1. DIYTechnicalAnalysis is a private community of traders and investors interested in building wealth from Indian equity market. You can become a member with a one time registration fee of ₹199. Click here to become a member

Kajaria ceramics and motheson sumi

Discussion in 'Fundamental Analysis' started by rajesh, Feb 22, 2018.

Page 1 of 2
  1. rajesh

    rajesh Member

    Joined:
    Sep 2, 2017
    Messages:
    17
    Likes Received:
    12
    After recent fall in kajaria ceramics and motherson sumi....thought to add to my portfolio...however I see similar trend of amaraja batteries that stocks has last 25 to 30 % for no reason...any news or update which I'm missing ? Pls advise

    Sent from my SM-J700F using DIY Technical Analysis mobile app
     
    rajesh, Feb 22, 2018
    Share #1
  2. shabbir

    shabbir Administrator Staff Member

    Joined:
    Apr 30, 2012
    Messages:
    6,703
    Likes Received:
    1,940
    No news and so I added lot more in Amara Raja in the current fall.
     
    shabbir, Feb 22, 2018
    Share #2
  3. shabbir

    shabbir Administrator Staff Member

    Joined:
    Apr 30, 2012
    Messages:
    6,703
    Likes Received:
    1,940
    WABCOIndia is also in my radar as it is also falling for the good.
     
    shabbir, Feb 22, 2018
    Share #3
    bhat64 likes this.
  4. bhat64

    bhat64 Apprentice

    Joined:
    Oct 27, 2016
    Messages:
    230
    Likes Received:
    249
    bhat64, Feb 23, 2018
    Share #4
    shabbir and nirajshah like this.
  5. bhat64

    bhat64 Apprentice

    Joined:
    Oct 27, 2016
    Messages:
    230
    Likes Received:
    249
    bhat64, Feb 23, 2018
    Share #5
    nirajshah likes this.
  6. nirajshah

    nirajshah Champion

    Joined:
    Aug 17, 2016
    Messages:
    546
    Likes Received:
    302
    nirajshah, Feb 23, 2018
    Share #6
    chaitanya_mella likes this.
  7. shabbir

    shabbir Administrator Staff Member

    Joined:
    Apr 30, 2012
    Messages:
    6,703
    Likes Received:
    1,940
    shabbir, Feb 24, 2018
    Share #7
    chaitanya_mella likes this.
  8. bhat64

    bhat64 Apprentice

    Joined:
    Oct 27, 2016
    Messages:
    230
    Likes Received:
    249
    hard to tell, depends on how much investment and expansion we will see in next 5 years in the logistics and infra space. Easy signs do show capex happening in these spaces seeing the earnings pick up in this sector. no real competitor is such a massive moat. My expectation is it becomes 25k per share in 5 - 8 years. Everyone’s thoughts welcome.


    Sent from my iPhone using DIY Technical Analysis mobile app
     
    bhat64, Feb 25, 2018
    Share #8
    shabbir, nirajshah and chaitanya_mella like this.
  9. nirajshah

    nirajshah Champion

    Joined:
    Aug 17, 2016
    Messages:
    546
    Likes Received:
    302
    Agree but at 50 pe there is very little pe expansion can happen. So mainly the gains will be based on business expansion only

    Sent from my Micromax Q385 using DIY Technical Analysis mobile app
     
    nirajshah, Feb 25, 2018
    Share #9
    shabbir likes this.
  10. waseem163

    waseem163 Member

    Joined:
    Jun 23, 2017
    Messages:
    24
    Likes Received:
    17
    Occupation:
    Employed
    waseem163, Mar 6, 2018
    Share #10
  11. shabbir

    shabbir Administrator Staff Member

    Joined:
    Apr 30, 2012
    Messages:
    6,703
    Likes Received:
    1,940
    Good stock but then what are the paramaters you are considering it?
     
    shabbir, Mar 6, 2018
    Share #11
  12. waseem163

    waseem163 Member

    Joined:
    Jun 23, 2017
    Messages:
    24
    Likes Received:
    17
    Occupation:
    Employed
    In the same sector, along with wabco this also fallen down.
    Stock PE 24 where as industry PE is 54.
    Wabco has already crossed industry PE

    Sent from my Mi A1 using DIY Technical Analysis mobile app
     
    waseem163, Mar 6, 2018
    Share #12
  13. shabbir

    shabbir Administrator Staff Member

    Joined:
    Apr 30, 2012
    Messages:
    6,703
    Likes Received:
    1,940
    PE isn't the only parameter to consider. WABCO has lot more PE because it is a unique player in the braking business of CVs.

    The first step is to know the right stocks and you can do that by reading my following articles

    https://shabbir.in/investment-checklist/
    and
    https://shabbir.in/fundamental-analysis/

    Once the stock qualifies the above checklist and analysis, I analyze the business on the following parameters

    https://shabbir.in/business-checklist/

    Then comes the understanding the technical analysis based on price action which gives us the right price.
     
    shabbir, Mar 6, 2018
    Share #13
    nirajshah likes this.
  14. waseem163

    waseem163 Member

    Joined:
    Jun 23, 2017
    Messages:
    24
    Likes Received:
    17
    Occupation:
    Employed
    Ok, I keep on reading your analysis strategies time to time to keep these things in mind and do follow for selecting stocks.
    I thought Gabriel and wabco are in same sector domane so used this funda.
    Anyways learned more from this conversation

    Sent from my Mi A1 using DIY Technical Analysis mobile app
     
    waseem163, Mar 6, 2018
    Share #14
  15. shabbir

    shabbir Administrator Staff Member

    Joined:
    Apr 30, 2012
    Messages:
    6,703
    Likes Received:
    1,940
    Same sector is fine but it is the product of the company within the same sector also matters. Gabriel is manufacturer of shock absorbers http://www.gabrielindia.com/products/index.aspx and WABCO provides complete solution and there isn't any other player for their products. So completely different in the same sector.
     
    shabbir, Mar 6, 2018
    Share #15
  16. nirajshah

    nirajshah Champion

    Joined:
    Aug 17, 2016
    Messages:
    546
    Likes Received:
    302
    Wow. Same industry PE becomes a useless parameter then??

    Sent from my Micromax Q385 using DIY Technical Analysis mobile app
     
    nirajshah, Mar 7, 2018
    Share #16
    shabbir likes this.
  17. shabbir

    shabbir Administrator Staff Member

    Joined:
    Apr 30, 2012
    Messages:
    6,703
    Likes Received:
    1,940
    Often when companies manufacture different product and yet they are classified as same industry.
     
    shabbir, Mar 8, 2018
    Share #17
    nirajshah likes this.
  18. bhat64

    bhat64 Apprentice

    Joined:
    Oct 27, 2016
    Messages:
    230
    Likes Received:
    249
    Nice discussion. Gabriel has competitions. Reasonable moat in 2 wheeler suspension. Wabco is a clear market leader. Every CV company in the world are their customers. These are what I call stocks for life. Something we can gift our kids. PE will keep changing here few quarter good earnings PE goes down then couple bad ones PE goes up. Check it’s historic PE never been below 30 last 5 years even 10 years


    Sent from my iPhone using DIY Technical Analysis mobile app
     
    bhat64, Mar 10, 2018
    Share #18
    nirajshah and waseem163 like this.
  19. bhat64

    bhat64 Apprentice

    Joined:
    Oct 27, 2016
    Messages:
    230
    Likes Received:
    249
    Kajaria has been facing some serious competition offlate. I don’t see much moat or it’s reducing over years. Nitco, somany, orient, Johnson , murudeshwar all catching up. It’s a easy business to replicate is my feeling. Business is most times cyclical. Look at housing finance companies charts and ceramics there is some similarity.


    Sent from my iPhone using DIY Technical Analysis mobile app
     
    bhat64, Mar 10, 2018
    Share #19
    nirajshah and waseem163 like this.
  20. shabbir

    shabbir Administrator Staff Member

    Joined:
    Apr 30, 2012
    Messages:
    6,703
    Likes Received:
    1,940
    Totally agree. Have the stock in the radar when it was at 7k. Have plans if it corrects in this market condition or in next few months.
    Agree. There is no competitive advantage and so now company has to re-invent themselves and rise above competition. They have to do things that Asian Paints or HDFCBank did a decade or so ago. But the biggest question is, can they do it.
     
    shabbir, Mar 10, 2018
    Share #20
    nirajshah likes this.
Page 1 of 2