Although results are good, company decided not to provide guidance for FY 26. This unnerved the market IMHO
2 Likes
I think lack of material price movement today is also due to the fact that their YOY sales growth has been weakest this quarter with overall sales somewhat tapering off since last few quarters likely due to a). high base & b). global macroeconomic factors. It appears the current earning growth trajectory is well priced in with limited upside impetus in short term.
2 Likes
No @apoosh both yoy and qoq looks good for me ?
Below graph shows their quarterly sales growth compared YOY, tapering to some extents in recent quarters. Their sales is still significantly better than other ERD players and their profit growth is still robust, slowing sales growth may have put pressure on their PE which had been north of 50 for more than 3 years.
Disc: invested
7 Likes
Nice data illustration,got it. thank you..
Which website provides this data? Could you please point me?
1 Like
@GrowthValueInvester data is sourced from Screener and plotted simply on excel.
Would just like to emphasize that revenue growth looks optically slow in recent quarters due to high base effect (owing to bumper results in FY23-24), but still head and shoulders above the likes of Tata Elxsi, Tata Tech or LTTS. Plus they demonstrated significant uptick in profitability and efficiency ratios. However, given the global macro headwinds specially in European Auto sector, market needs new triggers in order to sustain their high PE going forward, in my humble opinion.
6 Likes
Considering the fact that they mentioned in their earnings call, that they are getting good learnings from their china operations which is helping them learn to make their services more cost efficient and cheaper and to provide them to their Europe and USA OEM clients. They also mentioned about entering and getting new clients in Off highway market. So are these triggers not good enough to probably help them get higher revenues possibly in the upcoming quarters.
3 Likes