Tara Chand Infralogistic Solutions Ltd

thanks Ashar for the detailed insights. I have recently taken position in the company.
Key triggers:

1. 100 crore capex done in last 3 years – Big number for any micro cap. Can be highly valuable if INDIA’s growth story in steel, construction sector with timely capex done.
2. Undervalued due to high depreciation leading to low ROE but consistent & increasing positive cash from operations.
3. Exposure to steel transport and warehousing plus equipment rental business – 2 very strong growing businesses.
4. Equipment fleet of 300 Machines includes Heavy Cranes (up to800MT), Hydraulic Piling Rigs, Steel Processing, and Concrete Equipment. working on High-Speed Bullet Train and Metro Line projects as well.
5. 40 years vintage in steel logistics management.
6. Well groomed and confident MD from 2nd generation and seemed to be quite transparent about business and any related issues.

Risks:

1.Exposure to cyclical Infra sector and receivables getting stuck although customers are quite diversified.(Had to write off some receivables in Covid time).

2. Excessive capex and inability to manage the same.

3. Company is from microcap space and can be iliiquid and risky bet.

Happy to hear others view on the stock.