Agarwal Industrial Corporation Ltd – Profitable Microcap with high growth potential in infrastructure space

FY 23 q4 Concall Summary:
Aggrawal Industrial Corporation functions as an ancillary for the transport & logistics segments because of it’s powerful logistical assets & infrastructure which comprise of:

1. 650+ Fleet Size Consisting of 350+ Bitumen Tankers and 300+ LPG Tankers.
2. 4.24L metric ton in FY23 vs 3.85L metric ton in FY22 (10% volume growth)
3. 20-30% market share in bitumen
4. Integrated bitumen logistics and ancillary company
5. procuring bitumen to transporting over ship,to storage and doing value addition and manufacturing and transporting it to the end customers.
6. onboarding more bitumen vessels for timely securing of bitumen for incremental demand in the industry.
7. Out of total volume,2L metric ton was done through own vessels.
8. Own a fleet of 8 large vessels(includes addition of 2 vessels) having total capacity of around 49000 MT
9. Addition of 20k metric ton vessel at the cost of 150 crores would result in 50 crores at bottomline.
10. Always on lookout for vessels with more than 20% roce.
11. India being the country with second largest road network but lowest consumption of bitumen wheras compared with USA and china,requirement would be more 3X for same road construction.
12. There has been increase of higher EBIDTA i.e. RS 2400/ton from Rs. 1600/ton and is bound to rise on further volume growth as all the costs are already done.
13. Company will do capex of 150 crores for 20k metric tons using internal accruals.
14. Chartering business, there will be 20%+ EBIDTA margin but needs to check on the overall margin expansion??
15. Guided for 10-20% Volume growth.

Questions:
@pkeday In charting business, there will be 20%+ EBIDTA margin but what would be overall margin improvement? As previous we could see that the margin was in 6-8% range?

Risks:

1. Will bitumen be used in the road contruction vs concrete cements?
   Disclaimer: studying, not invested.