At the end of the day it’s all about earnings. If in coming years company can show strong bottomline then the market cap can show significantly. Investing is all about probability. I had identified it when the market cap was around 170 crores. No one was optimistic about the company and the future prospects. No one knows anything beyond a point and we can only focus on the cash flows and the earnings. Most of the people ignore the cash flows and invest in a borrower conviction. Hope the company does well and reward the shareholders.
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The key value addition happens at the software level. E2E mgmt has mentioned this multiple times-
Software is probably one of the factors which allows hyperscalers to price their GPU instances & cloud services higher than smaller players.
E2E has had its platform operational longer than any other Indian player which gives it first mover advantage. It remains to be seen how it translates in to actual competitive advantage vs new players like Tata communication.
L&T licensing their platform for their own use indicates there is a some entry barrier in creating one from scratch. After all, they have an army of developers in their IT subsidiaries and they could have created the platform themselves if it was easy.
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Going to respectfully disagree with the promoters here based on my experience. There are lots of off the shelf open source free workload managers - nVidia itself has built one. All major cloud providers such as AWS, Azure, GC have their own workload manager. I don’t think its going to be too tough for Tata, Jio etc to build something comparable.
There is some scope for reducing costs at firmware level by optimizing the hardware’s firmware to be very specific to the model you are training (thats partially how High Flyer managed to get Deepseek’s training costs down so much) but thats unlikely to be provided as a service as you need something generic so that any model can be trained or inferred on their GPUs.
Ultimately, there are not many software moats out there - even something as cutting edge as frontier models are constantly being disrupted. OpenAI was the leader but now it has several competitors with comparable or even higher quality. It will ultimately come down to execution and the management’s ability to outcompete others in a very tough industry.
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Interesting perspective from Aravind Srinivas (Perplexity) on Data Center business https://youtu.be/y5Ewu8wYgqM?feature=shared&t=5970
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Interesting
https://x.com/balajis/status/1903700743242326284?s=08
I firmly believe that as AI as a phenomenon grows and matures, AI infrastructure in whatever shape and form would be a commodity and the providers would be utility providers like electricity companies. DeepSeek is the first step towards that direction. The value add would be by smart players leveraging AI the most, for their business. Not just startups creating AI first apps and services, but also ‘traditional’ businesses making the best use of AI, like, how Bajaj Finance is doing.
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The company is planning to buy blackwell GPUs means there is some immediate capex planned in next quarter..they usually buy in multiple of 128 GPUs
https://x.com/e2enetworks/status/1903326947532226879?t=yVPfvCT33P2nHHsSUtku4w&s=19
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E2E Networks boosts its leadership to drive growth & innovation in cloud & AI. With new experts on board, the company is set to scale its presence in India’s digital infrastructure space
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This is huge..2000 plus H200 GPUs procured in such a short time… Looks L&T partnership playing out big..I guess it should be minimum 500 cr capex. Anyone, pls correct me if I am wrong here.. privious H200 procurement was around 256.. so around 1700 GPUs would be additional capex…
https://nsearchives.nseindia.com/corporate/E2E_03042025124325_Press_Release_H200.pdf
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