But the price bakes in the profit growth due to increase in revenue. If revenue remains growth weak then profits will remain subdued. Hence, making this an overpriced bet.
I feel like this stock needs to go below 50 PE and steel prices moving up can become a trigger for accumulation
This is not a mature business that has reached a state where revenue growth is predictable based on amount of sales because the store count is large enough .This is a start up where the revenue growth is secondary to the growth rate of stores . Most of the earnings currently is only interest earned from the cash balance they have .If anyone is valuing this business based on current revenue , imho, they are likely to be dissapointed anyway. Applying mature business models to a newborn business is not going to give correct answers .
The main monitorables are
i)whether they can grow the store count while keeping up the sales volume per store
ii) whether they can hold the margin steady across a normal steel cycle .
That monitoring needs to be done over a few quarters atleast .
they present it as marketplace or a platform model, but in reality its pure trading. Have seen similar trends in how Ofbusiness or infra.market operates. Businesses don’t place crores of orders over a platform. Over that how trading has been since ages, these platforms provide credits on their own cost to customers which makes margins very thin like any trading business. The only difference between a small business trader in your city and these companies is the way they operate. These companies have their books cleared and run like a corporate with margins similar or most of the time less thatn what a single small-time trader would do with the cash involved ofcourse for his/ her transactions. For that reason, I would see these businesses as Trading businesses only.
Please correct me if you feel I am wrong here
Trading without value addition might not be margin accretive business. However, adding value and selling it should be margin accretive business. If promoters deliver what they are promising - having multiple value addition / service centers. These service centers will help company to process raw steel, which company can buy from big steel industries, and product from these service centers is what customer/final consumers wants. If this model successful, company will have bright future than only doing trading
Promoters has excellent experience as a steel converter and this experience and customer/dealer/distributors connect will help them to grow faster. One has to wait and watch how the business grows profitably
how to access these bulk deals alerts on screener?
you can simply go here (Register - Screener) and in the search bar type ‘SG’. You can also bookmark a specific company to receive alerts (although i think free tier allows you to bookmark only upto a certain number of companies/ institutions)
Can anyone here explain the company’s shareholding pattern? Have the promoters sold their stake? or is it dilution because of warrants or is it reclassification? I’m confused.
please let me know - any update on this, and how it will impact the SG Mart?
I think this is largely due to reclassification of Neera Gupta as public instead of promoter. I think there is nothing to be sceptical about on the promoter holdings.
Disc: Invested a bit (under 1% of PF)
Look at these discussions
So I think the promoter group is trying to pull a smarty-pants move with moving around their promoter shareholding. There are a lot of restrictions that promoter shareholder faces like increased lock-in period, extended trading window restriction, extensive compliance, etc.
As we all know, Neera Gupta is wife of APL Apollo Tubes Chairman, Sanjay Gupta.
SEBI allows promoters to reclassify their holding as Public, if
Further, regulation 31A(3)(b) of LODR provides that ‘(b) the promoter(s) seeking re-classification and persons related to the promoter(s) seeking re-classification shall not
(i) together, hold more than ten percent of the total voting rights in the listed entity; (ii) exercise control over the affairs of the listed entity directly or indirectly; (iii) ….; (iv) be represented on the board of directors (including not having a nominee director) of the listed entity; (v) act as a key managerial person in the listed entity; (vi) ….;’
So since Neera is not part of management who is involved in business decision making or day-to-day operations, management felt she can be reclassified as public (or may be they are structuring the holding under Neera for this reason - who knows). They also brought down her holding below 10% from 12.1% in June 2024 shareholding. Good probability that they would have moved it down to 10% by moving the excess to some of the family members.
The main benefit for the management to have Neera’s holdings as Public is to be able to pledge their shareholding and reduce compliance burden.
Below links should be helpful if you want to better understand this topic of reclassification as public for promoters:
Positives-Q3 results-margins again on track (2.1% q3 vs 0.9% q2). PAT-28cr q3 vs 16 cr q2. 75% increase. Expansion plans on track as per concall.
Revenue decrease seen in trading business on account of shift from imports to Indian steel makers. Management guides that this will significantly increase in the next quarter.
Is this the time to accumulate? Waiting on the sidelines due to significant dip in last quarter(q2) profits.
I think SG Mart will fall tomorrow.
The results are not bad but the management not able to walk the talk regarding guidance is a big bummer.
Every quarter there is an excuse.
FY25 they guided 7000-8000 cr, Now even 6800 cr seems like a distant dream.
PE derating is on the cards.
Any idea what was the listing date of S G Mart?
I see on ChatGPT, its response is inline:
SG Mart Limited is listed on the Bombay Stock Exchange (BSE) under the scrip code 512329.  However, the exact date of its initial listing is not readily available in the provided sources. The company has undergone several corporate actions, such as a sub-division of equity shares and a bonus issue, with a record date of February 22, 2024.  For precise information regarding the original listing date, it would be advisable to contact SG Mart Limited directly or consult official BSE records.
Also, since most of us here have gone through the company’s concall, I am considering adding it to my portfolio soon—potentially around the ₹330 level, especially if the RSI crosses 60 after that price point.
Now, coming back to my question: How is their management? What tone do they adopt when addressing avid investors, shareholders, and institutions during concalls?
See the opening message on this thread.
Today’s Con-call notes ?
This is part of APL apollo family
As per me track record of zero to ~5500 Crs TTM sales in 2 yrs is nothing short of amazing!
