Krishca Ltd : A SME offering steel strapping Solution

Hi, I agree with you, Along with small market size & number of SKUs as highlighted by you, CapEx requirements are quite small for steel strapping. Krishca has put up a plant with just Rs.20 Cr capEx (lower than that) and JSW management may not even think this size i guess & JSW’s current CWIP is Rs.22K Cr

Hi, Since Krishca is clearly focused on only steel mills, PET strap is not a threat at all. PET strap is for only low end packaging application like around 200-300 kg pallets etc. As you said, PET strap won’t withstand 700 degree temperature at all

Hi, It is mentioned by management during concall ( i am unable to paste screenshot right now but you can check it in transcript page no 9)

Yes, i agree with you, Due to two MNC player, procurement team from customer side might not have bargaining power and hence, new player is getting encouraged.

Hi, I got it, Current sales @ FY23 is Rs.72 Cr, If we presume 40% CAGR till FY27, Sales would be Rs.277 Cr (if steel price is same) and Current capacity utilised @ FY23 is 9900 ton (55% capacity utilisation for 18000 ton plant) and If we consider same 40% growth of capacity, they require 38000 ton capacity @ FY27 and Co now itself doubling their capacity. Hence, it is achievable i guess without further increasing capacity.

Valuation is debatable for everyone, we can take our own call as per our investing style and framework. In general, i rarely invest in Microcap since bit scared of high volatility. Despite that if i understand the co well, would like to buy at dead cheap / replacement cost & am ready to wait for such price and If it never comes, i am fine with it. Since i feel, whatever may be our fundamental understanding, only thing in our control is what valuation we buy.

Hi, earlier i worked in packaging industry. As per my experience, it is difficult to get entry into client place where Signode is the steel strapping supplier. At some places, despite my organisation was able to match the price & quality of product etc, it was impossible to get purchase order from client even for some small PO. (you can extrapolate based on this point that procurement team are not much interested to consider new players despite pricing & quality of product are met)

Hi, I already read your full content and understood the similarity / overlapping of content. But still i pasted here whatever i already noted from concall, website & DRHP for personal consumption & not removed overlapping content.

Thanks, You have really done a deep dive in the industry.