Hello Nitin,
There are different layers here.
Exhaust Related: There is no need to go for an aggressive capex or expansion here. Fixed asset returns are generally very high here, just like many other auto ancillaries or other manufacturing companies. Like stated in the above thread JV on MHCV, Trem 5 on tractors, RDE to some extent are growth triggers. As per management incremental small capex is enough to cater these opportunities. In terms of PV, ex-Maruti market is mostly consolidated here. There is still some opportunity on the CV side. Again all these depend on the OEM enquiries & particular engine to do well.
BMS JV Related: My impression is they are slow here. Management still refers to only design & assembly of BMS. Management commentary also seems over cautious & want to be asset lite. They want to understand more on the market & opportunity. They might actually even miss the bus also if they are so much conservative. So backward integration is possible in BMS pack. Atleast one good part is the partner KG is having good plans & they seem to be on the track. Kinetic Green New plant
M&A and Cash: I’m fine if the management is being cautious here. we can’t expect every management to be aggressive in deploying cash or go for capex every now & then. Some say likes of (Deepak nitrite, SRF etc) are unique or in other cases business expects you to do (laurus etc). The power train agnostic space is pretty large, they have to analyse so much to finally settle on something.
Exports Related: They have just started, SKU’s might be so many here. I only see cummins as the major client here. Capex depends on the size of orders. Management can elaborate more on the opportunity. Good thing is atleast i can see the trend continuing, exports visible in April & May too.
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