Hi … @Vineetjain111 …
Some quick thoughts –
The capacity increment includes Nepal – Yes. Even if the peak sales ( volumes ) go up by 20-30 pc for next 2 yrs, I think it would be a descent outcome as the company is sitting on a lot of operating leverage. The margins may end up expanding by 200-300 bps. The bottom-line should get a good boost
If they r capacity constrained / demand outpaces supply before fresh capex comes online ( say 30 months from now ), they can go in for 3rd party manufacturing
Wrt retail vs developer sales – Ur observation is correct. The sales that we r witnessing right now is the base business – IMO ( primarily / mostly the standalone houses being constructed as the construction cycle in case of standalone houses is much smaller + the usual project work ). The kicker should come in once the Tiling work starts wrt the new project work where the construction cycles are longer (2-3 yrs)
Disc: invested, biased
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