Revenue growth of 25-30% in FY25. EBITDA margin expansion to 17-18% provides strong outlook for FY25. JAIBALAJI undergoing capex till FY26 providing a roadmap for longer term growth
Thanks. Find your thread to be a good starting point. Liked the analysis of Fineotex and Frontier Springs. Waiting for a good entry point. Was already invested in SG Mart and Action Construction. Would be great if we could pick our minds on some ideas that I have.
Is there any driver for significant jump in margins over the past 2 yrs from 4% to 14%? Is that a new normal (sustainable) or a temporary windfall which will dissipate??
1. Guidance: Our guidance is for 18% to 20% on the gross turnover of the company. So we have achieved18.5% of EBITDA margin this particular quarter only. So, we are very close to our guidance. So we are sticking to our guidance
2. Underlying reason for margin expansion - We aim to focus on value added and specialized products such as DI pipes and specialized ferro alloys while also strengthening our balance sheet. Jai Balaji is expanding the capacities of DI pipes and ferro alloys to increase the contribution of these products from the present 45%-50% to 80%
Our thesis - As the contribution of value added products increase, one could hope for the margins to expand/sustain .
Also invested into Motilal (it's a steal at 15x), and RBL. Find the low P/B too enticing but perplexing too. What are your thoughts on Medplus?
Thanks. Find your thread to be a good starting point. Liked the analysis of Fineotex and Frontier Springs. Waiting for a good entry point. Was already invested in SG Mart and Action Construction. Would be great if we could pick our minds on some ideas that I have.
Great to hear that you found out analysis useful. Thank you. You can reach out to us on hi@moneymuscle.in
Is there any driver for significant jump in margins over the past 2 yrs from 4% to 14%? Is that a new normal (sustainable) or a temporary windfall which will dissipate??
Management Commentary(Q1-25)
1. Guidance: Our guidance is for 18% to 20% on the gross turnover of the company. So we have achieved18.5% of EBITDA margin this particular quarter only. So, we are very close to our guidance. So we are sticking to our guidance
2. Underlying reason for margin expansion - We aim to focus on value added and specialized products such as DI pipes and specialized ferro alloys while also strengthening our balance sheet. Jai Balaji is expanding the capacities of DI pipes and ferro alloys to increase the contribution of these products from the present 45%-50% to 80%
Our thesis - As the contribution of value added products increase, one could hope for the margins to expand/sustain .