Sold 100% of my stake in Gravita India at a profit of 92%. The main reason for selling was to book profits as price uptrend which started in July 2022 is expected to tire out. The stock is poised for consolidation which means sideways movement for a fair amount of time till earnings catch up with price. When I exited, the stock was trading at 30PE, double its 5 year mean valuation. I continue to track it and may enter again in future if I see signs of uptrend continuing.
Sold 100% of my stake in SG Finserv at a loss of 4.5%. The primary reason being a down trending consolidation that doesn’t seem to be ending any time soon. I continue to track the stock because it has immense potential and scalability. I will enter again at the right valuation.
Sold 100% of my stake in PDS at a profit of 88%. I bought the stock when it was available at 18 PE and sold it at 32 PE. The second quarter results are worse than the first quarter. The management has indicated that H2 will be significantly better but overall FY 24 PAT will be 10-12% higher than FY23. So, I booked profit and plan to reenter the stock at a cheaper price. They have announced plans to raise funds. So I will be keenly tracking this.
Sold 100% of my stake in Sealmatic at a profit of 125% to book profits as it is trading at 41 PE. The company is great but I believe all growth is already implied in the price and the stock will move sideways for a fair bit of time.
Sold 100% of my stake in Robu at a profit of 17% because H1 results were poor. There was margin compression despite solid topline growth. Even if H2 topline trajectory continues and margins get normalized, the expected full year PAT should not exceed 10 CR. At a market cap of 281 crores, the stock is available at 28 PE assuming things go well. Couple of caveats here: earlier in the year had traded and booked 34% profit in Robu and now again, so this feels good. The management had earlier indicated about expanding warehouse capacity by 4x. If this is successfully executed, then sales will be in stratosphere. I’m keenly tracking and will reenter at the first sign of any such news.
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