(post deleted by author)

@anirband87

Maruti Suzuki is a large cap company and a fairly big large cap at that. Its market cap as of now is 3.19 lac crores… The company has done exceedingly well in the crossover car segment like the Brezza, and its colloboration with Toyota with the launch of Grand Vitara ( and to some extent Invicto) is paying it rich dividends. If it continues this kind of momentum for next 2-3 years, it can provide returns that you expect of around 20 % CAGR.

However autos are inherently a cyclical business and while the cycle once it turns tends to run for a few years, one has to consider possible disruptions that are happening in the space and how well equipped the company is to deal with these kind of situations.

The advantage Maruti has over its competitors is its distribution reach and service network all across the country. But companies like Hyundai have been very nimble in launching new versions of cars every 3-6 months and have been increasing their reach and distribution very fast. Competition in the form of Volkswagen,Toyota and Honda are also coming up with a slew of new product launches. Domestic players like M&M and Tata Motors are also showing good intent and growth.

So while Maruti seems well placed as of now to generate decent returns, one eye has to be kept on the competition and the company’s growth rate going ahead.

Personally I invest in small and midcaps and find much more lucrative options in these segments. So I don’t have a definite view on Maruti, even though the charts show a good breakout after a long period of time.

1- Prince Pipe : Capacity at lower Utilisation and likely to Ramp up due to Industry Demand

Company has been in consolidation for nearly 2 years and Above, But Why?

Company deals into pipe fitting products and Raw material such as PVC price were going through Volatility and Destocking result in Collapse of margin badly At The same time housing crises in China, Europe & us led dumping in India

One thing to Notice company OPM% For last 10Y average remains above 12% and this year reported 9% which is Outlier

Recent Q2FY24 Showed up Good numbers where OPM% Touched 14%

Greenfield Expansion in Bihar of About 35000 MT will be commercialized Q4FY25 with Nearly 150 Cr Capex and Current Capacity is around 328500 MT and De Bottlenecking may increase 20-30K MT So we can expect Touching 385000 MT Q1FY26

Currently Operating at 50-55% Utilization and Now Real-estate Performance, Jal Jeevan Mission will support the Growth Story of This Segment

Telangana Also at 40% Utilization and which likely to Improve based on Demand going Forward

CPVC where Company Accounts 10% Market share and now remains to be more Focused area due to Lubrizol Tie-up

At the Same time Company entered in Bath ware, Sanitary may further strengthen the Margin of the company

Key Trigger: Product Mix, CPVC Contribution, Operating Leverage & Volume Growth would be main Driver for the Company

Dis: No Buy/Sell Rico*

Maybe I am wrong, but I look at this price action in this way:

1. On 26 Oct it made the bottom of the base, by giving a shake out and started the right-side journey.
2. Between 31 Oct to 3 Nov, it made series of inside bars with very less volumes, as if institutions were absorbing the supplies left in the system.
3. On 6 and 7 November (follow through day), on good volumes. On 7th the volume exceeded the one on 6th Nov.
4. On these days it crossed its 10 20 and 50 dma.
5. On 8 and 9th Nov it again made inside bars (however on the back of medium volume), but the selling was not able to break the low of 7th Nov.
   My only point and observation is the action of bulls on 6 and 7. And the reaction of bears to this action on 8 and 9, shows that strong hands entered this stock on 6 and 7 Nov and if these are strong hand, then they will fight hard and make sure that the levels of 6 and 7 Nov are not breached.

How are Tata Elxsi different than Tata Technologies?