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  • G.Chokkalingam - Founder & Managing Director, Equinomics Research & Advisory


    Founder & Managing Director, Equinomics Research & Advisory

    DATE: November 23, 2015, 12:00 PM

    SUBJECT: Analysing India Inc's September quarter results




    Hello and welcome to the chat with G. Chokkalingam, Founder & MD, Equinomics Research & Advisory on his analysis of the September quarter results of India Inc


    Hello, Good Afternoon everyone

  • S


    I wish to add Sun Pharma, Granules India, L&T and Bharat Forge in my portfolio. Is this a good time? I am a long-term investor.


    may be Bharat Forge. Instead of Sun Pharma and Granules i would pick up JB Chemicals & BIOCON - I firmly believe that BIOCON has to clivk one day - unbelievable the valuation of BIOCON, if we consider value of its investments and cash. it is 71% of total mktcap now. i have seen many pharam stocks testing the time of investors. BIOCON too testing it. with prospects on Malaysian plant and other recent expansions, i believe that this would give phenomenal returns in 2 years' time. Disclosure: I personally along with firm invested in JB Chemicals

  • D


    Can you suggest a few stocks from a short-term perspective?


    i am bad at stock picking in short term. of course, sometimes my ideas click on their own in short term as well. i would suggest Styrolution ABS and Andhra Sugar with short term perspectives

  • V


    Given the likelihood of the US Fed raising rates, FII selling seen recently, earnings disappointment and the high debt levels in the banking system, do you think the markets can slip into a bear phase?


    I firmly doubt our market getting into bear phase. only two risk factors one has to monitor - any failure of monsoon for a 3rd time in a row in 2016 and global deflationary pressures further strengthening, esp if US and Euor zone go down badly, then we may have a bear phase in 2016. however, as a believer in keynesian economics, i firmly believe that global deflation or recession would be postponed for another 3 to 5 years

  • N


    What's your view on Karur Vysya Bank (KVB) and Pidilite at the current levels from a one-year perspective?


    i have been going wrong for the first time on Karur Vysya ever since i started tracking it 1990. it made phenomenal wealth in the past. but in last 2 years it has failed. However, i frimly believe that for the next one year it might give very good return - its NPA cycle has bottomed out. Rate cuts and expected recovery in the industrial economy should help this company. Moreover, it is celebrating its 100th year next year. it is likely to reward shareholders with spl dividend and attractive rights & bonus issues. valuation is also very attractive as compared to bank like City Union Bank which has got business which is half of that of karur, but trades at more than 50% premium to karur

  • M


    Is it a good time to buy SpiceJet?


    i would not buy Spicejet now- it is always better to leave the stock which has already become multi-bagger esp the ones which do not show consistency in profit growth

  • P


    What is your view on Max India? I feel the insurance business will grow manifold in years to come in the country.


    i doubt whether max india can give solid return from here. it would take another 2 years for the insurance companeis to come back to solid double digit growth

  • S

    S. C. MITTAL

    I hold 1,850 shares of Crompton Greaves (bought at Rs 202) since the last four years. At what price should I exit, or should I buy more to average out?


    i havent tracked it post its sep results of cropmton. i would buy stocks like Bombay burmah, HIL Ltd, Styrolution ABS, Savita oil tech, instead of using fresh cash to buy Crompton. i would focus on stocks which will benefit from subdued oil price like savita & styrolution as i expect oil price to remain weak for another 1 year

  • B


    Claris Life has posted a net loss in Sept'15 quarter due to extraordinary items. What is your take on the company and the stock? Also, the results of Coromandel International has been disappointing. Is it the right time to accumulate for medium/long term?


    yes, i believe it is time to pick up coromandel- i would still bet on the management of this company. it is the most efficient complex fertilizer in this country. india needs more and more fertilizer esp phosphatic & complex to increase grain output as cultivable land is stagnant. so this company would come back to perform well. On claris, frankly speaking i am confused. its extraordinary expenses are related to travel & legal expenses! perhaps they might have used it to overcome legal hurdles for its plant. i would suggest hold. still believe that the valuation of its injectable business deserves much higher price

  • S


    What is the outlook on Claris Lifesciences and Camlin Fine Sciences from a 10-year perspective?


    i am bad at stock picking in short term. of course, sometimes my ideas click on their own in short term as well. i would suggest Styrolution ABS and Andhra Sugar with short term perspectives. i would suggest picking up camlin on any possible price correction around Rs.90

  • S


    Sir, what is your view on Sintex? The results in the last quarter weren't bad, but the stock has been flat in the market for a while. I intend to hold for next one year. Is this a prudent strategy?


    i may be wrong, but i do not like companies in manufacturing esp the ones not very capital intensives having huge debt on the books. those stocks have destroyed the wealth or given huge shocks in terms of volatility to the investors. from that perspective i do not suggest Sintex.