AVG
Last leg has begun ,it seems .
AVG
Last leg has begun ,it seems .
DHP performance in FY 2024 has been highly disappointing.
1. EBIT margin fell from 28% in FY 2023 to 7% in FY2024
2. Sales dropped by ~51% (from Rs 109Cr to Rs 53Cr this year)
3. What intrigued me the most is that despite the drop in sales and EBIT margin, the net profit and
EPS increased by ~12.7%. Upon digging further I observed two things:
a) Other income increased from Rs 1.6Cr in FY2023 to Rs 26.9Cr in FY2024. This means almost all of the net profit of Rs 26.4Cr is driven by this increase in other income.
b) The tax rate in dropped ~25.8% in FY2023 to ~13.5% in FY2024.
There are two primary conclusions from these observations:
Counterviews invited.
Order from BHEL.
Debt levels are comfortable and they can service it with surplus cash flows and internal accruals which they have already said in their earnings call. I still feel it is undervalued considering the valuation of Wheels India. Holding it.
They did clarify that it will be infused back to IWL.
ef7faa40-3f75-49ff-899c-7898dea6bd55.pdf (871.4 KB)
" Inox Wind Energy Limited raises ~ Rs. 900 Crore through Sale of Equity Shares of Inox Wind Limited; significant step towards completely deleveraging external debt in IWL
• Inox Wind Energy Limited (IWEL), the promoter of Inox Wind (IWL), successfully raised ~ Rs. 900 Crores through sale of equity shares of Inox Wind via block deals on the stock exchanges
• Transaction witnessed strong participation across marquee Institutional Investors"
The funds raised are proposed to be infused into Inox Wind Ltd to pare down Inox Wind’s debt and augment the working capital needs of the company thereby strengthening its balance sheet further.
Anlon Technology conducted 1st concall yesterday, Good insights about an SME company in a niche segments. Here’s the recording:
You will keep holding this till election results or after that?
The good top line growth on QoQ and future capex plan. Listen to concall to get more clarity.
The story of Unihealth is shaping up quite well. With expansions in bed capacity, superspeciality servies, new consultancy projects and increasing distribution sales, there are many growth drivers in place to achieve very good medium term growth.
With lack of competition in Africa, there shouldn’t be any competitive pressures on the company that can hamper its growth plans. (In India it remains to be seen how they shape up against their competition)
The management is also extremely competent in the way they’ve scaled the business and how they communicate their future plans
Only real risk is currency depreciation as it played out this year. But management is taking active steps against reducing this risk.
Also, cash flows, working capital and margins should increase once superspeciality services, consultancy services and newer geographies start contributing to its sales.
So, business quality wise as well, the company is in the right direction.
DISCLOSURE: INVESTED AND PLAN TO ADD MORE AS THE COMPANY EXECUTES ITS PLANS
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