Ugro capital has touched 200 DMA today. Correction was with low volume so indicating not much worry on technical front.

But recently company has started updating events and disclosure via whatsapp. I would take it as a red flag as when a company over emphasised its achievement to retail shareholders, “dal me kuch to kala hai…”

I want to know boarders view on that. Are there any other companies doing so? Is it a normal trend?

Yes, both the top and bottom lines have performed better than expected. This quarter’s margin improvement may be attributable to both the education and healthcare segments equally. This also suggests that the education sector had a disproportionate impact.

However, now that the fifth batch has entered, the education segment may not increase significantly in the next years. The only other levers in this segment are fee revision by the state government and the addition of MD seats (what does it take to obtain this permission?).

In Healthcare segment both the hospital’ number are given together. Difficult to know which part has improved. Given the numbers in the attachment, medical college bed occupancy and uses of other facilities is good now. But seems average stay days has to reduce. We cannot expect medical college bed to earn much but it being new facility there should be scope for further improvement (in additional to inflation) from here onward for few years.

clinical_material.pdf (266.9 KB)

With 250 crores of free cash flow currently, key monitorable will be how they invest it.

Disc: Invested

@Raj7800 how did you assume 400 rs/kg? Did the management provide?

All these developments notwithstanding, the best time to add Ireda would be when it corrects another 30-50% from here (it has already corrected 25% from the top). If you are buying a financial services company at 7-8x price to book and hoping to make returns you need to be extremely lucky.

Bajaj Fin, a gold standard in NBFC space, was trading at 10 p/b in October 2021. Stock has since been in a time correction giving negative return. Same goes for Kotak or HDFC bank. Nothing wrong with their fundamentals or earning performances. It’s just that their stocks ended up on wrong side of the valuations.