@kowshick_kk I am facing big problems in scanning sme stocks… As screener only gives quarterly and annual number screens… Any updates to make it for half yearly scans for sme?
Posts in category Value Pickr
Buy Unlisted Shares (10-11-2024)
Good luck Mukesh Ji.
On a different topic for the Vikram Solar investors, price in the secondary market is above 400, i feel its fully priced considering their financials. Do you see this going up further basis IPO approvals? What are your thoughts? Did anyone recently sell Vikram Solar or planning to sell? Selling in secondary markets is time and price challenged. Any platform and hold/sell recommendations basis data and facts would be welcomed.
E2E Networks Ltd – Listed small Cloud computing player (10-11-2024)
Coreweave IPO next year…comes closest to e2e
Azad Engineering – A stock picker’s dream! (10-11-2024)
Order book can be any big number. How much gets executed and realized as revenue and profit is what matters. Need to wait and watch the management’s execution capability.
Tips Industries Limited – Ready to RACE ahead! (10-11-2024)
Sorry for being ignorant about Finance, but as per the excel Tips will generate PAT of 1261 Crs and exit PE is 40. Why does that not make the exit bull case market cap ~50K Crs making it a 5x opportunity from here over next 15 years? And I think the growth rates are really low – once people actually start paying for music, Tips should benefit even more.
Dhanuka agritech (10-11-2024)
Dahnuka Agritech –
Q2 FY 25 results and concall highlights –
Revenues – 654 vs 618 cr, up 6 pc
Gross Margins @ 42 vs 40 pc
EBITDA – 160 vs 142 cr, up 12 pc ( margins @ 24.3 vs 22.9 pc )
PAT – 118 vs 102 cr, up 16 pc
Guidance for FY 25 – revenue growth of aprox 15-16 pc over FY 24. EBITDA margin improvement of 100 bps ( 1 pc ) over FY 24. Earlier they had guided for a 20 pc topline growth for FY 25 – basically have made a downward revision to their projections
Continuous / Excess rainfall in Aug/Sep resulted in farmers skipping sprays in many crops ( specially insecticides ). Sales return from Q1 also had an adverse effect on the topline growth
There was a continued pricing pressure on product prices ( to the tune of 4-5 pc ) resulting in lower topline growth
Three of company’s newly launched products – Purge ( Japanese herbicide for Groundnut and Soybean ), Lanevo ( insecticide for horticulture crops ) and Myco Super ( biologic – for soil health ) – are doing exceedingly well in the marketplace and exceeding even the company’s expectations. Both Purge and Lanevo are in-licensed from Nissan ( Japan )
Product wise sales breakup in Q2 –
Insecticides – 43 pc
Fungicides – 21 pc
Herbicides – 17 pc
Others – 19 pc
Region wise sales breakup in Q2 –
North – 29 pc
South – 31 pc
East – 12 pc
West – 28 pc
The patented products ( that the company in-licesnces ) from Innovators – contribute to aprox 600 cr of company’s topline at present. Have tie-ups with 10 leading agrochemical companies across the world in order to tap into in-licensing opportunities
Company is currently serving aprox 1 cr farmers through a network of 41 warehouses, 6500 distributors, 80k + retailers
High water levels in reservoirs should support a strong Rabi season this FY – augurs well for the company
Company did not share their launch pipeline for next FY
Company new AI plant at Dahej generated revenues of Rs 8 cr in Q2. Did operate at negative EBITDA levels { aprox (-) 4 cr }
Sales return in Q2 were due to late onset of monsoons and excessive rains. Sales returns were aprox – 100 cr, mostly in the herbicides category ( general levels of sales returns in Q2 are around 50-60 cr )
Volume growth for Q2 was 10 pc. Price growth was (-) 4 pc
Not expecting any significant sales returns in Q3
High inventory build up at the end of Q2 is also due to increased sales returns. Company expects the same to normalise by end of FY 25
Company has been able to hold onto and improve their gross margins is because of good / great performance from their in-licensed speciality portfolio. Price erosion in generic products has been much higher
Zanet ( another in-licensed product launched LY – fungicide used on Potato, Tomato crops ) is also doing very well
All 4 products – Zanet, Lanevo, Myco Super and Purge are exclusively with Dhanuka. The same is likely to continue for medium term
At present – company derives 33 pc of its revenues from In-Licensed products
Company makes 10-15 pc extra gross margins on these exclusive – inlicensed products. Generally, company starts with 3-5 yrs exclusivity agreements with the innovators. The same is extendable after that
Looking for Contract manufacturing opportunities from the Dahej plant. Nothing has fructified as of now. Aim to do a 250 cr revenues from the Dahej plant by end of FY 27
**Other big brands from company’s stable include – Targa Super ( herbicide ), Caldan ( insecticide ), Sempra ( herbicide ), Mortar ( insecticide ) and Decide ( insecticide ).**However, the company did not specify these product’s annual sales except that Targa is the only > 100 cr brand among these. Others have the potential to reach that milestone in medium term
Should start to break even from Dahej once revenues from the facility cross 150 cr
Disc: holding, biased, not SEBI registered, not a buy/sell recommendation
RPG LIFESCIENCES – Change in Governance and Performance (10-11-2024)
RPG Lifesciences –
Q2 FY 25 results and concall highlights –
Revenues – 172 vs 153 cr, up 12 pc
EBITDA – 48 vs 39 cr, up 22 pc ( margins @ 27.8 vs 25.5 pc ) – highest ever EBITDA margins
PAT – 31 vs 26 cr, up 19 pc ( this is adjusted PAT – not accounting for 27 cr of transfer charges as the same is going to be nullified in Q3/Q4 post completion of land sale deal )
Segment wise performance in H1 ( Q1 + Q2 ) –
Domestic formulation sales @ 216 vs 196 cr, up 10 pc YoY
International formulation sales @ 66 vs 56 cr, up 16 pc YoY
API sales @ 52 vs 46 cr, up 14 pc YoY
Domestic MR productivity @ Rs 6 lakh/month
H1 growth driven by 10 pc volume growth ( which is an extremely healthy number considering poor volume growth for IPM )
Company has sold its surplus land holdings located near Navi Mumbai for 144 cr
Actively looking for M&A opportunities in both formulations and API spaces in order to utilise the cash on books ( which post the land deal should rise to above 250 cr )
For domestic formulations business, the breakup of in-house : outsourced manufacturing stands @ 70:30
Currently 35 scientists are working in the company’s R&D center at Navi Mumbai. They intend to add a few more in near future. Currently working on expanding their Immuno-supressants portfolio so as to cement their position in this niche therapy area. Also working on a few molecules in the CNS and Cardio therapy areas. In all – working on 12 molecules
Going fwd – company intends to keep clocking gains on EBITDA margins. Although the gains hereafter should be gradual and not as steep as last 4-5 yrs
Wrt acquisition strategy for APIs – looking for small volumes, high complexity, niche molecules so as to avoid competition from bigger players. In the formulations space, looking to acquire brands in the chronic therapies
Disc: holding, biased, not SEBI registered, not a buy/sell recommendation
HBL Power: Signs of change (10-11-2024)
HBL Q2 FY 25 results out. Flat topline, margin improvement helps in improving EBIDTA Y-on-Y.
Industrial battery and Defence and Aviation battery divisions have performed well.
Kavach is yet to fire fully. Next awaited trigger would be allotment of Kavach orders based on August tenders floated.
Received following brief from a friend yesterday on HBL results.
HBL Power 2QFY25 higher profitability despite lower sales
• HBL Power reported revenue of Rs5.2bn, down 6% YoY.
o Revenue of Industrial batteries grew 3% YoY to Rs3.7bn, Defence batteries grew 35% YoY Rs346mn while Electronics declined by 24% YoY to Rs1.08bn (due to lower sales from Kavach).
• EBITDA grew 8% YoY to 1.08bn, while margin expanded by 272bp to 20.8%.
Marign expansion seen in all segments.
• PAT came in at Rs871mn, up 29% YoY, led by higher other income and lower taxes.
• Stock trades at 47x TTM earnings
disc: Invested.
Manappuram Finance (10-11-2024)
Explains why manappuram finance stock price is low compared to muthoot finance. We keep hearing insurances like these where upper management gets into trouble.