I am quite surprised by Sanghvi Movers’ gross yield guidance of 2-2.2%. Tarachand Infra reported average gross yields of 2.85% in FY24. Tarachand has no presence in wind sector yet (They are entering in FY25) whereas about 50% of Sanghvi’s business comes from wind and wind is supposed to have very good yields across industries.
Also, while I buy their rationale of increasing management commission in a good year to compensate for bad years where management remuneration did not go up, the same could be said about dividends? From FY18-FY21 there were zero dividends. So why are they over-compensating the promoter shareholders while ignoring the minority shareholders?
This and the overall defensive tone of the call was surprising and disappointing to an extent.
Disclaimer: Invested in Tarachand. Tried a results trade in Sanghvi expecting a good set, hit my SL and exited. No reco.
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