That’s the beauty of markets that everyone has their own views. You think me adding that prefix will increase share price hell no!!
Respectfully,
Understand the business Strengths & moats please,
Following are my points why I think it is a gem company!
Point 1:-
Think logically they are Nvidia’s partner from last 9 years so if Nvidia wants to increase their sales in India who will get benefit out of this!?
Point 2:-
If you think companies with 2-3 % Margin can’t make good returns please check Redington’s stock price who is their only close competitor their CAGR of last 5 years, Its 35% per year.
Point 3:-
4-5 years back they have started their new vertical of Data centers and cloud computing where in they do all the process from installation to after sales service by themself. And also have type with MICRON whose plant is going live In Q1 FY 26 so they will also get benefit from that.
Point 5:-
Mangement has guided they are also hopeful in getting more orders in Data center space as the new law is very beneficial towards make in India and store data in India. They already have order of 1500cr from NMDC data center.
Point 6:-
They have a market share of more than 45-50% in some products so there is a high switching cost for existing companies as there is no big player other than this and very unlikely, they will have any big competition as business of low margins aren’t lucrative for new entrants.
Point 7:-
Today this stock was also picked by Sandeep Jain who is famously know as “Jain saab ke Gems” please here his views on this stock, given on Zee Business Today!
Point 8:-
At last as Peter Lynch once said "During Gold rush, most would-be miners lost money, but people who sold them picks, shovels and blue jeans (Levis) made nice profit
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