Since last one week, I've been analyzing new opportunities (MAZDA, PEL) and find that maybe, they're safer bets compared to IGL. No doubt IGL is a good business, but given the risk / reward ratio, I'd be more comfortable to put my bet on MAZDA due to a simple business with decent moat, able management, small enough to keep growing and a good deal of undervalued stock, and PEL due to skills of Mr. Piramal and the fact that this company has a lot of cash to look out for good opportunities, and I'm getting an entry into drug discovery + pharma + healthcare analytics as a debt capacity bargain.
Hence, I bought some more yesterday at rs 256 and finalize the infusion in IGL. I'll stop for now, and only think again about IGL if
1. It drops below Rs 200 with no further degradation in fundamentals
2. I have surplus cash and no other better opportunity (after exhausting the limit of 7% on MAZDA and 10% on PEL)
I still have some position and can benefit the rise in IGL due to PNG growth in NCR, which is my primary reason to like the stock. And due to small concerntration in portfolio, the risk of further pricing regulation is contained.
Next post, to resolve confusion on SRF and take a call for reducing or maintaining the position...
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