The hotels took a bad cycle during that phase due to over capacity and also due to whole Real Estate sector suffering. On top of that they had alot of leverage so execution was tough. The real question here to answer is given the FCF generation and potential to delever in the next few years is Samhi cheaper than the peer group? do they deserve a better multiple?
Posts in category Value Pickr
Samhi Hotels – Turnaround with Tailwinds (18-07-2024)
The hotels took a bad cycle during that phase due to over capacity and also due to whole Real Estate sector suffering. On top of that they had alot of leverage so execution was tough. The real question here to answer is given the FCF generation and potential to delever in the next few years is Samhi cheaper than the peer group? do they deserve a better multiple?
KEI Industries Ltd – A consistent performer over the last decade (18-07-2024)
I am not expecting a derating as such. Even though this company has amazing fundamentals and a very clean management, I don’t think current valuations are even close to fair valuation.
I am expecting a time correction and let the fundamentals catch up to these stock valuations. And if not, if there is a price correction, that is even better. Polycab, which is a much bigger player in this category, has a PE close to 50. KEI is now at 70.
As of now, price is running ahead of Fundamentals and this is not sustainable.
KEI Industries Ltd – A consistent performer over the last decade (18-07-2024)
I am not expecting a derating as such. Even though this company has amazing fundamentals and a very clean management, I don’t think current valuations are even close to fair valuation.
I am expecting a time correction and let the fundamentals catch up to these stock valuations. And if not, if there is a price correction, that is even better. Polycab, which is a much bigger player in this category, has a PE close to 50. KEI is now at 70.
As of now, price is running ahead of Fundamentals and this is not sustainable.
KEI Industries Ltd – A consistent performer over the last decade (18-07-2024)
Its a little tricky phase. With this pace it might very well break 30 weekly ema which indicates sell…but on the other hand, upcoming budget may continue to spend in infra which will need cable and wires extensively which can benefit KEI. Though in general 70PE is considered high for sure. Open for thoughts
KEI Industries Ltd – A consistent performer over the last decade (18-07-2024)
Its a little tricky phase. With this pace it might very well break 30 weekly ema which indicates sell…but on the other hand, upcoming budget may continue to spend in infra which will need cable and wires extensively which can benefit KEI. Though in general 70PE is considered high for sure. Open for thoughts
Samhi Hotels – Turnaround with Tailwinds (18-07-2024)
Two More risks I observed .
- Sudden Switching the rating agencies
- I watched the 2013 Interview of Ashish Jakhanwala when there were only 3200 keys ,he gives the guidance of adding 1000-1200 key every years and it’s 2024 they only managed to add 1600 in 11 years.
Just presenting my research, 100% of my holding is in this single stock, no recos
Samhi Hotels – Turnaround with Tailwinds (18-07-2024)
Two More risks I observed .
- Sudden Switching the rating agencies
- I watched the 2013 Interview of Ashish Jakhanwala when there were only 3200 keys ,he gives the guidance of adding 1000-1200 key every years and it’s 2024 they only managed to add 1600 in 11 years.
Just presenting my research, 100% of my holding is in this single stock, no recos