Any view and guidance on impairment costs as it has been relatively increasing every quarter and last quarter profit dropped a lot comparing before provision and after provision profit .
Posts in category Value Pickr
Max India – Demerger, Will sum of parts be greater than single entity (24-05-2024)
Anyone attended the con call today? If yes, please share the main points.
Permanent Magnets – Business under transformation? (24-05-2024)
Key takeaways from Q4FY24 earnings call transcript:
Financial Performance: The company reported a 9% increase in total income for the quarter and full year. However, profitability margins declined due to changes in the product mix, particularly from slower EV customer business.
Smart Meters Market: There is a significant opportunity in the domestic smart meters market, driven by government policy. Out of a target of 250 million meters, only 11 million have been installed. The company is expanding its product offerings in this segment.
Alloys Facility: The new alloys facility commenced in Q4, focusing on products with quicker scale-up and longevity. The company is in advanced talks with prospective customers in oil, gas, and aerospace for commercial supplies.
Quantum Magnetics: Revenue from quantum magnetics is expected to scale in the coming years, starting with components and assemblies made from rare earth magnets, with further backward integration planned.
Shivalik Bimetal Controls Ltd (SBCL) (24-05-2024)
(post deleted by author)
Best Agrolife – Think Big, Think Best! (24-05-2024)
Results are horrible.
Couldn’t by any worse.
No investment rationale coming into play on this counter as on today!
Shivalik Bimetal Controls Ltd (SBCL) (24-05-2024)
What is the head winds in this stock
SJS Enterprises Ltd (24-05-2024)
Transcripts are already available
77b60446-9c1b-4070-b74d-c941203df1c5.pdf (bseindia.com)
AI generated future growth drivers.
- Cover Glass Technology: The company is making progress with its complex cover glass product, with RFQs received and prototypes well-received by customers. They anticipate business awards in the first half of the year and significant turnover contribution in the next three to four years.
- Walter Pack Stabilization: The Walter Pack business is showing improvement, reflected in increased EBITDA margins. Continued growth is expected in both domestic and export markets.
- Revenue Outlook: The order book covers 85% of the revenue outlook for FY25, with an expected industry growth of 8% to 10%. SJS Enterprises aims for higher growth due to increased content per vehicle.
- Product Margins: The company is focusing on high-value products with less competition, leading to sustainable higher margins. Chrome plating is the only product with mid-teens margin profile.
Investing Basics – Feel free to ask the most basic questions (24-05-2024)
Diversifying and bringing some stability to an equity-heavy PF by adding gold through ETFs or even physical gold, and participating in futures to make some profit are different.
With ETFs, there will be a chance of recovery if we wait, but it can be a long wait. With futures, there will be absolute loss at the end of expiry, and if we add more to recoup our losses for the next expiry, we can lose more if our view is wrong. And the toughest part is the fall that can happen in the middle of the duration, so more funds will be required. Nothing will teach FnO better than participation, so if you are inclined, you can do it with Mini or Guinea and experience, if you have not already. My experience did not feel worth the effort, so I invest and trade in ETFs.
Galaxy Bearings (24-05-2024)
Galaxy announced a fair set of numbers today and seems to be making significant progress on the CAPEX front (CWIP up to 26 Cr for March ending, out of their assumed CAPEX of Rs. 35 Cr).
Providing a summary for everyone on this thread (and myself to refer back to):
Background: company was founded by Mr. Vinod Kangsara (passed away in 2019) - current main promoters are his wife (Indiraben Kangsara) and daughters (Shetal Devang Gor and Tuhina Bera) - who now seem to be NRIs and aren’t actively involved in the business operations. CEO is Mr. Nitin Santoki - who seems to be Rajkot based with a strong presence in the industry (no information on his shareholding). It seems that Mr. Nitin’s family has other companies in associated fields of the industry (common in auto ancillary businesses, wouldn’t consider it to be a corporate governance issue - refer to the link for Adico group below).
Catalyst/Trigger: Change in management post 2019, might have triggered a new approach to the business(speculatio). Dr. Devang Gor who is a Chair at the Department of Radiology in a leading healthcare network in Pennsylvania, USA was appointed on the board in August 2019 after completing an Exec MBA from Temple University (potentially to groom him for this role?).
Key business trigger seems to be a new product development as mentioned by Mr. Nitin in his interview (https://www.youtube.com/watch?v=ygyf4W54XCU&t=1s) - where they are manufacturing roller bearings with a hub casting attached. This saves their customer the time, effort and the cost of otherwise attaching the hub casting separately to the product.
It seems another competitor offering a similar product is Orbit Bearings (also Rajkot based), who has grown significantly by being the first taper roller bearing company to manufacture these bearings with a hub casting (Cylindrical Roller Bearings | Truck Axle Bearings | Taper Roller Bearings | Truck Hub Bearings | Orbit Bearings India Pvt. Ltd.). Orbit Bearings has scaled significantly and did a revenue of Rs. 624 Cr in 2022 with a PBT of Rs. 151 Cr. Orbit has a capacity of 10 Million pcs per annum, and it’s interesting to note that Galaxy has decided to set up a plant which takes their total production capacity to 9.5 Million per annum (in Phase 1)! Other smaller competitors also seem to be equally profitable (Turbo Bearings does a Sale of 99 Cr with a PBT of 27 Cr).
Has anyone studied the bearing industry in greater detail to check how they compare with SKF, Timken, Schaeffler?
https://www.adicogroup.com/international/group-of-companies.html