not encouraging, unfortunately. yet to take a deep dive to understand reason and further guidance… have you gathered anything yet?
Posts in category Value Pickr
INOX Wind (10-02-2024)
In interviews management mentioned that, they are trying for inorganic growth also in O&M…so 6GW for Inox green may not translate in to similar growth for Inox wind
Tega Industry – unheard story (10-02-2024)
Q3 2024 result.
Orchid Pharma Ltd (10-02-2024)
Conference Call Q3FY24
Steel Strips Wheels Limited – Attractive Valuations (10-02-2024)
Steel strip wheels –
Q3 FY 24 concall highlights –
Sales – 1110 vs 938 cr ( export sales @ 174 cr, up 180 pc from 60 cr )
EBITDA – 117 vs 108 cr ( margins @ 11 vs 12 pc, down 100 bps YoY )
PAT – 60 vs 44 cr ( due lower tax outgo )
Current manufacturing capacity –
Steel wheels – 20 million to go upto 27 million wef Jan- Feb 24
Alloy wheels – 3 million to go upto 4.8 million in a phased manner – capex is in progress
No of plants @ 5
Tata steel holds 6.9 pc stake in the company
Nippon Steel and Sumitomo Metals together hold 5.4 pc stake in the company
Mkt share in domestic mkts –
PV – 42 pc
MHCV – 61 pc
Tractor / OTR – 42 / 70 pc
2-3 wheelers – 30 pc
Export sales for first 9 months @ 505 cr, up 130 pc from 220 cr LY
Export destinations –
US – 70 pc
EU – 26 pc
RoW – 4 pc
Steel wheels demand expected to grow at 8 pc CAGR for next 5 yrs vs 12 pc for alloy wheels
Alloy wheel contribution –
By volume – 15 pc
By value – 28 pc
Some popular models getting their alloys exclusively from the company – Carnival, Salvia, Creta, Verna, Aura, XUV 700, Magnite, Punch, Tigor, Kiger. Company enjoys 50 pc share wrt Sonnet, Venue, Nexon
Company enjoys > 50 pc mkt share wrt EV models of Mahindra and Tata Motors
Company expects alloy wheels, steel wheels sales to grow at 20 pc, 4 pc CAGR for next 2 yrs
At present, the company is doing an EBITDA of Rs 256/wheel. As the contribution from alloy wheels increases, this EBITDA/wheel should only go up from here on
Expecting to clock 4800-5000 cr of topline in FY 25. This yr, company should do 4400-4500 cr on the topline
Company completed infusion of Rs 138 cr into AMW auto components ltd via NCLT process. AMW is also involved in the manufacturing of steel/alloy wheels
Low tax rate for Q3 due company shifting to newer tax regime. Henceforth – yearly tax rates to be at 25 pc/yr
Seeing some slowdown in exports due to the Red Sea issue. At present, company is at max doing Rs 50cr /month of exports ( ie wef Jan 24 )
Company to undertake debt reduction wef FY 25 as a lot of capex is behind them
Expect alloy wheel production at 3.5-3.6 million wheels for next FY
Disc: hold a tracking position, biased, not SEBI registered
Priti International Ltd (10-02-2024)
I am not sure about maintaining such margin. Its not clear why this margin improvement is happening? Is it export, higher negotiation power or something else. Lets be hopeful that red sea crisis gets resolved. Export brings higher margin. Plus margin contraction QoQ looks like the affect of export decline due to red sea crisis. My main focus is on Brand building. It is still based on one city and still unknown to majority.
Endurance Technologies – Quality focussed Auto component manufacturer (10-02-2024)
Great numbers reported by the company and good to see continued moderation of revenue concentration in both segment (2-wheeler) and client (Bajaj).
Anurag Jain is a very capable promoter and has done a great job in finding new growth engines for company and executive them very well.
Now that he is past 60, one thing that is still not clear about the company is succession planning. Any idea about that?