With the price difference and ever increasing electricity cost, I assumed that air coolers will make a dent but all indications seems to prove me wrong. You maybe right.
Posts in category Value Pickr
Centum Electronics (21-01-2024)
Centum Electronics is trading at a market capitalization of INR 1,900 CRORE (approx.) at a P/E of 143 times. The stock is very expensive and doesn’t offer a good entry point at the current levels in my opinion.
Key points:
- Management expects EBITDA to be around 10% for FY24 and around 13-15% over the next few years, meaning that it is not going to generate SIGNIFICANT PROFITS and the stock would remain expensive unless it corrects atleast 30-40% from here.
- Management expects EV / Cleantech to be growth drivers of the future
- EMS business is growing well, on the back of China + 1 strategy with a lot of businesses looking to de-leverage their supply chains.
- BTS is a high margin segment (20% margins) but has a long execution period (>2 years). Margins from EMS hover around 9-12% with project execution of 6-12 months. R&D is lagging behind due to loss making subsidiaries, management expects margins from R&D segment to be 10-11% in the long term with project execution of 6 months.
- Order book is INR 1,548 CRORE as at 30 September 2023.
- In general management has not given detailed breakdown of order book, clients, growth drivers, new initiatives / deals. No comment on deals with Indra OR Rafael, apart from the fact that they are in progress and such deals take time to come to fruition.
I’ve done a detailed breakdown in this article – Betting on Space [Part 2]: Centum Electronics and MTAR Technologies
Disclosure: Tracking, would invest only if the stock correct atleast 30% from the current levels
The PSU Rally- Could Another Ketan Parekh Jack Up Prices Now? (21-01-2024)
Thanks. I have not entered late. Thats why the tremendous surge in their value is unnerving to me. I am sure many share holders have experienced this speeded up movie of turning of larva to butterfly before their eyes for the first time.
Ranvir’s Portfolio (21-01-2024)
One of the portfolio threads i consistently read.
If you dont mind answering, how do you crop as whatever happens a single stock doesn’t impact portfolio to much extent. Same on adding a stock.
Use of Large Language Models For stock research (21-01-2024)
Can you please explain, you put 20+ documents of conf calls, what prompt you gave & how it performed?
The PSU Rally- Could Another Ketan Parekh Jack Up Prices Now? (21-01-2024)
Look at these shares and and number of shareholders you will see massive delta between 2022-23 and today.
But in agreement on massive divergence between stock move and fundamental results. Is manipulation probable. Maybe. It is more of Retail Fomo. I beleive in next two years it will diverge again to the downside.
SYMPHONY – A Comfort to hold for Long term? (21-01-2024)
Large part of India is humid and as such coolers don’t work well. Secondly, air conditioners have become cheaper over time. Thirdly, the competition is fierce in the cooler space and customers are more price conscious.
It is difficult to make a case for large sustained growth in the segment by any company in India.
IDFC First Bank Limited (21-01-2024)
Indusind’s QoQ PAT is in growth trajectory with consistent tax rate.
The PSU Rally- Could Another Ketan Parekh Jack Up Prices Now? (21-01-2024)
I think the main point with PSU rally is operational improvements and increased Profits… like NPA cleanup in banks have led to increased profit … same case with management changes in other psu’s… have created the rally… so now the question is until when it will go on 
… i think the profits increasing is good thing … the issue comes with top line growth… psu’s will have very minimal top line/revenue growth compared private ones… and if profits are appropriate, prices will sustain but wont rally further if top line is not growing… thats the time to sell or take out initial investment atleast and leave the rest for dividend 
…
Avantel (21-01-2024)
Watch out small space satelites and radar space
This market is going to expand and companies like avantel if they get 150cr order , its more than sufficient for them to grow at decent rate