Quickies

Hey guys,

been busy with lots of things on, two quickes. One I am very happy with sintex industries and its price movement. What started as a tweet just about a few days back as a trading idea, has in fact been a stunning performer. what guided my reco on sintex at 17 rs cum dividend was basic value where market was treating this very co that was featured in Rashmi Bansal’s book as a highly innovative co as if it was dead and gone. Even when it announced a dividend. The co has a variety of products post lay triggered by its internal innovation right from customer centric products like water tanks to monolithic homes. It’s interesting how much innovation the co has made in applied plastics right from a branding exercise of sintex to a product segregation between a white tank and a black tank. How it has extended plastics to include telecom boxes and collapsible housing that works well for construction sites and armed forceS. What went wrong for the co was only a fccb issue with volatile currency. But not enough to punish it to 17. Thankfully my reading on it worked with a dividend of 1 rs already received and now a surge of over 100 percent to 37.

 

the second quickie has been acrysil, a 26 odd year co into kitchen sinks. The co started with stainless steel sinks and moved to Quartz sinks. A plain reading of its balance sheet where an emotional chairman paves the way to his son’s succession, also explains the demographic shift resulting from higher income earning by households from steel sinks to quarry sinks.

Come to think of it, I see huge no of ads in magazines and papers of Cos advertising modern kitchen modules. While the market in kitchen appliances struggles with almost at par and comparable technologies, the market in modular kitchens has a huge market yet to be dented. On the same lines, ceramic and steel sinks are giving away to their better looking quartz sinks. In one of the books I read some months back, I noticed a study that highlighted how design skills when conjoined with automation or computerization are paving product innovations in an unprecedented way. The key is the ability to design. Acrysil annual report talks of not less than 20 new product innovations that are being executed in the coming year. The co also benefits from exports and hence currency and although the amt is still small, the potential is not.the scrip is dogged by the silly rule of auction bidding but nevertheless is placed in my view exactly where I saw la opala at 80 some 2.5 odd years back only to return as a 3 bagger in a tough market. I am not predicting acrysil market price as I duly respect the market but not its participants who rush in and out as if it’s some Diwali mela sale.

Disclosure: invested. Recommend home work, verification, believing in what you know and not what you are told.

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4 thoughts on “Quickies

  1. Hardtoget says:

    Hi Safir, Was following Sintex, when it touched the 50,s, could not understand the depth of their FCCB problems, also their Debt, looks like that seems to getting lesser, now will have a relook at it, thanks

  2. Sam says:

    Hi Safir, Suzlon’s not as innovative as Sintex, but Suzlon is also suffering only because of their FCCB issue which in turn is attributable to the leveraged buy out. Would you be interested in looking at Suzlon or do you think its a dog with a lot of fleas that shouldnt even be touched?

    Cheers,

    • safirpicks says:

      I don’t like suzlon and its financials. Tweeted post results: suzlon is declaring results or results are declaring suzlon

      • Sam says:

        Yeah the RE Power acquisition & the consequent restructuring are butchering the financials. Believe the only way out is sale of REPower? Else the company’s staring at an abyss….

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