Any companies around which might grow profits by 25-30% cagr in next 3 years?
A few which recently i am studying which can imo:
1. Aditya vision
2. Gujarat Themis
3. Shaily engineering plastics
4. Mas financial
Thread only when i have deep enough conviction
Own all no reco
A few which recently i am studying which can imo:
1. Aditya vision
2. Gujarat Themis
3. Shaily engineering plastics
4. Mas financial
Thread only when i have deep enough conviction
Own all no reco
Some of these have no liquidity. Make your own decisions about your risk capital. Do not clone anyones conviction or decisions blindly.
I am not a sebi registered advisor
I am not a sebi registered advisor
Some thoughts on Some cos mentioned:
1. Laurus: Looking at the export data looks tough to meet 1B$ target, also lot of dependence on paxlovid
2. SJS: Auto cycle revive hoga tabhi volume aayega. Biz is great though. Good competitive advantages. One has to be sure of auto revival
1. Laurus: Looking at the export data looks tough to meet 1B$ target, also lot of dependence on paxlovid
2. SJS: Auto cycle revive hoga tabhi volume aayega. Biz is great though. Good competitive advantages. One has to be sure of auto revival
3. ABFRL: Feedback i have received from industry veterans is that they have a thoughtless strategy & its like a multi headed hydra. Total company ka kya hoga is difficult to understand. Few brands might do well, but we are paying for whole co.
4. Motherson Sumi: Management has missed targets for revenue in past as well. Also, 100s of subsidiaries, return on invested time is too low.
5. Greaves cotton: Ampere looks like an inferior product & also a very volatile market difficult to see who will win out. Rest of biz is a dying biz. What multiple to give to a dying biz? My answer: No multiple
6. Acrysil: read it last time, growth seems tied to US & Europe housing market. yahan khane ke paise nahi hain, sink kaun khareed raha hai? + growth seemed to be a bit difficult to see beyond next 2-3 years (already large fish in a small pond)
7. sharda motors looks interesting. Thanks to @nirvana_laha for sharing it. Studying it. Things i immediately like: net cash, cross cycle roe, cross cycle growth, assuaging terminal value risk
@nirvana_laha 8. praj is quite overvalued imo. Multiple optionalities have to materialize in order to grow 30% AND not derate.
9. RACL growth cant be 30% IMO. Auto anc is a slow biz. Takes time to validate then scale. 20-25% growth more likely (I own this one)
9. RACL growth cant be 30% IMO. Auto anc is a slow biz. Takes time to validate then scale. 20-25% growth more likely (I own this one)
@nirvana_laha 10. RHI magnesita is looking good but i like RPEL even more better industry structure (unorganized to organized with only 1 organized player, lesser competition). Probably will do 25% growth. Hope their investors make lots of money 🤝
@nirvana_laha 11. PIX is also a slow moving biz. Takes lots and lots of time to build new client. Branded hai. Nobody wants to take risk with new belt. My base case is 15-20% growth with rerating (biz quality is under appreciated here IMO)
@nirvana_laha 12. Rushil Decor: While demand side is great with MDF growing at 15-20% domestically, supply side i have my concerns with recession, lower shipping rates, risk of cheaper import is still there. Ek baar woh clear ho jaega then terminal value goes up heavily IMHO
@nirvana_laha 13. Tatva, Sona definitely in this bucket. I am watching them closely. Might even switch some slow growers (hint: see above list for cos i think will grow slowly and which i own) with tatva or Sona if they fall 30% or so more (Some margin of safety).
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