Price is at ATH, been in an uptrend for 20 months, tripled in that period, doubled in the last 1 year, now trading at P/B of 21 and P/E of 76, with a market cap of 1.8 lakh crores, and the price has corrected 16%. Nothing surprising.

Have a position, in good profit, so take my view with a pinch of salt.

Hi Hitesh ji, this minor correction/probable bounce in the market gives us another potential opportunity to take positions and invest in sectors beginning to gain fresh momentum or bottoming out.

Which sectors are you eyeing? Where do you see setups looking promising?

Thank you sir.
Community awaits and is always excited for your responses.

Q1FY25 Concall Summary

Business Updates

• Q1FY25 continues to witness severe challenges on demand but there is confidence that growth will gain momentum in H2
• The idea is to strengthen the presence in the luxury segment in the next five years
• The monthly production capacity for faucets has increased from 3 lakh units to 4 lakh units now post the recent expansion done last year
• In FY24 the company spent Rs 65 crores on advertisement which is its highest ever amount spent
• The cash on hand stood at Rs 864 crores as on June 2024

Participants

PL India

Pi Square Investments

Yes Securities

Shree Investments

DAM Capital

UTI Mutual Fund

Marcellus

PINC Wealth

QnA

• There is a slowdown in demand across the country and it is not that it is more pronounced in one segment versus the other
• The gas prices were favorable in Q1 as well and the average prices were stable from Gail compared on a sequential basis
• The target as of FY27 in terms of revenue CAGR of 16% remain intact and the anticipation is that demand shall be better from H2 onwards
• The sanitary ware industry is Rs 5000 crores in size and faucet ware industry is around 8000 crores in the organized market
• The B2B vertical is seeing improvement already and the project side has picked up pace. The consumer vertical has been slower since Q3 of last year
• Currently the distribution model is mostly dealer centric and benefits from company go to dealer, which is in turn passed on to retailer. The idea of the loyalty program is to gather data in terms of retailer profile the company possesses and also give benefit directly to retailer
• The acquisition of land for sanitary ware plant has taken time because some portion that was not acquired is in multiple small parcels and is taking some time to complete
• The faucet ware plant was operating at 84% utilization and sanitary ware at 75% in Q1
• The margins are slightly higher from premium segment but mostly it is same across all segments in the sanitary ware segment
• In faucet ware the margins in entry level products is better than in premium products

Hello Mr. Deven,

Thank you very much for your inputs.

In my personal experience better to go with Index fund or ETF instead doing Stock SIP in stocks like Kotak or HDFC bank. This setup work best with growing industries.

happy to share one example of growing industries: APL Apollo

Now if we check March-2018 Sales, it is all time high and PAT is also all time high compare to last 5 years.

_resource Screener.in

Here is the result with 2K boring SIP in APL Apollo