they seem to be good, yoy growth of 26% in PAT and OPM growing 8%+, my sense is we are obsessed with all companies needing to grow yoy and qoq in sales, profit, OPM etc.

We also tend to equate the stock performance with the results.

The company had guided Rs 200 crs sales in the AGM and they managed to show 225 Crs. For FY they grew revenue by 45% and PAT by 95%. For a company of this size they seemed to have done pretty well in my view.

They mentioned in AGM that they will be eligible for NSE listing in June 2024 and they will apply immediately. They have stated in the earnings filings that they intend to apply for NSEListing in June. Management does what is says.

Am holding this stock so may be biased.

Thank you for promoting me to Trust Level 1. Grateful to have found this forum now.

You have to put a market order pre market through your broker at 9 am to be ahead of the queue if stock is hitting upper circuit.

From what I’ve read so far looks like a good move… Here is the hypothesis

Arjas has a capacity of 3L tons ( including Modern steel plant in Mandi gobindgarh ~4L tons)

a) Profitability perspective: Per a CRISIL report they did a PAT of 200cr on a topline of 1500 cr in 2021…Assuming normalization of the steel cycle on the company disclosed topline of 2800cr they should be doing 200-300 cr of PAT.
b)Valuation based on capacity: VSSL a close competitor has a capacity of 1.75 L tons and a mcap of ~2000 cr so by that logic also the price seems fair

Future expansion: Based on news articles Arjas is planning an expansion at both existing plants to take new capacity to 5.5 L ( which should translate into a topline of 5500cr in 1-2 years)

However all of the above is conjectural and very outside in. Will wait for the management to share more details.

Disc: Invested and super biased

If one believe EPS growth of HUL has better longevity than that of Nifty, one can always have different perception.

In spite of population growth of India in past 10 years, HUL EPS growth is 11%. Then how can one expect it to be better in the next 1 or 2 decades ?

FMCG cannot have a growth beyond a point as one dont brush or take bath thrice a day due to personal income growth but pay more for technology or luxury which is part of Nifty.