Two things that comes to my mind regarding this business model,

One I think the segment they cater to i.e: banks and nbfc are different – example the loan realisation amount per gram of gold and tenure is different for both guys, so interest rate is inversely proportional to the loan amount per gram.

Two, though I m sure they would have taken insurance and put adequate measure against theft being carried on the transit, still I feel like people would prioritize the safety more . Ex: customer may not be able to tell that the gold returned from loan/locker is original not a counterfeit

Ofcourse people who are in the business will figure out a way to earn the trust eventually

However, Facilitator such as shouldn’t disrupt the business of the likes of muthoot and manapuram, atleast not in near to medium due to stringent regulatory environment we are currently in (Paytm saga).
But they can tie up with the platform such as this (indiegold) once and if they are successful, like after it’s adopted as a norm by the general public

So all in all, I don’t see them or any sort of tech driven player especially in finance as threat to any conservative lenders (with better asset quality), atleast not in the medium term.

The new management seems to have a fair understanding of buizz. With new QIP we may see some investment in capex and balance to repay debt. With valuation at which time technoplast trades and improving fundamentals and company moving to debt free bullish about re-rating of company.

Invested no trades recently.

Interesting Stock of green energy sector: Given stock price of ₹565, let’s calculate the forward Price-to-Earnings (P/E) ratio for Sahaj Solar based on an assumed annualized EPS of ₹16, and then compare it to the average P/E ratio in the green energy sector.

1. Forward P/E Ratio Calculation:
   Current Stock Price: ₹565
   Assumed Annualized EPS: ₹16
   Forward P/E Ratio
   =
   Current Stock Price
   Projected EPS
   =
   565
   16
   =
   35.31
   Forward P/E Ratio=
   Projected EPS
   Current Stock Price
   ​
   =
   16
   565
   ​
   =35.31

2. Comparison with Sector P/E Ratio:
   The green energy sector typically has higher P/E ratios, often between 40 and 50 due to the growth potential in renewable energy. This places Sahaj Solar’s forward P/E ratio slightly below the sector average, which could suggest it is reasonably valued or slightly undervalued relative to its peers​
   Citation: CHITTORGARH.COM
   ​
   INVESTORGAIN
   .

3. Expansion Plans:
   Sahaj Solar aims to use proceeds from its recent IPO primarily for working capital requirements and general corporate purposes. The company focuses on expanding its manufacturing of high-efficiency solar modules (including monocrystalline PERC modules with >21% efficiency) and providing integrated EPC services across India. This expansion aligns with India’s increasing demand for renewable energy solutions, providing Sahaj Solar with potential growth opportunities in the sector.

The company has 630 crore of debt with debt/equity of 2.19. I am trying to understand the management’s response:

The debt that we have on our books is essentially for bill discounting. So, our vendors have a facility where they can take payments and they can discount their bills whenever they want. So, we have a CC limit from the bank, and we use it because we want to be one of the best paymasters in the industry.

Is it a standard practice in the industry? A company taking debt and paying an annual interest to keep their vendors happy? I am sure it affects the financial ratios of the company. Can someone explain how is it working.

The problem with selling sich a stock in this kind of market is that everything is overvalued. So it means choosing cash. I would value it at 60 p/e. So there is 20% downside risk that I see.