Results:
Significant margin drop is observed in Q3FY24 in the distillery segment (14% → 11%) irrespective of the uptick in revenues at Batinda as well WB plant.
Need to check with management whether the hike in the ethanol price from Jan can get the EBIT margins back to 15% level or not.
There is some inventory gain in this Quarter either in Oil or distillery segment, if i exclude that then results are not so good due to margin pressure.

HBL Power corrects 9.8% with more volume. There is a blood bath in Mid and Small cap stocks. Still some good stocks have not corrected. Even if they have corrected, it is marginal .

What could be the reasons for this sustained correction in HBL stock in spite of good results.

The possible reasons could be…

1. Tonbo Imaging India Private Limited (Tonbo)
   Board noted that an amount of Rs. 86.67 crores was invested in 2023. Although, the plan was to
   invest Rs 150 crs, a higher valuation was expected by Tonbo for the balance, which was not
   accepted by HBL. No further investment in Tonbo is proposed.

Market apprehension might be that this developement may affect future cooperation between the partners .

2. The recent announcement of Lithium Cell mfg when the Li cells price have fallen substantially.

I may be wrong.

Discl: Invested.

Have entered the stock at record low valuation , reason being it trades a record low valution seems like a cyclical stock where margins depends on cotton prices and peak margins have been 20% a year at current sales it amounts to 400cr ,that gives it a pe of under 10.

I feel there is no survival issue for this company as there is hardly any debt ,only thing which is a negative for me is debtor days and the how debtors are increasing YoY.Which makes it clear this is not a great business but paying pe of 30 right now at its lowest for a brand which is known by everyone in the country does seem cheap to me.

Disc:invested as a cyclical bet recently.

Any one tracking this company can highlight the reason for such low valuations

Hello kowshick_kk

Can we shortlist company based on who is publishing first time ever Investor Presentation or ConCall?

Any update on monthly subscription plan?