Hi Harshit,
Pls find below reply based on AR report reading i did few days back, main issue is whether margins will hold or not. Rest all is okay. PE is low inspite of run up because market doesn’t know if margins can hold up. If we buy and if margins maintain, we can make good money and if margins fall, we get screwed
- The current expansion is only for gelatin peptides but capex you have mentioned is for all the three plants. So the current cost of capex for gelatin peptide should be much lesser than 135cr
2.Seeing the AR of fy22, growth has come from domestic sales snd not from exports. Gelatin peptide is a retail product so realisation should be higher (pls check price in Amazon), i estimated a additional sales of 1000 cr roughly. - As per AR fy22, they are importing CBs from France and also planning from Canada. Margins and product wise sale is not known, demand was higher due to covid demand and i think margins also expanded because of demand only. So we are not sure if the margins can hold up but i believe demand can hold up.
- They are starting the expansion in 1st Jan 2023 and completing by 2024.
| Subscribe To Our Free Newsletter |
