My investment thesis for vdeal is
- Decent topline and bottom line growth.
- Positive operating cash flows.
- Company has a small base therefore has potential to grow very fast.
- The management seems to be clean, I wasn’t able to dig up any red flags on the management.
- Capacity under utilisation can be a major trigger here as the company can do 4x of whatever its doing now without any further capex.
- Deleveraging can also be a major trigger as they have stated that their debt will reduce by 30% and I believe the trend will continue in the future.
- The capital goods -electric equipments sector is also witnessing strong tailwinds .
- Considering all of the above points a pe of 20-25 seems reasonable. The risk to reward seems favourable.
These videos provide valuable insights about the promoter and the company:
Disclosure: invested