Very well covered Vinay .
My quick short investment thesis :
Right to win :
- Its not what Hi Green do -its how they do .Normally a capex for 100 Tons per day cost around 180-200 cr globally (leaving china ).Hi Green is able to match Chinese cost of 40-50 cr per 100 TPD .Technology / capex cost (which is an edge for the group) .Its zero solid and liquid discharge plant .
2)Huge tailwind of sector in India being truly part of circular economy .
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Scalability of the proof of concept .Already got approval for 2 more plant and hence 3 x capacity expansion in 2 years .Will be surprised if its not 5 x in 5 years .
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On Plant and Machinery /capex cost they get subsidy from different states which is between 40-80% of the cost which will help in ROE over years .
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ROI /ROE is a factor of rotation of capital x net margin % .Here Hi green Core ROE/ROCE will be high as converting waste into finished product (input cost 16-18 per kg but 3 finished products are sold between 25-45 per kg ) .See the enclosed tweet if interested for the concept .
https://x.com/debu_neogi/status/1815222164124999976?s=46
Risk :
1)Regulatory (very complaint now)
2) Getting Bigger customers at scale (can be achievable )
Discl :Hold more than 1% of company hence views may be biased
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