yes even I am not sure of sustainability of margins as freight rates are coming down and imports are going up. Still some positive can be…
- PLI scheme giving some benefits over imports for future capacities
- China +1 for exports and Exports are also going up
- Domestic manufacturing industry as a whole growing fast with help of government
- Changed some old kiln with newer, which is helping to reduce manufacturing cost
- USA entry
- This is small scale company in large pond, can eat others’ share, but for that scale and perfect pricing is needed. (Business is never easy)
There are multiple negative points here.
What they are aiming, like 5% global market share, multiple capex are needed and capacities are needed to scale upto 10,000 to 12,000 tons/yr which is definitely not easy task.
Asset turn is almost 2 for this company, and to reach 5% share, it needs 200 cr odd capex over recent expansion. This needs long term support from government, otherwise cards can fall other way too.
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