Absolutely, learned this the hard way. Bought this stock at 80 and sold it around 400 levels just on the back of TTM valuations which at that juncture looked very high in a already crazy market. I think the biggest lesson is to adjust the P/E with the growth rate for a better picture. PE in isolation can be very deceiving.

From a minority shareholder’s perspective a big negative point when the company is growing at this scale is they should be hosting concalls for the benefit of the minority investors so we can get better insights of the business.

Disc: Not invested but tracking very closely.

Results are out. Muted one. Top line up 15% and PBT up by 4%. But more interesting parts is in the notes

NSE listing is big news along with next year sales target of 550 Cr

Do you guys also discuss reversal trends on this thread?

Any views on this?

IEX

Biocon

As per the q3 fy 24 concall, FY 25 will be an year of value added growth. ( sales growth with margins being sustained or improving depending upon how the LRPC and other lower margin business fare)

Capex to come on stream in next month (during q4 fy 24) and will start contributing from q1 fy 25 and will ramp up from there.

A lot of questions were asked about the prospects of the Saudi markets for the company. Company is the only producer in GCC area for Wire ropes and that should hold them in good stead. Plans for establishing manufacturing facility in Saudi Arabia would be considered after seeing the response to the foray.

There was mention of plasticated and other specialised varieties of LRPC products going forward. (already alluded to in previous concalls)

Logistics costs due to global geopolitical situation have gone up and is a risk, but it applies to all the players catering to European markets.

Balance sheet remains healthy in terms of overall debt, cash flow, free cash flow, and working capital.

Answers to your questions:

1. Capital adequacy is super high because the bank raised a fair chunk of capital during ipo. Debt/equity was also < 1 at the time of IPO. CAR is reducing quarter on quarter as the company is leveraging and will likely move towards 25% at a 4-5x leverage. Aptus is super profitable with 8% roa and 17%+ roe which result in high internal accruals as a result the decline in car and roe is slow (a great problem to have!) and roe is increasing slowly. In order to speed up this process they have started paying dividends (because the raised too much during ipo, when markets were buoyant).

2. No, Balaji is not a relative of Mr. Anandan. He is a very early employee and was brought on board as CFO. Recently promoted to MD, he is super competent.

Disclosure: 25% of portfolio.