Female Investor Shivani Trivedi Invests in Two Profit-Struggling Companies

Investor Shivani Tejas Trivedi, who manages a portfolio of Rs 964 crore comprising 12 stocks and saw a 7% growth last quarter, has recently acquired stakes in two companies that are currently experiencing financial headwinds: Tamilnadu Petroproducts Limited and High Energy Batteries (India) Limited. Trivedi purchased a 2.1% stake in Tamilnadu Petroproducts for about Rs 22 crore and a 1.5% stake in High Energy Batteries for nearly Rs 8 crore.

Tamilnadu Petroproducts, a petrochemical manufacturer, has shown sales growth of 8% compounded annually over five years, but experienced fluctuations and a decline in EBITDA and net profits in the last two years. Despite this, its share price has surged over 200% since November 2020. The company trades at a PE of 15x, lower than the industry median of 20x.

High Energy Batteries, which manufactures batteries for defence and commercial use, has seen modest sales growth of 6% over five years and a decline in recent years, along with a volatile EBITDA and fluctuating net profits. However, its share price has jumped over 700% since November 2020, though it is trading at a premium PE of 38x against the industry median of 33x.

The key question is what prompts Trivedi, a respected investor, to invest in these companies despite their current profit struggles. Investors are keen to understand if she foresees a significant turnaround or if there are underlying growth drivers not immediately apparent in the financial statements.

Impact: This news is relevant for Indian investors interested in the strategies of prominent individual investors. It highlights potential investment opportunities and the rationale behind them, encouraging further research and watchlist additions for those who follow such strategies. Rating: 6/10

Heading: Difficult Terms and Meanings * **Petrochemical**: Chemicals derived from petroleum or natural gas used to make plastics, synthetic fibers, and other products. * **EBITDA**: Earnings Before Interest, Taxes, Depreciation, and Amortization. It's a measure of a company's operating performance. * **PE Ratio**: Price-to-Earnings Ratio. It's a valuation metric that compares a company's stock price to its earnings per share. * **Dividend Yield**: The annual dividend per share divided by the stock's price, expressed as a percentage. * **Dividend Payout**: The proportion of a company's earnings that it pays out to shareholders as dividends. * **Macroeconomic Climate**: The overall state of the economy, including factors like inflation, interest rates, and economic growth. * **Geopolitical Uncertainty**: Instability caused by political and international relations, which can affect markets and businesses. * **Lacklustre Market Growth**: Slow or weak growth in demand or sales within a particular market.