I have been invested in this one for a pretty long time and i booked profit on muhurat trading day. My two cents here:
1 - this is cyclical business and all companies in this sector are strugling - be it TARIL or Danish or Voltamp. It seems all got rated very well some time back and now some time for consolidation - time and price correction is being seen in all.
2. Shilchar management has delayed on their expansion plan for a very long time ~1 year was spent in coming out with a plan.
3. I could not join the con call, but went through the transcript and am bit surprised - it was Alay’s son who did most of the answering and his answers were not that strong and supportive - if you scan the transcript you will find - our customers are willing to pay us the premium, we are confident of meeting 750 cr revenue target, etc are there all over the place.
Reading at the transcript i got a feeling that the management now does not have much to speak - it is their normal business - business has peaked and may be will remain peaked for some time. Earlier the price rose sharply as there was both revenue growth and margin expansion - for the last few quaters margins has remained stagnant and revenue has grown at a flat 30% range. Also there is high possibility that they will reach peak revenue this year itself and next year there may not be any growth and in FY27 they are introducing new range of transformers which will again take some time to stabilize and accepted in the market and that will have an impact on the margins.
I may be wrong, but will be happy to sit on sidelines and track this one for next few quaters before taking a entry once again.