Patience and conviction

At @CapitalAurum our endeavour is to read the cycle of various industries, locate turnarounds and put bets on undervalued stocks. We gather various data points, not necessarily always captured with conventional methods.

@jitenkparmar
@niteen_india

1/n

This has lead us to get into the turnarounds in many companies and industries. In late 2018 and early 2019, one such visible trend was cement cycle when it was not going through the best of the time.

@jitenkparmar
@niteen_india
2/n

We recommended 2 stocks in a span of 3 months in Dec 2018 and Feb 2019 at around Rs 270 and Rs330 levels respectively. We started with 3% allocation in each ie 6% in cement sector.

@jitenkparmar
@niteen_india

3/n

The drawdown happened. We saw a max draw-downs of 31% & 45% resp. during the fall of Mar 2020. This fall was much lower than the overall fall in Mid and Small cap indices in Mar 2020. In a way they outperformed the indices and helped our PF too.

@jitenkparmar
@niteen_india
4/n

As time progressed and we continued to get confirmations on our parameters, we increased the allocation in the sector. The current allocation is 12%. The average price of both the stocks remained closer to the initial buy price.

@jitenkparmar
@niteen_india

5/n