Hello friends, Looks like this stock has given a cup & handle breakout this week itself
Very few stocks form a proper handle and this one is doing exactly that
@hitesh2710 bhai – Have you looked at this one in last few months?
Posts in category Value Pickr
Tide Water Oil Ltd (18-05-2024)
Tembo Global – Infrastructure proxy? (18-05-2024)
The Company is showing profits but is not able to generate any Real Cash and thus required to raise Cash through Rights Issue as well as increase in debt levels. The products also seems to be a commodity with just 5% OPM. Be careful with Micro And Small Caps.
The Anti-Portfolio (18-05-2024)
Hi @vikas_sinha What’s your view on supreme power technologies now (currently at the given stage)?
IDFC First Bank Limited (18-05-2024)
What will be the long/short term impacts of the merger.
Is it going to go sideways after the merger like HDFC bank? Anyone studied the numbers ?
Will Vaidyanathan’s story be impacted ?
Tembo Global – Infrastructure proxy? (18-05-2024)
I am reposting this after understanding the forum guidelines. I was not able to edit my original post so created a new one.
I have this company in my portfolio which makes fittings and fasteners for pipes, solar modules and have recently announced order win larger than their market cap.
Tembo Global is a New Mumbai based company involved in manufacturing & trading of metal items for supporting of pipes, HVAC ducts, solar panels. They make various types of supporting items like hanger supports, U-Bolts, anchor bolts, saddles etc, anti-vibration systems. They also make forged fittings and flanges which are used for completing the piping installation. This company is also in trading of textiles. The current MCap of company is 266 Cr
With the ongoing infrastructure work and capexes in varous industries, there seems a good opportunity for such a company to grow it sales. For example let’s say an apartment building is being built, it will need fire hydrant piping. This company makes supports on which fire hydrant piping is installed. Or let’s say a hotel or a company is built which also has HVAC (this is a centralized air conditioning and ventilation system) in addition to fire hydrant, then this company also makes supports and slotted channels for the installation of HVAC duct in addition to floor and shower drains that are required in each residential apartment/hotel room. In chemical or oil and gas industries lots of pipes are installed for material movement. These pipes need to be suitably fixed during installation using U-bolts, anchor bolts, hangers. This company manufactures such items.
The major raw materials are MS strips, MS rods, steel alloys. Change in prices of steel would have an effect on the input cost, but I have generally seen that the product prices fluctuating along with steel prices.
From screener, I found below:
Sales growth 3 years: 47% and profit growth 3 years: 43% compounded.
However, the operating margin is very less (approx. 5% for last two years) which means they make commodity products. However, what brought this company on radar is the sales growth and growth in fixed assets (plant & machineries was 5.74 Cr in Mar’20 and 7.29 Cr in Mar’23). I do not remember the screener filters I made, but was now trying to understand this company better after their announcement of order wins of about 241 Cr on 10May24 (https://nsearchives.nseindia.com/corporate/TEMBO_10052024145728_order.pdf).
There is no mention of customer in the announcement so I believe this is their cumulative order wins over some time. (They also had announced an order receipt from Kalpataru of approx. 9.45Cr for a civil contract work of BPCL, but withdrew it on 15Feb24 after Kalpataru delayed the civil contract order.)
Other quick information:
Below is renumerations of promoters from their FY22-23 annual report.
Mr. Sanjay Patel is 42 lakhs
Mr. Shabbir Merchant is 49 laksh
Ms. Fatema Shabbir is 33 lakh and 0.1 lakh for sitting fee.
Total renumeration (except sitting fee) is 20.8% of their net profit for FY23-24.
As for the promoter shareholding, the promoter shareholding as start of FY22-23 was 72.7%, at end of FY22-23 has gone down to 55.4%. The company had brought a rights issue in Aug’22.
Summarized thoughts:
If the government policies change or there is a pandemic like Covid, it will affect the growth of company.
With increase in government focus on infrastructure, government and private capexes, there will be growth in new buildings/hotels/airports/factories etc. all of which need the products that are made by this company. Their sales growth of last few years, increase in fixed assets and looking at their balance sheet and cash flows I am trying to understand more about the robustness of the business of the company.
What are the pointers that would indicated robustness of the business of this company?
HIL – Eco (onomic) friendly way to play rural prosperity in India (18-05-2024)
HIL Limited Q4 & FY24 Earnings Call: Key Highlights
Financial Performance:
- Revenue Growth: HIL India achieved a 4.3% year-on-year revenue growth in Q4, reaching Rs. 534 crores.
- Profitability: EBITDA and PBT margins declined, mainly due to pricing pressures and one-time costs.
- Segments Performance: Pipes & Fittings segment saw a 23% volume growth, while Polymer Solutions segment’s profitability improved despite pricing pressures.
- Roofing Solutions: Achieved highest-ever sales volume, strengthening market leadership.
- Building Solutions: Experienced volume growth but faced margin pressure due to intense competition.
- Parador (Flooring Solutions): Confidence in recovery in FY25 due to improving macro-economic indicators in Europe.
Operational Performance:
- Focus on Volume Growth: Prioritizing volume growth across all segments, particularly in Pipes & Fittings.
- Cost Optimization: Implementing initiatives such as value engineering and supply chain optimization.
- Digitalization: Undergoing a digital transformation to enhance efficiency and decision-making.
- Leadership & Talent: Continued investment in leadership and R&D teams, recognized as a Great Place to Work for the sixth consecutive year.
Future Outlook:
- Revenue Growth: Aims for a consolidated 15-20% revenue growth in FY25, driven by all segments and new market expansion.
- Profitability Improvement: Expects a 200-300 basis points improvement in consolidated EBITDA margin in FY25.
- Commercial Segment Focus: Intends to increase focus on the commercial segment for growth and profitability.
- Geographic Diversification: Actively diversifying into high-growth markets like the UK, US, and China.
- Government Projects: Actively participating in government infrastructure projects leveraging capabilities acquired through the Topline acquisition.
Concerns:
- Pricing Pressure: Intensifying competition and volatile raw material prices continue to exert pressure on margins.
- European Market Recovery: Recovery pace and extent in the European market remain uncertain.
Other Points:
- Topline Acquisition Integration: Actively working on integration and expects synergies in procurement, operations, and sales.
- Sustainability: Committed to ESG goals, focusing on eco-friendly products, waste reduction, and social value creation.
- Capacity Expansion: Plans for capacity expansion in various segments to support future growth.
- People & Culture: Continues to invest in building a strong and enabling work culture.
I believe the next 2-3 quarters will be very important or a key deciding factor to see if management is able to execute it as expected or not.
Key Concern: The company is in to a competitive business segments so the only thing to watch is execution of management as per guidance and there are too many variables in this business to let it move as per expectations.
Burger King ~ Whopper of an Opportunity (18-05-2024)
That’s where I am wondering. In screener, I am not able to find any holdings, do they hold in different name?
Microcap momentum portfolio (18-05-2024)
That’s great. Thank you. I will prepare the basket based on the above list with equal weightage.
Geospatial sector – Sunrise Opportunity (18-05-2024)
Scanpoint geomatics ltd is another small company ( ~100cr market cap)involved geospatial domain through their IGiS technology which brings GIS, image processing ,photogrammetry and CAD(computer aided drafting) together on a single platform. They have technology development partnership with ISRO. Their IGiS technology seems to be used in sectors like defence, land records system, agriculture and urban information system.
Company blog has useful material to understand about GIS.
Company recently came out with right issue and had virtual investor meet which gives overview on sector and company.
Virtual Investors Meet – Scanpoint Geomatics Limited
Discl: not invested in scanpoint…holding Genesys.
Chaitanya’s Portfolio (18-05-2024)
Here’s amazing article by Anand Sridharan who is one of the investors whose philosophy matches quite well with portfolio building framework I am trying to implement.