Voldemort’s Portfolio

Having only attended very few AGMs, This time i wanted to make sure that i attended the Natural capsules AGM at any cost. I had a review with my management at my workplace at 12, The AGM was at 11. Could not attend to the questions properly as was anxious.
So, Here goes the 30th AGM of Natural capsules Ltd:
Mr Chairman called the meeting to order after having sufficient quorum. As usual, The chairman was being actively guided by someone from his side to help with his speech. It went as usual about the company and about the management.
Next came, Mr Sunil Mundra the MD – He started running us through the facts:

• The revenue and profit were up 28 & 29 % YoY – increase in the capsules business.
• 3 new hard capsule machinery to be installed in this quarter – Company sees sufficient demand for the capacity too.
• 3 New HPMC machines will be installed this year – Plant based capsules predominantly used for nutraceuticals – Company finds better margins here when compared to the regular capsules.
• Exports – Company reports a 72% increase in exports taking the total share of exports in revenue to 22% – MD congratulated the export marketing team
• Regarding the API business, They have diluted equity to help them with the capital funds and WC.
• They plan not to commit on the entire capital machinery at one go – Company will add capacity as the commercial utilization increases until they hit the planned capacity – Which will help in reducing capital requirement and fixed costs during the beginning.
• The sampling data for API offtake customers will depend on their profile. Some will be okay with the sample data they have, Some will require 6 months data and so on depending on the increasing profile.
• Company has started to give discounts basis volume for capsule orders. There are some bad payments (3.2 crore I think) that are stuck on various levels of litigation. Company has fully provided for them.
• Company expects the Kilo lab of biogenex to go live the next quarter. Commercial and large quantity lab should go live on the final quarter.
• 30-40% API capacity utilization will come in the current year and 60% the upcoming year.
  Overall, The company is very positive on their plans and are confident on achieving it. I was initially hesitant on the management. But after seeing Mr.Mundra – i feel that he is a hands on person, Who could answer questions on the fly at ease. He was happy to explain.
  I was actually feeling happy with the management and started typing my questions too – Only to be rudely awakened that my review was preponed.

The theme seems to continue positive, I have requested the CS for a plant visit and if things go well – I will continue buying this
Disc: Invested, Second largest alloc

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