@Kunal7 DMA or EMA have no impact on the list; hence you need not worry about them. Please look at some of the other points I mentioned in my previous post.
In any case, I will upload the latest sheet tomorrow for your reference.
@Kunal7 DMA or EMA have no impact on the list; hence you need not worry about them. Please look at some of the other points I mentioned in my previous post.
In any case, I will upload the latest sheet tomorrow for your reference.
Hello @Kunal7 I will update the sheet for entry next week and upload that sheet for your reference.
In the meantime, you might consider the following:
Hello @Kunal7 I will update the sheet for entry next week and upload that sheet for your reference.
In the meantime, you might consider the following:
This is really helpful, so turns out my understanding was incorrect.
This is really helpful, so turns out my understanding was incorrect.
My thoughts on the latest guidance given by the promoters.
Volume growth: The management hinted towards growing the volume to 6lakh tones per annum for FY25. For them to achieve this number they will have to grow volumes by 36% annually (which they say is possible because of the factors like: Road infrastructure development and aftermarket, government spending)
Realizations: Better EBITDA per tonne and margins are expected in this financial year. If they are able to achieve realizations around Rs. 3900 per tonne. Then with the estimated volume growth they should be able to achieve an estimated EBITDA of =6,00,000 * Rs 39,000 = Rs 234Cr approx.
If we keep the pat margins unchanged (keeping the interest cost similar for the sake of the calculation) then the company should achieve a pat of approx Rs148 Crs with EPS of = Rs148 / 1.50 = Rs 98 (100 round off)
So can anyone from the esteemed members help me understand how does the valuation part work here: Company is trading at a P/E multiple of 11.60x for FY25 (considering this is the best case)
Even if the company’s realizations do not improve and remains same then also they will be able to do an EBITDA of 216Cr (@Rs 36,000 realizations) and a pat of 130Cr
Why is a company poised for growth is trading at this valuation. What are the risk factors here that the investors are taking into account?
Also the management has hinted towards doubling the volume in the next 2-3 years. So where does the valuation part lies. how should we value a company like this which claim that it is the largest bitumen logistic suppler player in the country.
As a disclosure, I am invested in the company and am trying to evaluate whether one should hold or dig deeper to find value.
My thoughts on the latest guidance given by the promoters.
Volume growth: The management hinted towards growing the volume to 6lakh tones per annum for FY25. For them to achieve this number they will have to grow volumes by 36% annually (which they say is possible because of the factors like: Road infrastructure development and aftermarket, government spending)
Realizations: Better EBITDA per tonne and margins are expected in this financial year. If they are able to achieve realizations around Rs. 3900 per tonne. Then with the estimated volume growth they should be able to achieve an estimated EBITDA of =6,00,000 * Rs 39,000 = Rs 234Cr approx.
If we keep the pat margins unchanged (keeping the interest cost similar for the sake of the calculation) then the company should achieve a pat of approx Rs148 Crs with EPS of = Rs148 / 1.50 = Rs 98 (100 round off)
So can anyone from the esteemed members help me understand how does the valuation part work here: Company is trading at a P/E multiple of 11.60x for FY25 (considering this is the best case)
Even if the company’s realizations do not improve and remains same then also they will be able to do an EBITDA of 216Cr (@Rs 36,000 realizations) and a pat of 130Cr
Why is a company poised for growth is trading at this valuation. What are the risk factors here that the investors are taking into account?
Also the management has hinted towards doubling the volume in the next 2-3 years. So where does the valuation part lies. how should we value a company like this which claim that it is the largest bitumen logistic suppler player in the country.
As a disclosure, I am invested in the company and am trying to evaluate whether one should hold or dig deeper to find value.
When a company operates in losses for some years, it doesn’t have to pay taxes for the subsequent profit years till the time they don’t cover their losses.
i am using smallcap momentum ratio 6 the latest file…i have not changed things at all. May be i added ema 50, 200 as per Visuarchie sir how to put ema video and not removed Dma maybe. i will try remove dma then see it if it matches or not. I have got new secondary demat account so i can start on monday.
So they are redoing the entire plant. Their intention is to produce HR Coils and preferably be a green steel plant.
The company is bought mainly to get the linkages, land and also available permits. They are not going to sell billets.
Listen to the videos I have posted above. Gives an accurate summary of management thought process.
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