All I see are green flags in this company. Although hook and loop seems to be a low barrier entry industry, consolidation can happen and these guys have good certifications and higher margin products. The only issue is in their earnings and seems to be very cyclic in nature. I can see 4 cycles already and it seems the fifth one has started. This is a big concern unless there is a valid reason why this cyclic nature should stop or at least be dampened.
Waaree Energies-
Most unlisted stock sites are quoting a price of ₹2900 having pe of 60. Even Ipo offer price of ₹1500 will have pe of 30 ( that will be absolute steal). Premier Energies ipo offer was at pe of 85 and now trading at pe of around 200… What could be waaree ipo offer price?
Yes we must be conservative and cautious.
To correct you, management says 65% by FY 27, not on a long-term basis. They have never said it will not go below 65%. In fact, the deposit franchise which is loss making of about Rs. 2000 cr as per their concall, will eventually come down to zero and become profitable. While at set up stage, on the expense side there will be opex, depreciation of capital expenditure etc. On the income side, there will be only a low income as deposits will be low. so with scale, it will turn the corner. We can check with the management on this quarter concall, on what the terminal cost to income ratii for the bank will be. All banks eventually reach 50% of so, or lower.
Re cost of deposits, lets check with management in the upcoming concall if they plan to drop rates. Earlier they have said “we dont commit, we could increase, we could reduce, VV quoted a cricket analogy and said we can go backfoot we can go frontfoot, we dont take a fixed position. Depending on need of funds.” For now they reduced it for below 5 lac to 3%, and increased rate for balances >5 lac. So you are right, we cant plan for rate reduction in the modeling, better to be conservative.
Can they raise capital at 1x p to b? Well hopefully they dont. They have always raised at premium, say 1.7x to 1.9X even when their ROE is only 10%.
hopefully (wishfully) stick may do better if and when ROE increase. We cant be sure though, markets are markets.
Could you post the twitter link ?
Jefferies Remains Bullish On Amber Ent: Maintains Buy With Target Of ₹5,200 | CNBC TV18
Good report wrt ACs too
Domestic AC industry volume expected to triple from FY24-FY30
Volumes stood at ~10mn units in FY24
Volumes to scale to 13mn units in FY25e post a strong summer
Expected to scale to 30-35mn units by 2030 implying +17% CAGR over next 7 years
Category under-penetration of AC at ~8%
Hot weather in India are key tailwinds for AC industry growth.
^ interesting noticeable data around the Domestic AC industry
After long term consolidation a lot of volume action in last one week.
Any company/ business update?
