4.1.3 GET RICH. STAY RICH. FINAL

GET RICH. STAY RICH

WITH OMKARA

Fashion works only on the ramp
and not in the stock market

Beauty of LONG UPCYCLES that people
forget rationality & beauty of LONG
DOWNCYCLE is that people forget growth

Entry Multiple Matters…

$MSFThadamarketcapof$393bilionanda P/Eof53xin2001
Ifyoupurchasedthestockin2001andHODL,youdidn'tbreakevenuntil2016--al whilethefundamentals/persharefiguresweregrowingandimproving

Did You Know There are only 5 companies in US that have
traded at more that 50PE for more than 5
years
Even Google, Apple and Microsoft are
trading at 30-40 times earnings

Apple is a 30 PE stock, growing at 35%, has
better ROE, and better Free Cash Flows
than Indian quality and MNC companies
Quality at any price doesn’t work

Buy Cheap & Add Expensive.
Average always at higher levels &

never at lower levels

You must stay on the wicket to make team win.
Play a test match in the markets not T20.
Speed thrills but kills !!

Why I like mid & small-caps?

Stock don’t make you BIG money.
Confused?

Trends & Groups make you
BIG money!!

Which is the 2nd group in India post
Adani which has created biggest wealth in

last 1/2/3 years?

Let’s talk about BIG groups in India



ADANI GROUP

CK BIRLA GROUP

CK BIRLA GROUP

SANJIV GOENKA GROUP

SANJIV GOENKA GROUP

MURUGAPPA GROUP

MURUGAPPA GROUP

Let’s talk about BIG trends

Catching the Cycle

1996-2000 2003-2008 2009-2014 2015-2019 2020 onwards ??

 Technology  Infrastructure  Consumption  Auto  Import Substitution
 Media  Commodities  Pharma  Financials (Chemicals, APIs,
 Real Estate  FMCG Electronic
(NBFCs, HFCs) Manufacturing)

 Financials (Insurance,
Wealth, AMC)

 Healthcare
 Staffing
 Food, Water
 Sectors where no

supply seen in last 10
years - VALUE

If You Invested In A Good IT Company In 2000, There Were No Returns Made For Next 10-15 Years Due To Valuations.
Similarly, If You Invested In FMCG In 1995, There Were No Returns For Next 10 Years. So Good Company Is Not Always A

Good Investment

Strictly Privileged & Confidential | For internal use and not for public circulation

Weightage In Nifty %

STEEL SPACE

GLOBAL STEEL SPACE

SUGAR SPACE

GLOBAL Hotels & Resorts Industry

GLOBAL Airlines

Portfolio Construction

Clean Energy/ Renewable/ ESG/ EV Manufacturing Home Building/ Real Estate Commodities

•Praj Ind (leader) •Carborundum Universal (leader) •Century Ply •MCX (exchange)
•Borosil Renewables (leader) •ISGEC •Greenpanel •DCM Shriram Ltd
•KPIT Tech (leader) •KSB Pumps •Oberoi Realty •Balrampur/ Dalmia/ Triveni in sugar
•Mahindra Logistics •Nilkamal •Orient Refractories
•===========
•SW Solar (High risk – high return) Healthcare Cheap without growth
•Greaves Cotton (1st mover but have to face
•Fortis •TV Today
competition) •Thangamayill
•Redington
Power Chemicals/ Fert/Agri •GSPL

•CESC •Jubilant Ingrevia
•PTC India •Chambal
•Gujarat Ambuja Exports

Ask yourself these questions •
at least when you see our •
note •
•
•
•
•
•
•
•

Clean Energy/ Renewable/ ESG/ EV

Praj Ind (CORE PICK) Borosil Renewables (CORE KPIT Tech (CORE PICK)
PICK)
• CMP / M-cap: Rs. 351 / Rs. 6,451 cr • CMP / M-cap: 245 /6717 Cr
• Industry: Capital Goods • CMP / M-cap: 287 / 3737 cr • Industry: IT Services (ER&D)
• Leadership: 65% Market share in 1G • Industry: Solar • Leadership: Top 5 Player in Auto ER&D
• Leadership: Sole manufacturer of
ethanol in India Services globally
• Management experience: Mr. Shishir Solar Glass In India and Largest In • Management experience: Mr. Ravi
World Ex China (Current Capacity of
Joshipura (CEO &MD) is a Mechanical 450 TPD is being expanded to 1450 TPD Pandit (CEO) is CA & CWA by
engineer from BITS Pilani with more by Mar-23 in phases) profession with45 Years of experience
than 15 of experience in the field of • Management experience: in IT Service Industry.
Capital Goods & Automotive Industries. • Number of yrs in the business:13 yrs • Number of yrs in the business: 2 yrs
• Number of yrs in the business: 36 yrs • Promoter stake/ pledge:61.83% • Promoter stake/ pledge: 40.1%/4.5%
• Promoter stake/ pledge:32.91% (Pledge: NIL) • D/E: NIL, 822 cr
(Pledge NIL) • D/E: 0.1x • P/E (FY22/FY23): 31x / 25x
• D/E: NI, Net Cash 132 cr • P/E (FY22/FY23): 32x / 22x • Cash Flows: Rs. 628 cr
• P/E (FY22/FY23):39x / 31x • Cash Flows: Rs. 161 cr for FY21 • Dividend Payout/Yield: 29% / 0.41%
• CFO: Rs. 225 cr for FY21 • Dividend Policy: No Dividend
• Dividend Payout/Yield: 49%/0.62% declared in FY21

Clean Energy/ Renewable/ ESG/ EV

Greaves Cotton (HUGE OPTION VALUE WITH SW Solar (HIGH RISK – HIGH RETURN)
COMPETETION)
• CMP / M Cap: 242 / 3883 cr
• CMP / M Cap: 130 / 3026 cr • Industry: Solar EPC
• Industry: Auto Ancillary, EV • Leadership: World’s largest pure-play Solar Engineering,
• Leadership: Company is Leading supplier of engines to auto
Procurement and Construction (EPC) company
OEMs with high market share in 3W segment and 3rd largest • Management experience: 34 yrs
E-2W player in India (~17% market share) • Number of years in the business: 50 Yrs. The company was
• Management experience: 30 yrs
• Number of years in the business:7 Decades established as Wilson Electric Works (former name) in 1927.
• Promoter stake/ pledge:55.63% (Pledge: NIL) Later in 1971, Shapoorji Pallonji Group took stake of 51% in
• D/E:NIL, Cash of Rs. 280 cr as per latest B/S the company and formed Sterling and Wilson. .
• P/E (FY22/FY23): 23x / 16x • Promoter stake/ pledge:69.36% (Pledge 53.69%)
• Cash Flows: Rs. 173 cr • D/E: 0.1x
• Dividend Payout Ratio & Dividend Yield: Not Declared • P/E (FY22/FY23): 10x / 7x
Dividend in FY20 • Cash Flows: 337 cr
• Issues: Competition galore • Dividend Payout Ratio & Dividend Yield: 31% / 2.5%
• ISSUES: Markets doesn’t believe management + outstanding
inter-corporate deposits + group debt

Manufacturing

Carborundum Universal ISGEC Heavy Eng

• CMP / M-cap: 589 / 11,173 cr • CMP / M-cap: 287 / 3737 cr
• Industry: Capital Goods • Industry: Capital Goods
• Leadership: Material Science • Leadership: Amongst Top 6 & Top 10

Technology Co. One of the five Players in manufacturing PPE & Boilers
manufacturers in the world with fully in India, Top 4 Players in 1G ethanol
integrated operations Plant, Global leader in Liquified Gas
• Management experience: 30 yrs (N containers etc.
Ananthaseshan– M Tech degree in • Management experience:Mr. Aditya
Material Sciences from IIT, Kharagpur ) Puri (MD) is associated with the
• No. of yrs in the business: 67 yrs company for more than 25 years with
• Promoter stake/ pledge: 42% (virtually expertise in Heavy Engineering.
NIL) • Number of yrs in the business: 88 yrs
• D/E: Net Cash 494 cr • Promoter stake/ 62.43%/Nil
• P/E (FY22/FY23):32x / 27x • D/E: 0.5x
• CFO: Rs. 451 cr • P/E (FY22/FY23): 14x/11x
• Dividend Payout/Yield: 20% / 0.47% • Cash Flows: 103 cr
• Dividend Policy: 10%/0.37%

Manufacturing

Mahindra Logistics KSB Pumps

• CMP / M-cap: 533.35 / 3,825 cr • CMP / M-cap: 970 /3378 Cr
• Industry: Logistics • Industry: Capital Goods
• Leadership: Mahindra Logistics is a • Leadership: Leader in providing

leading 3PL solutions provider in India localized solutions for large pumps in
with a strong presence across the nuclear projects.
country and across diverse industries • Management experience: More than 10
• Management experience: 20 Years yrs. MD Mr. Rajiv Jain Mechanical
• No of yrs in the business: 15 yrs Engineer and has also completed
• Promoter stake: 58.40% / nil Business Management from Symbiosis
• D/E: 0.5x • Number of yrs in the business: 60 yrs
• P/E (FY22/FY23): 43.5x/ 30.2x • Promoter stake/ pledge: 66.69%/NIL
• Cash Flows: 294 cr • D/E: NIL, 343 cr
• Dividend Policy: 59.7% / 0.28% • P/E (FY22/FY23): 21x / 17x
• Cash Flows: Rs. 171 cr
• Dividend Payout/Yield: 29% / 0.9%

Home Building / Real Estate

Century Ply Greenpanel

• CMP / M-cap: 401/ 8934 crs • CMP / M-cap: 256 / 3 140crs
• Industry: Plywood • Industry: MDF
• Leadership: No 1 player in • Leadership: No 1 player in MDF
• Management experience: 15 yrs
Plywood • Number of yrs in the business: 33
• Management experience: 28 yrs
• No. of yrs in the business: 35 yrs yrs
• Promoter stake/ pledge: 73% • Promoter stake: 53.1% / NIL
• D/E: 0.51x
(NIL) • P/E (FY22/FY23): 24x/17x
• D/E: 0.14x • Cash Flows: 155 cr
• P/E (FY22/FY23):30x / 23x • Dividend Payout/Yield: NIL
• CFO: Rs. 400 crs
• Dividend Payout/Yield: 15% /

0.25%

Home Building / Real Estate

Nilkamal Oberoi Realty

• CMP / M-cap: 2,185 / Rs. 3,261 cr • CMP / M-cap: 611 / 22,200 Cr
• Industry: Plastic Products • Industry: Real Estate
• Leadership: With a total installed • Leadership: Leader in the

capacity of 91,995 MT per annum, Premium Housing Segment
Nilkamal is one of the large • Management experience: 20 yrs
producers of injection moulded • Number of yrs in the business: 30
plastic in India.
• Management experience: 35 yrs yrs
• No. of yrs in the business: 36 yrs • Promoter stake/ pledge:
• Promoter stake: 64.53% (Pledge:
NIL) 67.7%/NIL
• D/E: NIL, Net Cash of Rs. ~200 cr • D/E: 0.16
• P/E (FY22/FY23): 21x/23x • P/E (FY22/FY23): 21x / 17x
• Cash Flows: 252 cr • Cash Flows: Rs. 703 cr
• Dividend Payout/Yield: • Dividend Payout/Yield: NIL
16%/0.68%

Commodities

MCX Orient Refractories DCM Shriram

• CMP / M-cap: 1,624/ 8,286 crs • CMP / M-cap: 313 / 3,747 crs • CMP / M-cap: 683 & Rs 10,648crs
• Industry: Commodity Exchange • Industry: Capital Goods • Industry: Diversified Agri Player
• Leadership: Leader in • Leadership: 15% market share in • Leadership: No 2 player in

commodity derivatives exchanges Refractories Industry in India Caustic Soda
in India with ~97% market share • Management experience: 7 yrs • Management experience: 34 yrs
• Management experience: 30 yrs • Number of yrs in the business: 11 • Number of yrs in the business:
• No. of yrs in the business: 18 yrs
• Promoter stake/ pledge: 73% yrs 34 yrs
(NIL) • Promoter stake: 66.49% / NIL • Promoter stake/ pledge:
• D/E: NIL • D/E: Net Cash 119 cr
• P/E (FY22/FY23):30x / 27x • P/E (FY22/FY23): 29x/24x 66.5%/NIL
• CFO: Rs. 450 crs • Cash Flows: 97 cr • D/E: 0.28
• Dividend Payout/Yield: 65% / • Dividend Payout/Yield: • P/E (FY22/FY23): 15x / 12x
1.8% • Cash Flows: Rs. 1,887 cr
35%/0.8% • Dividend Payout/Yield: 21.6% &

1.20%

Commodities

Balrampur Chini Dalmia Sugar Triveni

• CMP / M-cap: 303/ 6362 crs • CMP / M-cap: 332 / 2693 crs • CMP / M-cap: 140 / 3,394 Cr
• Industry: Sugar • Industry: Sugar • Industry: Sugar
• Leadership: 2nd largest sugar • Leadership: No 4 player in Sugar • Leadership: 3rd Largest Sugar

crushing capacity Inds Crushing Capacity
• Management experience: 34 yrs • Management experience: 27 yrs • Management experience: 30 yrs
• No. of yrs in the business: 45 yrs • No. of yrs in the business: 27 yrs • Number of yrs in the business:
• Promoter stake/ pledge: 41.2% • Promoter stake: 74.9% / NIL
• D/E: 0.20x 88 yrs
(NIL) • P/E (FY22/FY23): 8x/6x • Promoter stake/ pledge:
• D/E: 0.12x • Cash Flows: 72 cr
• P/E (FY22/FY23):8.5x / 7.8x • Dividend Payout/Yield: 8.38% & 68.4%/NIL
• CFO: Rs. 850 crs • D/E: 0.44
• Dividend Payout/Yield: 11% / 0.60% • P/E (FY22/FY23): 9x / 8x
• Cash Flows: Rs. 510 cr
0.82% • Dividend Payout/Yield: 8% /

0.8%

Power

CESC PTC India

• CMP / M Cap: 689 / 8,614 cr • CMP / M Cap: 92 / 2,729cr
• Industry: Power Distribution • Industry: Power Trading
• Leadership: CESC has exclusive power • Leadership: PTC is a pioneer in starting a power

distribution license for Kolkata region, being market in India
valid till September 2038. • Management experience: 30 yrs
• Management experience: 34 yrs • Number of years in the business: 21 Yrs.
• Number of years in the business:43 yrs • Promoter stake/ pledge: 16.2% (Pledge NIL)
• Promoter stake/ pledge: 49.92% (Pledge: NIL) • D/E: NIL, Net Cash 86 cr
• D/E: 1.2x • P/E (FY22/FY23): 6x / 5x
• P/E (FY22/FY23): 6.5x / 6x • Cash Flows: 3,294 cr
• Cash Flows: Rs. 3,000 cr • Dividend Payout Ratio & Dividend Yield: 44% /
• Dividend Payout Ratio & Dividend Yield: 20.5% /
6.53% 6%

Chemicals / Fertilisers / Agri Theme

Jubilant Ingrevia Chambal Fertilisers

• CMP / M Cap: 437/6981 cr • CMP / M Cap: 286 / Rs. 11,930 cr
• Industry: Specialty Chemicals • Industry: Fertilisers
• Leadership: Amongst Top 2 Player in Vitamin B3 • Leadership: Company is largest private Urea

,Pyridine & Acetic Anhydride Globally. Also is Player in the country
leading player of Vitamin B4 & Ethyl Acetate in • Management experience: 35 yrs
domestic market. • Number of years in the business: 36 Yrs.
• Management experience: 30 yrs • Promoter stake/ pledge: 60.38% (Promoter’s
• Number of years in the business: 2 yrs
• Promoter stake/ pledge: 50.68% (Pledge: NIL) Pledge: 20.72%)
• D/E: 0.27x • D/E: 0.7x
• P/E (FY22/FY23): 18x /16x • P/E (FY22/FY23): 9x / 8x
• Cash Flows: Rs. 316 cr • Cash Flows: 6,950 cr
• Dividend Payout Ratio & Dividend Yield: NIL • Dividend Payout Ratio & Dividend Yield: 14% /

1.4%

Chemicals / Fertilisers / Agri Theme

Gujarat Ambuja Exports

• CMP / M Cap: Rs. 181 / Rs. 4,169cr
• Industry: Maize Processing
• Leadership: Gujarat Ambuja Exports is market leader

in India maize processing industry with capacity of
3,000 TPD - which is almost 25% of India’s total
capacity. Co is further expanding this to 4,000 TPD by
end of FY22
• Management experience: 28 yrs
• Number of years in the business: 30 Yrs.
• Promoter stake/ pledge: 63.84% (Pledge: NIL)
• D/E: NIL, Net Cash of Rs. 42 cr
• P/E (FY22/FY23): 11x / 9x
• Cash Flows: 240 cr
• Dividend Payout Ratio & Dividend Yield: 8/% / 0.55%

Healthcare

Fortis Healthcare
CMP & Market Cap: 228 & 17,171crs
Leadership: No 2 player in Hospitals
Management Experience: 21yrs
Number of Years In The Business: 25 Yrs
Promoter Stake / Pledge: 31.2%/NIL
D/E: 0.24x
P/E (FY22/FY23): 74x/47x
CFO (FY20 or FY21 if available): 172crs
Dividend Payout Ratio & Dividend Yield: NIL

Cheap, Waiting For Growth

TV Today Thangamayil Jewellery

• CMP / M Cap: 331/1974 cr • CMP / M Cap: 768/1055 cr
• Industry: No. 1 player in Hindi News Channel • Industry: Jewellery
• Leadership: • Leadership: Co has 4.7% market share in Tamil
• Management experience: 21 Years
• Number of years in the business: 21 Years Nadu Jewellery Sector.
• Promoter stake/ pledge: 58.4% / NIL • Management experience: 38 yrs
• D/E: 0.02 • Number of years in the business: 22 Yrs.
• P/E (FY22/FY23): 13x / 11x • Promoter stake/ pledge: 70.07%/14%
• Cash Flows: Rs. 204 crs • D/E: 0.9x
• Dividend Payout Ratio & Dividend Yield: 12% • P/E (FY22/FY23): 9x / 8x
• Cash Flows: (56) cr
/ 0.75% • Dividend Payout Ratio & Dividend Yield:

15%/0.56%

Cheap, Waiting For Growth

Redington GSPL

• CMP / M Cap: 183/ 7152 cr • CMP / M Cap: 271 / Rs. 15,318 cr
• Industry: Consumer Durables • Industry: Gas Transmission
• Leadership: No. 1 technology distributor of • Leadership: 2nd Largest Gas Transmission Co in

Smartphones, IT Hardware products & software India
services in Middle east & Africa alongside being No .2 • Management experience: 20 yrs
Technology distributors in India • Number of years in the business: 21 Yrs.
• Management experience: 25 yrs • Promoter stake/ pledge: 37.63% & Government Stake
• Number of years in the business: 60 yrs
• Promoter stake/ pledge: Nil/Nil is- 10.98 (Pledge NIL)
• D/E: 0.59x • D/E: 0.37x
• P/E (FY22/FY23): 18x /16x • P/E (FY22/FY23): 14x / 13x
• Cash Flows: Rs. 966 cr • Cash Flows: 2,771 cr
• Dividend Payout Ratio & Dividend Yield: • Dividend Payout Ratio & Dividend Yield: 6.5% /1.2%
32%/2.34%

Under Study

REAL ESTATE VALUE STOCKS OPPORTUNISTIC
SECTOR IDEAS

% sector allocation

20 20

10 15 Sector 1
20 15 Sector 2
Sector 3
Sector 4
Sector 5
Sector 6

TOP PICKS

CORE Good cos in strong cycle HUGE VALUE High Risk – High Return

• > 2 years view • Balrampur Chini • ISGEC • SW Solar
• United Spirits • GAEL • PTC India • Shree Renuka
• MCX • Orient Refractories • Chambal
• Carborundum • ACE • TV Today
• Mahindra Logistics • Automotive Axle • Redignton
• Oberoi • Thangamayill
• GSPL
• >1 years view
• Praj
• Borosoil Renewable
• KPIT
• KSB Pumps
• Century Ply/
Greenpanel/ Nilkamal
• CESC
• DCM Shriram Ind
• Jubilant Ingrevia
• Fortis

Ending Thoughts Risk comes from not knowing what you
are doing
Investment is very personal
Omkara is an enabler – not decision maker
BIG money was made & will be made only
if your investment is backed with high
conviction, which comes from research

More better things coming soon on Yours Omkara

अभी तो ल� अंगड़ाई है, आगे और लड़ाई है