I see Althrocin in the not-so-good-quality list shared by @wpf123 . This one generates 7.4% of Domestic formulations sales. Not sure if the liquid version mentioned in the list is different from the one in this chart. Anyways, i don't see any other big pharma companies name in the not-go-good list.
Disc: invested
Hope management also closes the merger topic and minority shareholders get a fair deal.
Disclosure- invested
It is opening now. Thanks Ayush for sharing the url.
Salient points:
Disclosure- have some exposure to canfin
I agree over all it looks very interesting and valuations are attractive.
However the sales have gone up only from Rs340cr to Rs440 cr, I know you mentioned the issues of Andhra /Telangana but how do you explain the demand in housing loans in general last few years in Andhra? We have to make sure it can grow and continue to grow, thats what will create wealth.
Know more information about FATCA here. http://www.irs.gov/Businesses/Corporations/Foreign-Account-Tax-Compliance-Act-FATCA
The capacity expansion happened along with the slowdown in the andhra region. in cement, you cannot expand markets too far from you.
Also, its not that they are totally laid back. Sales have gone up 5 times in last 10 years @ 15% cagr.
The capacity expansion happened along with the slowdown in the andhra region. in cement, you cannot expand markets too far from you.
Also, its not that they are totally laid back. Sales have gone up 5 times in last 10 years @ 15% cagr.
Again nice story, promoters have made it integrated (sorry I havnt verified but counting on your summary), but considering the age of company and though they had decent cash flows why couldn't they expand the market to utilize the capacity to even half?
Promoters are very reputed. One good thing i heard is that they even pay intrerest to banks many months in advance , which is rare and commendable.
The other moat is that it takes many years to setup a plant. Getting mining leases , etc is tedious and time consuming.
Sometimes it is better to have a promoter who is not very ambitious. There are many instances where promoters chasing growth have misread the demand leading to companies going under.
agree.
I'm looking if it has a moat here as Cement is a commodity and entry barriers are not very high.
I gather from your report the below advantages --> can they become moat?
a. Having captive power plant and limestone are good but even other cement companies mostly have it, like Sagar cement.
During your research, what did you feel about promoters? Any nice points, any blemishes? Do they have the passion to make it big in the business?