Interesting Business Profile! However I’ve the following concerns
- Business & tangible assets entirely in African high risk locations, how will we ascertain genuineness of the operations?
- Very young promoters.
- Size of the operation is small now
Posts in category Value Pickr
Unihealth Medical Consultancy – The Caplin of Hospitals? (06-02-2024)
Shilchar Technologies – Power & Distribution Transformers – Sunrise Sector? (06-02-2024)
Thank you Sagar for the detailed write up of the concall. Just to add to your notes:
The capacity expansion of 3500 MVA is expected to cost 30cr and will be covered by internal accruals. No debt will be taken on. The management also confirmed that they like to go step by step and be prudent instead of a more aggressive expansion even though the land exists.
Now coming to their moat. It seems that their quality and technical know how plays a huge part as these renewable energy transformers are difficult to manufacture. It is a market that is difficult to penetrate. This along will approvals from foreign customers are not easy to obtain. Their land bank could be a moat as well as they can continue to do brownfield expansions.
Q3 sales had 45% export of which the break up was roughly 30% North America and 70% MIddle East. The North American transformers built in the 50s and 60s are being replaced.
Shilchar has the know how to manufacture upto 132 KV transformers but the majority of transformers they sell are of 66KV and lower. Renewable energy transformers constituted about 60% of sales.
Right now they receive no govt subsidy.
One interesting nugget that management shared was that the increased focus in the renewable energy segment could be beneficial for industrial players like Voltamp to solidify their position in that segment.
Disc:Invested and Biased.
BSE (Bombay Stock Exchange)- Bet on Financialization? (06-02-2024)
Result are decent if we remove SGF liability.
Regarding my query no. 2, I got answered from them.
So basically in Q3, they earned 56.6 cr. revenue for equity derivatives segment. While they paid 44.4 cr. towards NSE clearing house (These 44.4 cr. includes all segment so we can assume 80% (nearly 33 cr.) of it for equity derivatives. Plus we need to add some charges of ICCL as well (But anyhow it comes back to BSE’s profit as subsidiary). So unlike previous quarter, this quarter they actually made profit from equity derivatives segment as well.
Also if we compare October & November’s Avg. daily turn over for equity derivatives – it is almost same however revenue for November month is 18.74 cr. Vs. 3.7 cr. for October month. So clearly the revision in charges is working on their way.
Another important aspect is – SGF liability comes to Clearing house & not on exchanges. & for BSE – majority (80-90%) of trades are settled by NSE clearing corporation. So, although BSE have to pay huge expenses for NSE clearing corporation the onus of SGF liability for such trades largely goes to NSE clearing corporation.
For BSE, in currency segment they are continuously loosing market share & volume & now they have concentration risk of few large customers (Like banks, Institutions) that’s why despite lower volume they have to incurred more SGF liability for currency derivatives.
My view:
In equity derivatives segment – If they can fetch more liquidity except 0DTE, particularly on monthly expiry then it would be bumper for them. As of now, these seems far ahead. Bankex is gaining popularity on Monday however, still many big traders are avoiding Sensex & Bankex. Sensex volumes have become almost platue since last 2 months.
Som Distilleries and Breweries (06-02-2024)
(post deleted by author)
GHCL – Soda ash & home-textiles player (06-02-2024)
Is there a way to track soda ash prices in India
Som Distilleries and Breweries (06-02-2024)
Until now the promoter buying have been tini-tiny 10,000 shares a day or so. on Feb 1st, the buying have been sizeable. Almost 4 Lakh 84 thousand shares are bought by promoter.
Prakash Industries Ltd. (Prakash) (06-02-2024)
There is a rating agency report
What is re-confirms is that investment in developing the coal mine are about 500 Cr. and out of which ~350 Cr. are from internal accruals. The report is also reconfirming that mining lease will execute in about 7-8 weeks from now. operations will commence from ~ Q2’FY25. Additional revenue will start coming in.
What would be very interesting to know is the potential revenue/cost savings that the company is hoping for on account of this coal mine. @Rakesh_Arora sir, would you be able to share some views.
Link to report update report – https://www.careratings.com/upload/CompanyFiles/PR/202402130231_Prakash_Industries_Limited.pdf
FAZE THREE LTD. –A Textile co. Rising From ASHES to GLORY (06-02-2024)
Any guidance/updates post the quarterly earnings for Dec’23 ? There seems to be a momentum loss as far as growth is concerned. Any new information/updates/analysis will be highly appreciated! Thanks!
Roto Pumps – Fluid Engineering Company (06-02-2024)
The company has incurred a cumulative phase wise capex of Rs. 75cr for downhole, mud motors and solar pumps. Some scuttlebutt indicates that ROTO has best quality pumps and hence command some brand value.
At the annual meeting, management also stated that, in contrast to positive displacement pumps, which have operating margins of 20% plus, solar pumps will be a low-margin product with operating margins of 14–16%.