Transportation Logistics and Fintech two-sector where they will see more growth
Focus and growth will come from the US
If they grow 25% YOY, They will get 500 million by 2030
Seeing 18% to 19% EBITDA margins
Confidence of hitting 100 million in this financial year
Nitin Bhai and Paresh Bhai have been doing a great service in helping connect the most promising SMEs to the broader investment community.
It was really generous of them to share all the live sessions for the broader investor community as well.
Although a lot of these stocks have a run up post the event in the last month, still there’s a long runaway in select names.
Event day market cap for the SME companies is captured here
| Company Name | Industry | CMP | Sales last year | PAT last year | Market Cap | Market Cap (Event Day) | Growth | EV | EV/EBIT | Sales CAGR (3Y) | Profit CAGR (3Y) |
|---|---|---|---|---|---|---|---|---|---|---|---|
| All E Technologies | Computer Software | 249.15 | 87.65 | 11.58 | 503.13 | 348.85 | 44% | 401.21 | 19.84 | 17.74 | 87.03 |
| Bondada Engineering | Engineering Services | 390 | 370.59 | 18.25 | 842.5 | 388.73 | 117% | 857.77 | 29.34 | 17.34 | 20.53 |
| Hi-Green Carbon Limited | Waster Tire Recycling | 139.8 | 78.52 | 12.35 | 349.36 | 257.52 | 36% | 313.82 | 19.58 | 46.88 | 66.62 |
| MCON Rasayan India | Construction Materials | 145 | 31 | 1.14 | 91.4 | 83.21 | 10% | 102.66 | 33.66 | 51.19 | 132.42 |
| Network People Services Tech | Computer Software | 2200 | 40.82 | 6.52 | 1421.63 | 914.37 | 55% | 1418.43 | 67.07 | 39.03 | 84.67 |
| Newjaisa Technologies Limited | Refurbished Electronics | 146.9 | 44.53 | 6.76 | 472.8 | 239.12 | 98% | ||||
| Oriana Power Ltd | Solar Energy Solutions | 349.95 | 136.18 | 10.92 | 671.31 | 599.17 | 12% | 747.47 | 37.71 | 85.69 | 141.16 |
| SKP Bearing | Rolling Elements | 209.95 | 48.76 | 13.25 | 348.52 | 343.04 | 2% | 353.85 | 18.67 | ||
| Tara Chand Infralogistic | Infra, Warehousing & Transportation | 181.2 | 140.96 | 9.36 | 256.32 | 160.4 | 60% | 339.5 | 15.47 | 7.17 | -7 |
| Techknowgreen Solutions | Environmental IT Solutions | 265 | 14.84 | 4.51 | 195.65 | 90.25 | 117% | 183.57 | 28.24 | ||
| Vasa Denticity | Dental Products Marketplace | 621 | 123.15 | 7.6 | 994.6 | 692.94 | 44% | 981.53 | 94.83 | 59.38 | 338.72 |
I agree with hotels companies, but again hotels as a business has a reputation of its own and I would choose to stay away from it.
Regarding KDDL and Ethos. Great, need to think about the valuations and MOS!
Great post from @sahil_vi on the must-have tenets for each investment candidate.
While this is good for someone in the capital building phase to be more aggressive, the approach (especially Points 4. and 5.) changes a bit towards capital preservation with a larger corpus.
In the case of large investments, when one is comfortable knowing the business and management over time, a few quarters of underperformance don’t matter as long as the broader compounding theme and long-term high ROCE are intact.
Paraphrasing for a speech given by Charlie Munger
” Over the long term, it’s hard for a stock to earn a much better return than the business which underlies it earns.”
Let’s suppose one has Rs 100 to invest and the options that exist are investing in a single large cap company and the other option is that of momentum investing/techno funda (moving across multiple stocks)
Over the span of 10 years:
When one is sticking to a large cap – One is investing on the fundamentals of the company (let’s suppose a sales growth of roughly 11%)
When one is investing on multiple momentum stocks – One is is investing on his/her ability to find multiple momentum opportunities over the span of 10 years
While momentum investing offers better returns, the fundamentals of these businesses cannot deliver 11% sales growth over 10 years
So it becomes important to continuously find opportunities and not get off the carousel if one has to sustain momentum investing for 10 years. Honing technical skills and finding opportunities is the key to sustenance in this path
Is my thinking directionally correct?
One more point to be noted is – KDDL is not a pure play holding company. It has its own business of exporting dials and handles to Swiss watchmakers.
So actually the holding discount should be less than pure holding companies.
My personal opinion and BIASED due to sudden recent gains.
dr.vikas
@hitesh2710 sir thank you so much for running this institution of a thread for everyone’s learning.
I was reading about the recent developments and potential trends in India from macro point of view and one theme which caught my attention was Data centers. What would be the better way to play this theme? The REITs who give the space on lease or the Companies who run them or companies which make instruments for use in these centers?
As of now, I am not able to find companies which are engaged in any of the above I mentioned above! Though some names which keep propping up in the discussions are Aurion Pro, Anant Raj etc.
Would be great to know your view!
@Anubhav_Garg maybe near 3750 3800
Why is reliance holding 2.5% ? Are the promoters somehow related to Reliance
If we delve deeper and take into account the holding company discount for KDDL, it still seems undervalued to me. It appears that the markets have also realized this, as evidenced by KDDL’s 37%+ rise and Ethos’ 23%+ rise in the last month. I believe that this trend will continue until the gap between Ethos and KDDL’s valuations is bridged.