Samhi has printed an INR 113Cr EBITDA in Q3. Granted revenue growth was weaker than expected at 10%, but I still don’t see that as enough reason for the stock to fall post results. But the stock has fallen. Why? Nobody can say for sure, but it will be a mix of the reasons I’ve discussed in my last post. When the number improvement is there for the market to see and the business trajectory has been moving more or less exactly as you’d hoped it would, but still the market does not think the stock price should go up, then its time to consider the position if you are not a very long term investor (Mine is not patient capital like institutions).
I exited Samhi post results, mainly after acknowledging that market perceives valuations here differently to how I initially perceived it to be. Also, the lack of a promoter, extremely high float and post IPO selling overhang from institutions does not help the stock price at all.
I really like the business and Mr. Ashish Jakhanwala. He is an absolute stalwart in this industry and his journey from employee to entreprenuer under the tutelage of legends like Sam Zell has been amazing. I wish the company well and hope to own it again in the future. On a lighter note, for the rest of you who continue to hold, I hope the Samhi stock does what Genus Power did after I posted on VP and exited 