Its just another correction & Its also another opportunity !

Sitting through corrections is never easy & seeing one's portfolio fall on a daily basis is very painful. Precisely for this pain equities as an asset class outperforms the 'safer havens'.

A simple comparison of how our portfolio & TRI Nifty smallcap 250 portfolio has behaved for the last 5 years will help one digest this volatility.  

Despite the correction so far FY 25 continues to be a decent year. Infact the correction in FY 23 when the war broke out was more brutal & painful. As of today the world & India seem to me more stable. Inflation globally has peaked & particularly in India is well within the acceptable range. When compared to FY 23, major elections for the center, state & USA are behind with desired results, geopolitical issues are abating & corporate balance sheets are stronger than ever. Fast moving indicators seem strong as well:-

• Solid growth in Services export rose 24.3% YoY growth to $38.6 Bn
• Jan - Feb 2025 FASTag collections have been very strong at 19%-21% which were part supported by toll hikes but traffic remains robust
• Power demand in February 2025 has grown by 6% yoy on a 6% yoy growth in base year
• Domestic Daily passenger growth is approx +14% yoy in Feb 2025 
• Composite flash PMI came in at 60.6 versus 57.7 for the previous month
• Gross GST collections came in at 1.96 lakh crore up 12.3% in January

Let me cover some of our core holdings to further illustrate that price correction & business performance can be delinked. Do also keep an eye at the valuations & why we are not concerned about this correction infact see it as an opportunity.

Tata Comm  

Price ₹ 1,436 M.Cap ₹ 40,898 Cr PE 36.7

	YOY	Dec 2024	Sep 2024	Dec 2023
Sales	⇡ 4%	5,798	5,728	5,588
EBIDT	⇡ 2%	1,181	1,129	1,153
Net profit	⇡ 893%	236	227	45.0
EPS	⇡ 427%	₹ 8.28	₹ 7.97	₹ 1.57

Tips Music  

Price ₹ 656 M.Cap ₹ 8,407 Cr PE 52.0

	YOY	Dec 2024	Sep 2024	Dec 2023
Sales	⇡ 20%	77.7	80.6	64.8
EBIDT	⇡ 28%	55.6	59.5	43.4
Net profit	⇡ 28%	44.2	48.2	34.6
EPS	⇡ 28%	₹ 3.46	₹ 3.77	₹ 2.70

Accelya Solution   

Price ₹ 1,336 M.Cap ₹ 1,991 Cr PE 16.9

	YOY	Dec 2024	Sep 2024	Dec 2023
Sales	⇡ 7%	133	127	125
EBIDT	⇡ 7%	48.3	48.6	45.3
Net profit	⇡ 5%	32.4	32.5	30.9
EPS	⇡ 5%	₹ 21.68	₹ 21.75	₹ 20.72

H P C L  

Price ₹ 319 M.Cap ₹ 67,952 Cr PE 11.3

	YOY	Dec 2024	Sep 2024	Dec 2023
Sales	⇣ 1%	1,10,608	99,977	1,11,348
EBIDT	⇡ 154%	5,495	2,316	2,160
Net profit	⇡ 257%	2,544	143	713
EPS	⇡ 257%	₹ 11.95	₹ 0.67	₹ 3.35

Interglobe Aviat  

Price ₹ 4,536 M.Cap ₹ 1,75,326 Cr PE 28.9

	YOY	Dec 2024	Sep 2024	Dec 2023
Sales	⇡ 14%	22,111	16,970	19,452
EBIDT	⇡ 0%	5,160	1,618	5,144
Net profit	⇣ 19%	2,442	-989	2,998
EPS	⇣ 19%	₹ 63.20	₹ -25.60	₹ 77.69

Adit.Birla Money  

Price ₹ 160 M.Cap ₹ 911 Cr PE 11.2

	YOY	Dec 2024	Sep 2024	Dec 2023
Sales	⇡ 5%	106	126	101
EBIDT	⇡ 27%	55.4	66.6	43.8
Net profit	⇡ 44%	21.8	26.7	15.2
EPS	⇡ 44%	₹ 3.86	₹ 4.72	₹ 2.68

CSB Bank  

Price ₹ 284 M.Cap ₹ 4,942 Cr PE 8.9

	YOY	Dec 2024	Sep 2024	Dec 2023
Sales	⇡ 21%	919	865	762
EBIDT	⇡ 16%	529	484	454
Net profit	⇡ 1%	152	138	150
EPS	⇡ 1%	₹ 8.74	₹ 7.98	₹ 8.64

Canara Bank  

Price ₹ 87.0 M.Cap ₹ 78,951 Cr PE 4.8

	YOY	Dec 2024	Sep 2024	Dec 2023
Sales	⇡ 8%	30,751	30,182	28,492
EBIDT	⇡ 21%	19,999	18,116	16,491
Net profit	⇡ 11%	4,256	4,227	3,827
EPS	⇡ 11%	₹ 4.65	₹ 4.62	₹ 4.18

CARE Ratings  

Price ₹ 1,199 M.Cap ₹ 3,606 Cr PE 30.4

	YOY	Dec 2024	Sep 2024	Dec 2023
Sales	⇡ 22%	96.4	117	78.7
EBIDT	⇡ 30%	30.4	55.7	23.4
Net profit	⇡ 18%	28.4	46.9	23.9
EPS	⇡ 18%	₹ 9.29	₹ 15.41	₹ 7.88

Kamat Hotels  

Price ₹ 292 M.Cap ₹ 859 Cr PE 23.9

	YOY	Dec 2024	Sep 2024	Dec 2023
Sales	⇡ 29%	111	85.4	86.1
EBIDT	⇡ 70%	44.1	22.5	26.0
Net profit	Exceptional Items⇡ 134%	26.2	8.35	41.6
EPS	⇣ 47%	₹ 8.88	₹ 2.83	₹ 16.86

Garware Hi Tech  

Price ₹ 4,165 M.Cap ₹ 9,702 Cr PE 31.2

	YOY	Dec 2024	Sep 2024	Dec 2023
Sales	⇡ 3%	466	621	454
EBIDT	⇡ 8%	81.2	137	75.1
Net profit	⇡ 9%	60.8	104	55.9
EPS	⇡ 9%	₹ 26.17	₹ 44.88	₹ 24.05

D-Link India  

Price ₹ 400 M.Cap ₹ 1,421 Cr PE 14.1

	YOY	Dec 2024	Sep 2024	Dec 2023
Sales	⇡ 13%	330	335	292
EBIDT	⇡ 17%	33.3	32.6	28.4
Net profit	⇡ 18%	26.2	26.4	22.3
EPS	⇡ 18%	₹ 7.38	₹ 7.43	₹ 6.28

Saregama India  

Price ₹ 497 M.Cap ₹ 9,616 Cr PE 48.6

	YOY	Dec 2024	Sep 2024	Dec 2023
Sales	⇡ 137%	483	242	204
EBIDT	⇡ 29%	84.4	60.8	65.6
Net profit	⇡ 19%	62.3	45.0	52.4
EPS	⇡ 19%	₹ 3.23	₹ 2.33	₹ 2.71

FDC  

Price ₹ 404 M.Cap ₹ 6,586 Cr PE 24

	YOY	Dec 2024	Sep 2024	Dec 2023
Sales	⇡ 1%	464	514	458
EBIDT	⇣ 44%	46.6	70.2	83.8
Net profit	⇣ 53%	37.0	72.0	79.2
EPS	⇣ 53%	₹ 2.28	₹ 4.42	₹ 4.87

Federal-Mogul  

Price ₹ 333 M.Cap ₹ 1,854 Cr PE 13.0

	YOY	Dec 2024	Sep 2024	Dec 2023
Sales	⇡ 4%	433	464	415
EBIDT	⇡ 16%	55.1	69.1	47.6
Net profit	⇡ 18%	30.6	40.7	25.6
EPS	⇡ 18%	₹ 5.20	₹ 6.87	₹ 4.40

Manappuram Fin.  

Price ₹ 204 M.Cap ₹ 17,310 Cr PE 8.8

	YOY	Dec 2024	Sep 2024	Dec 2023
Sales	⇡ 11%	2,560	2,633	2,305
EBIDT	⇣ 13%	1,369	1,741	1,576
Net profit	⇣ 51%	278	572	575
EPS	⇣ 51%	₹ 3.33	₹ 6.74	₹ 6.77

Sunflag Iron  

Price ₹ 228 M.Cap ₹ 4,108 Cr PE 25.4

	YOY	Dec 2024	Sep 2024	Dec 2023
Sales	⇡ 4%	892	866	854
EBIDT	⇡ 14%	111	98.5	96.9
Net profit	⇡ 39%	50.1	40.8	36.0
EPS	⇡ 39%	₹ 2.78	₹ 2.26	₹ 2.00

Godfrey Phillips 

Price ₹ 5,586 M.Cap ₹ 29,032 Cr PE 27.7

	YOY	Dec 2024	Sep 2024	Dec 2023
Sales	⇡ 27%	1,896	1,651	1,488
EBIDT	⇡ 58%	359	272	228
Net profit	⇡ 49%	316	248	212
EPS	⇡ 49%	₹ 60.75	₹ 47.76	₹ 40.84

G N F C   

Price ₹ 544 M.Cap ₹ 7,986 Cr PE 15.9

	YOY	Dec 2024	Sep 2024	Dec 2023
Sales	⇣ 9%	1,899	1,917	2,088
EBIDT	⇡ 57%	132	90.0	84.0
Net profit	⇡ 66%	158	102	95.0
EPS	⇡ 66%	₹ 10.75	₹ 6.94	₹ 6.47