In our last post we mentioned how Cartica Capital finds Page Ind. is reasonably valued at 90 PE
The interview was aired on 28th June 2018
Looking at the Shareholding pattern of Page Industries we came across that holding of Cartica Capital has come down from 8,62,721 shares to 6,84,058 shares between March to June 2018. Price range of Page Ind. during same time was 21800 to 27800
Shareholding of Cartica in Page Ind. over last 3 years
|Quarter||No. of shares|
Price Chart of Page Ind
An interesting take from Cartica Capital which is the 2nd largest public shareholder in the stock after Nalanda.
Video Link – https://www.youtube.com/watch?v=BnoCjHHyjJU
Check 2.40 to 4.10 . The overall interview is also interesting.
You might want to read up on Modigliani Miller Model for valuation
Intimation under Regulation 30 about investment upto Rs.14.50 crores (USD 2.1 million) by way of acquisition of 21,00,000 equity shares of USD 1 each of SUN Mobility Investor Ltd.(Jersey)
Khemka group has indirect control and ownership.
Investment is being done at book value of USD 1 per share.
Although the total investment is only 14.5 cr as of now. Will this be a good diversification or diworsification ?
Disclosure – No Holdings. Not a recommendation.
8 out of top 10 Mutual Fund Distributors by Commission are Banks. With more than 3200 cr of commission income in between them.
Strategy is Highly Biased ?
State Bank of India makes 99% of its mutual fund commission income from distributing schemes of SBI Mutual Fund.
SBI seems to have picked up distributing mutual funds only in last 3 years.
In last 1 year commission income has gone up from 178.7 cr to 557.9 cr !!!
ICICI Bank gets 73% of the mutual fund commission income from distributing ICICI Prudential Mutual Fund.
But ICICI Securities only gets 18.5% of the commission income by distribution of ICICI Pru MF. Is it because one cannot buy Regular Plans through ICICI Direct but account holders have a choice to select their own preferred AMC ?
|ICICI Securities Limited||316.53||58.45||18.5|
Websites of respective Mutual Funds
In the last few years Mutual Fund Distribution has picked up in a strong way.
The number of mutual fund distributors with a pay-out of 1 cr plus has almost gone up 3.5 times since 2011-2012.
The top 20 distributors by commission paid
NJ IndiaInvest continues to be on top.
8 out of the top 10 distributors are Banks !!
Out of all the banks SBI has increased commission income to 557.9 cr from 178.7 cr last year.
Websites of Mutual Funds
Some of the interesting Insider Trading Disclosures from 1st Jan to 31st March 2018.
We keep looking at Insider Trading/Bulk Deals for looking at interesting action and not necessarily buy or sell because of Insider Trading.
Although Insiders buying in a bear market has helped us pick interesting names a few years back.
Disclosure – No views on any of the stocks above and no recommendation. Please do your own research.
Unichem Labs Share Holding Pattern
|Share holder Name||Dec-17||Mar-18|
|No of shares||% holding||No of shares||% holding|
|Alrox Investment & Finance||1597763||1.76%||997437||1.42%|
|Airborne investment & Finance||1149452||1.26%||717568||1.02%|
|Family Investment Pvt Ltd||1438522||1.58%||898026||1.28%|
Sun Pharma Share Holding Pattern
|Share holder Name||Mar-18|
|No of shares||% holding|
|Viditi Investment Pvt Ltd||200846362||8.37%|
|Family Investment Pvt Ltd||182437880||7.60%|
|Virtuous Finance Pvt Ltd||96851821||4.04%|
|Virtuous Share Investment Pvt Ltd||83751259||3.49%|
Whats common between this entities : –
- The Companies Address of Alrox, Airborne & Family investment is same as Taro Pharmaceuticals India Pvt Ltd.
- The Director of Alrox Investment, Airborne Investment is the same of Virtuous Finance, Virtuous Share — Mr Dineshkumar Ramniklal Desai
- The Director of Family Investment Pvt Ltd & Viditi Investment is the same Mr. Milind Vijay Goradia
“Mid cap category was the worst hit, with 62 per cent schemes underperforming. We had a total of 34 mid cap schemes in our list.”
A lot of Midcap Mutual Funds underperformed the Benchmark – Nifty Midcap 100 in 2017.
One of the reasons was the huge move in Vakrangee Limited and a little bit of a outperformance move in Rajesh Exports. Both these companies have almost zero Mutual Fund Holdings . ( good to see such a boycott.)
But the index calculation does not care for valuations or any other governance concerns. Its a free float survivorship index. For example RCOM was the 7th Largest weight in Nifty in 2007 peak.
|Stock||Value – Dec 2016||Weights – Dec 2016||Value – Dec 2017||Weights – Dec 2017||Value – Feb 2018||Weights – Feb 2018||Returns Dec16 to Dec17|
|Nifty Midcap 100||4402||6697||6199||52.14%|
Of the 52% return in 2017 almost at 3-4% impact came from Vakrangee !!!