This is the fifth post in our quarterly update series. In each post, we pick four stocks from our watchlist and share the latest updates on these businesses. These are not buy recommendations but we find these businesses interesting and we may build position (or buy more of those that are already in our portfolio) in them in future under these two conditions —
- Their business continues to do well and,
- They are available at valuation which we find reasonable with sufficient margin of safety.
You can see the earlier updates here.
Below we have four more companies that we’re tracking closely. We have made notes from their quarterly updates and the analyst conference calls.
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Please click on the read more button for more details on each stock.
Hikal Ltd
Hikal Ltd offers solutions across the life sciences value chain. They provide world-class active ingredients, intermediates and R&D services to global pharmaceuticals, animal health, biotech, crop protection and specialty chemicals companies.
Their focus on R&D and hybrid model of catering to both pharma companies and agrochemicals shows a lot of promise.
Accelya Kale Solutions Ltd
Accelya Kale is a leading provider of technology products and services to the travel and transport industry. It provides the mission critical solutions that account for and manage more than 5 billion financial transactions and 75 million tons of cargo annually. Accelya serves as a strategic partner to more than 400 airlines, travel agents and shippers.
Their business model of “pay-per-use” is a win-win for both the company and its customers. It’s a stable company with a high dividend yield. Valuations have come down sharply in the last year, which makes it an interesting investment case.
Mahindra Holidays & Resorts India Limited
Mahindra Holidays & Resorts India Limited (MHRIL) is a part of the Mahindra Group and provides holidays on a timeshare basis. MHRIL offers family holidays primarily through vacation ownership memberships for over a period of 25/10 years.
Recent accounting policy changes have led to a change in booking of revenue. However, the cash flow situation remains healthy. The industry is highly competitive, especially on the digital holiday booking side. It would be interesting to see how MHRIL tackles the challenges of industry and consumers and adapt to the changing digital environment.
Manappuram Finance
Manappuram Finance Ltd. is one of India’s leading gold loan NBFCs. Today, it has 4208 (Includes branches of subsidiary companies) branches across 28 states/UTs with assets under management (AUM) of Rs. 166.18 billion and a workforce of 24,717.
Despite the recent tightening in the NBFC segment, Manappuram has had no problems raising funds for its business, thus highlighting their robust risk profile and stellar market reputation. However, in the current difficult environment, it remains to be seen whether the liquidity problems in the housing finance sector will spill over to other NBFCs like Manappuram as well or not.
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