Thank you.

just comleted reading thoughtful investor. i think its best book on stock investment for indian investors. basanji is our desi peter lynch with consentrated portfolio. this is not flaterry just because i am a blogger here but really passion of auther, his deep
knoledge on the subject and willingness to share it with others is truelly remarkable. i have recomended
our KOLHAPUR INVESTOR ASSOTION and other friends to buy,
invest in this book which will suerlly give manyfold retuns.
congrates basantji

I have just read the book and have mixed feelings about it.
The main takeaways seem to be that an investor should go for stocks in a secular industry. Was surprised to note that most of what are considered Bluechip stocks are not secular but merely surviving on their past history of being monopolies.
Another takeaway was that an average investor should go for the well established large cap stocks that show an increase of 20% Y-o-Y. While they will not deliver phenomenal returns, they will deliver above average returns in the long term. There are several that meet this criteria.

Confusing for me though was applying the principles to a stock like Hawkins at CMP of 3,530. The Sales and NP have not done anything remarkable since 2010. There are several companies that have more than doubled their Sales and NP since 2010. In fact the NP margins have come down! So while Basantji invested in this prior to margin expansion and says he will hold this share based on the growth story, my question is whether it really meets the principle of the stock giving phenomenal returns even from this point based on the track record since 2010?

Would you put money in Hawkins today at Rs. 3,530?

Trying to understand...