most sugar companies will report losses in Q2 or marginal profits. Balrampur will be moderate profits. Triveni profit will also be marginal.
this year is also going to be challenging as exports will not be allowed. margins on ethanol (after price increase) will also not be much.
Posts in category Value Pickr
Sugar Cycles: 7-8 years of losses followed by 2-3 years of super gains! (30-10-2024)
V2 Retail – Second innings playing out well (30-10-2024)
thnx for the report
Oriana Power – SME play on Renewable Energy (30-10-2024)
Listing Approval of Preferential Equity Shares (11,36,550) for Oriana Power Limited
https://nsearchives.nseindia.com/corporate/ORIANA_30102024091823_Oriana_ListingPreferential_301024.pdf
Arman Financial Services Ltd (30-10-2024)
MFI is a cyclical business. I think it is prudent to accumulate when the cycle is negative. This specially applies to a ultra-conservative lender like Arman.
[Unless we are a very intuitive investor and can enter right when the cycle is turning. Even in that case I don’t believe I’ll be able to go lumpsum. So it might be better to build positions over this nagative cycle]
Disc : Invested and added positions in the last month.
Kotyark Industries – Only Listed pure Biodiesel Player (30-10-2024)
H1 Results :- https://nsearchives.nseindia.com/corporate/KOTYARK_29102024163750_Reg30.pdf
Revenue 197 Cr vs 144 Cr (+ 96% QoQ) vs 127 Cr (+ 96% YoY)
EBITDA 36 Cr vs 24.5 Cr (+ 48% QoQ) vs 20 Cr (+ 81% YoY)
PAT 17.8 Cr vs 11.4 Cr (+ 56% QoQ) vs 10.8 Cr (+ 65% YoY)
EPS 17.36 Cr vs 11.56 (+ 50% QoQ) vs 11.19 (+ 55% YoY)
Sugar Cycles: 7-8 years of losses followed by 2-3 years of super gains! (30-10-2024)
they can but alcohol requires higher purity levels.
Triveni has already launched whiskey brands. But selling IMFL is a branding game not manufacturing… they will have to spend a lot to build these brands.
Srivari Spices and Foods Limited (30-10-2024)
Undoubtably the share price has fallen by more than 50 percent in last few months, and there may be some message market is giving we are not able to understand. Nevertheless, the fall is after a rise of 10 times in a very short span of time, from around INR 40 IPO price to more than 400 in around 6 months. Sharp falls do occur after sharp rise in any stock. We can find many stocks in the market, even in high Mcap category which has fallen by 50 percent in the same time. It doesn’t mean that something is drastically wrong, though it is possible.
Let us take a fresh look;
- The company did 80 Crores topline with good margin last year. The company is growing at a very high rate for last 3-4 years.
- Management has guided 100 percent growth rate for next couple of years. Let us presume it can grow at @ 50 percent.
- As the topline is increasing at fast pace, working capital requirement goes up. This, cash flow from operating activity is likely to be negative.
- Management has subscribed rights at Rs. 175 per share. Many retail investors didn’t apply, and still the issue was fully subscribed. Looks like management or large shareholders applied for more.
- Even at 50 percent growth, the company is likely to report a topline of 120 crores, with 10 crores of net profit; eps of around 12.
- Thus at today’s price, the stock is available at 18 times current year earning. For a company growing @ 50 percent, the stocks look not stretched.
Thus the stock is reaching a level where value investors will start finding something, if nothing is fundamentally wrong with the company. Let us see what happens.
Poly Medicure – at an inflection point! (30-10-2024)
Poly Medicure Q2 FY25:
- Poly Medicure Limited is experiencing strong revenue growth, in line with the guidance given at the beginning of the year. Revenue grew by 23% in the first half of the year, driven by new plants that started functioning well and increased sales in India and abroad.
- Margins have also improved, with operating IBITA margins reaching almost 28% in Q2 FY25, compared to 25.82% in the same quarter last year. This is attributed to the new expansions, new product launches, and efforts in the domestic business.
- Exports constitute around 70% of the sales mix, with the domestic business accounting for the remaining 30%. The company aims to maintain a similar range throughout the year. Domestic business has shown significant growth of 22% in Q2, driven by increased focus and efforts in this segment.
- Europe is a key market for Poly Medicure, with a growth rate of 35% in export business. The company has good visibility in Europe, with long-term contracts spanning 3 to 5 years.
- The US business is expected to generate $2 to $3 million in revenue this year, the first full year with FDA approvals. Poly Medicure maintains its guidance of $15 to $20 million over the next 3 to 4 years.
- The renal business is performing well, with a growth of 40-45% in the first six months. The company expects 50% growth in the next six months as well, driven by the new PMJY scheme and increased government focus on dialysis treatment.
- Poly Medicure raised 1,000 crores in a QIP in the previous quarter, which will be used for new capital expenditures, corporate purposes, working capital requirements, and acquisitions. The company plans to set up three new facilities in Haryana, Rajasthan, and Uttarakhand by mid to end of 2026, focusing on renal dialysis, cardiology, and critical care.
- The company has already spent 150 crores on capital expenditures in the first six months of the year, primarily for automation in existing plants. For the full year, they plan to spend an additional 100 to 125 crores on expanding capacity in existing plants.
- Poly Medicure sees potential opportunities in the CDMO sector, particularly contract design manufacturing for large companies. This is due to changing US tariffs against Chinese products and increasing interest from European companies in India as a manufacturing option.
- The company aims to maintain its revenue growth guidance of 22% to 24% for the full year. They are also focusing on expanding their sales force, with plans to add 100+ sales associates in the current financial year, particularly in the critical care and cardiology verticals.
- Cardiology is expected to be a significant growth driver for Poly Medicure, with the company aiming for 300 to 400 crores in revenue by 2030. They are targeting the consumable side of interventional cardiology, which is largely import-driven in India.
Overall, the company is demonstrating strong financial performance with robust growth in both domestic and international markets. They are strategically investing in capacity expansion, new product development, and strengthening their presence in key therapeutic areas. The management appears confident in their ability to achieve their growth targets and navigate the evolving global landscape.