Add me also. Interested.

Any update on pledge removal? I almost thought the recent spurt was because of that.

@MorningStar

Attached Yuken India chart shows a breakout from (as you said) 4 year high resistance at 684. There is a nice rounding saucer shaped structure, so overall chart looks bullish. But fundamentally I cannot see much encouraging if I look at the results for the last few years. So one needs to be careful jumping the gun and going full throttle. Maybe going through annual report, AGM recording (if available) or doing scuttlebutt, looking at the products of parent company etc could help. I don’t track it fundamentally or know about its products or their prospects.

If at all one wants to look at it based on charts, its best to wait for a retest of breakout zone and then take a call. If it does not come down and keeps running up, then better look out for something else.

(PS… Someone started a whole thread about a company on this portfolio thread and I had to delete it. If you want to start a thread on a company, please start it at an appropriate place)

• South Indian Bank stock has rallied 180% in a year and 200% over three years, gaining 15% year-to-date.
• ICICI Securities gives the stock a ‘Buy’ rating with a revised target price of Rs 28, citing a 27% potential upside.
• RBI approves PR Seshadri as MD and CEO, seen as a positive move by analysts.
• South Indian Bank’s Q1 2023 financials show a 75% increase in net profit and reduced NPAs.
• Net interest income surged 33.87% to Rs 807.77 crore in Q1 2023.
• Operating profit in Q1 2023 rose 54.74% to Rs 490.24 crore.

Export at 37%; domestic business at 63%
o Export – Exports were lower as for some of the products customer changed the API supplier from overseas
to India
✓ Advance Pharmaceutical Intermediates
o Fermion contract: Validation batches have been sent. We are expecting to start the production from
Q4FY24 onwards.
✓ Specialty Chemicals
o Strong volume traction in Methyl Salicylate and Parabens. Post introduction of flow chemistry process for
Methyl Salicylate, we are now globally competitive.
✓ Electrolyte additives update
o Electrolyte samples approved at plant trial scale by 6 customers.
o We are in advance stages of negotiation of contract with couple of customers.
✓ Capex Update
o Civil work for production and admin block completed. Tank farm and warehouse is more than 60%
completed. Machinery installation is in progress in block-1.
o Started the recruitment process for the new facility. On track to commence the production activity in Q4
FY24.

Concall highlights:

• The Pharmaceutical Intermediates business grew by 5% during Q1 FY24, with slower growth in the export market but robust traction in the domestic market.
• The Specialty Chemical business saw a 25% year-on-year increase in revenue, driven by streamlining operations and upgrading processes.
• The company is close to signing contracts for electrolyte additives with larger-than-anticipated contract sizes.
• The company aims to improve EBITDA margins by 50 to 100 basis points every quarter in the Specialty Chemical business.
• The Fermion contract is a long-term contract with one product, and the company expects sizable orders and revenue from it.
• The company expects the Specialty Chemical business to grow sustainably, with a focus on technology aggregation and cost-effectiveness.
• The company is confident in achieving 20% to 25% growth in revenue for FY24, despite current pricing pressures in the market.
• CAPEX plans include dedicating one block in Ankleshwar to the Fermion contract and exploring opportunities for future products and customers.
• Better pricing in the electrolyte market compared to China is anticipated due to customer preferences and market dynamics.
• The company aims to improve EBITDA margins in the pharmaceutical intermediate business by 50 to 100 basis points compared to the previous year.
• Margins in the electrolyte business are expected to be similar to or better than the current margins.