Transpek Industry limited (25-10-2024)
Bumping this thread up to see if there is someone tracking/interested in. Did some quick review of AR, and last Q’s report. Seems their Q2 results are due in few weeks, and there was no concall last quarter. Posting few takeaways on the overall product mix and segment contribution based on AR and last Q’s reports.
Transpek’s Business Segments: Revenue, Profit Margins, and Market Share
| Bus. Segment | Appl./Region | Rev.Share (EstQ125) | EBIT Marg% | Est PAT % (FY25) | Market Share Input |
|---|---|---|---|---|---|
| Chemicals | By Application | ||||
| Polymers | 57.6% | 16-20% | 5.7-9.1% | Highly competitive: The domestic market for Acid Chlorides, used in polymer applications, is very competitive with many new manufacturers leading to volume distribution and reduced profitability. Transpek remains a preferred choice for some customers due to its focus on quality, delivery, service, and customer focus | |
| Pharmaceuticals | 12.6% | 16-20% | 5.7-9.1% | Intense competition: The Pharma market, mainly within India, is intensely competitive with many manufacturers. Transpek maintains its market share due to its reputation as a reliable and ESG-focused supplier | |
| Specialty Chemicals | 6.6% | 16-20% | 5.7-9.1% | No specific market share information available in the sources. | |
| Agrochemicals | 13.2% | 16-20% | 5.7-9.1% | Limited presence: Transpek currently holds a small volume share in the agrochemical market, which is under pressure and price-sensitive due to cheaper imports | |
| By Region: | |||||
| International | 85.9% | 16-20% | 5.7-9.1% | Global exporter: Transpek has a strong presence in the international market, exporting to 16 countries. Specific market share data for each region is not available. | |
| Domestic | 14.1% | 16-20% | 5.7-9.1% | Domestic competition: Transpek faces significant competition from new Acid Chloride manufacturers in the domestic market |
Notes:
- Estimated Margins: The provided EBITDA margin range of 16-20% is an average expected for FY25. The PAT margin range comes from the reported figures for FY24 and Q1 FY25. These ranges might not be representative of individual applications or regions.
- Market Share Data: The sources do not provide specific market share percentages for Transpek. The insights provided are based on qualitative descriptions of the competitive landscape in each segment.
Key Takeaways:
- Polymers Drive Revenue, But Face Competition: Transpek derives a significant portion of its revenue from the polymer sector, but this market is highly competitive.
- Pharma Focus on Reputation: Transpek leverages its reputation for reliability and ESG compliance to maintain its share in the competitive pharma market.
- Agrochemicals Present a Growth Opportunity: While Transpek’s presence in the agrochemical market is currently limited, it could represent an area for future expansion.
Disclaimer: Not invested. Post is purely for discussion/study purposes. Your due diligence and consultation with registered advisor before any investment decisions.
Nomination process ends for bypolls to 47 assembly seats in 13 states (25-10-2024)
Nominations for bypolls to 47 seats in 13 states have ended. The INDIA bloc faces a crucial test against the BJP, with voting scheduled for November 13. Bypolls affect seats in states like Uttar Pradesh, Rajasthan, and West Bengal, among others. Seats became vacant due to various reasons, including MPs’ election to the Lok Sabha.
Zee Media Corp Q2 Results: Net loss widens to 49.86 crore, revenue down 13% (25-10-2024)
Private news broadcaster Zee Media on Friday said its consolidated net loss widened to Rs 49.86 crore for the second quarter ended September 2024. The company had posted a net loss of Rs 30.70 crore during the July-September quarter of the previous fiscal, according to a regulatory filing from Zee Media Corporation Ltd (ZMCL).
Ranvir’s Portfolio (25-10-2024)
Hey Ranvir,
Appreciate the detailed concall notes and analysis. Any view on how much stocks to hold in portfolio? You are tracking and potentially invested in quite a lot of stocks, whats your view on concentration vs diversification?
Transpek Industry limited (25-10-2024)
(post deleted by author)
BLS International (25-10-2024)
BLS has made a really good move by the acquisition of SLW Media. This acquisition allows the company to diversify beyond its core visa services into luxury lifestyle and sports tourism, aligning its brand with high-end leisure activities. It also enhances the company’s ability to reach end consumers directly, something it hasn’t been able to do in its typical government services business. Additionally, BLS plans to leverage its global presence in over 66 countries to expand the reach of SLW Media’s golf events, creating a synergy that will boost its brand perception as a provider of both elite services and global access. In short, This move will also allow BLS in Diversification of Revenue Streams, Brand Visibility and Promotion (using the reach of SLW ), Digital Transformation, etc.
Macrotech Developers: Net profit jumps 98% YoY to Rs 422 crore, revenue up 50% (25-10-2024)
Macrotech Developers (Lodha) reported a 98% YoY jump in PAT to Rs 422 crore in Q2FY25. Revenue from operations stood at Rs 2,626 crore, up 50% YoY. The company achieved its best ever quarterly pre-sales of Rs 4,290 crore. Lodha added four more projects in Pune and Bengaluru during the quarter.
Shilchar Technologies – Power & Distribution Transformers – Sunrise Sector? (25-10-2024)
Shilchar reported fabulous numbers yesterday. Most notably(for me),GMs are at 40% now. This is head and shoulders above any peer in the sector. EBITDA margins are at 31-32%. Company’s concall was held today. Some KTAs:
→ Demand continues to be very strong mainly led by renewable sector in India. Foresee no oversupply or margin issues for atleast 1 more year. Demand should last 4-5 years atleast.
→ CRGO imports have become an issue owing to BIS norms implemented recently. There is no shortage in market just that new regulation has created some temporary hiccups. Shilchar is not facing any issue in this regard…as of now.
→ New capacity came online in Q2 and Sep was first month of operations. Co expects to be at full utilization in H2.
→ As mentioned earlier,company has enough land to go to 30,000 MVA capacity.
→ Export demand also continues to be very strong. Mgt believes owing to certifications and stringent approval norms,it will take atleast a few years for a new entrant to break in.
→ Company expects to do 550 cr revs in FY25 and 750-800 cr in FY26 with similar margins.
→ Call on next round of capex will be taken in a few months.
Overall company continues to be on a very strong wicket. I continue to believe there is adequate upside from here given peers like TRIL are trading near 60x FY25 earnings. Shilchar’s unit economics is superior in every regard and growth rates are also comparable,if not better. If current margins can sustain we can expect a PAT of ~200 cr at full capacity. Moreover,550 cr seems conservative since H2 should see a run rate of 180-200 cr revs leading to revenue nos. of 600 cr or more. My only issue is that inspite of capital and land being abundant,mgt is being a little conservative in adding capacity. One may note that till Q2 for 4 quarters co was stuck in the same revenue band. I hope co is able to aptly utilize this high growth period.
While the concall was good,it seemed most participants haven’t read this thread 
There were some issues with management’s internet & Mr. Shah dropped out for a few minutes while some participants couldn’t unmute themselves on time. One would prefer better management of calls in the future.
Disc.: Invested. Views are biased.
Capri tumbles 46% after US court blocks $8.5 bln merger with Tapestry (25-10-2024)
Capri shares slumped nearly 46% on Friday after a U.S. judge blocked its pending $8.5 billion merger with Coach parent Tapestry, hurting the Michael Kors owner’s chances of navigating challenges at the luxury brand.