Mar 24 results are out, company posted revenue of 370 Cr in comparison to 280 cr , also profit has been increased to approx. 15 cr. Company seems to be getting benefit of the new infrastructure whereby they have started increasing the turnover with some cost benefits. Industry expectations are also high so if company executes well in coming 2-3 years it can reach a good scale as the scope of growth is quite high. Historic problems of low profit has to be seen…
Posts in category Value Pickr
Nazara Technologies (27-05-2024)
Interesting developments - promoter sold 6% to Plutus. With that it seems promoter share is around 10%.
In past CEO resigned and operation is took over by Nitish M. However performance seems subdued. I believe company is facing operational challanges and institutional investor seems to take front seats.
HCG hospital is one such example where institutional investor tookover management control and appointed their CEO. Can this happen here???
Disc: Invested earlier, exited for more than a year due to performance challanges.
Prataap Snacks Ltd – Set for a crunchy bite! (27-05-2024)
I guess in FMCG it is peculiar that smaller players always struggle to gain market share vs. larger or branded ones. Initially on a very small base, Prataap was able to manage strong growth, but on this base it is struggling. Only it has done well on margin front. But sales growth matter far more IMO. Real weak business in my view. The only hope is if its taken over by someone
Wonderla Holidays (27-05-2024)
I have been pondering the other income drop, here in the below excerpt from the concall, this is mentioned:
From reading this, does it mean that the gain that they had in 2017 was reversed in 2023-24?
I’m very confused by the whole comment. Can someone help decifer this?
The whole concall is below:
https://www.bseindia.com/xml-data/corpfiling/AttachHis/f1e38cff-6ca8-404c-bc48-080afd42e47d.pdf
BCL Industries – Ethanol Pick (Capacity 3.5x in Next 2 Yrs) (27-05-2024)
I was also expecting better margins. Management could have communicated better during the Q3 call about the impact on margins because of elevated Maize prices. What most of the investors took away from the call is that in Q4, we will benefit from
- Cost savings from the Boiler plant
- Hike in Ethanol prices
Management has now said that this dip in margins should reverse as Maize prices have cooled off due to bumper harvest. Lets see.
Even if there isnt much improvement I expect the following in the current financial year:
Revenue around Rs 2400 cr (Rs 1750 cr for Distillery and Rs 650 from Edible Oil (EO))
EBTDA of around Rs. 240-250 cr (Rs 220-230 cr from Distillery, Rs 20 cr from EO)
*Wild guess as I am not clear on the path to be followed for EO business.
I actually am eager for them to ramp down EO business as fast as possible, and the company to be not categorized under the Edible Oil sector. It impacts the margins of the business as well as the multiple the stock gets from the market.
Sometime after the current EO plant is wrapped up and some required machinery moved to the Distillery land, BCL will also receive proceeds from selling the 11 acre plot in Bhatinda where their current EO complex stands. Anyone who has idea about Bhatinda land values can do some scuttlebutt and share what may be the ballpark figure.
Now what an investor needs to decide what should be the stock price of a company generating around Rs 250 cr EBITDA at around 10% margin (13-14% for Distillery, low single for EO). I feel it is undervalued currently by a fair margin.
The year after we will have hardly any EO, margin accretive 75KLPD Biodiesel and 150 KLPD additional Distillery capacity)
Disclosure: Invested.
Prataap Snacks Ltd – Set for a crunchy bite! (27-05-2024)
Any idea as to why the company is struggling to grow this business, could annapurna swadisht also face similar issues in the coming years??
Kotyark Industries – Only Listed pure Biodiesel Player (27-05-2024)
Hi experts,
Press :- https://nsearchives.nseindia.com/corporate/KOTYARK_17052024221745_Press.pdf
In the above mentioned press release i see some surprise and cautions points which looks very strange.
ex:- it still did not realize its full potential. This was primarily due to delays in the issuance of Purchase Orders by Oil Marketing Companies (OMCs) against the tenders won by the company. In many cases, even after the issuance of Purchase Orders, the required Indent for supply came late. These delays from OMCs have led to the lapse of orders in some instances, leading the company unable to supply such orders
can any give some comments on the same?
@srt @yrm91 @Chirayu26 @Vivek_Chadha @Dhvanit_Merchant17
Commodity and Cyclical Plays (27-05-2024)
Indsil has disclosed to BSE that the sale of their 50% share in Al Tamman has been completed… does this mean they will get USD 19 mn from the sale?
they have also redeemed pref shares. It seems coming is going to turn around… will it return to its previous highs?
Samarth’s Portfolio & Learnings (27-05-2024)
My Name is Samarth and here I’ll try to share my portfolio picks, rationale behind investing and my learning’s to start with my portfolio as on today consist of:
- Macpower CNC Machines
- Transformers & Rectifiers India Ltd
- Hi-green Carbon Ltd.
- Time Technoplast Limited
- Swelect Energy System Ltd.
- Netweb Technologies Ltd
- E2E Networks
I’ll try to share my learning’s and rationale behind making my investments in this companies through this medium and it will also help me articulate my thought process ad constantly push me to do better and make more efforts…
As I believe that we can work, work, work, work and just hope to have few insights as luck and probability plays a very big role in investing…