Shilchar call was superb. Management re-iterated this in the call. Company expects to do 8-900 cr in 2 years thus we are looking at utilization of new capacity by FY26 itself. New plant that came up 5 years ago is highly efficient. Thus,the surge in GMs and EBITDA margins. Demand is extremely strong across the board…both in India & in export markets.
Domestic EBITDA margins: 15-20%
exports: 30-50%,varies from order to order. Very limited competition in export markets for organized players. Rakem Danish are some but quiet small in size upto 100 cr kind of annual sales.
Company is catering mainly to US & Middle east markets in exports. They have started to expand presence in European markets too and expect results in few years
Overall margins should stay in the current vicinity for atleast 1 more year. Company has a great design team & considers itself a technology/technical company rather than manufacturing.
Current cycle similar to 2004-08 except that exports wasn’t such a big part of revenues & there was no share of biz from renewable segment. New competition could come up in India markets over next 1 year given huge demand but it seems Shilchar should be more insulated given niche in renewables & especially exports.
Have a lot of excess land. Can go to 30,000 MVA if required.
Overall it was a crisp call. Management seems to be efficient user of capital AND time…they decided to finish the call just as questions started repeating.
Disc.: Invested. Views are biased
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