Surya roshni ltd

Thank you for your well thought out response @NewInvestor

This was the bit that I found perplexing, with the company reporting better results, achieving significant revenue milestones, but the stock price falling.

I agree with this as well. If you simply refer to the steel per capita consumption of steel in China versus India that I mentioned earlier, there is a huge upside opportunity.

So to summarize, I intend to hold Surya Roshni for at least another quarter (with a stop loss in place) for the following reasons:

• Immense upside when simply comparing the steel consumption per capita of China versus India
• Migration to higher value products in the steel pipes and strips business
• What I see as an unfair valuation differential between the company and APL Apollo Tubes
• The potential for the demerger of the non-steel businesses
• Lowering levels of net debt

Additionally, the company released an Annual Report for the last FY, and it’s a much better drafted document when compared to the FY21 report. Though anecdotal, when the investor relations output of a company gets measurably better (Annual Reports, Press Releases, etc.), it’s a leading indicator of the potential of a big jump in the stock price (since better messaging attracts more investors). And Surya Roshni did recently jump 20% in a single day.

Let’s see how the next few months go.