In my line of business I deal with a lot of government owned oil and gas entities and delays in procurement are norm here. Small companies who don’t have leverage, bargaining power and dedicated sales presence struggle with their collection. The smaller the vendor, the more delay they are likely to face with collection.
Posts in category Value Pickr
Companies With First ever concalls OR Investor Presentations (29-05-2024)
Go thru the notes attached, the lot size is 400
Companies With First ever concalls OR Investor Presentations (29-05-2024)
Go thru the notes attached, the lot size is 400
Companies With First ever concalls OR Investor Presentations (29-05-2024)
Very interesting business.
But small M cap and recently listed company.
The number of shareholders is less than 1000.
Any minimum quantity of stocks/ lot size ?
Vaidya Sane Ayurved Laboratories Ltd (Madhav baug) (29-05-2024)
I had the chance to attend the Vaidya Sane call today. Here is the quick gist of what I’ve picked up so far (will re-listen and add more if I missed out on anything):
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Flat revenue growth this year was an outcome of their marketing spends largely being directed to their products. This lead to the walk-in patient type changing from the year long treatment that they come to seek (disease reversal) to being patients seeking short term remedy for their ailments. The management has already addressed this by hiring a new marketing agency and changing their campaign which is now directed towards bringing in the desired type of footfall to their clinics and hospitals.
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In FY25, the focus is on increasing footfalls in the existing clinics and hospitals viz a viz looking at aggressively adding more clinics. So that there is better capacity utilization.
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Higher marketing spends and campaigns focused on getting more footfalls to the clinics and hospitals in FY25. The higher marketing spends will be offset by reduction in other expenses/spends. These cost cutting measures along with in-house manufacturing of products will lead to margin expansion.
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Guidance for FY25 is topline growth of 20% and EBITDA margin expansion to 10%, margins may go higher than this as well.
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The mission 2025 stated in their own deck is inaccurate and the plan for 1000 clinics, 10 hospitals is their plan for the next 4-5 years. The bed expansion in their existing hospitals will take place in 12-18 months. All of this sounds more realistic now.
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To me Dr. Sane sounded a bit subdued but confident on the call today (compared to his usual bullish and confident tone). This is for the better I believe as what he is planning to achieve in FY25 came across as more realistic (this point is entirely my opinion, you may choose to differ)
Disc: Invested as a tactical 2-3 year bet. Will continue to monitor their execution over FY25. Personally for me it has been underwhelming in FY24.
3B Blackbio DX Ltd (29-05-2024)
Good results in my opinion – growth on all fronts
https://www.bseindia.com/xml-data/corpfiling/AttachLive/bd6e776e-db48-41c6-9d17-bd83ba983325.pdf
Couple of interesting highlights from the investor presentation:
Disc.: invested
Microcap momentum portfolio (29-05-2024)
Went through the videos @visuarchie very informative.
I have been experimenting with a basic price-based momentum template [i.e. compare overall returns over 6 months and 12 months for Nifty200 universe]. I keep the size highly concentrated (limited to 3-5 picks) and I have also observed that the performance of the 6M portfolio is much better than both the 3M and 12M portfolios.
However, I was never convinced with the method as I was just using “overall returns” and as you rightly pointed out in your video, you end up having at times few wild cards, which may be false positives in nature. 3M was very volatile, while 12M kinda couldn’t pick “real momentums” early on.
I liked how you filtered the noise using both standard deviation and distribution of momentum score.
Since my observation was that 6M worked better than 12M, I shall experiment with your algo keeping 6M slightly overweight (maybe ~60-65%).
Thanks for educating us on this topic.
Ranvir’s Portfolio (29-05-2024)
Prince Pipes -
Q4 and FY 24 results and concall highlights -
Q4 outcomes -
Revenues - 740 vs 764 cr ( Volumes sold @ 51.4k MT vs 44.3k MT, up 16 pc )
EBITDA - 92 vs 148 cr ( margins @ 12 vs 19 pc )
PAT - 55 vs 94 cr
FY 24 outcomes -
Revenues - 2569 vs 2711 cr ( Volumes sold @ 172k MT vs 157k MT, up 10 pc )
EBITDA - 307 vs 250 cr ( margins @ 12 vs 9 pc )
PAT - 182 vs 121 cr
**Company acquired the bath ware brand - Aquel in Q4 for a total consideration of 55 cr **
( including for plant and machinery ). Its a popular brand in Western India
No of operational manufacturing plants @ 7 with total installed capacity @ 338k MT. The new manufacturing plant in Bihar is likely to start production in Q4 FY 25. Total no of warehouses @ 10
Company has product collaborations with -
Hauraton ( for drainage systems )
Lubrizol ( for CPVC plumbing compounds and products )
Tooling Holland ( for plastic injection moulding )
Skolan ( for premium - silent drainage systems )
Company is running a channel finance program worth 150 cr with 146 distributors currently listed in the program
Q4 volume growth led by - Agri, Infra and Plumbing verticals
Increase in receivables due strong demand in the month of March. Likely to come down in next 2 Qtrs ( already seeing the same )
Guiding for a 15 pc volume growth and 12-14 pc EBITDA margin range for next 2-3 yrs ( on the back of good demand from Infra, RE and Agri sectors )
Commodity prices are well behaved. Should aid business and margins. Stable prices drive good business hygiene and growth eventually
Bathware segment is currently nascent for the company. Did a sale of 10 cr for FY 24. Aquel acquisition should help increase growth in the bath ware segment
Normal yearly maintenance capex @ 50-60 cr
Current election season has had some adverse impact on demand from Infra segment. But infra is a relatively smaller segment for the company
( about 5 pc of sales ). Hence - no major demand compression in Q1
Advertisement spends for FY 24 @ 54 cr
Segment wise sales break up for the company -
Plumbing - 65 pc
Agri - 30 pc
Infra - 4 pc
Water storage - 1 pc
Company has taken price correction in last 1-2 months to improve their competitiveness
Top 4 players in Plumbing industry enjoy 70 pc mkt share
Company believes their 15 pc volume growth guidance is on the conservative side
Disc: holding, biased, not SEBI registered
PayTM (One 97 Communications Ltd) (29-05-2024)
You never know it could be the reaction of decoding the earning call transcript which was released just yesterday.
Management seems confident in their guidance in their transcript.