Q3 results have shown an uptick. Waiting for the concall to get a better sense of guidance to see if it stays intact or revised…Any view so far?
Posts in category Value Pickr
Hitesh portfolio (04-02-2024)
Hitesh Sir… What’s your take on Defense, Railway and Infra after the recent budget announcement…
Do you plan to take position in any of these themes…
Regards.
Hi-Green Carbon Ltd – Play on Renewable energy endeavoring wealth from waste (04-02-2024)
Ok, thank you…
I was just trying to flavor in some predictability in the earnings.
Amara Raja Energy & Mobility Limited: Powering Ahead (04-02-2024)
Is there a way to know market share of Amaraja for telecom towers ?
Hi-Green Carbon Ltd – Play on Renewable energy endeavoring wealth from waste (04-02-2024)
No idea. The investment is only to buy land for their 3rd plant. I think prior to this, their 2nd plant which is under construction should come on stream and generate returns by mid 2024.
KPIT – CASE (connected, autonomous, shared, electric) – Focused Automotive Play (04-02-2024)
It seems very good stock from its business and management perspective. Adding on huge dips seems decent bet.
Disclosure, invested and biased.
The Complete Portfolio – SM (04-02-2024)
Hi @parthiban91
The allocation is approximate mentioned above.
I still feel that it is strong franchise and is going through consolidation because of Jio finance entry.
Just like the large banks, Bajaj Finance has been able to reduce its cost to income ratio (from 45% to 35% over the past decade). However, as a relatively late entrant and with the handicap of not having a readymade customer base, Bajaj did this by creating a cross sell customer franchise which can be sold multiple products over and over again. Additionally, its performance-oriented culture has meant that 90%+ employees are on monthly/ quarterly target oriented variable pay thus linking a large part of costs directly to revenues.
Hi-Green Carbon Ltd – Play on Renewable energy endeavoring wealth from waste (04-02-2024)
Not a subject matter expert. My answers as below.
- I think the cost of product varies with each grade. As an example, one of the largest manufacturers of virgin carbon black in India (PCBL) N550 sells it around Rs.150/kg, whereas Hi-green recovered carbon black SS550 is available at Rs.35/kg. I guess, at the end, the choice of grade depends on the end user application.
- India imports most of its carbon black from China, US and Korea. I think the key risk whether it is import or local is going to be price, which I think the company has already mentioned as one the risks (Price is the main factor in most cases for client making decision to have their products). I am assuming they are mitigating this risk through good relations with the clients and offering a quality product at competitive price.
- Yes, it is quite possible as increasing environmental regulations, rising awareness about sustainable materials, and the need for circular economy solutions are expected to drive the market further, so are the new players entering the market. However, as the company claims they produce the product using a patented technology which matches or even surpasses the costly virgin carbon black gives me an impression that they have some kind of moat over other unorganized domestic players. Also, the recovered carbon black business is built on a waste management of tires. So if a tire company decides to put a new rCB plant, that may not be more for a backward integration, rather to manage the tire waste and to comply with govt’s EPR policy.
Disc: My views may be biased. Not a buy recommendation.
Balaji Amines Opportunity (04-02-2024)
From a stage analysis point of view, Balaji Amines seems to be moving to stage 2 after months of stage 1 consolidation.
PayTM (One 97 Communications Ltd) (04-02-2024)
I am not optimistic about the prospects of the PayTM superapp once it’s forced to change its plumbing away from PPBL to competing banks.
Disclosure: Never invested