Posts in category All News
Hotel stocks in focus; Lemon Tree, India Hotels could give 9-20% return in next 1 year (01-07-2024)
HSBC India Manufacturing PMI indicates a sharp improvement in business conditions (01-07-2024)
Stock market update: Power stocks up as market rises (01-07-2024)
Growth in private corporate sector sales moderates to 4.7% in FY24: RBI (01-07-2024)
Should you prefer RR Kabel over Polycab? Amnish Aggarwal explains why (01-07-2024)
Action construction equipment ltd (01-07-2024)
I think numbers aren’t going to remain the same, they will only improve as there was a demand slowdown due to elections.
EaseMyTrip.com inks MoU with UP tourism board to boost state’s eco-tourism (01-07-2024)
DDev Plastiks Industries – A Smallcap Gem (01-07-2024)
Some KTAs from mgmt meeting
Reason for demerger of Ddev plastiks from Kkalpana Industries was to focus on compounds business considering industry tailwinds, earlier due to company structure company had lost a major contract from mitsui who wanted to setup a JV with Ddev for manufacturing compounds
cable and wires companies have been now increasingly cautious about their supply chain post covid and are shifting from imports to domestic procurement
Company does not cater to house wires and telecom wires due to unfavourable operating economics ( Current capacity is 30000 tons as compared to market demand of 8L tonnes)
Current TAM is 14-16% in value terms of the total cables and wires industry sales value
Domestic and export mix to remain the same as both markets are growing at the same pace
Shakun polymers is only in the business of semiconductor and HFFR cables and does not have the complete product portfolio such as insulations
HFFR cables currently the capacity 20000 tons in the industry as compared to total pvc market of 8-9 lakh tons, company expects the segment to grow to 150000 tons and company is targeting a 50% market share
HFFR cable acceptance is mainly led by government regulation as despite better quality, the cost of HFFR wires is 10-12% higher. Company expects over the next few years solar cables,
Capex - Initial capex is to set up a green field capacity at both the east and west coast, with around 170 crs of investment, further investment of 130 crs for HFFR and XPLE capacity , current capex per ton - Rs 30000 (i.e 30 cr per 10000 ton), 120000 is the total peak capacity at these facilities.
Decrease in trade payables is mainly due to domestic PVC sourcing which has lower trade payable days.
Engineered plastics is a difficult business to crack because generally the consumer durables companies have there own approved set of vendors or mainly import
Kkalpana and Ddev synergy - Mixed PVC compounds using the recycling ability of Kkalpana is something which the company is thinking, as in packaging there is a provision for use of mixed compounds, company is working with Prysmian for developing a mixed compound using virgin PVC compound