Thank you @kalpesh4430 for introducing us to Satia and doing a lot of leg work. I bought around the 85-90 mark last year over a period of time. I was blown away by
- The management guidance about EBITDA last year
- Their projections from capacity expansion (esp their new premium copy paper)
- What I saw was their uniqueness about Zume/paper cutlery and premium positioning and their plan to add new cutlery machines as demand starts to explode
- This almost waste (wheat straw) raw material which farmers were burning, the mgmt view atleast what I understood was that the farmers were happy not to burn their husk as Satia was taking it away for them.
- Their positioning as though atleast a major portion of their raw material is cheap and a given.
When (3) above failed I started to question my thesis as this is a cyclical (whatever said, we should not confuse it with a more durable longer cycle business like HUL or Marico). I sold everything gradually between 110-120 after Q4 results. No holding now.
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