Not the opinion I hold. (I’m just looking 2 quarters ahead rather than 6 quarters as you sugguest)
If I’m looking forward, I prefer to do a 3 or 5-year exit multiple based reverse dcf on OCF/ FCF rather than just looking at 1 year forward PAT.
Posts in category Value Pickr
Wonderla Holidays (04-01-2024)
Advanced booking on BMTC Volvo bus to Wonderla
Read more at: Advanced booking on BMTC Volvo bus to Wonderla
SmallCap Hunter : Trying to find the dark horses with triggers (04-01-2024)
My apologies, but I never mentioned that they do any forgings, or are talking about forging as their value added products. Infact, they are not into forgings yet, not sure if they were doing it earlier (although given their name, forgings business makes most sense).
By value added products, they mean stainless steel and specialized steel products, collated nails for white labeling, pneumatic nails, oil tempered wires mainly used in auto sector. Again, forging is not what they do or intend to do yet.
DIsc: Not invested, tracking.
Sharda Motors – Emission tailwinds or EV threat to exhaust systems? (04-01-2024)
Sir, it is because Sharda Motors is catering mainly to ICE (as mentioned by you) or any other reason why the stock is not moving fast in upward direction (though it has risen from 1100 to 1415)
Because in 2Q concall Mr Ajay mentioned/asked about the undervaluation of the stock
Markolines Pavement Technologies – Road to Riches? (04-01-2024)
Blockquote
Business is heavily influenced by external variables like the Government’s willingness to spend, regional politics & favoritism, monsoons.
Management clarified in concall that they do not work with government. They work with trusts or funds who aquire road assets.
Wonderla Holidays (04-01-2024)
That’s fine, but why would you give multiple to backward earnings and not forward looking earnings. One should always value business on 1-yr fwd earnings, 30x to FY24 would imply market cap of 7000cr or 40% upside.
Data Center Value Chain in India: Investment Opportunities (04-01-2024)
One shud also look into Schneider infra for ancillary services n equipment. A mnc player hv presence also in electrical equipments , data centre opportunities
Ami Organics – Pharma Intermediates & Specialty Chemicals (04-01-2024)
Lets understand what are electrolyte additives
- Salt Additives: These additives are additional salts added to the electrolyte solution to enhance ionic conductivity. Examples include lithium salts like LiPF6, LiBF4, LiClO4, etc. Lithium salts are commonly used in lithium-ion batteries and are essential for their operation.
- Solvent Additives: Different solvents or solvent mixtures are used as additives to modify the properties of the electrolyte, such as viscosity, conductivity, and temperature stability. For instance, ethylene carbonate (EC), propylene carbonate (PC), dimethyl carbonate (DMC), and other organic solvents are often used in lithium-ion battery electrolytes.
-
Functional Additives: These additives are specifically designed to serve various functions, including improving cycle life, thermal stability, and preventing undesirable reactions. Examples include:
- Electrolyte Stabilizers: Compounds like vinylene carbonate (VC), fluoroethylene carbonate (FEC), and others enhance the stability of the solid electrolyte interphase (SEI) layer, reducing degradation during charge/discharge cycles.
-
Fluoroethylene Carbonate (FEC):
- Purpose: FEC is utilized to enhance the stability of the solid electrolyte interphase (SEI) layer, which forms on the surface of the lithium-ion battery’s graphite anode during cycling. This SEI layer is crucial for the battery’s performance and longevity.
- Benefits: FEC helps in forming a more stable SEI layer, reducing electrolyte decomposition, and improving the cycling performance and overall lifespan of the battery.
- Use: It is often added in small concentrations to the electrolyte mix used in lithium-ion batteries.
-
Vinylene Carbonate (VC):
- Purpose: VC, similar to FEC, aims to improve the stability of the SEI layer, especially on high-voltage cathodes, like nickel-rich cathodes.
- Benefits: VC contributes to the formation of a stable SEI layer, reducing the degradation of the cathode material and enhancing the battery’s cycling stability.
- Use: It’s used as an electrolyte additive in lithium-ion batteries, typically in small amounts in the electrolyte solution.
- Flame Retardants: Additives are used to improve the safety of batteries by suppressing thermal runaway reactions.
@siva_kannan There is one more coming up in line that is NEOGEN
All the companies are running behind electrolyte additives
Now given all 3 who takes the lion share?
- Neogen – wherein in the have the entire value chain
- Aether/Ami Organics – wherein they have electrolyte additives
From a customer point of view, i would basically end up buying from one customer than buying from many and separating the transactions
Omfurn India Ltd (04-01-2024)
Today I Entered in Omfurn.
CMP: 73 Rs
Mcap: 60 Cr
P/E: 13.5
OMFURN BUSINESS OVERVIEW:
Omfurn India Limited (OIL) was originally incorporated in the year 1997 as a private limited company; subsequently in June 2017, the constitution was changed to Public Limited and in the same year it was also listed on the NSE Emerge Platform. OIL is engaged in manufacturing of furniture and prefinished wooden doors. The company primarily undertakes turnkey projects for corporate offices, hotels, International schools, prefinished wooden doorframes and shutters & Fire -Resistant doors for real estate developers. The product profile includes executive office furniture, international school furniture, modular office furniture, modular kitchen, bedroom furniture, wooden door & frame etc. Further, the company is ISO 9001:2015, ISO 4001:2015, OHSAS 18001:2007 certified. OIL operates through its manufacturing plant located at Umbergaon, Gujarat and its registered office at Mumbai, Maharashtra.
PRODUCT PROFILE:
a) Executive office furniture
b) International school furniture
c) Modular office furniture
d) Modular kitchen
e) Bedroom furniture
f) Wooden door & frame
INDIAN FURNITURE INDUSTRY:
The India Furniture market size reached US$ 21.4 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 41.4 Billion by 2028, exhibiting a growth rate (CAGR) of 11.6% during 2023-2028.
Financial Performances:
Things attracted me to invest in this business:
- Experienced Promoters
- Established Presence: Existence since 1997 shows it’s a genuine business not like many SMEs born in last 5 years to make money out IPO mania.
-
Credit Rating: It’s a rated company, Rating available since 2014 – (Way before IPO)
As per CARE there are total 50 million SMEs in India and out of these only 5% are rated.
https://www.youtube.com/watch?v=l93mEsCkkOA
Why only 5% SMEs are rated ? They don’t want to open up their balance sheets to the world, truth is most of them won’t be able to compete if they start paying taxes.
This again shows these guys operate at the top of integrity level, they preferred to operate in white in the most unorganized sector of all.
4) Strong Clients Base. Their key Clients are:
- Their revenue is 90Cr which is greater than M. Cap of 60 Cr.
Highly Under valued. it’s a Microcap company shares are available only in lots sizes (2400) No’s
Conclusion:
Omfurn India Limited emerges as a promising investment opportunity. Its long-standing presence, experienced leadership, creditworthiness, and robust financials contribute to a compelling investment case. The company’s alignment with the growth trajectory of the Indian furniture industry further enhances its potential for value appreciation. However, investors should conduct thorough due diligence and stay attuned to industry trends for informed decision-making.