Satia Industries Q1 FY23 result
Very much satisfied with the result,
as per the thesis they are one of the lowest cost producers, so revenue scaling up is not an issue.
OPM are down due to increase in agri raw material costs,
Net profits margins are down due to both increase in raw material costs and depreciation.
company will do full capacity utilization easily + they have done steam system capex + doing PM3 speed increase capex.
some time in future I expect agri raw material cost to come down and benefits of new capex will get capitalised(Operating leverage) by then, owners earnings will be substantially high and thesis will play out completely.
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