Thanks for your note. What’s your rationale of giving 30xPE, if a company is sustainably growing revenues at ~20% and EPS ~30% (operating leverage)? First of all, why 30x to FY24 and not FY25. Assuming 30x multiple on FY25 earnings would imply market cap of ~7000 cr. To me 30x is minimum for a company with strong moat, high pricing power, sustainable earnings growth, ROE above 20%, zero debt and good corporate governance. With more parks to come, stock can easily give 30% CAGR if management executes well on its guidance.
Posts in category Value Pickr
Simple Investing (03-01-2024)
Thanks @Surender for your practical and data driven comments. I somewhat agree with you above that in most companies I hold, relating of PE looks dim as they are already highly valued.
This is a big exercise for me to streamline and jot down my thoughts. Would try to do that someday for each stock. For now, to give you a brief of it is exactly what Hiteshji mentioned…to hold such stocks we need a different mindset. It seems data would hardly support an investment thesis in most of these. Future growth drivers are also like sharing a common vision with the promoters & management we trust based on the journey done together in terms of holding and tracking company’s evolution and decision making in both good and bad times……
I would say the process and mindset is more qualitative than quantitative in such cases. For eg. having seen Tata consumer evolve from global focused global beverages to domestic food play consumer products……who would have anticipated each and every piece of this journey except a shared vision and hope? And as hope shapes up as reality you tend to gain further conviction even on the upside….
disc: invested & biased. Not eligible for any advice. Post only for academic purposes. I can be wrong in all my assessments.
Simple Investing (03-01-2024)
Thanks @Surender for your practical and data driven comments. I somewhat agree with you above that in most companies I hold, relating of PE looks dim as they are already highly valued.
This is a big exercise for me to streamline and jot down my thoughts. Would try to do that someday for each stock. For now, to give you a brief of it is exactly what Hiteshji mentioned…to hold such stocks we need a different mindset. It seems data would hardly support an investment thesis in most of these. Future growth drivers are also like sharing a common vision with the promoters & management we trust based on the journey done together in terms of holding and tracking company’s evolution and decision making in both good and bad times……
I would say the process and mindset is more qualitative than quantitative in such cases. For eg. having seen Tata consumer evolve from global focused global beverages to domestic food play consumer products……who would have anticipated each and every piece of this journey except a shared vision and hope? And as hope shapes up as reality you tend to gain further conviction even on the upside….
disc: invested & biased. Not eligible for any advice. Post only for academic purposes. I can be wrong in all my assessments.
SmallCap Hunter : Trying to find the dark horses with triggers (03-01-2024)
Such items are really commodity with no right to win… It might so happen that company gets couple of big orders from state governments or civic bodies etc … but cant imagine making a big impact
Malolan
SmallCap Hunter : Trying to find the dark horses with triggers (03-01-2024)
Such items are really commodity with no right to win… It might so happen that company gets couple of big orders from state governments or civic bodies etc … but cant imagine making a big impact
Malolan
Companies with 20%+ growth guidance for next few years (03-01-2024)
A newbie here. Apl apollo, a market leader, has projected a growth rate of 20+%, here a report of icra enclosed. Steel prices are price projected to bottom out by mid 2024. Any comments are appreciated.
[APL Apollo Tubes Limited.pdf|attachment]
ICRA Limited)404.3 KB)
Disc: invested for last two years
Companies with 20%+ growth guidance for next few years (03-01-2024)
A newbie here. Apl apollo, a market leader, has projected a growth rate of 20+%, here a report of icra enclosed. Steel prices are price projected to bottom out by mid 2024. Any comments are appreciated.
[APL Apollo Tubes Limited.pdf|attachment]
ICRA Limited)404.3 KB)
Disc: invested for last two years
MSTC Ltd.: Growth through to E-Commerce (03-01-2024)
Hello Pranshinv,
Where do you get this data ?
MSTC Ltd.: Growth through to E-Commerce (03-01-2024)
Hello Pranshinv,
Where do you get this data ?
SmallCap Hunter : Trying to find the dark horses with triggers (03-01-2024)
Ketan your inputs are priceless and yes the chips are loaded against India in solar modules . but it seems this Waree seems to be making a big break with a large order from American majors who are looking for China alternatives … they must be knowing something which all of us sceptics cant fathom …
Malolan