Saplings Capital

We Sow You Grow🌱
Seeds Of Growth ⚡

Founder Member
@chiragdashj⚡

Not a SEBI Registered Firm

[Saplings Capital @CapitalSapling]

A respectable investor was somebody who bought high quality assets. The person who bought poor assets cheaply was considered a speculator ~ Howard Marks. Invest in Moated Castles🏰

[Saplings Capital @CapitalSapling]

Investing in Small cap domination eventually leads to big wealth creation, Don't overoptimise for valuations here, in-fact optimize for Moat, if the company's business Castle is well moated, the long runway of opportunity will ensure you make a hell of a lot of money regardless.

[Gaurav @gaurav_dayzero]

People love #DeepakNitrite & have bid up its valuations to almost speciality like conveniently forgetting that its earnings explosion has happened due to phenol, which is nothing more than a bulk commodity.Just that it has cornered the entire market.

Price dictates perception!

[Saplings Capital @CapitalSapling]

https://t.co/IaQQ2cz0Qc

Thanks, hope our thread helped followers to take informed decision on Nazara Tech. We are invested from IPO and Pre IPO #nazaratech

[Tejas Bhatia @TejasBhatia15]

@CapitalSapling amazing work on nazara tech.💪💪💯

[Saplings Capital @CapitalSapling]

https://t.co/eJd7okGDHB

Full Thread on Nazara Tech #nazara

[Saplings Capital @CapitalSapling]

#Nazara's gamified early learning app, Kiddopia, subscriber base grew from 115,220 paying subscribers in January 2020 at the time of acquisition to 290,508 as of Oct 2020.

Stunning growth!

Another #Nazara subsidiary has 80% market share of Indian industry in esports segment.

[Saplings Capital @CapitalSapling]

So much noise after listing. Futile to have valued it on PE basis then.Optionality in business of Nazara is enormous. Only few have understood the business in true means #nazara

[Saplings Capital @CapitalSapling]

If one analyses these companies on traditional metrics ,they will never be able to build conviction to participate, that why we keep talking about Ecosystem analysis

With convergence of

1. Handset penetration
2. Fibre to home
3. online micro payments

opportunity has opened up.

[Gaurav @gaurav_dayzero]

India stands at roughly the same median age and the same per capita income as China did at the outset of this millennium, we all know what followed in the next decade for china.

[Saplings Capital @CapitalSapling]

While assigning PE multiples lots of thing are taken into consideration by market.. Cant expect a Harrier at the price of a fragile Baleno.Tata Elxsi considering its growth runaway in future is still cheap..#tataelxsi

[Saplings Capital @CapitalSapling]

Stock picking is not only about identifying stocks where earnings will come, but also about envisaging where those earnings will be respected by the markets the most.

[Saplings Capital @CapitalSapling]

The benefit of investing in companies with great parentage, #TATAELXSI recommends a cumulative dividend of Rs 48 including a special dividend of Rs. 24.
Reason why the earnings of certain companies get appreciated a lot more than other run of the mill companies in the industry.

[Saplings Capital @CapitalSapling]

What Tatas think about Tejas Mgt. Not many credible promoters left to bet upon in 5g space now.. Tata would add scale to Tejas.. There is a vaccum created by Huawei, Ericcson and others..Huge opp for growth

[Saplings Capital @CapitalSapling]

Tejas 3.0 🎯
-Capex Cycle- 5G and Fiber-based broadband networks
-Opportunity to leverage synergies with Tata Group
-Opp to scale up in Atmanirbhar Bharat, Large addressable market globally- A $150+ Bn industry
-To become a top-tier, trusted, full-stack global telecom OEM

[Saplings Capital @CapitalSapling]

Tatas saw value when investors didn't. #TejasNetworks

[Saplings Capital @CapitalSapling]

Intellect will be implementing its micro services-based, API-first and cloud-ready digital banking solution Intellect Digital Core and iKredit360 with Resurs Bank.. Winning deals on new products is definitely a positive for long term

https://t.co/xWtu2qcpLJ

[Saplings Capital @CapitalSapling]

Stunning results from #IntellectDesign , pat of 80 crores as against loss of 11 crores last year. Sequentially a stunning growth of 35% in bottomline.
Trading at ridiculously cheap valuations now for a software product company with great products. long way to go.

Disc: Invested

[Saplings Capital @CapitalSapling]

It isnt the software product enterpreneur that need to learn how to run a software product company, he has all the skillset, its the indian investor/vc community that needs to learn to value them to inspire risk taking for the enterpreneurs to dedicate their life to the pursuit.

[Saplings Capital @CapitalSapling]

Another large destiny deal for #intellectdesign in advanced markets in Canada.

[Saplings Capital @CapitalSapling]

The cost of keeping up with daily updates is the highjacking of mental faculties otherwise deployed to the tracking of always more rewarding BIG PICTURE.

[Saplings Capital @CapitalSapling]

Whilst there are always exceptions to the rule, a family owned business is likely to see better capital allocation, as money spent is their own, compared to a professional manager spending to accelerate growth in the small time periods for which they stick around these days.

[Saplings Capital @CapitalSapling]

Huge wealth creator. More to go. Hunger and drive personified! #BalajiAmines

[CNBC-TV18 @CNBCTV18News]

#BalajiAmines’ up 13% this week & over 300% this year so far. @_soniashenoy & @SurabhiUpadhyay speak to MD, D Ram Reddy who says that they will come up with the Acetonitrile plant next financial year. @sonalbhutra

[Saplings Capital @CapitalSapling]

The perfect stock doesnt exist, if it did, It would be priced to perfection, rendering it imperfect as a prospective investment.

Learning what to ignore is a journey that every investor has to take on route to long term returns.

[Saplings Capital @CapitalSapling]

Its no good having a great polished investment philosophy in theory, if what eventually reflects in your stocks is not the philosophy but the latest most popular fad.

[Saplings Capital @CapitalSapling]

MEHQ to come in H2 with company expecting to do 1400 -1500 crores revenues this FY.
Next year to see full benefits of MEHQ followed by trickling in of the large vanillin capacity.
Pilot project for Lockheed supplies in Fy24.
Margins to go to 20%.
Triggers nicely lined up.

[Saplings Capital @CapitalSapling]

Some companies that deliver future returns have hair on them to begin with.
#Camlinfine is one ex, has been going a transformation internally (not visible optically at present) and is now on strong footing with installation of commissioning of Diphenols capacity in Dahej.

[Saplings Capital @CapitalSapling]

Most importantly, no growth can be built on shaky grounds, the diphenols capacity establishes solid foundations for Camlin to now grow on without looking back.
A similar pattern was visible in a number of chemical companies that grew significantly over the course of last decade.

[Saplings Capital @CapitalSapling]

The worst an investor can do is paint every company in an industry with the same brush.

Lazy heuristics to be avoided at all costs.

[Saplings Capital @CapitalSapling]

Very good results from our Sapling #PrajIndustries, order book has almost doubled over the last year. Order intake of 660 cr vs revenue of 386 crores in quarter gone by.

[Saplings Capital @CapitalSapling]

#Praj zooming. Street started to realize the potential. Skeptics turning believers!

[Saplings Capital @CapitalSapling]

Ethanol might just turn to be the real deal this time round. With the govt taking steps such as reduced penalties, capex subsidies, ethanol price hike
Proof of the pudding lies in the eating :
Industry leader Balrampur is doing a large capex of 320 crores on the ethanol front.

[Saplings Capital @CapitalSapling]

In other news today, government today appointed GAIL as coordinator for implementation of CBG-CGD sync scheme, meaning that biogas generated from new CBG plants can now be ingested into the City gas distribution network in turn ensuring offtake.
Another biggy for Praj

[Saplings Capital @CapitalSapling]

Whilst people call themselves fundamental investors, truth is their conviction evaporates in the heat of a sharp correction leading them to question the same fundamental under the negativity that comes with falling prices.
Undercover momentum camouflaging as fundamental investors

[Saplings Capital @CapitalSapling]

You cant make money in the long term unless you get comfortable with the idea of not making money in the short term.

[Saplings Capital @CapitalSapling]

Only certain matters matter:

"Information is like food has a sell by date - after all, next quarter's earnings are worthless after next quarter.

Indeed, it could be argued that a running commentary obfuscates a discussion of the things that really matter."

:-Nick Sleep