So the mount 19K on Nifty and 64K on Sensex are behind us. The market has made a classical- nobody could guess kind of a breakout on the upside, opened higher, and climbed both the erstwhile life highs and the new highs as I mentioned without much fuss. Anybody who went home last Friday couldn’t have believed any such move was even remotely possible and this is exactly what I have been discussing with my friends and in the https://zerotomillion.business.blog/2023/06/20/life-highs-2-0/ .
And today’s move on TaMo to ₹590, which is almost its lifetime high is a tribute to the inherent strength in this stock and this bull market which to nobody’s realisation is being led by the two duds of the past 8 years- TaMo and ITC. Yes, people haven’t still noticed that TaMo is up 50% YTD, while ITC has doubled in the past one year and still people are obsessing about Asian Paints and HDFC twins and what not.
Though TaMo didn’t cross ₹600 today but I’m sure it’s only a matter of a few days that it breaks out of this eight year range and finally regain the lost glory, just like the cars it produces these days. And am I Delighted? Yes I am! For I hold this stock going back December 2017 and have seen it plunge from ₹430 odd levels to ₹60 in 2020 and then all the way back to where it is today. Here’s a link to my first blog, written in May 2021 when I narrated my thoughts on this issue, reiterated in multiple earlier blogs, especially the Hello Tata and Hello Tata 2.0!
So what do I feel is happening now! I believe that once a stock breaks out of a multi year range, for ex, HUL in 2014 or Reliance in 2016 or ITC in 2022, it at least doubles in the next one or two years to make up for the lost time on returns. And of course in the meantime, news changes, more positive news and developments happen, company cleans up its balance sheets, restart paying dividends, demerge here and there etc. This all is the accompanying cheerleaders which allow new money to pile in and stock to move higher. TaMo has been a dud for 8 years and just as the company, the stock has to reimagine itself now.
People’s hatred for this stock is legendary, worse than that for ITC. People come on TV and criticise it just like the left criticise the RSS. It is almost intellectually suicidal to buy TaMo. Well, my conviction in it goes back 2017 December and I’m all too happy to keep holding on to what I own currently and possibly buy if I can. The vision to see, courage to buy and patience to hold is easier said than done!
I hold a consistent view that it’s not a ₹2 lakh crore company but at least a $100Billion market cap company, which is ₹8lakh crore company. I might be wrong but even if I miss the target by half, it’s a ₹1200 stock.
I also would remember the legendary investor, Shri Rakesh Jhunjhunwala who came on TV and announced his stake in TaMo with the same belief which made me buy and add- a company with ₹3 lakh crore sales can’t be trading at 20000 crore market cap! The sales this year are likely to be at least ₹4lakh crore and so should be the market cap!
Cheers on a new high!
Life is all about Compounding! 