I believe in the chaps at KMB.
They can pull off 15% growth for another decade.
IDFC First, can fall either way. If they make good on their guidance, it will be positioned somewhere between Bajaj Finance and KMB. Cuz, its retail focused, where margins are high, book is granulized, no DSA (better margins), at the same time cost of capital is only a little higher than KMB.
Bajaj Finance is trading close to 9 PBV and IDFC First is around 1
For the first question:
Insourcing is a definitely a possibility .
It takes about 2-3 years for a new component to be developed, refined, adapted, tested and released together with the OEM. With such long lead times, once you get in, a product is basically locked in.
I would also assume that for the OEM, if they decides to insource, they can do it on a slightly shorter notice and when it happens it could potentially affect a line of products . It might have a large impact on Sona .
See this is what Vivek Vikram Singh also said - Sona is creeping up the value chain leaving OEMs with integration , labelling and selling. I think he is unsure how things will pan out in the future.
We could see Auto go the notebooks way…or given how govt subsidies drive Auto companies worldwide : a push in insource.
This is what happens when one doesn’t own the raw materials.
Sales price fell 15% but raw material inventory which has been bought at high market prices is at high cost, plus depreciation and interest cost is super high- so, your EBITDA falls 50% and net profit falls 80%- none of this is applicable for GPIL.
OPM is clearly expected to be at around 30%-40% as per the management.
Please also read concall Q1’22, where management explained that it takes around 3 years for proper product understanding.
Though I am not sure of what margins company would do, my understanding is that it will be a cocktail of increasing capacity of existing products as well as reduced margin in new products.
The management would try to strike a balance between Margin and Sales, but I am sure their tilt would be more toward growing Sales rather than maintaining very high Margins. So I would go with the views of @nityanandparab .
From the author of the thread
“the way this indicator works is , it measures the relative momentum (relative strength ) of all the sectors against the nifty (thats printed as zeroline line ). 10 sectors are colored in different colors for easy identification and any color(sector) above Zeroline (nifty) would be performing better than nifty. we focus on the top sectors and look for emerging leaders.”
Good read for reference. (Q1FY23) JSW
JSW_Steel_Q1FY23_Result_Update vy IDBI_Capital.pdf (963.1 KB)
TNPL
CMP 213
Seems to be in 3rd wave and now in iii rd of 3rd.
Monthly as well as Daily MACD is in buy mode. Weekly MACD is about to cross towards buy.
Immediate resistance should be APRIL high of 227.
On weekly charts, it seems to be in Stage 2 . Breaking of upper channel (at 220) would be additional confirmation of the upmove.
Disclaimer :Charts for study purpose only. No recommendation, no suggestion. All of the above projecition might go completely wrong.
M & M Finance
CMP-211
Can it go back to old glory in this tipsy -turvy market!
Well, let’s keep a close watch. Daily/Weekly/Monthly MACD is in buy mode .
On EW presepective, it seems to be in its 3rd wave.
Question is whether iii rd of 3rd has started ? Let the first confirmation comes ie. crossing and closing above 61.8% retracement levels of recent decline.
Monthly chart
From stage analysis prespective , it seems to have entered stage 2 again but with lot of resistances on left-hand -side. In short, the journey on upside ( if it begins ) would be slow and checkered.
Weekly Chart
Disclaimer:Chart for study purpose only. No recommendation, no suggestion. All of the above projecition might go completely wrong.
Can u explain how to read above chart as I am also doing it for sectoral fund investment. What different values mean (against sector) how u interpret this. Details of H index
Katalyst wealth tweeted about EKC among their latest reco.