Two Microcaps – India – 2014
Amongst a few microcaps that I was invested in, I acquired two in the past 1 month in my personal account, but could not buy enough of either opportunity and would it be advisable to keep below 2% of small portfolio and 1% of large portfolio.
– Orient Beverages @ 24 INR
– Poddar Developers (PD) @ 200 INR, still want to accumulate.
Spent over a week researching PD. Poddar Developers has a phenomenal MD, Rohit Poddar and business model who has been heaped praise even by HDFC Chairman Deepak Parekh who says, “Unfortunately Deepak Poddar has only one son, Rohit”. “We support them and have viewed their title deeds, their legal documents”.
Management looks quite clean but real-estate sector in India involves crummy deals and palm greasing not only to local mafias but also to the biggest bandit of India, Govt. of India, not only by small real estate developer but all and sundry including Tatas.
Rahejas, Lodhas, DLF, Unitech will not be able to crack low housing or at-least have not yet been able to so far. 10 Lac INR apartment for DLF is like producing an Atul Auto scooter for a company that make Porsche. Only Tata appears to be serious about affordable housing/low income housing. Market potential is 500 times the market cap of affordable housing industry, the sector that is driving GRUH and REPCO loan books.
HDFC Chairman – Deepak Parekh, who never visits real estate developers and applauds them publicly, is paying tribute to Poddar Developers and Rohit Poddar in this video.
Jam with Sam – Rohit Poddar
B/S looks okay with rental income. Company sells market leader Bisleri (36% market share in India) in West Bengal and is venturing into soft drinks. Has strong links with Parle. Did not expect price to go to 100-150 bucks, but in this cuckoo market everything is possible.
As usual feel free to go nutty as a fruitcake or mad as a hatter with your research. Market definitely seems to have gone given the price movement.