SG mart as well as APL has struggled this qtr with lowering steel prices. Biggest concern that I see here is maintaining margins and the additional discounts they like to give.

On the call the management explained, 0.8% ebitda, incase of no inventory loss would’ve been 1.7%. In falling pricing environment they still resorted to discounted pricing.

SG mart is still new its good the business model is being tested early during volatile pricing environment and they can work the problems out.

I don’t doubt volume capability but I believe they should fiercely defend their target margin.

Disclosure: invested with keen watch on its discounting + margin trend

yeah @BuyRightSitTight appreciate if you can deep dive on what you mean by “could be E2E becoming a corporate client focussed company… ” because that’s a completely different business model from gpu-infrastructure-cloud that they are right now with different risk profile and margins.

Also can you add more colour to what makes you think this might happen. Reveal your sources if possible

Just to add, 70% of the impact has already been seen in Q2 acc to management. I think management is being conservative here. Also given operating leverage, 15% growth would still mean highest PAT growth. I feel 700-750 levels are great entry points

Trump cant directly lower oil prices and one shouldn’t be misled into believing him if he says so.

Oil prices are simply a function of demand and supply. US and China are the largest consumers of crude demand and between the two it’s China that has been an overhang on crude demand, if not materially then at least sentiment wise.

On the supply side, US over the last few years have joined Saudi Arabia as a swing producer and US supply is something that Trump can influence. But again jury is divided as to how the US oil producers will respond to Trump’s lenient fiscal policies (tax cut etc). The reason the US production has been flat is simply because of shareholder activism that has put pressure on CEO’s to maximize return for the shareholders through higher dividends and buybacks and prudent investment in production growth.

Different extraction activities require different breakeven prices for them to be lucrative depending on geology and geography. Plus drilling activities can be influenced by other factors than just purely oil prices.

That’s why one needs to take a granular view of the market, supply chain and eocsystem set up to properly evaluate different companies in this space.