Fantastic news posted by TRIL today
Posts in category Value Pickr
Hindustan Unilever (HUL) (15-04-2024)
Life Insurance Corporation of India has done a large acquisition of shares (>5% of stake) of HINDUSTAN UNILEVER LTD.
Shilchar Technologies – Power & Distribution Transformers – Sunrise Sector? (15-04-2024)
I meant like a long term horizon i.e. more than 2 years. With regards to U.S. demand, We have to crack the Cash Flow cycle. Then only it becomes an sunrise industry.
Steel Strips Wheels Limited – Attractive Valuations (15-04-2024)
Wheels India which operates in the same business is trading at a PE of 30 with much lower ROCE and ROE. SSWL is much better return ratios and margins than Wheels India. The promoter had some portion of its shares pledged which have been released completely in the last quarter. However, this has not triggered in the share price movement.
Promising Micro Cap and Small Cap Companies- Welspun Specialty Solutions Ltd (15-04-2024)
Overview
Welspun Specialty Solutions is engaged in the business of manufacturing alloy, stainless steel & its products such as Seamless Tubes & Rolled Products and hence the entire turnover is from alloy and SS steel & its products.
Change in product mix:
Prior to FY21, Co. was into the carbon steel and alloy business, such as manufacturing alloy-based ingots, blooms, Rolled Bar, Bright Bar and other such products. Post FY21, Co. has moved to a stainless steel product mix. In December 2021, Co. started manufacturing SS long products and SS seamless pipes and tubes. Co. restarted its Steel Melting (SMS plant) operations during Q3FY22.
New Customer additions:
During FY22, co. received approvals from customers in Oil & Gas, Fertilizers, Aerospace and Defense amongst others. Co. added new customers in the domestic market for equipment like power plant boilers and oil refinery heat exchangers and also received approval from an international customer for an LPG project.
Manufacturing Capability:
Co. operates an electric arc furnace (for alloy steel) and induction furnace (for stainless steel)-based steel melting shop, a rolling mill, and a seamless pipe manufacturing facility in Bharuch, Gujarat. It has a capacity of 150,000 tonne per annum (TPA) in steel melting shops, 100,000 TPA in rolling mills, along with 18,000 TPA in the pipes division.
Change in holding Company:
Post the demerger of Welspun steel ltd.(WSL) and Welspun corp ltd (WCL), NCLT approved the scheme of transferring the steel business undertaking (of the demerged co.) which inter alia includes the stake of (50.03%) to WCL, resultantly From March 16, 2022, Welspun corp ltd (WCL) is the holding company of this company.
Linkages with the Welspun group:
There are operational and financial linkages between the Co. and the other group entities of the Welspun group. WSL had increased its shareholding in the co. from 49.8% in FY20 to 55.17% in FY23, upon conversion of share warrants.
Post the demerger, The co. has access to the marketing capabilities, customer profile and expertise of WCL.
Entering new markets:
During FY22, co. executed its first lot of Heat Exchanger tubes in SS 317L grade, developed and booked its first order of square tubing for nuclear application, completed other such projects, and entered into several niche market segments.
Conclusion :
WCL is Fully Integrated Manufacturing Facility for Stainless Steel Long Products and Seamless Pipes & Tubes spread over an area of 126 acres in Jhagadia, Gujarat. Government’s continuing spent on infrastructure, energy and other strategic sectors providing thrust to the industry. Domestic industry specially benefitting under “Make in India” Policy.
However, Red Sea crisis has affected the shipping time and costs mostly to EU. After subdued Q2 and Q3, EU is showing signs of recovery in the coming quarters.
Company has started reporting GHG emission data as mandated by the European Commission CBAM for exporting to EU. Company’s 100% revenue is generated from manufacturing of steel and steel products.
Sula vineyards – pioneers in indian wines (15-04-2024)
Completion of acquisition of N D Wines Private Limited
SULA WINE.pdf (277.3 KB)
Steel Strips Wheels Limited – Attractive Valuations (15-04-2024)
Started reading about the company fairly recently and impressed by the stable margins, growth and guidance from the management… But looking historically, firm has always commanded a lower valuation compared to other auto anc. maybe due to steel commodity cycles… Now looking interesting as they are increasing alloy wheel capacity which is a higher margins business. Can anyone tracking the company give their views on whether the company can command fair valuations in the future since product mix is changing from commodity to alloy? I am expecting PE of at least 25 and valuation rerating.
Disc. not invested
Shilchar Technologies – Power & Distribution Transformers – Sunrise Sector? (15-04-2024)
do hear the podcast. There’s a Shortage of Electrical Transformers and Switchgear Components – Bloomberg
B’s Notes : company analysis, portfolio roundup (15-04-2024)
- The company has seen growth in profits due to exports, but it hasn’t translated it into cash flow.
- Electrical products are currently popular due to Renewables Theme.
- Transformers are one-time investments and not regularly bought moreover technology is widely available for their manufacture except for High Voltage DC Transformers.
- Growth is being driven by exports, but it might not last.
- The stock’s price-to-earnings ratio is high, suggesting it may be overvalued, and the public has been buying up the stock.
- If you are wondering what the 1st graph was it was Sales from 2012 till 2021 where it was almost stagnant. A lomg term historical perspective sometimes is useful
Shilchar Technologies – Power & Distribution Transformers – Sunrise Sector? (15-04-2024)
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The company has seen growth in profits due to exports, but it hasn’t translated it into cash flow.
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Electrical products are currently popular due to Renewables Theme.
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Transformers are one-time investments and not regularly bought moreover technology is widely available for their manufacture except for High Voltage DC Transformers.
-
Growth is being driven by exports, but it might not last.
-
The stock’s price-to-earnings ratio is high, suggesting it may be overvalued, and the public has been buying up the stock.
-
If you are wondering what the 1st graph was it was Sales from 2012 till 2021 where it was almost stagnant. A lomg term historical perspective sometimes is useful