Great Stuff has happened over the weekend. Focused reading on a very important point about Value Investing: Moat. Yes, one single word can make the difference.
Finalized, scrips which I can confidently invest in. Yes, they have Moats. I will present proof.
These scrips are well known, generally profitable but currently unpopular for their own reasons. Being Completely dependable is the very first criterion.
Then is the price, to make sure I am getting more value for my rupee.
The 1st in the List is Bhel. It is still profitable. It is not in a cyclical industry. The demand for power equipment will be fair to good at least for another decade.
Second, is Engineer India Ltd. Same logic.
Both these will give Div Y of 3% plus at CMP.
Third, is Opto Circuits. This company is a little shady, when compared to the above two. Yet, is very solid. It is a leader, showing strong growth in sales, RoE, RoCE, Div Payout. Ratios are attractive. D/E is moderate.
Company has a risky profile as it has spend a lot of cash in acquisitions. But, the core company has strength to absorbs failures.
So, am looking to invest in the next downleg of Nifty in:
1) Bhel
2) EiL
3) OptoCircuits