Slow Compounding

Punjab National Bank Interest income dropped by 1% Net Profit dropped by 70% GNPA 11.2 (vs. 11.78%), NPA 4.3% (4.28%)

Portfolio Tracker shorturl.at/em248 As promised, we have provided direct access to the Google sheet of our portfolio. Hope you are able to seamlessly track it.

Portfolio Update With new Google sheet link https://youtu.be/wVBOK8nfMaw

HPCL It posted a huge loss of 12k crores this quarter. Just to give you the context of this number, whatever this company earned in last four quarters, it is less than 10k Crores. Those who are PE investors, you can calculate PE before and after results. You will never say that lower PE is equivalent to value investing.

State Bank of India Total income dropped slightly by 2% Profit dropped by 7.6% GNPA dropped from 5.3% to 3.9% NPA dropped from 1.77% to 1% When all the top private banks are reporting double digit profit...!

Berger paints Revenue grew up by 53% Expenses grew up by 50% Profit grew up by 76% (YoY) For comparison purposes, Asian paints Revenue up by 53% Expenses up by 49% Profit up 69% (YoY) QoQ basic Revenue for Berger paints grew up by 28%, Asian paints grew by 9% Expenses for Berger paints is up by 30% when Asian paints' expenses grew by 9% Profit of Berger paints grew by 38% vs. Asian paints' 17%

Quarterly Results Highlights Profit of SC Businesses YoY Asian Paints 68% ⬆️🔥 Relaxo 24% ⬆️ PI Industries 25%⬆️ Navin Flourine 33% ⬆️ Kotak Bank 53% ⬆️🔥 HDFC bank 20%⬆️ Dr. Lal Path 57%⬇️

PI Industries Revenue up by 28% Expenses up by 27% Profit up by 25% Boring results as expected!! Same rate of compounding continues!

Deepak Nitrite Revenue up by 35% Expenses gone up 55% Profit took a hit by 22% (YoY)

Price to Perfection You will hear that all experts would say that great businesses are known to all. So, they are priced to the perfection. Thus, to create alpha, you need to dig small companies which are future multi baggers. When the Market will recognise its potential, you will get outsized return. Nothing wrong with this. But a thoughtful beginner may check the outperformance of all the great business over long time and ask if Bajaj finance was priced to perfection 3-4 years back, how is it compounding more than 26% CAGR? Expert may dismiss this question saying that the firm did well in last few years. But we should not extrapolate this and make investment. Fair logic. Nothing wrong. The beginner may ask this question to expert that if Asian Paints does not do well, which paint company will do better than Asian Paints? Expert would say, the base effect of Pidilite is so big that they won't sustain the growth rate. Then, if beginners ask ...if HDFC bank doesn't grow its at 15% loan advance for next ten years, who will outpace HDFC Bank? Expert would say, it is difficult to predict. But ICICI Bank , Axis Bank may overtake the loan growth.. In this argument, Expert misses that ICICI Bank may grow its loan book higher than Kotak Bank. But there is almost nil possibility than ICICI Bank will get CASA like Kotak bank in next five years. Expert misses to check the NIM of ICICI Bank before predicting the ICICI is next HDFC Bank. If "price to Perfection" really exists in market, Asian paints or PI Industries would not have outperformed the boarder market. Expert forgets something that a school kid knows. Last boy of the class has very low chances of entering in top list. First gal of the class doesn't suddenly start failing next year And all medicore students doesn't become board topper. It happens sometimes but with a low probability. If you have to bet, Divis Lab is the best candidate, not Astech. Unless you like gambling! Gambling gives outsized money with huge risk. All these names are exemplary. Not any investment advice. We do not believe "Price-to-Perfection" exists in market. It is a trap expert lure you to. So that you ask "which company is next PI Industries"?

Alkyl Amine Revenue up by 21% Expenses up by 28% Profit grew by 4% Not owning this business. Just for tracking the story.

Portfolio Update is coming soon!

Dr Lal Path Revenue took a massive hit by 31% But expenses remained nearly flat, Profit vapourised and dropped by 57%

Bajaj Finance AUM grew by 28% Net Income grew up by 48% Expenses increased by 7% Consolidated profit grew up by 159% (YoY) GNPA 1.25% with NPA 0.51% Capital Adequacy Ratio 23.8% _______ QoQ Bajaj Finance Standalone Loan book grew by 61% AUM grew by 25% Total income grew up by 38% Profit grew up by 179% QoQ Bajaj Housing Finance AUM up by 40% Income up by 38% Profit up by 96%

Relaxo Revenue up by 33% Expenses up by 33% Profit up by 24.5%

Asian Paints Revenue growth up by 53% Expenses grew up by 49% Profit grew up by 68%

You will probably find so many links to connect yourself with this idea.