SMC Global Securities Limited

6️⃣Let's take an example: HDFC Bank vs Yes Bank As of recent years: 📊HDFC Bank → ROE ~17%, P/B ~3 📊Yes Bank → ROE < 5%, P/B ~1 The market pays a premium for consistency, trust, and governance 👉Both are “banks” — but the difference in valuation tells a story

Bonus tip: Read the book "The Little Book of Valuation" by Aswath Damodaran https://t.co/LPAl5nAVSB

9️⃣Ferro Alloys – IMFA (1.2%) Exports materials used in making stainless steel. Why she might like it: • Global demand is strong • Generates forex income • Good margins Key takeaway: She likes small exporters with strong balance sheets.

So what’s the common thread? She looks for: • Undervalued companies • Strong sectors • Long-term growth stories You won’t find flashy names in her portfolio. Just smart bets most people overlook.

8️⃣Specialty Chemicals – 20 Microns (1.3%) They make industrial minerals used in paints, plastics, and more. Why she might like it: • Very niche business with few competitors • Good export potential • Stable demand Key takeaway: Niche + essential = long-term winner.

5️⃣Fertilizers & Chemicals – Mangalore Chemicals & Fertilizers (1.8%) Part of the UB Group. Why she might like it: • Recent turnaround in business • Focus on improving profitability • Stable cash flows Key takeaway: Turnaround stories are often ignored till it’s too late.

🔟Oil Exploration – Selan Exploration (1.2%) Small oil producer operating in India Why she might like it: • Oil prices are rising • Company has no debt • Generates good cash Key takeaway: Tiny oil firms can be surprisingly profitable.

6️⃣Alcoholic Beverages – Som Distilleries (1.4%) Makes beer and liquor. Popular in North and Central India Why she might like it: • Consumer spending on liquor is growing • High margin business • Expanding distribution Key takeaway: Not all consumption plays are overvalued.

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