I took out this year`s scrapping data for CY24, forget about MSTC share but the total vehicles which have come for scrapping to all the 120 facilities all India (Certificate of Deposit) is 31K, whereas MSTC would have a share of around 8K so 35%
too low for any meaningful business profit.

Positives:

• Nucleus releases a new module/update every year increasing value of product
• Being in fixed price contracts, the price escalations take time while wage inflation impacts EBITDA margins
• The contracts are usually 3-7 years long, with repricing followed at the end of the life
• Considering 2022 as the year of reprising and low EBITDA margins due to “The Great Resignation”, the same repricing can be considered to occur from 2025 to 2029
• The price charts reflect this growth over past 15 years with a flat to downward trend followed by a lumpy growth period
• ~Rs 500 crores of cash is 16.67% of the MV with no debt, allows for a downside safety in current market conditions
• The company has de-risked its business in terms of customer concentration, dependence on export sales, etc

Negatives:

• The CFO is low considering this being a tech company as the receivables is high, and the CFO could have been increased by using working capital
• The working capital to increase CFO will increase valuations and improve cost of capital, but the company is debt averse and holds cash
• The foreign subsidiaries do not make CFO as can be seen in their reported financials
• The company is dependent on BFSI doing well along with IT, both being neglected by the market
• Promoter selling stake in recent buyback, which is understandable by the fact that the promoter stake is very close to 75%. Arun Jain in non-promoter can be considered a promoter since he is with the company since 1990s. Therefore total stake is 74.3% which should come down after buyback

All-in-all, if the company is available at a good PE can purchase and hold for 4-5 years (2029) to see returns

Anyone know of a product as good / better than MProfit?

I’ve tried MProfit and find it decent – however, I don’t like their incremental pricing strategy which is based on NAV.

I haven’t been able to find anything as good, but would like to.

One of the director of Soon N Sure Holdings i.e. Shakti Rani Sharma is a BJP candidate from Kalka would be interesting to see how Piccadily grows to be an alco-bev giant

@gauravpersonal ,
if you attended the AGM, can you please share the updates.
Thanks.