probably very late to the party but i think still not to late had invested in this stock at 330 level in the stock called rashi peripherials ,there was very interesting thread created about it on valuepickr (not sure if still there)but was deleted or people could not post because of valuepickr rules.
the stock at 330 was trading at a pe of 10,currenty trades at a pe of 17 ,has been historically growing at a cagr of 20% for the last 2 to 3 decade.currently going through a supercycle(managment commentary says that this will continue for the next 2 years) as demands for pc and components has not only skyrocketed but the prices have shot up so much that rams and graphics card have proven to be better invesments than gold and other asset classes.
the ai bubble can pop anytime but i don’t think it will pop anytime soon considering that there is limited supply of rams an graphic cards and playstation 6 ,gta 6 is just going to increase demand further and create a further supply crunch (sony is already going to launch it playstation at 1000$ ,the highest a gaming console has ever launched for)prices of thre current playstation has increased almost by 50%,i can sell my 6 year old console for more than what i paid for it).so the the prices of graphic cards have also increased by almost 50 % in the start of august ,not only pc parts but phones in general have also become 40 to 50% expensive.apple is going to launch there latest iphone at 30 to 40% higher compared to last year.
the most beautiful part about the company is there inventory is protected by insurance,so the downside is protected but the negative part is that they get to run on margin of 2 to 3% irrespective of the price increase,despite this the profits have almost increased by 60% YoY.this quarter it will be higher as i told earlier that prices of graphics cards have increased by 50% and rashi holds 47% market share in this department.they are also diversifying into ai server buisness(pretty new and not much information is available about that buisness but i think should help it further pe re rate the stock)
i would not get into the stock at cmp price but would definitely keep an eye or buy in tranches if i want to buy a momentum stock.