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15 May, 8 tweets, 4 min read
Astral Pipes fundamentals :
They have 2 major segments, pipes and adhesives. 77% revenue comes from Piping and the rest from Adhesives.
Both segments have very high margin.
25% PAT CAGR over the past 5 years.
Capacity utilization is far from saturation point.
Astral is already a CPVC leader (77% revenue share) and has diversified into Pidilite's monopoly in the high-margin adhesives segment (23% revenue share) and held up pretty well.
Recent acquisitions show the management's ambition to use inorganic means to make a dent into the high margin segment that Pidilite currently has a dominating market share in (M Seal, Dr fixit)
Comparison with Supreme Industries would be a bit unfair since Supreme does a lot more than just pipes. They make furniture and packaging foam etc. Detailed comparison of Supreme Inds here :

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15 May
Power sector, a bird's eye view thread : 🧵
IEX and PowerGrid appear to be slightly better options (अन्धों में काना राजा) in a capital intensive and dud sector.
IEX and PowerGrid have made decent revenues and profits consistently for a decade.
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Atul, Pidilite, Alkyl amine, Fine Org and Aarti Ind have among the best margins in the sector.
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Tasty Bites : 50% 🚀 since last mention 5M ago

Fundamentals always precede technical breakouts. Gotta catch em young when the fundamentals are improving & the momentum traders are still clueless.
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Generic Boi Profile picture
13 May
Life insurance is potentially the sector which will experience this kind of margin expansion over the coming decade. Most insurance companies presently have wafer thin margins between 2% to 4%.

Even a meagre 4% revenue growth at 6% margin will make their EPS zoom up by 300%. Image
Presently all Insurance stocks are fully valued (i.e 4% margin priced in but 6% margin not priced in)

Someone who enters now will ride the expansion from 4% margin to 6%. Those who had the foresight to enter at half the rate in 2020 March will get a 6x bagger when EPS goes up 3x
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13 May
If the uptrend has sustained for a greater time (12Mo) whereas the correction is relatively quick and deep (3Mo), as though it is in a hurry to complete a pattern, it is usually the accumulation zone for a fresh impulse wave. Image
Whereas, if the correction is taking its own time & allowing (i.e inviting) people to buy, it is usually a distribution prior to multi-year stagnation

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They don't do what laymen do i.e consensus buying in 'value stocks'. Possibility of returns is greatest at the point where your brain tells you "it's too risky to buy THIS at THIS PRICE".

"Deep value emerging" = smart money has exited.
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Tata Elxsi, a short overview :

Sales trend :
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