#Turnaround
High level case study
Incredible transformation results in 20x returns in 1 year for this co.
Sales - more than doubled
OPM% from 3-4% to 12%
Interest exp - fell over a period due to deleveraging
PAT - from consistent loss to 600cr.
๐โป๏ธ๐งต
1/
High level case study
Incredible transformation results in 20x returns in 1 year for this co.
Sales - more than doubled
OPM% from 3-4% to 12%
Interest exp - fell over a period due to deleveraging
PAT - from consistent loss to 600cr.
๐โป๏ธ๐งต
1/
2/ Huge Deleveraging:
Balance sheet transformations are some of the strongest signals of potential turnarounds
Balance sheet transformations are some of the strongest signals of potential turnarounds
3/ Interesting fact about the co.
Its into DI pipes & Specialised Ferro Alloys
Their Ferro Alloy realisation is incredibly high & probably the highest in the industry at +1.70L/ton, here's comparison to Shyam & Sandur.
P.S - I don't track the industry closely
Its into DI pipes & Specialised Ferro Alloys
Their Ferro Alloy realisation is incredibly high & probably the highest in the industry at +1.70L/ton, here's comparison to Shyam & Sandur.
P.S - I don't track the industry closely
4/ Their specialised ferro alloy find application in aerospace & defence.
5/ Thats the name, #Jaibalaji
Big Capex plans to support the Tailwinds. You should read about the company to fully appreciate it.
Big Capex plans to support the Tailwinds. You should read about the company to fully appreciate it.
6/ So, some of the factors to look for a potential Turnaround story during results season
- B/S getting strong w/ debt reducing drastically
- Keep an eye on amazing spike in either YoY Sales/ OPM%/ PAT performance -> Worst -> Better -> Goodโป๏ธ
- Low starting multiple = Re-rating
- B/S getting strong w/ debt reducing drastically
- Keep an eye on amazing spike in either YoY Sales/ OPM%/ PAT performance -> Worst -> Better -> Goodโป๏ธ
- Low starting multiple = Re-rating
The stronger the factors/spike the higher the probability of greater returns.
Disclosure: Only for educational purpose, not a Buy/Sell recommendation.
Disclosure: Only for educational purpose, not a Buy/Sell recommendation.
NOTE: Liquidity is Low in this stock, which was another reason for the Hyperbolic returns. However, idea was to show how financials of a turnaround business looks like.
7/ How to spot these companies:
1. Screener Quarterly results tool, if using free version, you can still browse manually.
or
2. Create a custom screen to filter for such co. -> make sure to tick "Only companies with Dec 2023 results" & Refresh the list daily at the EOD.
1. Screener Quarterly results tool, if using free version, you can still browse manually.
or
2. Create a custom screen to filter for such co. -> make sure to tick "Only companies with Dec 2023 results" & Refresh the list daily at the EOD.
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