as visibility of demand improvement in H2 and pricing power (esp. in Northern and Western markets) is one of the highest. Among our other favored sectors, stay with Housing Finance companies (viz. LIC HF) and the large diversified specialty chemicals companies (viz. Aarti Industries).

In the ongoing earnings season, we have witnessed narrowing of the segments/stocks which are performing. While good results have failed to generate enthusiasm, weak numbers have been punished though somewhat salvaged by the positive management commentary regarding H2FY17. A lot therefore seems to be riding on the broader demand recovery in consumer spending as well as infrastructure spend in the near term. Expectations continue to remain high given the favorable macro tidings in H1 – good monsoons, lower rates and 7th pay commission implementation. On the balance, we maintain our view that markets will undergo a corrective or consolidation phase which could last a few months, and thereby offer better investment opportunities. As a result, while we continue to scout for new ideas (we focus on Bajaj Auto Ltd (BJAUT IN) in some detail), the new stock selection criteria should become more stringent rather than less. We recommend remaining fully invested in cement (Shree, Dalmia &amp; JK Lakshmi are our preferences) as visibility of demand improvement in H2 and pricing power (esp. in Northern and Western markets) is one of the highest. Among our other favored sectors, stay with Housing Finance companies (viz. LIC HF) and the large diversified specialty chemicals companies (viz. Aarti Industries).  

India focused Portfolio Advisory - Exp of 40+years, Das Capital Management and Advisors

Arun Thirumalai

India focused Portfolio Advisory - Exp of 40+years

Das Capital Management and Advisors

Das Capital is a research boutique with an aim to continuously map and plan the investment needs of investors focused on India. We have a six member research team with a combined experience of over 40 years as a part of our investment wing. Our team assisted in the setup of Premji Investments, which was one of India’s first family offices focused to managing Mr.Azim Premji personal wealth. We also serve as a research team to two Indian private equity energy funds “Small is Beautiful” and “KSK Emerging India Energy Fund”.

Indian domestic tractor companies witnessed strong growth in 1Q FY17 of 14.6% by selling 163316 units. Nearly, all the listed players  posted good results and the optimism has reflected in their valuations.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/011/982/original/comp%20per%20&amp;%20value.PNG?1471588766" class="editor-image img-responsive" data-smartkarma-image-id="11982"></figure>However we believe that this market optimism is unwarranted as it comes from a subdued base from Q1 FY 16 when growth collapsed 16% YOY. We believe that near term outlook for tractor demands remain muted unless the industry gets a strong support from the government through significant increase…

Indian domestic tractor companies witnessed strong growth in 1Q FY17 of 14.6% by selling 163316 units. Nearly, all the listed players  posted good results and the optimism has reflected in their valuations.However we believe that this market optimism is unwarranted as it comes from a subdued base from Q1 FY 16 when growth collapsed 16% YOY. We believe that near term outlook for tractor demands remain muted unless the industry gets a strong support from the government through significant increase…

Recent Optimism in Indian Tractor Stocks Unwarrented Given Bleak Outlook for Minimum Support Prices

India

Welspun India Limited is a home textile manufacturer with a global distribution network.

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Welspun India (WLSI IN)

Recent Optimism in Indian Tractor Stocks Unwarrented Given Bleak Outlook for Minimum Support Prices

Indian domestic tractor companies witnessed strong growth in 1Q FY17 of 14.6% by selling 163316 units. Nearly, all the listed players posted good...

Das Capital Management and Advisors

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52-week Range

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Waiting for Godot - Oct 16 Newsletter

In the ongoing earnings season, we have witnessed narrowing of the segments/stocks which are performing. While good results have failed to generate...

Ampersand Investment Advisors

Recent Optimism in Indian Tractor Stocks Unwarrented Given Bleak Outlook for Minimum Support Prices

Indian domestic tractor companies witnessed strong growth in 1Q FY17 of 14.6% by selling 163316 units. Nearly, all the listed players posted good...

Das Capital Management and Advisors