My thoughts on INVESTMENTS TO HOLD AND WHY. Please feel free to point out any deficienices and why the investments must not be made.
1. Ajax Engineering
2. Ethos
3. Five Star Business Finance
Ajax Engineering
- Repeated increase in Net Profit and Sales.
- No Debt(Capital much much higher than total liabilities)
- Over 70% market share in Self Loading Concrete Mixers- clear MOAT.
- SLCM’S produce concrete for construction projects. Almost the same cost as traditional batching plants. Have the added advantage of movement while producing concrete.
- Growth company to acquire midcap and beyond status.
- Cyclical(construction industry) may experience some downturns
- IPO in March, 2025
- Price range: 394-756(2025-2.4.2026). Clearly undervalued. Price today about 435.
Ethos
- High growth in Sales and Net Profit YOY.
- Dominant retailer for Rolex, Omega and other luxury watch brands-MOAT in luxury watch segment. Protective Moat.
- No debt, Capital much much higher than total liabilities
- IPO in May, 2022.
- Price range 707-3524(2022-2.4.2026)
- Wonderful business at fair price. Clearly undervalued or fairly priced- Historically P/e is at its lowest since roughly 2023. Priced at about 2220(1/3rd of all time range).
Five star Business Finance
- High growth in Sales and Net profit. High NIM and ROA.
- MOAT in south india micro finance. All loans are secured against residential property only. No loan is given without collateral and that too given only against residential property. Other big players such as Bajaj Finance and Shriram Finance will never tap into microfinance. Small ticket loans of 1-10lac. Solid financials. Untapped market.
- Wonderful business at a bargain price and a growth stock to midcap or large cap.
- IPO in Nov 2022.
- Price range: 338-943(2022-2.4.2026)
- Historically P/E is at its lowest- clearly undervalued. Priced at about 380.