While I agree there is ample scope of operating leverage to play out and the possible near term triggers for the sector (FTAs etc), I am not so much sure how such downstream players shall perform when cotton/yarn prices begin to rise. With discretionary demand already tepid not sure there will be too price taking from the ultimate consumers. Also, I felt the sudden QIP done was quite contrary to the management’s tonality in the Q2 concall. Scope of RoE and RoCE expansion is also very limited as compared to its peers.
Valuations are ofc in favor but that’s across the textile industry.

Q3 FY24-

The company revised its revenue growth guidance for FY24 from 18-20% to 15-18% due to eroding topline, expecting to be in the same space for the upcoming year.
Revenue growth for FY25 is expected to be between 17% to 22%, with potential for further increase, driven by anticipated volume pickup in Fermion and contribution from new electrolyte projects.

Margins for Specialty Chemicals moderated to 14-16% due to price erosion and industry pressure, with the aim to improve margins to 18-20% in the next quarter and a long-term target of 23%.

The price of raw material and final product has decreased by 20%, impacting the market size and application geography.

The new facility’s revenue is estimated to be approximately 3 times that of the Ankleshwar Unit.

Baba Fine Chemicals, acquired for the semiconductor industry, currently contributes around Rs. 40-45 crores to the topline and has potential for incremental growth.

The company has already supplied validation quantity of a UV absorber product and plans to ramp up production from Q1 FY25.

The current capacity utilization of the Specialty Chemical plant is expected to increase from 45% to 55% and reach full utilization by FY26

The company plans to focus solely on the electrolyte additive business and not diversify into other areas. Sales from electrolyte for Fermion have commenced, but it is still premature for the electrolyte CDM business. The Rs. 300 crores CAPEX for electrolyte will take some time, whereas the Ankleshwar facility’s upgradation is ongoing and will be finished soon. The company targets achieving Rs. 1,000 crore revenue by FY2025-26 midway.
Capex outlay for 9MFY24 was Rs. 212 crores, funded through a mix of internal accruals and debt, with a total capex outlay for Ankleshwar unit revised from Rs. 190 crores to Rs. 310 crores.

The current capacity is 500 tons each for VC and FVC products, with plans to install an additional 2,000 tons each.

A Rs. 300 crore toll manufacturing opportunity is expected to be finalized in FY25, with the plant taking approximately 12 months to come up.

Hi .I am also highly interested in buying NSE shares but it is out of the market .
And i could find only at Precize who is quoting Rs 4499 + 2% transaction with single SPA .

I understand that currently IIFL is about to sell huge quantity and then the liquidity of this share will improve.

I would be interested to buy around 4300 with single SPA.
Would appreciate for any leads ?

Too much headwind for this company.