Posts in category Value Pickr
Lt foods (daawat) (13-05-2024)
LTFoods:
As per my understanding:
- Since their 80% of revenues are coming from exporting (US & Europe) premium brands of aging basmati rice business, which is cash cow.
- They have organic & convenience segment – till now they are not contributing much.
- How they are ensuring consistent margins? They are absorbing short term(1-2 Quarter) pricing shocks & also passing the costs to customers if they are long term pains.
- LTfoods is addressing the cyclicality – by establishing brands basmati business(cash cow) exporting to western countries. They are testing themselves in investing different high margin segments like snacks, organic, convenience, soyameal – if they are successful in anyone of the investments then re-rating will start (consistent earnings with high margins). Now all the big boys(MF, FII) are watching ltfoods from past 1 year, if they have consistent earnings for the next few quarters you can see huge rerating.
Zomato – Should you order? (13-05-2024)
(post deleted by author)
Va Tech Wabag (13-05-2024)
2 Order wins annoucements in this month, 34MEuro & 49M$.
A tale of 3 companies – TCS vs Infy vs HCL Tech (13-05-2024)
Interesting how head count ballooned in FY2022
JTL Industries – Fast Grower at an inflexion point (13-05-2024)
I missed the concall today so I was searching for notes. If anyone has made notes, please do share.
Dynamic Cables – Much more dynamic in 2022? (13-05-2024)
Well, looks like, ” there seem to be limited triggers (Currently) for Dynamic Cables that can help the co’ achieve a 20-25% PAT Growth” needs to be updated.
Company announced on 10th May 2024 that it is going to raise funds ! (Amount is not known yet but likely ~100 Cr (not verified)) for expanding Capacity.
My portfolio updates and investment journey (13-05-2024)
Sir any specific sector or shares on your radar to study or on your shopping list?
Ranvir’s Portfolio (13-05-2024)
ADF Foods (very bullish management commentary) –
Q4 FY 24 concall highlights –
Revenues – 153 vs 123 cr
EBITDA – 34 vs 24 cr ( margins @ 22.3 vs 21.5 pc )
PAT – 25 vs 16 cr
For Full FY 24 –
Revenues – 520 vs 450 cr, up 16 pc
EBITDA – 104 vs 80 cr (up 30 pc, margins @ 20 vs 18 pc)
PAT – 74 vs 56 cr, up 32 pc
Segmental performance –
Processed foods –
Sales – 132 cr, EBITDA – 36 cr ( margins @ 27 pc )
Distribution of Unilever brands (company distributes Red label, Knorr, Taj Mahal brands in international mkts) – Sales – 21 cr, EBITDA – 1.7 cr ( margins @ 8.2 pc )
Company is presently exporting its processed foods offerings to 55 countries
Ashoka brand ( company’s biggest brand ) revenues for FY 24 @ 254 cr ( 5 yr CAGR @ 29 pc )
Company expects the strong topline growth in Q4 to continue into the next FY
The Truly Indian – brand launched in US. Seeing descent traction
Expansion in Gross Margins due to mix change towards higher margin products
Both the brands – Truly Indian ( for International markets ), Soul ( for Indian markets ) continue to be in investment mode. Likely to remain like that for foreseeable future
Have been trying to list Truly Indian brands in American supermarket chains. Currently listed with 02 large chains giving the company access to about 350 retail outlets. In Germany, Truly Indian brand is available in over 1000 stores. In UK, its available in over 500 stores
Targeting > 20 pc topline growth for FY 25 !!! ( with better capacity utilisation, cost absorptions … this should led to an even better PAT growth )
Because of issues with supply chains wrt Red Sea crisis, EBITDA margins were adversely affected in Q4. Company is seeing return of normalcy wef Q1. This should further add to margins
Company intends / targets – Truly Indian brand to be as big as the Ashoka brand in 4-5 yrs. For soul brand, company is targeting > 100 cr sales in about 3 yrs
Company’s Surat manufacturing facility ( Greenfield capex ) is expected to be ready in 15-18 months
25 pc of company’s standalone top line comes from contract manufacturing for various brands. Company is in talks with multiple brands and they expect this B2B vertical to expand to 30 pc of sales in FY 25
Have lined up another 20 products for launch under the Soul brand in India in FY 25
Disc: holding, biased, not SEBI registered
