W.r.t Management quality, considering Tatas, Sumitomo on board. Previously in 2012, when the share price trading @200, management allotted themselves @300rs. If you see the recent BSE disclosures, they are buying more from the open market even @370 levels. Similarly they are regular in informing the exchange about monthly sales etc..With the above points i am of the view that management is trustworthy.
W.r.t sales turnover SSWL stands 1.4 Vs Wheels India @1.8, but SSWL is having higher margins than others. I feel the current valuation gap with peers will be covered going forward.
Things are clearly changing for the company if you go by their recent order wins.
The Egypt order win is a new geological entry for them and as they claimed, it is going to be repetitive moving forward.With in a week they bagged one more order from Egypt, this gives me the trust that management are dependable. These order wins/ new entry to export markets should improve the Sales turnover giong forward.
Recently i am paying closer attention to the companies where promoter buying is happening from open market as a big positive move. To share specific details , Tera Software used to trade around 35rs, promoter purchased huge quantity from open market, After sometime they got 320cr order from Andhra Pradesh govt, thereafter the journey halted only @100 levels now ( My Tera Soft example should be taken in promoter open market purchase context only).
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