Hello

Very old post on Maharashtra Seamless . Any new thread on this since times have changed ?

Warren Buffett Just Made a Huge Bet on a Hidden Stock.

Yea sure!
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ADF Foods –

Q3 FY 24 concall and results highlights –

A leading manufacturer and distributor of prepared ethnic foods with annual food processing capacity of 28000 MT at 02 manufacturing facilities – @ Nadiad ( Gujarat ) and Nasik ( Maharashtra )

Exporting to 55 countries, has 180 worldwide distributors, 02 warehouses in US

Exporting over 400 SKUs, 8 well known International brands

Flagship brand – Ashoka

New brand launches – Truly Indian, Soul

Legacy brands – Camel, Aeroplane

Q3 FY 24 financial outcomes –

Revenues – 129 vs 123 cr
EBITDA – 27 vs 27 cr
PAT – 19 vs 18 cr

9M FY 24 financial outcomes –

Revenues – 366 vs 327 cr
EBITDA – 70 vs 54 cr ( margins @ 19 vs 16 pc, overall very healthy margins )
PAT – 49 vs 40 cr ( PAT margins @ 13 vs 12 pc )

Company has 02 business verticals –

Food processing ( 80 pc of sales, Q3 EBITDA margins @ 27 pc ) – own product portfolio targeted at Indian Diaspora

Distribution ( 20 pc of sales, Q3 EBITDA margins @ 8 pc ) – agency distribution business for leading FMCG companies at an international level. Company distributes Unilever brands like – Taj Mahal, Lipton, Red Label, Knorr

Soul Brand – offers a wide array of Pickles, Sauces and Pastes – aimed at domestic Indian Mkts in Urban areas. Aim to make it a 100 cr brand in 3-4 yrs

Truly India brand – aimed at international mkts for customers seeking Indian flavours. Offers – ready to heat foods including vegan and vegetarian options

Camel Brand – premium brand aimed at Indians residing in Gulf countries. Includes – meal accompaniments, pastes, sauces. Drives 95 pc of sales through modern trade

Aeroplane brand – economy brand aimed at Indians residing in gulf countries. Includes – meal accompaniments, pastes, sauces. Drives 65 of sales through modern trade and 35 pc through general trade

Company continues to be debt free

Q3 sales were impacted by Red Sea crisis

Company invested an additional Rs 13 cr in its subsidiary Telluric foods to accelerate its India business growth ( under the brand – Soul )

Launched several new products under the Ashoka brand in Q3 in frozen foods, canned sweets and Indo-Chinese sauces categories

Capex spend for Q3 was Rs 7 cr ( 3.5 cr each towards de-bottlenecking and expansion of cold storage infra )

Looking to add some additional brands to the distribution business – in order to drive the distribution business’s growth

Company has recently tied up with Tesco ( UK based retailer ) for 3 of its SKUs. Aiming to drive > 8 cr sales from this tie up for next FY

**Expecting 15 pc kind of topline growth for full FY 24. Also expecting to recover sales lost in Q3 **
( due Red Sea issue )

Ashoka brand contributes to around 55-60 pc of company’s foods business ( ie – Ex – distribution )

Normal Capex lined up for FY 25 is about 3-4 cr. Additionally, the company intends to spend around 60-70 cr towards Greenfield capex over 15 months starting Apr 24

Freight costs @ 7 pc of standalone sales ie excluding the distribution sales ( in Q3 )

Aim to grow Ashoka brand @ 25 pc kind of run rate in FY 24

Soul brand is targeted at Urban areas – to upper middle class audience. Currently doing 5 – 6 cr of annual sales. Currently only selling via E-Commerce. Modern trade launch is lined up

Expect to do more than 100 cr of sales in the distribution business in FY 25

Company is having 140 cr of cash on balance sheet

Company is entitled to receive PLI benefits worth aprox 50 cr over next 3 yrs

Disc: holding, biased, not SEBI registered

Multiple things here:

1/ Even after ALMM implementation, solar panel prices are expected to rise only 6-8% not more than that. Solar Panel prices are pass through to the clients. In fact, EPC cos have already locked in the low prices for next 1yr. Solar Panel Imports: Ban On Solar Panel Imports To Help Local Mfg But Increase Panel Prices | Jaipur News – Times of India

2/ Indian government has very high renewable energy targets and solar has high growth runways for next 4-5 years. This strong govt targets is bringing all the MOJO in the sector. Power sector is going to witness highest CAPEX among all sectors in next 5 years in India. And there are only handful EPC players which can execute large scale projects efficiently and within time.

3/ Oriana is not just solar EPC play. It is CBG and green hydrogen play also. India has target to setup 5000 CBG plants by 2027. Oriana won a single plant order for 56crs. This is a 250kcrs market opportunity. And there are many reports available on how big green hydrogen opportunity can be from 2026-27 onwards.

4/ Oriana has many growth levers in play with strong management execution capabilities. It is likely to deliver highest growth among peers yet trading at cheapest relative valuations.

5/ it is a highly illogical argument to make that just because a company is SME so its risky. They would be most happy to migrate to mainboard if SEBI relaxes 3yrs from ipo criteria.

H2 results presentation and concall will provide much clarity to investor community about management capabilities and their strategy/vision.

PS: its an individual decision to whether invest in a sector or not but making generic comments without much research about company fundamentals is not adding any value to anyone. And mostly investors ignore such comments