Revenue potential seems amazing. At ~180cr quarterly revenue from OMCs, the OMC segment alone can deliver ~700cr of revenue in FY24. The capacity utilisation would be 45%. Assuming 8-10% current capacity utilisation to continue, revenue would be close to ~800cr.
Taking an OPM of 10% and PAT of 5%, PAT should be around ~30-40cr. Current market cap is 500cr.
Further, they have also completed the glycerin plant with capacity of 70 MT/day and revenue potential (annualised) of ~200cr.
Seems to be too good to be true.
Key risks:
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The use of light diesel oil in manufacturing biodiesel – had emailed the company but received no response
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Margin of OMC supply – JAS’22 orders were at roughly 1.1L/KL. The price for this years orders is ~88k/KL
If anyone has any idea on these points, please do revert.
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