Companies with 20%+ growth guidance for next few years

I was referring to Gravita India. Stock price was flat from 2010- 2020. So wanted to understand what are the triggers. Query wasn’t about Carysil.

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Another noteworthy development is their recent adoption of inventory hedging practices, which commenced around 2019.

Ah ok. I misunderstood.
There are a couple of reasons:-

  1. The policy tailwinds from the govt. with EPR and BWMR. This should rapidly formalise this sector. At present 65% is unorganised.
  2. Gravita has started hedging. So margin volatility should reduce
  3. This sector takes 7-8years for network development. I believe that phase of tolling is over which was a low margin business. Operating leverage should now play out. Current plant utilization is only 57%. Should inch towards 80-85%
  4. Recycled products take long time for customer approval. These approvals are available with Gravita now.

So barriers to entry are high and policy tailwinds clubbed with operating leverage should give it a kick.

Hope this answers the query.
However, this is purely my personal opinion.

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Thanks a lot. It helps.

any idea about sj logistics , looking at the latest quarterly numbers was really good

Amara Raja is setting its own 150,000 tons battery recycle facility, which is roughly 35 to 40 per cent of its requirement. How this will impact Gravita?

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As per the mgt, no impact at all considering the market size is huge.

So, the opportunity itself is huge. So, currently if you look at the total capacities in the organized
sector, they are not capable to fulfill the entire requirement. So, every battery manufacturer, just
because he has to comply with the new regulations, would have to find solutions. So, part of it
is going to come from contract manufacturing with companies like us, organized recycler. And
part of it is going to come by their own internal capacities. So, I think because the opportunity
itself is so huge that even if their capacities come, it will not overall impact growth that we have
envisaged for the next 4, 5 years.

Posting a snapshot from the Mgmt concall in May 2024 on this question:-

My personal view point is that companies like NILE and Pilot Industries should be impacted more which have a major dependency on Amara Raja Batteries for their sales. They are geographically also less diversified.

Credit: Kotak Securities.

Gravita should do much better considering the global network and diversification.

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Looks like sjs company is on track…

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Hello,
Just adding my 2 cents to the community on what businesses I’m studying currently and interested in adding to my satellite portfolio with 20%+ growth anticipation. Will really appreciate the views of the community:

  1. Landmark cars
  2. Rolex rings
  3. SJS enterprises
  4. PVR INOX
  5. Dreamfolks
  6. City union bank
  7. Steel strips wheels

Will love opinions of the community members.

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Those are some intresting finds.
I have doubts over landmark cars delivering growth in excess of 20%.
Unless growth comes majorly from expansion.

Rest of the themes seem fine to me in terms of anticipated growth numbers,
P.s: I could be wrong.

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Some companies targeting 20%+ growth (after Q4FY24 results):
Goodluck India
Maiden Forgings
BEW Engineering
EMS Ltd.
Shivalik Bimetals
Yatharth Hospitals
Kilburn
Pondy Oxide and Gravita India
Izmo
Ritco Logistics
Osia Hyper
Jyoti Resins
Galaxy Bearings

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Benefits Kirloskar Pneumatic too

Found Osia Hypermart interesting (Dmart type business), but on digging deeper found many corporate governance issues.
Number of public shareholders increased by 500% in last one quarter from 6k to 38k. Looks like a pump and dump story in fact.
Negative operating cash flow, company never generated any cash flows from operations.
Lot of related party transactions. Rents and loans to directors.
Promoters stake is down almost by 20% in last 4 years. Announced another right issue recently.

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My reasons:

Only major reason for including Landmark cars:

Also, I expect that since it is onboarding Mahindra too, that will be a good growth engine. Can’t say for sure though…
Rolex Rings: Overall bullishness in the sector plus this particular company seems a proxy to the sector.
SJS enterprises: The company have been able to achieve its guidance in the past. Hoping it to continue to do so. Plus it’s less cyclical than Auto industry and a kind of proxy to it too(I don’t know why am I more interested in proxy companies).
PVR INOX: variant perception. A contrarian bet since sector is ignored and in extreme pessimistic perception right now. I think the culture of OTT is different than cinemas and they both will have different place in the market (as against the view that OTT will kill cinemas).
Dreamfolks: Proxy to aviation and credit card industry.
City union bank: Conservative management. Reversion to mean framework. Hoping for the market to realise this company’s value.
Steel strips wheels: Alloy wheels market increasing rapidly. Company doing capex for Alloy wheels which is actually a high margin segment.

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According to their guidance, Krsnaa Diagnostics and Sunteck Reality can easily achieve more than 20% sales growth in the coming two years.

Expecting the growth to be tepid for the next year. CV industry volumes are expected to remain flat or show minimal growth in FY25, which can impact overall volume growth for the company. However, expecting the margins to improve over the next few years due to higher mix of alloy wheels.

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The thesis is playing out quite well. Gave a major break out yesterday. :slight_smile:

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