Xpro India – getting bigger?

1. Current realization is 450/kg. For higher grades the realization is 1800 rs /kg.
2. ebitda margins in biax are higher as per my estimation even today. At higher realization, id not be surprised if ebitda is closer to 55%
3. 24% ROCE is respectable in any business. Please understand 1 key difference between xpro & shivalik:

Shivalik makes its own EBW machines which leads to much lower capex by tune of 5x. Xpro doesnt do that. These machines are more complex than shivalik’s EBW machines. Also, the ROCE demonstrates the sum total of porter’s 5 forces. For xpro, the supplier (bruckner) is even more powerful than xpro is. This is what leads to these sort of ROCE. In shivalik’s case, it is most powerful link in its value chain (except perhaps end OEM like Tesla)

Disclaimer: invested in both, biased.