Hello,
I recently started to look at the company and it looked interesting.
While the overall topline has grown from 440Cr (around IPO) to 1000Cr+, similar growth is not seen in the bottom line. rather the profits are down, due to the loss making subsidiaries.
In fact the camshafts business has grown at a slow pace from 440Cr in 2016 to 600Cr+ in 2023. The doubling of revenue is due to adding of revenue from acquired companies and growth of EMOSS in topline.
| 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|---|
| PCL SA | 443 | 401 | 424 | 443 | 381 | 512 | 626 |
| EMOSS | 71 | 97 | 133 | 174 | 231 | ||
| MFT | 159 | 169 | 158 | 162 | 171 | ||
| MEMCO | 47 | 40 | 36 | 51 | 53 |
Based on the strategy adopted by the company, going forward, I believe following drivers will contribute to the growth of the company.
- Camshafts business will continue its slow growth.
- EMOSS in Europe will grow once faster once Europe picks up.
- Retrofitting/converting business in India will grow.
- OEM business, which the company is aiming for, will also add to the business, but this will take time and will require significant CAPEX.
The story is looking exciting for the company, the management is measured and taking the right steps. Slowly and steadily they are building new businesses/revenue streams. Profits are slow to come by though.
Disc: have tracking position
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