Thank you so much Hitesh Sir.

But Sir good money is made these days through momentum investing. PSUs are also performing like anything, so is it advisable to go for momentum investing in stocks which are in the focus areas of the government.

Regards.

Any “turnaround” opportunity merits discussion of the past to understand the scope of the turnaround. What is it turning around from? What went wrong? Why do we think it will do better? Is it because of change in management or tailwinds or fresh capital or some product revamp or something else? Discussing the past of a company in a turnaround investment thesis is essential for gaining insights, learning from past mistakes and setting realistic expectations.

How did you arrive at the “10-15kcrs marketcap” number?

If management execution was not good, then how can we expect them to do better? Will fresh capital and tailwinds make the management better? Or, do they need a new management?

For example,how did the management handle the labor strikes? Despite crores of funding and industry tailwinds, will the company will keep making losses if the labor strikes continue? What is the management doing to prevent future labour strikes?

Of course, the future potential needs to be discussed. An all encompassing discussion must involve everything in the company including its past failure, current tailwinds, future potential, etc.

All counter arguments are equally, if not more, important than positive reinforcements. I would be glad to know every opinion or idea on the hypothesis – both the positives and the negatives.

Hi, thanks for the thread! Very interesting company.

I have two queries if someone could guide:

1. The revenue contribution of the recovered Carbon Black is just 22% whereas Fuel Oil is 46% and Sodium Silicate Glass is 31% (taken from the initial post by @sameernics) whereas the company narrative is just around recovered Carbon Black. Is there some guidance where the revenue proportion of rCB will increase as compared to the rest? If not, is it a cause of worry or deeper inspection?

2. Looking at their Half Yearly Revenue, we see it has remained constant for Sep ’23 (33 cr) as compared to Mar ’23 (34 cr) and has dropped from Sep ’24 (44 cr).
   Do we know of any reasons for this, especially since the company says these are commodity products which are easily sellable and their factory is working at a 66% annual capacity utilisation (16558.20 MT/24000 MT) so I am not able to understand if it was demand led or supply led reduction Y-o-Y?

Thanks!

which has been discontinued?

Company has received an Order on February 3, 2024, from The Principal Commissioner, CGST & CX, Kolkata North Commissionerate bearing a demand of excise duty amounting to 1,59,31, 470/- (Rupees One crore Fifty Nine Lakhs, Thirty One Thousand, Four Hundred and Seventy Only) plus interest at applicable rate and a penalty of Rs. 8,95,76,460/- (Rupees Eight Crore Ninety five Lakhs Seventy Six Thousand Four Hundred Sixty Only). The said demand pertains to inappropriate availment of CENVAT credit during the Financial Year 2016-17.
Company is in the process of preferring an appeal against the said Order.