Both @First_Principles @Worldlywiseinvestors beautifully covered all points in their very detailed post .Almost nothing left to cover .
My top of mind thoughts (I didn’t make any notes )….
1)Racl is about “specialized machining as their core competency “ (very high tech plant )hence as per me they may extend from their core of “Gear “to adjacency like “’differential gear and industrial gear”’
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Bcos of EV ,market is moving to noiseless car and hence “gear grinding “becomes key -demand is more than what they can supply -getting 3 machines on war footing (against 3 now from Japan ) -total machines in 6 sub factories is whopping 225 !!
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Man (a Volkswagen company ) shutting their machining and forging unit for ICE hence those orders may come to Racl in next 2/3 years
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My hunch RACL would start planning for next milestone of 1000 cr from next year ,hence being future ready
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the promoters have put huge skin in the game (most of their net worth invested in RACL )by investing close to 200 cr in last 3 year ,my hunch is there will be QIP in future instead of increasing further debt
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excellent culture in the organization (one needs to see to experience ) to me it’s about customer focus ,quality consciousness ,care and concern ,global outlook etc …these softer aspects is understated in investing world but makes a big difference
Discl : Hold more than 1% + of the company ,hence view may be biased ,please do your own due diligence
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