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Posts tagged Value Pickr
E2E Networks Ltd – Listed small Cloud computing player (22-07-2024)
Agree. However, now that they have said that the Rs 800 cr capex guidance was a misunderstanding, we have to go back and rework the FY 25E numbers.
Motherson Sumi Wiring India Ltd (MSWIL) – Wired for growth (22-07-2024)
As mentioned, none of the peers are listed so does this company have some sort of moat? Would be interested to know if you are still tracking this company.
Samhi Hotels – Turnaround with Tailwinds (22-07-2024)
Last lot bought at 171 today, fully loaded up with 20% allocation, as Warren bufffet said, stock will find its own value and this investment is a no brainer for me. Heads i win and tail i dont loose much. Fingers crossed.
They own all real state, only value of real state will go up by at least 50% in 3-4 years seeing the markets land is situated.
Not writing any number based calculations as it doesn’t work in current market conditions where penny stocks trade at P/S of 10 and PE 100,
Angel One: Metamorphosis into a Fintech? (Previously Angel Broking) (22-07-2024)
Definitely an attractive opportunity. However, keeping an eye on the chart pattern.
The last 7-8 months, the stock has been making lower tops and bottoms. Unless it goes to 13-14 PE, I personally will not buy it. However, I will be ready with the cash. Very high-quality company, transitioning to a stable AMC business.
However, you can buy if a further 10-15% drop does not bother you. Because I feel long-term (>3-5 years) will be good.
Stance: Quite biased. This is the highest allocation in my portfolio. Looking to invest more, if the trend reverses or stock becomes extremely cheap. Currently, 10% lower compared by average buying price
Selecting a broker (22-07-2024)
Hey, we’ve brought this back.
E2E Networks Ltd – Listed small Cloud computing player (22-07-2024)
E2E is not a company that is to be judged or invested in based on screening filters. This is evident by the fact that this stock never got talked about much or hyped. It just didn’t meet anyone’s criteria based of its unique circumstances and so didn’t show up on most screeners.
The PE that you are seeing is momentary. A doubling of earning would lead to halving of the ratio. The question is would that take 1 year, 2 years, 10 years? So, the discussion of it is not really from the perspective of today. E2E’s proposition is from a future perspective.
Talking about the future, anyone who does a deep dive into the company’s product and offerings, will know that this is a capex heavy business, despite the fact that the value generation happens at the software layer: the custom software the comp. has been building over the past decade. It is due to this that the debt also comes into play. Tarun Dua is a not a business magnate. He’s a tech guy who happens to run an IT firm. Fiscally, he’s been pretty conservative till now. Also, the way the company pivoted from a cloud player to a AI first cloud player is understated and under-applauded, showing his firm understanding of the industry and a nose to sniff out the directions the winds are blowing.
It is due to this upcoming obscene demand stemming from AI workloads, company needs to expand quickly. The cash reserves are not sufficient and raising equity is an option, just like debt. The question is not the high/low debt. The question is whether you think the comp. will be able to pull off the large risk it is taking.
To answer that question, I turn to 3 things:
- The asset turn - which for E2E is awesome
- Whether the comp. will use the fund judiciously - to be seen. Will raise eyebrow if c-suite gets big bonus cheques this year
- whether the demand for the assets purchased (mainly GPUs) is good. - In recent concall, Dua estimated that their top GPU H100 has 90-95% capacity utilization though they have reserve GPUs and can acquire more if need on a short notice.
#1 is a number thing that is verified.
#2 is a time thing. Let’s wait and see
#3 is a trust thing. Whether you believe this statement or not.
IMO, the recent quarterly results are a good indication of what’s to come in the next few quarters. I think we’re looking at a multiple times EPS growth in the next 4-6 quarters. How that works for the valuation will be dictated by Mr. Market.
I have been invested since E2E had a 65cr market cap and still believe the company is walking the talk and will continue to hold. I am probably biased.
Disclaimer: I am invested. This is not investment advice.
Smallcap momentum portfolio (22-07-2024)
@vikrantp Giving below the rankings separately for 6m and 1y.
1 year:
- JAIBALAJI
- COCHINSHIP
- ANANDRATHI
- HUDCO
- SIGNATURE
- NBCC
- GRSE
- HBLPOWER
- SOBHA
- HSCL
- INOXWIND
- SWANENERGY
- JWL
- IRCON
- MOTILALOFS
- POWERINDIA
- RAILTEL
- ARE&M
- KPIL
- SCHNEIDER
6 months:
- COCHINSHIP
- GRSE
- AEGISLOG
- GLENMARK
- VGUARD
- KPIL
- WHIRLPOOL
- DOMS
- ARE&M
- GODFRYPHLP
- EXIDEIND
- POWERINDIA
- SCHNEIDER
- 360ONE
- POLYMED
- BLUESTARCO
- NATCOPHARM
- CAMS
- CROMPTON
- SAREGAMA
E2E Networks Ltd – Listed small Cloud computing player (22-07-2024)
Here are the key points from the Q1 FY25 concall:
- Capex Commitment: The management clarified that they are not committing to an 800 crore capex. In the previous concall, they mentioned that ideally, they would need to invest 800 crore capex, which was misunderstood by investors. This quarter, they have denied providing that guidance.
- *Demand and EBITDA Margin: Despite not committing to the 800 crore capex, the demand remains very high. The management expects to maintain the same EBITDA margin going forward.
- Strategic Shift The management is shifting their strategy to focus on high-end players, whereas previously, they were onboarding all small players. They believe the market size is sufficient to accommodate more players like them.
- International Business: Their medium-term goal is to achieve 30% of their business from international markets.
- Technology Implementation: Coming quarter, they plan to implement 256 H100 chips, bringing the total to 700 H100 chips.
- ARPU Improvement: The management is optimistic about improving their ARPU from 7.5 lakh.
- Current Quarter Capex and Utilization: The current quarter capex is 23 crore, with a 90% capacity utilization rate. Their MRR is 14.5 crore.
- EBITDA Margin Sustainability: The management is optimistic about sustaining the EBITDA margin even with the emergence of more players.