Bull therapy 101-thread for technical analysis with the fundamentals

Esab India, Monthly - Has been consolidating for a year in this wedge while numbers have improved consistently. Current quarter numbers are an all time high and should hopefully lead to a breakout from this consolidation.

Esab India is into welding consumables (welding rods or stick electrodes), welding equipment and cutting products. Seems to be a picks and shovels approach for capex play. They supply to Shipbuilding, construction, transport, energy and also in repair and maintenance of steels mills, cement, sugar etc. So this is probably the safest way to play the capex. The company has a very good return ratios with RoCE around 45% and RoE around 33%.

The company came up with some very good numbers over the weekend - 25% topline growth and about 33% bottomline growth YoY. Margins were at an all time high as well owing to operating leverage playing out. Unsure of what the capacity utilisation currently is but if these sort of margins continue, there could be disproportionate growth ahead.

Permanent Magnets, Daily - Broken out from pre-result prices with a gap up, most of which it filled intraday. Might re-test the trendline at around 630 levels

Numbers have been quite good here again with a 45% topline growth and a 65% bottomline growth with good margin expansion. More details on the business are present in AR and investor presentations and the AGM recording.

Disc: Have a position in Esab India from around current levels. Permanent Magnets from 550 levels and added a bit more today. A re-test could be good levels to add more.

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