112. colcol| Link| Bookmark|
July 19, 2024 6:44:02 PM
Top Contributor (400+ Posts, 100+ Likes)
This is a risky bet but planning to hold for a few months at least. There are many potential positive catalysts. One is ESG investing, which is huge in Europe and North America. If any well-known FIIs enter the stock, it could rocket.
I am prepared for substantial downside if the thesis does not hold. Please do your own research and due diligence before deciding what to do.
Investing should not be done on QIB alone. Analyze the company fundamentals and valuation and growth prospects.
If I am not wrong, Atmasco also did not have QIB but listed with 20% premium and rallied more than 400% in less than 6 months, what else does one expect in such short span of time.
KP green (listed this year) GMP was also in single digits (5% premium) and listed with 30% premium and rallied more than 400% in less than 3 months.
I have done my analysis of Tunwal and will be posting details tomorrow. This may not rally 400% in short period but can easily double in couple of months.
Based on FY24 numbers:- 1. PE=21 whereas its peer Wardwizard PE=104, so this is trading very reasonable valuation. 2. ROE (Return on Equity)=57 3. ROCE (Return on Capital Employed)=59 4. EBITDA and PAT margins are 17% and 11.3% respectively which are much better than peers. 5. Debt/Equity=1 and after IPO proceeds it will be 0.5 6. PAT has grown from 3.7 cr in FY23 to 12 cr in FY24 which is 320% growth. 7. Revenue has grown from 76 cr in FY23 to 105 cr in FY24 which is 38% growth. 8. Trade receivable days are very good. 9. Their business is spread across lndia (North-32%, South-12%, East-6%, West-50%) thereby avoiding risks. 10. Mcap-> 326 cr which is 3 times FY24 which is very reasonable. 11. Capacity utilzation is 55% so no need of immediate Capex requirements.
Notes:- 1. EV sector is sunrise sector like Renewable energy (Solar, Wind). 2. Any EV related announcement in the budget will be icing on the cake for this company. 3. Price point of vehicles is very good and as majority of Indians are price consicous due to family commitments this company has huge runaway for growth provided they execute their strategy well. 4. If it lists as per GMP it is providing very good opportunity for medium/long term investors. 5. Very few listed companies in the SME space from EV sector and hence demand scarcity premium.
As the saying goes market rewards trader with small gains but investor with hefty gains provided u invest in good company at a reasonable price.
105.7. Old.Fox| Link| Bookmark|
July 22, 2024 9:41:36 AM
IPO Mentor (800+ Posts, 400+ Likes)
This is the best example for those who think Qib and Anchor Investor are king maker Similar type of situation in this Ipo https://www.chittorgarh.com/ipo/global-health-ipo/1330/ Must check this one
This is my 1st SME ipo allotment, I might be biased Noone knows the exact result, it might be in favour or not in favour
But don't only believe gmp, and Qib
105.10. Vnrao| Link| Bookmark|
July 22, 2024 3:19:38 PM
Top Contributor (500+ Posts, 100+ Likes)
I fully agree with @Lokesh Chiru Bondada Engineering, which was byfar the best SME stock gave 3,300%Returns in a year has NO QIB. Fundamentals and valuations are the key factors for growth of a Stock. I do feel Tunwal was fundamentally strong and valuation wise much room left for growth. Even if it disappoints on listingday, it will bounce like what happened in the case of ZTECH.
@Crow sir , so good and happy to see you back , where have you been , hope all is good with you and family... please keep posting your valuable insights here ...
GOOD ISSUE BUT LOW SUBSCRIPTION DONT KNOW. I THINK PEOPLES ARE APPLIED ONLY ON THE BASIS OF GREY MARKET ONLY. BUT I BELIEVE THAT IT IS GOOD COMPANY AND ISSUE WILL OPEN ON POSITIVE NOTE.