Capacity Enhancement: The new facility is expected to commence commercial production within the current financial quarter.
Posts in category Value Pickr
Everest Kanto Cylinders Ltd. – A long runway ahead! (20-11-2024)
Capex: Company has an approval of an additional ₹50 crore capex for new manufacturing lines at the Ratadiya, Mundra project.
Orbit exports (20-11-2024)
Company announced a capital expenditure (capex) of ₹30 crore to expand the processing capacity of their plant in Gujarat by 50%.
- Funding: To be sourced equally from internal accruals and a term loan, with potential benefits under the New Gujarat State Textile Policy.
- Timeline: Completion of installation and production by Q2 FY 2026.
Hitesh portfolio (20-11-2024)
@hitesh2710 Do you run or are aware of some amateur investors’ club in Vadodara? I too am from Vadodara and was looking for a community to discuss ideas and learn.
BEML – Disinvestment (20-11-2024)
Company just won ₹246.78 crore order for 48 dump trucks!!
Websol energy system ltd (20-11-2024)
A big Positive for Cell manufacturers like Websol & Premier. A big Negative for Module only players and EPC players.
HDFC Life Insurance Company (20-11-2024)
Recent Interview of HDFC Life MD & CEO with Money Control highlighted following points:
(1) Persistency in 13th and 61st Month is going up for HDFC Life which is a positive.
(2) ULIP now contributes about 36% which is slightly less than Q1 FY25 but it at elevated level due to Stock Market uptrend as compared to 5-6 years back when it was 25%.
(3) HDFC Life may not launch Health Insurance products even if those are allowed by IRDA. They will continue to increase their current Pie of products, both Par and Non-Par.
(4) HDFC Life has about 16% to 18% returns on their Embedded Value which is reasonable.
(5) Sometimes when Banking stocks do well, Life Insurance stocks do not do that well, since Markets perceive them as Long term stocks.
(6) Even if more FDI is allowed in Insurance Sector, actual investments may not go up as Economics are always not favorable for FDI. They will also look at other opportunities before investing more funds in India.
(7) Customers are slowly buying more Life Insurance policies compared to 2019.
(8) Product Factory and Innovation will be the focus of HDFC Life going forward as they always have launched New products in the past decade, and they would like to continue with Innovation.
Just thought of sharing with wider audience.
GNFC – The big becoming bigger! (20-11-2024)
GNFC signs MoU with INEOS to form a JV and possibly build a 600kt acetic acid plant at Baruch by 2028.
Road Construction players – Who will win the race along the upcoming freeways? (20-11-2024)
KNR Constructions
- From a geographical perspective, the orderbook has been entirely based out of Southern India – concentrated towards Telangana (34.5%), Karnataka (28.9%), Andhra Pradesh (15.5%) and Kerala (13.9%).
Q2FY24
-
Elections issue with many EPC players in H1
-
Order book @ 4406 Crores
-
52% EPC, 23% irrigation, 25% pipeline
-
Within road projects other than HAM, 54% is contributed by state governments, 11% by the central government, and the remaining 2% by other entities.
-
Order book : 4406 Cr, doesn’t include 2 projects worth 1200Cr, H2 might be have better inflow : 6000-8000 Cr
-
Pipeline is good, 80-85 tenders from NHAI (800-1600 Cr)
-
Plans to bid MSRDC project in Maharashtra worth 2000Cr in partnership with other contractors.
-
The road sector is experiencing increasing momentum, with NHAI planning to award projects worth Rs 3 Lc Cr. Additionally, the Andhra Pradesh government aims to award irrigation projects worth Rs 1.5 Lc Cr, presenting significant opportunities for companies like KNR . The company’s strategy to diversify into other segments is a positive move for long-term growth.
Solex Energy – Undervalued Solar PV Manufacturer or Microcap Value Trap? (20-11-2024)
Concall brief generated using NotebookLM:
Solex Energy Ltd. H1 FY25 Post Earnings Conference Call Briefing Doc
Date: November 13, 2024
Attendees:
- Solex Energy Management:
- Chetan Shah, Chairman & Managing Director
- Piyush Chandak, Executive Director
- Vipul Shah, Director
- Investors/Analysts
Main Themes:
- Strong H1 FY25 Performance: Solex Energy reported robust financial results for the first half of FY25, despite extended monsoon season impacting project readiness. The company achieved significant growth in revenue and maintained healthy EBITDA margins.
- Ambitious Expansion Plans: Solex outlined its Vision 2030, targeting 15 GW of module manufacturing and 5 GW of cell manufacturing by 2030. This includes a near-term expansion to 4 GW module capacity by June 2025.
- Focus on Technology and Innovation: Solex emphasised its commitment to adopting cutting-edge technologies, including N-Type TOPcon, back-contact, and HJT solar technologies. They are actively working on improving production line efficiency through AI and machine learning integration.
- Global Market Strategy: While prioritising the rapidly growing Indian market, Solex is also actively pursuing export opportunities in Europe and the U.S. The company believes it is well-positioned to leverage its strong relationships with both domestic and international brands.
- Financial Prudence: Solex is committed to a balanced approach of debt and equity financing for its expansion plans. They are actively engaging with investors and maintaining a healthy working capital cycle.
Key Highlights and Facts:
- H1 FY25 Revenue: ₹930 million (compared to ₹XX million in H1 FY24)
- Target Revenue FY25: ₹800 crores (₹650 crores from modules & ₹150 crores from EPC)
- Target Revenue FY26: ₹2,400-₹2,500 crores
- Target Revenue FY27: ₹3,400-₹3,600 crores
- EBITDA Margin Target: 9%-11%
- PAT Margin Target: 5%
- Current Module Production: 50,000 modules per month
- Target Module Production (December 2024): 125,000 modules per month
- Total Assets (estimated): ₹415-₹420 crores
- Total Debt (estimated by end of FY26): ₹300 crores
- Working Capital Requirement (for ₹1,300-1,400 crores revenue): ₹200-₹250 crores
Key Quotes:
- On Indian renewable energy opportunity: “Currently the Indian RE target is 500 GW, but India can do even 1 TW, which is 1,000 GW also.” – Chetan Shah
- On Tapi-R module technology: “Tapi-R is a new product which is actually invented by the consortium of leading global brands… the modules dimension is not majorly different… and which generates better output.” – Chetan Shah
- On Solex’s unique strength: “We are very unique that way in terms of compared to any other Indian modules manufacturer those who are larger than us and those who are smaller than us.” – Chetan Shah
- On overcapacity concerns: “I’m confident that we are not into the overcapacity. And so, whatever that India demand is, we’ll be able to fulfil it, and we’ll be able to justify our installed capacity.” – Chetan Shah
- On N-Type TOPcon technology: “Now there is a lot of improvement which has happened in N-Type TOPcon technology for the Indian climatic conditions. So I think by the beginning of ’25, you will have a better product quality…” – Chetan Shah
- On U.S. manufacturing plans: “As I said, like we are comfortable manufacturing right now at present in India and supplying to USA. Once we find any good opportunity, long-term sustainable because my focus is always on OpEx part of a setup.” – Chetan Shah
Analyst Takeaways:
- Solex Energy appears to be strategically positioned to capitalize on the robust growth in the solar energy sector, both domestically and internationally.
- The company’s commitment to technological advancement, coupled with its strong financial discipline, makes it an attractive investment proposition.
- Investors should monitor the company’s progress in achieving its ambitious expansion targets and its success in penetrating new markets like the U.S.
Disclaimer: This briefing document is based solely on the provided transcript of the Solex Energy Ltd. H1 FY25 Post Earnings Conference Call. Further research and due diligence are recommended before making any investment decisions.