r/valueinvesting
TD power systems, what to expect now?
Author reflects on 100% gains in TD Power Systems driven by strong management execution, now questioning if the growth story is fully priced in.
- Management guided for stronger execution driven by higher sales of cooling systems and turbine generators.
- Continued strength in export demand and improved capacity utilization.
- Consistent delivery on management promises, which markets consistently reward.
- The recent 100% rally may have fully priced in the company's growth story.
- Uncertainty on whether the business still has room to compound at current valuations.
One of my best-performing investments so far has been TD Power Systems, delivering a 100% return.
The investment thesis wasn't based on chasing momentum. During the Q2 FY26 earnings call, management guided for stronger execution from Q3 onwards, driven by higher sales of cooling systems and turbine generators, continued strength in export demand, and improved capacity utilization. Those expectations eventually reflected in the company's performance and the stock price followed.
One lesson I've taken away is that management guidance can be valuable, but only when backed by execution. Markets often reward companies that consistently deliver on what they promise.
The bigger question now is whether the recent rally has fully priced in the growth story or if the business still has room to compound. That's where the analysis gets interesting.
Not investment advice. Always do your own research.
Ok AI