Website – https://sgmart.co.in

Here is some key point from recent concall –

• Business Model and Strategy:

• SG Mart Limited aims to become India’s largest steel and metal trader. The company’s strategy includes buying raw materials in bulk from steel and zinc producers and distributing them to smaller retailers and dealers.

• SG Mart serves as a large distributor, relieving steel producers from managing small dealers directly.

• They are also focusing on setting up high-tech service centers to process steel for industries like consumer durables, automotive, and construction, offering better quality and timely delivery compared to traditional small-scale processors .

• Acquisition and Financial Strategy:

• SG Mart was acquired as a listed company to attract investors, as they needed a public structure to raise funds efficiently. The acquisition was not for existing business but for the corporate structure, allowing the company to raise approximately INR 1300 crores .

• Customer and Market Insights:

• SG Mart’s customers include OEMs (Original Equipment Manufacturers) in industries such as consumer durables and automotive, who require processed steel. By setting up service centers close to major manufacturing hubs, SG Mart reduces logistics costs and improves service quality for these large manufacturers .

• Market Opportunities and Challenges:

• SG Mart is positioning itself as a significant player capable of handling the increasing steel production in India, as the country aims to expand its steel capacity significantly by 2030. The company believes that small traders cannot keep up with this growth, providing a business opportunity for larger distributors like SG Mart .

Hello, I am new to banking sector so just wanted to understand why Kodak’s NIMs are more than that of ICICI/HDFC/Axis even though they have similar cost of funds?

I just added this tool to chrome and saw the points what has been given. It’s good we get the financial position in a nutshell but according to me it should give the basis on which each of these points have been given without which the readers will not be sure whether the conclusion of tool is accurate or not.

The company did provide a clarification over the BrijBihari acquisition in its q1fy25 con call, listen at timestamp 52:00 (it’s in Hindi). They said the acquisition is more of an asset acquisition and not an operational acquisition.

The companies intent is to use the asset as a mortgage collateral.

There are two options for a mortgage collateral,

1. Do a 50cr FD and submit the FD receipt as collateral.
2. Use some asset as a collateral.

The promoter said that the first option is not that financially viable as the return would be 5-7% with a 30% tax rate vs the asset that he has acquired for 50cr (directly from the bank), whose fair market value is around 100cr (according to promoter Mr. Ramveer Singh).

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