Krishca management has met funds yesterday. Below is a brief summary note. It seems that they will easily surpass the 40%+ Cagr guidance with Dubai plant plus packing contracts.
Looks like a solid long term fundamental story in making.
Thanks
At Full capacity of both plants after commissioning top line of 300-350 cr in the next 4-5 years
-Apart from this 100 cr extra from packing solutions
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Additionally 100 cr extra from Middle East plant.
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Company has energy savings from induction blast furnace in comparison to muzzle blast furnace. However induction blast furnace replacement cost for competitiors is not exorbitant and can be done.
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Psu tender applications started in August.
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Company is put on its statement of 40%yoy revenue growth.
-The company is considering having its new plant in Eastern part of India (close to Orissa or Jharkhand).
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Cost benefits in comparison to competitiors due to lower employee cost , energy costs etc.
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New plant setup timeline – Dec
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Dubai plant setup timeline – Second half of FY24.
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Will acquire steel from China in its Dubai plant for cost benefit.
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