Issue #013 dives into the buzz surrounding Ceigall India Limited, examining its business fundamentals, performance, order book and valuations. My analysis indicates a potential 35-70% EPS growth
Yet another great discovery and in depth technicals with macro analysis. I immediately added into my watch list and will add into my portfolio if there is a slight dip 👍
Thank you 🙌 Yes, please review each of my posts independently. I don't give buy or sell calls .. it's mine & Priyam's research, we can be wrong aswell. The idea here is to offer everyone two layers of research -- one that we don & if you can top it up with your own research, then all the merrier.
Thank you very much Atharva ji. I love researching but yes, it's hardwork going through 50-60 stocks every week between me & Priyam (my researcher). I'm glad you're liking my work. Companies like Zaggle, BLS, Samhi etc. are driven by quarterly results so while we see noise moving them here & there -- the real lookout are the 4 quarterly financial statements that'll tell us if my thesis was right or not
Hi Shankar, on growth and valuation parameter, PNC Infratech also looks good with a low PE and 5 yr sales growth of 18% and profit growth of 24%. It also commands a sub 10 PE ratio. Can you compare both ?
On a lighter note, I hope the Sardarji is not the same from BLS international blog who couldn't get his "Visa" and had to compromise with the "construction" work! :P
Wondering which has the better scope! out of BLS and Ceigall Where's the scope of high waves!
Thank you Pradeep ji. Yes, his name is Kartar Singh .. when he is not recording videos (Kartar is my videographer), he photographs himself at the most unexpected places incl. passport offices & on a road roller :)
For now, I prefer BLS over Ceigall -- more visibility
How do you think about high working capital and in turn lack of OCF generation? The way I think about this is that higher the growth higher the debt as OCF and FCFF will seldom be positive. Any thoughts on working capital pressures and scope to drive it down?
Stock just fell on expectation, not able to grow beyond 10-12% on revenue. However, optimistic but considering negative cashflow this stock does not fit into books.
Yet another great discovery and in depth technicals with macro analysis. I immediately added into my watch list and will add into my portfolio if there is a slight dip 👍
Thank you 🙌 Yes, please review each of my posts independently. I don't give buy or sell calls .. it's mine & Priyam's research, we can be wrong aswell. The idea here is to offer everyone two layers of research -- one that we don & if you can top it up with your own research, then all the merrier.
Thank you so much for your insights Shankar Sir. Above everything, you are an exceptionally good teacher.
Thank you very much Rohan ji
Thank you Shankar ji great insights,past insights in ZAGGLE have helped, love your youtube videos especially mutual funds series.
Thank you very much Atharva ji. I love researching but yes, it's hardwork going through 50-60 stocks every week between me & Priyam (my researcher). I'm glad you're liking my work. Companies like Zaggle, BLS, Samhi etc. are driven by quarterly results so while we see noise moving them here & there -- the real lookout are the 4 quarterly financial statements that'll tell us if my thesis was right or not
Very informative.
Thank you Arif ji
Nicely explain
Thank you Jay ji
Looking good, thanks for your inputs.
Most welcome, glad you like it
Hi Shankar, on growth and valuation parameter, PNC Infratech also looks good with a low PE and 5 yr sales growth of 18% and profit growth of 24%. It also commands a sub 10 PE ratio. Can you compare both ?
Hello Atul ji -- PNC Infratech was reviewed and I had to keep it aside. Reason:
1. Management's revenue groth guidance for FY25 is zero % to minus-10% (a very rare occasion when a negative guidance was presented)
2. The guidance for FY26 is 15% growth
So, -10% in FY25 and +15% in FY26 means one can expect the 2-year growth rate for PNC Infratech to be 0%.
For specifics, kindly read pages 7 & 8 of https://www.bseindia.com/xml-data/corpfiling/AttachLive/39316b9c-6fe0-40d2-b1b9-330f315ae5dc.pdf
Great analysis. Thanks for sharing your analysis!
Most welcome
Another great analysis Shankar!
On a lighter note, I hope the Sardarji is not the same from BLS international blog who couldn't get his "Visa" and had to compromise with the "construction" work! :P
Wondering which has the better scope! out of BLS and Ceigall Where's the scope of high waves!
Thank you Pradeep ji. Yes, his name is Kartar Singh .. when he is not recording videos (Kartar is my videographer), he photographs himself at the most unexpected places incl. passport offices & on a road roller :)
For now, I prefer BLS over Ceigall -- more visibility
Thanks for sharing this analysis 🙏
Most welcome!
Very good analysis sir. I wait your analysis .
Thank you 🙌
Great analysis Shankar, will definitely keep this stock inder my radar, keep doing great work :)
Thank you Jaideep. Yes, please monitor for a quarter or two .. we can again revisit it.
Hi Shankar,
How do you think about high working capital and in turn lack of OCF generation? The way I think about this is that higher the growth higher the debt as OCF and FCFF will seldom be positive. Any thoughts on working capital pressures and scope to drive it down?
Stock just fell on expectation, not able to grow beyond 10-12% on revenue. However, optimistic but considering negative cashflow this stock does not fit into books.
One letdown for me while reading the concall was management's reluctance to give any direct and detailed answers to revenue growth
Yes, I felt that too. In Q3, I though there were some indications, the revenue growth might be in the 12-15% range
Thanks for great work, starting now to read all your newsletter.
Just to clarify in image is it PAT? i see these numbers are matching with PBT as per Screener. Please check https://substackcdn.com/image/fetch/f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F21273f3a-43f9-4d2d-a3bf-d68e3a24591d_1770x694.jpeg
Thank you! Yes, you're right -- mistakenly, I wrote the PBT numbers instead of net profits