Order book investing can create HUGE GENERATIONAL WEALTH for us. Let’s say a company has 60 Cr revenue and 15 Cr profit (implying a 15/60 = 25% profit margin) . This company has a order book of 100 Cr to be executed in 1 year. Once this year is over, high chance that this company posts 100 Cr in revenue and 25 Cr in PAT (using 25% profit margin). This company will appreciate by 66% or more assuming it is at a reasonable PE (since profit is increasing from 15 Cr to 25 Cr which is a 66% increase in profit). The only risk is order execution risk but it is quite low. Jisne order dia hai kuch soch ke hi dia hai na :) Do practice order book investing, many HNI investors do the same as well. It can make you rich. You can find the orders received by companies at Sovrenn and discover companies with strong order books. Sovrenn is India's best stock discovery platform. Discover stocks doing fundraising, posting excellent results, getting large orders at Sovrenn. You can now try Sovrenn absolutely FREE for 15 days Join Sovrenn Whatsapp Community: https://lnkd.in/g63YpkFx
Yes, order book investing does create a lot of wealth, if done well
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Equity Research Analyst at Centra Insights LLP | Graham-and-Dodd Investing
7moHoping to hear your objective feedback on my argument that order book investing is not real investing. Unless of course, you would want to follow suit of your founder by blocking me. https://www.linkedin.com/posts/jensenjjacob_valueinvesting-activity-7127311301487251456-80TR?utm_source=share&utm_medium=member_desktop