A Detailed Thread on #JubilantIngrevia as Promised

Let's start with the #Technicals to time the Entry

A perfect VCP -3 + Shakeout and crawling near the ATH and awaiting a ATH Breakout

For Investment I use the Weekly Chart with 10EMA ImageImage
Let's Deep Dive into the Fundamentals of #JubilantIngrevia

Jubilant Ingrevia is an Integrated Speciality Chemicals Comapany

They are into Speciality Chemicals ,nutraceuticals and Life Sciences

Revenue Split and Region wise Revenue in the Below Presentation Image
Who are its Competitors ?

Closest peers - Laxmi Organic
Two major Products in Common Ethyl Acetate Diketene

Prices of Both have been on Steep Uptrend and Jubilant has not caught up with that

Its a competitor to other Speciality Chemicals like Balaji Amines also in some
specific chemicals

Looking too deep into what they do is not of much use

Lets dive deep into Valuations and Valuation Gaps in this Name compared to Peers

Balaji Amines
Speciality Chemical Company
P/E - 50
Price to Sales - 9.76
OPM - 32%
Deepak Nitrite
Commodity Chemical (40%) and 40-45% Speciality Chemicals and 10% Performance Products like (OBA)

P/E - 40.2
Price to Sales - 7.56
OPM - 30%

Its getting a P/E of 40% though not being a diversified Spec. Chemical and partly being a Commodity Chemical
The management of Deepak Nitrite is clear and walks the Talk and hence turning into a majority Spec Chemical in coming years

Laxmi Organic Industries
P/E - 116
Price to Sales - 8.34
OPM - 12%
And here we Look at Jubilant Ingrevia

P/E - 18-20 (1YF)
OPM - 25% Double of Laxmi Organics
Sales mightier than Laxmi Organics and being way more diversified and still getting a lesser valuation is a valuation gap and will be filled like how it was in Balaji Amines
Hence a Multiple of 30 atleast in P/E is expected ( DN a not fully Spec. Chemical getting a 40 makes me feel so )

With a P/E of 30-40 the Price could easily double from here even if the same earnings is continued

An boost in earnings again gives you more space here
The Final Part how to Manage Risk - The most Important part is here !

My Initial Entries were in 580 Range and added at 630-660 then at 700 and even at 750 .. Making the average near 650

Im keeping the SL as a CB SL on the 10EMA Weekly Chart

My PF Position Size is 10%
Hence I'm Expecting the valuation Gap to filled up and Jubilant to surge to new Highs very soon ...

Expectations the Same way were met in DN , Balaji Amines , Tata Elxsi

Will this be my Next one Let's see
As I have my SL to protect me if i go wrong and a 10% SL on 10% Size pushes my PF down by 1% which i can recover back

Though my SL is near my Cost but waiting for Weekly Close also cant hurt my PF Badly

Risk is under Control
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Signing off

Volatility and Volume Trader

Do post on which company you want my Next thread

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Will add from Tomorrow by slowly Releasing Radico Khaitan

Generating Alpha is Important not the Company

Look at the Stats of the Company !
Bought Ambika Cotton at 1875

Will add again if it Dips Sharply !
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Rare Pattern . Wil try for a Quick Intraday to 2 days time here with Almost very small Stop

Have a look Image
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with SL as the Below Line
4% SL Trade for Me
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Have been repeatedly posting how the strong chemical earnings can continue and rerating in some names can occur

Holding everything Except Tatva and Vinyl from this List

And getting the Highest Allocation to Balaji amines Deepak and Jubilant Image
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Even NOCIL is on fire !

Get the sector Right Sit tiight

#Chemicals #stocks
#Thirumalai Chemicals

HTF started ! Image
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22 Sep
#BSoft #BirlaSoft

🏅Multiple Attempts to breakout of the tight Range

Breakout when done should be very powerful considering that it has to catch up with the Index Outperformance during this phase

Will add some more position once all the resistance is crossed on CB
#BSOFT #BirlaSoft

Moving as per morning Expectations

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For now it's just a wait and watch

Dont Jump now is my idea ! as it faces strong resistance her e

Clears allskies
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21 Sep
#Long in #Laurus Labs at 610 ( 3% ) of PF
A near Reversal near Support ImageImage
Stop at 600 Initially ! Now moved to 606
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15 Sep
A Thread on #Laurus Labs as Promised
#Technicals - To time the entry and Price
Laurus Labs Currently near Support zones .
620 in my view is a strong support
Showing Buying Volumes since yesterday ! Image

Laurus labs is into API , Formulations , Bio Synthesis and CDMO Bussiness

API Bussiness leader #Divis Labs - Only API . No formulations - PE Rating 66
Lowest Cost producer

#Laurus Labs - Into API and formulations . One among the lowest cost producer
Current PE - 33 Price 662 .

#Syngene - CRAMS and CDMO - Means mostly does work for other Multinational Companies . PE Rating 62

#Sun Pharma - Formulation Major - PE 33

Now looking at the others and #Laurus Labs there are some outstanding Numbers to see
Read 11 tweets

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