Its always complex to find what is justified or not. BTW, Dmart has similar EBITA of 4000cr and market cap of 3.1 lakh crore. Their growth is also significantly lower. not sure if that helps.

The financials looks attractive is a company in such a capital intensive business earning 70% OPM and is almost debt free? IS there something unique about their business model or is the books bogus ?

Update for entry on 05th August 2024

50EMA (17016) > 200 EMA(15000); hence, we can continue without any change.

Based on ranking:

1. COCHINSHIP
2. GRSE
3. POWERINDIA
4. HUDCO
5. GLENMARK
6. 360ONE
7. ARE&M
8. JAIBALAJI
9. GRANULES
10. SCHNEIDER
11. NUVAMA
12. HSCL
13. MOTILALOFS
14. KPIL
15. SUVENPHAR
16. ANANDRATHI
17. BLUESTARCO
18. SIGNATURE
19. DOMS
20. VGUARD

Based on A → Z for easy tracking:

• 360ONE*
• ANANDRATHI
• ARE&M
• BLUESTARCO
• COCHINSHIP
• DOMS
• GLENMARK
• GRANULES*
• GRSE
• HSCL*
• HUDCO
• JAIBALAJI
• KPIL
• MOTILALOFS*
• NUVAMA*
• POWERINDIA
• SCHNEIDER
• SIGNATURE
• SUVENPHAR*
• VGUARD

Exits:
AEGISLOG, EXIDEIND, GODFRYPHLP, JWL, NBCC make an exit.
APARINDS stays within the top 25 and hence remains.

Entries:
360ONE, GRANULES, HSCL, MOTILALOFS and NUVAMA make an entry.
SUVENPHARM cannot enter as there is no vacancy.

The 24-29x PE is on current MCap if you consider the FY25 PAT range of 187-221Cr. At FY25 exit, market may value this at 35-36x PE on 220Cr earnings leading to an ~8000Cr MCap. Alternatively, on Price to sales, the stock has traded at 2.2x median multiples over the last 5Ys. On an FY25 expected revenue of ~3500Cr, a 2.2x multiple is again close to 8000Cr MCap.

The expected MCap is completely speculative from my side, it depends on market conditions prevailing at the time and many other factors. We can just track earnings and hope to project them with some accuracy.

Update for entry on 5th August 2024

50EMA (23075) > 200EMA (20039); hence, we can continue without any change.

Based on ranking:

1. TECHNOE
2. PURVA
3. WOCKPHARMA
4. TVSHLTD
5. BASF
6. ZENTEC
7. IFCI
8. KIRLOSBROS
9. CHOICEIN
10. KIRLOSENG
11. WABAG
12. NAVA
13. STAR
14. RTNPOWER
15. SHARDAMOTR
16. KPIGREEN
17. NEULANDLAB
18. KESORAMIND
19. ANANTRAJ
20. SUDARSCHEM
21. NETWEB
22. TIMETECHNO
23. VOLTAMP
24. DHANUKA
25. JYOTICNC

Based on A → Z for easy tracking:

• ANANTRAJ
• BASF
• CHOICEIN
• DHANUKA*
• IFCI
• JYOTICNC
• KESORAMIND
• KIRLOSBROS
• KIRLOSENG
• KPIGREEN
• NAVA
• NETWEB
• NEULANDLAB*
• PURVA
• RTNPOWER
• SHARDAMOTR
• STAR*
• SUDARSCHEM
• TECHNOE
• TIMETECHNO
• TVSHLTD
• VOLTAMP*
• WABAG
• WOCKPHARMA
• ZENTEC

Exits:
AZAD, ELECTCAST and THOMASCOOK make an exit.
TIDEWATER stays within the top 30 and hence remains.

Entries:
NEULANDLAB, STAR and VOLTAMP make an entry.
DHANUKA cannot enter as there is no vacancy.