I attended Avanti concall. I was the person who asked the question regarding shrimp price rise. In trading view we can clearly see from Q1 end shrimp prices has risen by 12% that can’t be due to duty hike duty hike which is in single digit. So their claim of no price rise is baseless. There must be supply demand mismatch. Supply from Ecuador is facing challenges due to energy problem there from the month of September this is from Apex concall. Also Apex management has told there is a lead and lag effect between getting the benefit of shrimp price rise. I asked in Apex concall about the time of getting benefit of shrimp price rise they told it will be reflected in Q3 result. Same thing they mentioned in presentation. As per my understanding Avanti on the other hand will not benefit much from this as they are mostly into shrimp feeds.

Mentioned Long Term and exited in 11 Days. I admire your speed of decision. Was speaking with someone in my circle.He has a couple of positions in red for a long time. They hardly come to black, but he intends to keep them for the long term. On enquiring what he meant by long-term, he said it will be passed to his son who is just 8 Yrs. old right now. What a contrast in Long Term thinking!!!

Sandhar Technologies –
Q2 FY 25 results and concall highlights –

Revenues – 989 vs 888 cr, up 11 pc
EBITDA – 104 vs 84 cr, up 24 pc ( margins @ 10.5 vs 9.4 pc )
PAT – 42 vs 28 cr, up 55 pc

Category wise revenue breakup –

2Ws – 62 pc
PVs – 17 pc
OHVs ( off highway vehicles ) – 14 pc
CVs – 2 pc
Others – 5 pc

Products wise revenue breakup –

Cabins and Fabrication – 14 pc
Sheet metal parts – 18 pc
Aluminium Dye Castings – 26 pc
Locking systems – 18 pc
Vision systems – 5 pc
Others – 8 pc
Assemblies – 10 pc

EV parts under development with tentative timelines for commencement of production –

Motor controllers for 2Ws and 3Ws – Apr 25
Battery chargers – Feb 25
AC-DC converters – Apr 25

Company is localising a lot of the parts that go into these EV components. In medium term, company expects margins in these EV products to be as good or better than company level margins

32 pc of company’s revenues come from TVS, 19 pc from Heromotocorp, 8 pc from JCB. These are company’s top 3 customers. Other important customers contributing 4-5 pc of sales each include Honda, Bosch

Company has 07 operational JVs. 06 of them are PAT positive. Combined together, the 07 JVs make an EBITDA of 10 pc

Company is guiding for a topline of 4000-4100 cr for FY 25 and 4500-4600 cr for FY 26. EBITDA margins for full FY 25 and 26 should be around 10.5 and 11 pc respectively

Capex spends lined up for their FY25 @ 250 cr. Next year onwards, company is guiding for an annual capex equivalent to annual depreciation ( or thereabouts )

Company expects H2 to be better than H1 – both for 2W and construction equipment segments. As such, company generally does 40-45 of its business in H1 and 55-60 pc of the business in H2

The order from Suzuki 2Ws for smart locks has been delayed from Nov 24 to Jan 25. These r high value products ( vs the traditional mechanicals locks )

Gross Debt @ 620 cr
Net Debt @ 580 cr

Do not intend to breach Gross Debt figure of 700 cr. As such, the capex intensity should taper off wef next FY

According to FADA, rural demand has picked up in Q3 ( against general expectations ). Also ( as of Nov ), the 2Ws inventory has dropped to < 30 days at the dealer levels. This has happened after several Qtrs and is a very healthy sign for the Industry

Company has started supplying Castings, Mechanical locks to Honda 2Ws. Already doing business worth > 100 cr / yr with them. They r also slated to supply smart locks to Honda 2Ws as well ( after Suzuki 2Ws ). They expect Honda to also become one of their major clients going fwd

Disc: holding, biased, not SEBI registered, not a buy/sell recommendation

I bought this during ipo. But I have no clue why this is rising. I know the ondc opportunity but I think it’s not a UPI moment. I’m asking myself not to sell because of all the narratives but isn’t it quite opposite to being an investor. they didn’t prove anything till now. I can be completely wrong but without any fundamentals backing, been a bit sceptical about this position.
Happy to be countered. Here to learn.

Quiting below from an article on money control pro on fusion finance

“

The lender’s biggest trump card is its promoters, mainly Warburg Pincus. The board has approved a rights issue, which shows that the promoters are willing to back the firm. While analysts have played down the auditor’s worry of remaining a going concern, they have flagged the threat to profitability in the near future. “Factoring in the sharp deterioration in asset quality and impact on growth/margins, we expect Fusion to report loss in FY25E, while recovery over FY26-27E should also be slow,” analysts at Emkay Global Financial Services Ltd wrote in their note.

Fusion cannot regain the faith of its investors by flaunting its promoters’ pedigree alone. The lender would have to bring down its problematic loans significantly in the coming quarters. It also must dispel the uncertainty surrounding its top management. The current chief Devesh Sachdev will step down from his executive role and take on chairmanship once a new chief executive is appointed. As such, the top management has seen changes with chief operating officer Tarun Mehndiratta having been replaced with Sunil Mundra. The new chief executive and his fellow executives will need to prove their mettle too. “

Looks like things are moving to get it back on its feet at fusion finance