Rashi peripherals is a distributor company incorporated in year 1989 is among leading national distributor partner for global technology brand in (ICT) products.
What fascinates to me about this business is it has recently got order worth 1,500cr from Hiranandani backed company NMDC Data center Pvt. when current market cap is 2,105cr.
‘What excites me more is its anchor investors’
Volrado venture which is owned by Mr Akash Bhansali has invested 100cr in pre-ipo placement along with Mr Madhu Kela who invest 50cr at a price of 311 per shares and owns 2.44% stake. Also Nemish Shah a veteran of this market’s has also invested approx. 17cr at 329 per share.
All these things combined its future looks quite promising once the Micron plant in Gujarat also starts its production whom there already have a type with (Micron is the largest chip manufatcuring company)
Respectfully,
Understand the business please,
Its a trading co. Which buys laptop from asus and sells to corporation,
It also has certain other SKUs
Dont attach NVIDIA and DC for Hype,
Customer requires laptop they buy it and sell,
Story over.
Glorification of story is done by investors like us and than we blame for wrong interpretation.
Theres Creative newtech doing the same type of business they are calling it EB
No comments on HNI investment as that part is true but recheck adding prefix might not increase the price
Your clue vould have been 2-3% EBITDA margins but neverthless, its still a decent business interpretation is wrong through😅
That’s the beauty of markets that everyone has their own views. You think me adding that prefix will increase share price hell no!!
Respectfully,
Understand the business Strengths & moats please,
Following are my points why I think it is a gem company!
Point 1:-
Think logically they are Nvidia’s partner from last 9 years so if Nvidia wants to increase their sales in India who will get benefit out of this!?
Point 2:-
If you think companies with 2-3 % Margin can’t make good returns please check Redington’s stock price who is their only close competitor their CAGR of last 5 years, Its 35% per year.
Point 3:-
4-5 years back they have started their new vertical of Data centers and cloud computing where in they do all the process from installation to after sales service by themself. And also have type with MICRON whose plant is going live In Q1 FY 26 so they will also get benefit from that.
Point 5:-
Mangement has guided they are also hopeful in getting more orders in Data center space as the new law is very beneficial towards make in India and store data in India. They already have order of 1500cr from NMDC data center.
Point 6:-
They have a market share of more than 45-50% in some products so there is a high switching cost for existing companies as there is no big player other than this and very unlikely, they will have any big competition as business of low margins aren’t lucrative for new entrants.
Point 7:-
Today this stock was also picked by Sandeep Jain who is famously know as “Jain saab ke Gems” please here his views on this stock, given on Zee Business Today!
Point 8:-
At last as Peter Lynch once said "During Gold rush, most would-be miners lost money, but people who sold them picks, shovels and blue jeans (Levis) made nice profit
Point 5 → Their previous year sales is 11095 Cr. So 1500 Cr order is not that big deal.
Point 7 → Please don’t attach stock growth based on recommendations from News TV anchors. As we all know, most are just naming random companies to provide an opinion.
also , not as primary thesis , madhu kela is also in the list of investors , it is less covered institutionally, driving the data center theme , as more quality capital flows into this sector they will look at strong established partners in this sector to provide them with electronic equipment’s and rptech stands strong in this segment , i do agree with Ashar also about the trading company, but if someone in this industry has to leap from a trading company to a larger corporation with value add , they are well positioned to grab this opportunity, and NVIDIAS computer share increasing in B2B utilities will directly benifit them in sectors like pharma ( just gave u a small summary of my thesis ) , management seems very confident
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