Yes you are right. It would have been more prudent.
But I am taking a call on the election. And anyway, if results go directionally opposite to what is generally believed, entire pf will go for a toss.
So extra 15% makes no difference:)
Yes you are right. It would have been more prudent.
But I am taking a call on the election. And anyway, if results go directionally opposite to what is generally believed, entire pf will go for a toss.
So extra 15% makes no difference:)
I exited the position. Not a reliable stock in terms of return.
I exited the position. Not a reliable stock in terms of return.
Even I am wondering what caused this big fall. Quant exited last month (not sure if they were doing some year end planning), Kenneth’s fund has entered recently and accumulated further (he is not in for short term). Results are not bad but impact of temporary issues as highlighted in presentation. Long Term I don’t anticipate adverse scenario. In fact with US becoming more suspicious of China I see good traction for Indian Pharma. I am in it for long haul and accumulating based on my capacity on each such big fall.
Even I am wondering what caused this big fall. Quant exited last month (not sure if they were doing some year end planning), Kenneth’s fund has entered recently and accumulated further (he is not in for short term). Results are not bad but impact of temporary issues as highlighted in presentation. Long Term I don’t anticipate adverse scenario. In fact with US becoming more suspicious of China I see good traction for Indian Pharma. I am in it for long haul and accumulating based on my capacity on each such big fall.
Inspiring writeup. Kudos to your choice of stocks and patience with already multibaggers .
One thing which I would add ,and it’s related to being lucky, we must be aware of what’s is currently market’s favourite sector (currently it’s Renewable and related). If we align ourselves to market’s favourite as early as we do, we may say we were lucky .
I wish you great luck with your stocks
Keep sharing knowledge
Inspiring writeup. Kudos to your choice of stocks and patience with already multibaggers .
One thing which I would add ,and it’s related to being lucky, we must be aware of what’s is currently market’s favourite sector (currently it’s Renewable and related). If we align ourselves to market’s favourite as early as we do, we may say we were lucky .
I wish you great luck with your stocks
Keep sharing knowledge
Also, was there a need for a new plant when sales are stagnant. It seems their strategy is not right. Surely profitability will be hit. Return ratios are also not great.
PE multiple of 15 for such companies is quite high. its 5 year average PE is 11.
It could be a good investment at Rs. 300.
Also, was there a need for a new plant when sales are stagnant. It seems their strategy is not right. Surely profitability will be hit. Return ratios are also not great.
PE multiple of 15 for such companies is quite high. its 5 year average PE is 11.
It could be a good investment at Rs. 300.
𝐆𝐞𝐧𝐬𝐨𝐥 𝐄𝐧𝐠𝐢𝐧𝐞𝐞𝐫𝐢𝐧𝐠 𝐋𝐭𝐝
Concall Highlights:
● Successfully executed over 770 MW of solar projects across India.
● Expanding product and service offerings in the solar sector.
● Acquired Scorpio Trackers for improved project efficiency.
● Entered the Middle Eastern solar market with a subsidiary.
● Won first project in battery energy storage system (BESS) under BOO (Build-Own-Operate) model.
● Increased solar order book to ₹448 crores.
● The company expects to maintain the guidance provided earlier, aiming to achieve a consolidated revenue of approximately ₹2000 crore in FY 25, representing a 100% growth from FY 24.
● The consolidated EBITDA margin is expected to remain around 25-26%.
● The company’s new EV manufacturing plant is expected to begin operations in Q2 FY 25. However, revenue contribution from this plant in FY 25 will be minimal due to the initial focus on trial production and gradual ramp-up.
● Scorpio Trackers is expected to significantly contribute to the company’s revenue in FY 25, with a projected doubling of revenue compared to FY 24.
● In FY 24, Scorpio Trackers contributed around ₹50 crore in revenue, and with an expected order book of ₹100 crore in FY 25, revenue could potentially reach ₹140 to 150 crore.
● Despite strong revenue and profit growth, the company’s cash flow from operations was negative in the last quarter. This is attributed to the high revenue generated in Q4 FY 24, leading to a significant increase in receivables due to the typical 45-50 day payment cycle in the solar energy sector. The company expects a significant improvement in operating cash flow in Q1 FY 25 as receivables from the previous quarter are converted into cash.
● The company clarified that the ₹387 crore mentioned as “other assets” in the current assets section comprises:
● Trade receivables: ₹227 crore
● Cash: ₹380 crore
● The company expects a consolidated EBITDA margin of 25-26%. The margins for individual projects can vary depending on whether they are turnkey or balance of system projects.
● The company has a strong bid pipeline in the Indian market, with an expectation of winning a good portion of Rs 3,000 cr order book. They are also seeing growth in the Middle East.
● The company expects the Scorpius tracker business to be profitable this year and to see significant profits from the US market opening up in FY 26. The EV leasing business is not cash flow negative, but depreciation makes it appear unprofitable. The current value of assets under management in EV leasing is close to 600 Cr
● The company expects its EV leasing business to be a major driver of future growth. They are taking on debt to fund this expansion. A separate subsidiary was created for the EV leasing business to improve focus and leadership.
● The leasing business is not currently profitable due to high depreciation costs. However, the company expects this to improve as the assets mature and the book value stabilizes.
● The company sees a significant opportunity for its solar tracker business in the US market due to high demand and long wait times. They are awaiting certification to start selling their trackers there.
● The company is on track to begin trial production of electric vehicles in Q2 and may have a rollout by the end of the year.
● The company’s leasing business is facing challenges due to a freeze on Zenith Multitrading shares and promoter not related in this matter.
● The company’s financials are positive, with good IRR but negative cash flow from operations due to receivables.
● The company has a high promoter pledge due to funding for warrants and loans. The pledge is expected to come down in about two to three years timeline.
● The company’s debt to equity ratio is high, but it will improve with the infusion of funds from the warrants round.
● The company’s decision to enter the three-wheeler EV market is based on market research indicating a high demand for single-seater vehicles in urban areas.
● BESS requirement and implementation of the same at national level will increase by almost 100 times over the next 2 decades. Companies working aggressively to increase their BESS capacity and will remain in sweet spot for a very very long time and will create massive growth and I think Gensol will create a massive growth in BESS Segment…
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