Ranvir’s Portfolio (18-09-2024)
Cera Sanitaryware –
Q1 FY 25 concall and results highlights –
Revenues – 398 vs 427 cr, down 7 pc
EBITDA – 56 vs 68 cr ( margins @ 14 vs 16 pc )
PAT – 47 vs 56 cr
A&P spends in Q1 were @ 11 cr. For full FY 24, A&P spends were at 64 cr
Cash and Cash equivalents @ 864 cr
Intense heat wave conditions and the slowdown caused by general elections led to subdued demand conditions in Q1
Product wise breakdown of revenues –
Sanitaryware contributed to 53 pc of revenues
Faucets contributed to 36 pc of revenues
Tiles contributed to 9 pc of sales
Wellness contributed to 2 pc of sales
Segment wise breakdown of revenues –
Luxury/Premium Segment – 44 pc
Mid Segment – 32 pc
entry Segment – 24 pc
City wise distribution of sales –
Tier -1 – 35 pc
Tier -2 – 22 pc
Tier – 3 – 43 pc
Company expects a significant pickup in business wef H2
Company sells its products under 4 prominent brand names – CERA, SENATOR, LUSTRE, LUXE
Senator, Lustre and Luxe are focussed towards the premium and luxury segments
In Q1, company’s imports from China were @ 7 cr – showing increasingly reduced dependence on China
LY, company increased its faucets ware capacity from 3 lakh pieces / month to 4 lakh pieces / month
Company has acquired a land parcel for a new Greenfield sanitaryware facility
Capacity utilisation of Sanitaryware and Faucetware plants in Q1 were @ 76 and 84 pc respectively
B2C sales were @ 64 pc of total revenues. Rest were from B2B/project markets
Gas prices remained favourable in Q1. Gas from GAIL was available @ Rs 28.38/ cubic meter vs Rs 29.31 in Q1 FY 24. Gas from Sabarmati Gas Ltd was available @ Rs 51.40 vs Rs 50.01 in Q1 FY 24. Blended cost of gas was @ Rs 31.64 vs Rs 33.91 ( as the company’s sourcing from GAIL increased from 78 pc to 86 pc YoY )
Guiding for full FY 25 EBITDA margins @ 16-17 pc. Intend to grow sales @ 16 pc CAGR for next 3 yrs ( maintaining the guidance despite a weak Q1 )
Estimated total size of Sanitaryware and Faucetware industry ( organised + unorganised ) @ Rs 9000 cr and Rs 14000 cr respectively
Company has started seeing improvement in B2B business post general elections. Company is expecting the rub off to happen in the B2C segment too – by H2 this yr
Company is investing aggressively behind the – Senator, Luxe, Lustre brands – basically to build a stronger presence in the Luxury space
Disc: initiated a tracking position, intend to add more if the price corrects or if the sales pick up, not SEBI registered, not a buy/sell recommendation, biased
Oil prices edge higher on US crude stocks, market awaits Fed decision (18-09-2024)
Crude inventories fell by 1.6 million barrels to 417.5 million barrels in the week ending Sept. 13, the Energy Information Administration (EIA) said, compared with analysts’ expectations in a Reuters poll for a 500,000-barrel draw. Gasoline and distillate inventories, meanwhile, rose last week.
Information technology stocks suffer biggest one-day fall in six weeks (18-09-2024)
Fed rate cuts, Accenture promotion delay sour mood
These 5 FMCG stocks hit fresh 52-week highs and rallied up to 35% in a month (18-09-2024)
Reaching a 52-week high marks a stock’s strongest performance in a year, a crucial indicator for assessing investment potential.
Phantom Digital Effects Limited (18-09-2024)
So three CFOs have resigned in the past 10 months, something not uncommon in SME stocks but might be a concern if the trend continues
US Fed rate policy decision today: Check time, key details (18-09-2024)
The announcement will be made at 11:30 pm Indian Standard Time on Wednesday. Analysts widely expect the US Federal Reserve to announce its first interest rate cut in over four years. While the exact size of the reduction remains uncertain, with predictions ranging from a quarter to a half percentage point, senior officials have signaled an impending cut.
Shakti Pumps – solar shakti (power)! (18-09-2024)
Copying from Piyush’s earlier posts:
31-12-2023, Total pump installed – 2.84 lacs
31-3-2024, Total pump installed – 3.14 lacs
30-6-2024, Total pump installed – 3.97 lacs
31-07-2024, Total pump installed – 4.46 lacs
31-08-2024, Total pump installed – 4.64 lacs
67K pumps in 2 months (July 49K and Aug 18K), Fall in August is worrisome, any reasons for this fall?
Last quarter was 83K pumps, if in coming months too they do 18-19K pumps, it would be a quarter for them.
Ahead of Market: 10 things that will decide stock market action on Thursday (18-09-2024)
Indian indices ended lower on Wednesday, breaking their two-day winning streak. Nifty formed a spinning top candle, indicating short-term hesitation. Analyst Hrishikesh Yedve recommends a buy on dips strategy as long as Nifty stays above 25,080. Resistance is at 25,500, and support is at 25,280-25,300.–