Reading expectations investing book and I am confused on how to calculate the capital investment and working capital increase needed for the projected growth. Any guidance is appreciated

Apologies in advance for not providing a yes or No answer.

My first question would be wait for what? It’s a Hot company in Hot sector that is growing at ~30% (both top line and bottom). It will most of the time, trade at premium valuation (up-to you to define what premium means here).

You need to define what is that you are waiting for to make it meaningful and more importantly actionable.

For ex. If the price dropped to 500, would you buy? I know it’s not the answer you were looking for BUT life would be so much easier if other members would just give entry/exit points and people made money on those calls

Hello a newbie investor here. The stock is almost lower than 30% than its ATH price (It is at 540 from 789). Also seen that the stake of FIIs increased in Sep’23. While the stake of promoters decreased further

Is it a good time to take an entry or should we wait further?

J&K Bank (cmp 107) chart posted below shows key resistances crossed at 66 and 93, marked in dotted blue horizontal lines. Structure on weekly chart is a rounding structure. On way up, key resistances are marked in dotted red horizontal lines at 118.50 and a weekly gap down area of 128-133. And finally previous all time high of 195.

Company posted good quarterly results yesterday, press note of which is attached. disc: invested. (not a recommendation, anyone contemplating investing needs to do their own diligence)
JK Bank q2 fy 24 press release.pdf (281.7 KB)

Titagarh Wagons Q2 FY24 Concall Highlights

Order Book

• Received LOA from GMRCL for Design, Manufacture, Supply, Testing, Commissioning & Training of 30 nos. of Standard Gauge Cars for the Ahmedabad Metro Rail Phase-II Project with an order value of appx Rs. 350 Cr.

• The company has finalized significant wagon orders from private customers in the past few months (~Rs 1200cr), thereby taking the wagon order book from private players to ~26% of the overall FTRS order book

• The Company has achieved the highest-ever dispatch of wagons i.e., 759 wagons in September 2023

• The company has launched the first Diving Support Crafts (DSC) which will be inducted into the Indian Navy’s Southern Naval Command Clearance Diving Teams (CCDT) and will provide diving assistance during underwater repair, maintenance, and salvage operations on ships inside designated harbours

• The order book mix of private wagons and freight wagons keeps on changing each quarter

Margins

• The private orders margins are normally higher

• Given the company now has higher efficiency and more volumes, the margins should sustain in the 11% range in the long run for the freight wagon business

• The low margins in PRS of 2-3% are due to low volumes. As the volume increases to about 15-20 cars a month, which they expect they can achieve by Q2 FY25, the margins should increase to around 10%. Once the backward integration is started (the propulsion and components business), they can see another 2-3% improvement in EBITDA margins in the business

• The current strategy currently is to be in the train ecosystem with forward integration in the Vande Bharat space and backward integration in the components space

• On receivables- The receivables have grown substantially this quarter. However, according to the management, these are normal receivables and not overdue receivables and the management is not worried about it

• The industry is an open industry and anybody can enter the industry. Normally, a new entrant takes around 3-5 years to become a regular manufacturer

• The wagons are a domesticated industry since the logistics costs are generally very high