India’s largest life insurance company, Life Insurance Corporation (LIC) shares surged to an intraday high of Rs 194.20 per share, rallying 4.29 per cent on the BSE on Tuesday
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Avenue Supermart shares 0.47 per cent in Tuesday’s trading session (12-11-2024)
The Relative Strength Index of the stock stood at 27.31 on Tuesday.
SG Mart- Can it successfully create a marketplace? (12-11-2024)
SG Mart Concall Notes:
Volume:
- Done 330k Ton in Q2 – around 110k Ton/month
- Now doing 120k Ton/month Sales and guidance 1.2 Million Ton per FY25
- Guidance of 150k Ton/month in FY26 and 250k Ton/month in FY27
Service Centers:
- 3 (Gaziabad, bangalore & Pune ??) operating now and another 2 (Raipur & Dubai) by this year
- Working on Solar Profile Structures (40k Ton/month ??) and PEB Segment (Pre Engineered Buildings ) – Purlins & Deck Sheeting
- 10 New centers planned next year across India, Will deploy cash.
Steel Prices:
- Sharp decline in steel prices in Q2, around 15% per month, unprecedented situation, once in a decade, Still came out EBIDTA positive in the Quarter.
- Inventory Loss of around 1% sales (18Cr??), Have to protect customers also
- Steel Prices Stable now.
- Inventory days around 8 to 10 days
Margin Guidance:
- 2% is for the year, Not for quarter, will stick to 2%
Business Segment Sales:
- Now Trading 65%, Service Centers 20% and B2C 15%
- In Future with new Service centers it should reach 40 to 50%
- Inventory days will increase to around 20 days with new service centers and around 20 times inventory turn around
- Cash and carry – No credit given
Disc: Invested
Orient Technologies share price soars 15% to hit 52-week high on Q2 results (12-11-2024)
The northward move in the company’s stock price follows its announcement of financial results for the second quarter of FY25
Orchid Pharma up 7% after good Q2 show; PAT up 26%, revenue rises 12% (12-11-2024)
The Earnings before interest, tax, depreciation, and amortisation (Ebitda) for the second quarter stood at Rs 30 crore as compared to Rs 24 crore a year ago which implies a rise of 25 per cent
BLS Intl Q2 PAT climbs 76% YoY to Rs 138 cr in FY25 (12-11-2024)
BLS International Services reported 75.53% surge in consolidated net profit to Rs 138.23 crore in Q2 FY25 as against Rs 78.75 crore reported in Q2 FY24.
SG Mart- Can it successfully create a marketplace? (12-11-2024)
An analyst, Vivek Patel, asked a question regarding the risks involved in the business.
- The question was
First is, would there be any broad guidance that you’ll be sharing at this time for FY25? what would be your key assumptions to this guidance and the key risks of not meeting them?.
Management said
if you look at FY25, we are looking at around INR7000 to INR8,000 crores of revenue, right, which will translate into like 1.3 million ton of steel business put together. And margin should be around 2.5%, The risk to this guidance, I think now that we are in the fifth month of the year already, we don’t see any challenge as of now to achieve this number.
Another question asked by Alisha Mahawla
- The question was
what is the kind of inventory risk that we carry? Because these are commodities at the end of the day, and while you have highlighted the working capital cycle, is it an inventory gain, inventory loss kind of situation that we have to keep making adjustments for every quarter?.
Management said
So, because our margins are low, around 2.5%, right? So, we have to ensure that that 2.5% is protected, okay? There is no threat, there is no risk to that margin, to that thin margin. Then the inventory write-off. Now, steel is a volatile commodity. It carries a lot of risk and with such a low margin, our risk management has to be very strong, which it is. So again, all the three verticals, Alisha, the first vertical, which is metal trading, here we are doing back-to-back sale, like purchase and sale. So, the risk what we carry is from 0 to 10 days. Which is very limited. Steel prices in India normally are reviewed like once in a month. On the first day of every month, all the steel producers come out with a new revised pricing policy. So, if you are doing business within 10 days, there is no risk as such to carry to your balance sheet.
Management said they purchase in bulk, so they get a discount and maintain inventory days of 10 days. They mentioned that the volatile steel price won’t affect the margin. I think management is too optimistic about the business. If they can’t pass the increased cost to the customer, that won’t benefit the business.
Disc: Invested