Prateek Madaan
@prateek_madaan1
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Unearthing hidden gems in the world of equity investing. Join me on the journey to financial growth ๐ All things : Business, Finance, Investments, Gym
New Delhi
Joined September 2023
MAKE SURE TO READ IT FULL - this might give some relevant insights ๐ก๐ก I got a question from one of the followers that how to get a multibagger. So thought of creating a post on same as to what all you need to do - one can take it as a general framework ... Study the business model of the company, any possible tailwinds that might unveil for the company in coming decade or years, then comes the business performance. Tracking the performance of the company each quarter is very important. If the business is going in the right direction, the probability of the company going from a micro-cap to small cap then to mid-cap then to large-cap becomes extremely high as long as the sector continues to remain in favour and the future growth tailwinds are there. Of course that can only happen when there are not strict government regulations on the sector and there are certain benefits that the company gets from the government in form of initiatives etc. to let the company flourish. Start reading concall documents and always stay up to date with the progress of your companies. Prove that the company deserves your ownership. If it does not, simply get rid of it. Business performance is measured by EPS. The perception of the market further adds cherry on the cake decided by the PE ratio. If the market sees the company in high regard and is very optimistic of the future growth then you have found a possible multibagger because it is there you will find a candidate for re-rating of the PE ratio. The performance of the stock along with this re-rating in tandem gives you a multibagger. PE expansion is must and must if you want a multibagger and it won't come in general from obsolete sectors like paper etc. unless there is some monopoly or something unique that the company is doing. @LuckyInvest_ARK sir would you like to add something to this from your multi-decadal experience in the markets because you have got a lot of multibaggers in your investing journey ? I am sure it would be full of insights for us.
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Make sure to check the below post as well to better understand the context :
โญGensol Engineering Q2FY25 Concall Insights : I went through its latest concall and here are the relevant insights that I got from it. The company continues to stick to its guidance of 2000 crores revenue in FY25. โกGensol Engineering holds a significant order book of INR 9,000 crore, which includes solar EPC, battery energy storage systems (BESS), and green hydrogen projects. This gives strong revenue visibility for future growth plans of the company and this also supports both short-term and long-term financial stability if things go fine and these tenders continue to remain with them without getting cancelled at the last point. โกTopline Guidance : Firm on their guidance which they gave in their previous Q1FY25 concall as well. The company has set a topline goal of INR 2,000 crore for FY25, with sustained revenue from the robust order book and a growing bid pipeline expected to further strengthen order inflow. โกManagement expects consolidated EBITDA margins of 17-18%. They anticipate solar EPC margins to remain at 14-16%, while EV leasing and energy storage are projected to contribute higher margins. Importantly, they prefer investors focus on PBT due to the specific revenue recognition approach in leasing and EPC. โกEV Manufacturing Timeline and Profitability: Launch Date: Their first electric vehicle, a compact two-seater targeted at urban customers, is set to begin production in Q1 FY26 (April-June 2025). Production Capacity: A new manufacturing facility in Chakan, Pune, will have an annual capacity of 30,000 units. EV Leasing Profitability: The EV leasing business has already achieved profitability, with expanded customer diversity beyond its prior reliance on BlueSmart. Management expects this segment to remain profitable in FY26, minimizing mobility segment losses. โกBattery Energy Storage Systems (BESS) - the segment to track: โกGrowth Opportunity: Management is optimistic about BESS, which they project will grow at an 18-19% CAGR. Their secured BESS contracts, worth INR 3,100 crore, boast high EBITDA margins (~90%) over a 12-year period, and they anticipate even better profitability due to declining battery costs. Revenue Visibility: Consistent revenue visibility and extensive market potential and Gensolโs active involvement in multiple high-margin BESS projects. โกGreen Hydrogen and Biohydrogen Projects: โกStrategic Alliances: Through a consortium with Matrix, Gensol is entering green hydrogen projects without a joint venture setup. This flexible arrangement allows each party to leverage its strengths: Gensol's renewable energy expertise and Matrixโs hydrogen technology. โกOrder Value and Margins: Green hydrogen and biohydrogen projects, including a recent biohydrogen contract with NTPC, show profit margins above 20%. Matrix will have a larger share in specific green steel projects due to its proprietary technology. Coming to the debt related part : Debt Reduction and QIP: โกDebt Management: The company has reduced net debt by INR 185 crore in H1 FY25, improving its debt-to-equity ratio from 2.2x to 1.4x. An additional QIP of INR 750 crore has been approved to strengthen liquidity and fund growth. Interest Coverage: Despite a one-time increase in reported interest due to lease restatements, the underlying interest coverage has improved, reflecting healthier financial leverage. โกExpansion Plans: Domestic and International Markets: Gensol continues expanding domestically, notably in Gujaratโs solar projects under the Kusum Scheme, and internationally with new subsidiaries in the Middle East and a U.S. entity for Scorpius solar tracking solutions. โกOrder Book Growth: Beyond the current INR 9,000 crore order book, management anticipates further bid pipeline growth and has noted two additional orders in progress, expected to increase the order book by about INR 2,000 crore in upcoming quarters.
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Inox India has three segments in which it operates in : 1. Industrial Gas 2. LNG 3. Cryo Scientific. Of the three, Cryo Scientific segment offers the highest margins. This is the most specialized and high-margin segment due to the complexity, precision engineering, and limited competition. Products cater to scientific research, space exploration, and nuclear applications, where pricing power is stronger due to the niche demand and technological barriers to entry. Second is LNG : LNG storage, transportation, and infrastructure solutions are more complex compared to industrial gas storage, requiring specialized engineering and regulatory compliance. Some a mid-margin segment you can say. Third one is Industrial Gas : This segment primarily involves standardized storage and transportation solutions for industrial gases. While the products require cryogenic engineering expertise, they are relatively commoditized with high competition, leading to moderate pricing power. Bulk orders and economies of scale improve margins, but overall, this remains a mid-margin business as well. Not a reco and not invested.
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RT @prateek_madaan1: โก๐๐๐ ๐๐๐ฐ๐๐ฅ๐ฅ๐๐ซ๐ฌ ๐๐๐
๐๐๐ ๐๐๐ฌ๐ฎ๐ฅ๐ญ๐ฌ ๐ฅ๐ฅ Big wealth is always made in microcap and small cap stocks. You keep performing, Iโฆ
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โก๐๐๐ ๐๐๐ฐ๐๐ฅ๐ฅ๐๐ซ๐ฌ ๐๐๐
๐๐๐ ๐๐๐ฌ๐ฎ๐ฅ๐ญ๐ฌ ๐ฅ๐ฅ Big wealth is always made in microcap and small cap stocks. You keep performing, I keep adding. You disappoint with bad results without any concrete reason to back underperformance, I cut or exit and move on. That's as simple as that. Jewelry giants like Sky Gold Ltd. and RBZ Jewellers have a business model that thrives on operating leverage, allowing them to improve margins significantly as revenue scales. These companies face high fixed costs in areas like labor, rent, machinery, and retail infrastructure, but once those costs are covered, every additional sale disproportionately boosts profits. This is because variable costsโmainly raw materials like goldโdonโt increase at the same pace as sales. As sales volumes rise, the fixed costs get spread across more units, reducing per-unit expenses and improving operating margins. Plain gold jewelry typically carries lower margins due to the standardized nature of gold pricing and its high raw material content. โกHowever, custom-designed and studded jewelry (which includes diamonds, precious stones, or intricate craftsmanship) offers significantly higher margins due to added design complexity, labor costs, and perceived value. Sky Gold, with a focus on manufacturing efficiency and volume-driven gold jewelry, relies on scale to drive profit margins despite lower individual product margins. In contrast, RBZ Jewellers, expanding its retail footprint, benefits from a mix of premium, high-margin custom products and mid-range offerings tailored to diverse customer bases. ๐ช๐ป Companies that can optimize their product mix toward more value-added jewelry while maintaining production efficiency can achieve an overall uplift in gross and operating margins over time and that sets OPERATING LEVERAGE on ๐ฅ๐ฅ Stellar set of numbers by RBZ Jewellers. Invested and not a reco. Valuation wise it was relatively comfortable so I went with RBZ. Sky Gold is of course the dominant one at this point :)
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RT @prateek_madaan1: โกV2 Retail Q3FY25 Financial Results Operating leverage in business. Strong performance. Outperforming Trent since aโฆ
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Uncivilized folks talk like this only. Total filth - absolutely BS. Be very selective on what you consume on social media. Some preach spirituality but their minds are filled with filth like Ranveer Allahbadia. They crave views, not values. Be very selective about what you consume on social media. Spot the difference between genuine wisdom and disguised dirt. You want to succeed big time in your life - it is very much possible and easy to do if you have the right framework. The first step is to UNSUBSCRIBE these so called influencers and use your time in the right things. Get a life bro.
Why no FIR against this filthy lady, #ApoorvaMakhija ? She is equally responsible as Ranveer Allahbadia and Samay Raina !! Don't stop the repost until she gets arrested @MumbaiPolice
#RanveerAllahbadia #ashishchanchlani
#indiasgotlatent #SamayRaina
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โกV2 Retail Q3FY25 Financial Results Operating leverage in business. Strong performance. Outperforming Trent since a few quarters.
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@Avanzamento_KM @nileshkurhade @Aditya_joshi12 @thefinvestor @microturnsmacro Yeah but I just covered the company. It was just an analysis. No reco and not invested but yes will keep on tracking :)
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You can follow me on Instagram as well : I don't post much related to stock markets over there. I am pretty much new over there.
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Highly recommend checking out this podcast by @_soniashenoy! ๐๏ธ Probably one of the best Iโve watched in recent times. Most podcasts fail to catch my attention, but this one was spot on! @Amit_Jeswani1 sir discussed an approach that every retailer should strive to follow if they really want to succeed in the markets. Of course, not every person can stick to it because it requires very extensive tracking of businesses but yes the more you practice the more you will get closer. Each day a little improvement can take someone far ahead. That's what I believe. A few years ago, I didnโt track nearly as many businesses as I do now. On an incremental basis, your mental model continues to get better and better - the more you read. It's a continuous process of learning and refining your approach to stay ahead and up your game. A great watchโ1 hour fully utilized. Check it out here:
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Working day in and day out on my fitness. I still have to do a lot. But over a few months with high protein diet and strength training, I have been able to come to a fine shape and I reduced my body weight by close to 10 kgs. I still have to work a bit more to get in the form that I want for myself and I am sure I will achieve it.
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@VikasFialok @LuckyInvest_ARK @AdityaMittal795 @Anvith_ @Aditya_joshi12 @sovrennofficial @SMESTOCKNEWS Will check bro.
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RT @prateek_madaan1: โก๐๐ ๐๐๐ซ๐ญ ๐๐ฎ๐ฌ๐ข๐ง๐๐ฌ๐ฌ ๐๐ง๐๐ฅ๐ฒ๐ฌ๐ข๐ฌ ๐๐๐
๐๐๐ In this video, we will discuss the related insights for the business. The companyโฆ
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Market does not give a F. SG Mart from what I saw they overpromised and underdelivered. This year also it does not seems to me that it will be able to cross 6000 crores in revenue. But yes will have to track. Stock is in pressure. I will discuss in detail in my last video for today.
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RT @prateek_madaan1: ๐๐ซ๐๐ง๐ฌ๐๐จ๐ซ๐ฆ๐๐ซ๐ฌ ๐ซ๐๐ฉ๐ซ๐๐ฌ๐๐ง๐ญ ๐ ๐ฆ๐ฎ๐ฅ๐ญ๐ข-๐๐๐๐๐๐๐ฅ ๐ข๐ง๐ฏ๐๐ฌ๐ญ๐ฆ๐๐ง๐ญ ๐จ๐ฉ๐ฉ๐จ๐ซ๐ญ๐ฎ๐ง๐ข๐ญ๐ฒ. Of course one needs to TRACK. I am not saying go withโฆ
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