Shubham Ningudgekar

Very Happy to buy lot of Indian sme stocks at cheap valuation. 1. afcom holding 2. flysbs 3. c2c advanced 4. oriana power I wont listen to anyone , will keep buying. :)

Expecting A New Theme Getting Emerged For The Next 2-3 Quarters This Theme will consist of Refractories, Welding Consumables and Allied Companies in the Metal Commodity Production Ecosystem Companies in this theme would be Vesuvius, IFGL, RHI, Diffusion, Monolithisch, Ador, ESAB, Etc. See Welding Consumables A Great, Consistent and Resilient Theme For Long-term, No One Talks Much About These Companies, Yes they are boring but the exact Beneficiaries for India's Robust Manufacturing, Infrastructure Spent and Disproportionate Rise in Secondary Steel over Primary Steel

Recently added a stock in portfolio which is from welding consumables sector. Company Name - Classic Electrodes (India) Ltd. CMP: ₹95 Market Cap: ₹171 Cr   FY25 Sales: ₹206 Cr   Net Profit: ₹12 Cr PE - 14.7 1. Business Overview - Classic Electrodes is an SME-listed manufacturer of welding consumables—electrodes, wires, and allied products—serving fabrication, engineering, and infrastructure clients across India. The company benefits from industrial recovery and the government’s sustained infrastructure spending. Welding consumables is a highly sticky, repetitive business. 2. Promoter Background Founded over three decades ago, Classic Electrodes remains a family-led enterprise with a strong reputation in the Indian welding industry. The third-generation promoter, Mr. Nitesh, has recently joined the business, bringing renewed energy and a strategic focus on scaling operations, branding, and expanding institutional sales. His involvement signals a clear intent to modernize operations and accelerate growth beyond traditional channels. 3. Investment Rationale 3.1 Consistent Growth Trajectory Revenue has grown from ₹134 Cr (FY22) to ₹206 Cr (FY25), a 17% CAGR. Management has guided for ~30% growth in the coming year on the back of capacity expansion, stronger dealer network, and new client additions. Also Capex for New Product Flux Core wire has been done and plant production has started. 3.2 Improving Profitability and some room for margin improvement 3.3 FY25 Net Profit stands at ₹12 Cr (EPS ₹8.8), reflecting a sharp improvement over prior years. 3.4 Management has guided for some incremental uptick in margins as well. And balance sheet now looks much better post IPO. 3.5 Attractive Relative Valuation Classic trades at a lower Mcap/Sales multiple (0.79×) compared with peers like Diffusion Engineers (4.14×) and Ador Welding (1.76×), offering meaningful re-rating potential as growth sustains. 4. Sector Tailwinds With India’s strong capex cycle and rising manufacturing investment, demand for welding consumables is expected to grow steadily. Classic’s cost-efficient base and expanding distribution footprint position it well in this industrial upswing. 5. Key Triggers • Delivering on 30% revenue growth guidance for FY26. • Gradual shift toward higher-margin consumables . • New-generation leadership (Nitesh) driving modernization and scale. • Potential mainboard migration, improving liquidity and visibility. 6. Risks • Volatility in raw material prices (steel wire, flux, nickel). • Execution and working-capital pressure from scaling rapidly. • Lower liquidity and investor access as an SME-listed company. 7. Investment View At CMP ₹90.5, Classic Electrodes trades at a modest 0.79× Mcap/Sales, significantly below industry peers. Supported by strong growth guidance, promoter-driven expansion, and sectoral tailwinds, it offers an undervalued industrial growth story. The entry of the new-generation promoter strengthens execution visibility and positions Classic for its next leg of expansion and brand evolution. It seems like a compelling small-cap growth story for investors with a medium-term horizon and higher risk tolerance. DYDD NOT A RECO