Dear Hitesh Sir,
What would be your view on Sportking India.
The company has completed a significant capacity addition last year, running the plants at high capacity utilization, have installed rooftop solar power so would get around 1% savings in power cost in FY25. The RM prices (as per mgmt) have bottomed out, there are demand challenges from Bangladesh, China and also India demand is muted. If demand improves, then the realizations can improve.
Technically, the stock is consolidating between 750-800 levels. Op. Margins (7-8%) are near to the lower end of their range. Pre-Covid the margins have been between 10-16%.
Does this set up look interesting?
Thank you,
Ketan
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