Know Your Stock | A steel company with a dash of defence, touch of Samit Vartak.

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Understand Your Stock One of the pioneers in the defense value chain was a steel company with a dash of defense and a touch of Samit Vartak. Even three years ago, the company had the production capabilities to serve the aerospace and defense industries, but orders have been reluctant to come in. Now that script is altering

On a trailing P/E basis, Goodluck India is substantially less expensive than its competitors. Analysts predict a re-rating due to the business model’s emphasis on high-margin defense components.
The trend in defense is now strong, and renowned investors are exploring new opportunities to capitalize on it.

On October 4, Samit Vartak’s SageOne Investment Managers discovered a little gem in Goodluck India while big, mainstream plays had rallied past their comfort zones.

Goodluck India is one of the top producers of engineering structures, precision/auto tubes, forging, CR (cold rolled) goods, and GI (galvanized iron) pipe with a market capitalization of Rs 1,916 crore. In essence, it transforms raw steel into finished products.

Samit Vartak favors smallcaps because of their strong bank sheets, higher earnings, and conservative business practices.

The company’s Q1FY24 investor presentation states that its products are used by the rail, petrochemical, marine, aerospace, and defence industries in addition to the automotive and agricultural machinery and car industries.

The post Know Your Stock. appeared first on ASWGROUPINDIA.

The post Know Your Stock. appeared first on ASWGROUPINDIA.