Another disappointing quarter by Rainbow. FY24 has been the year of headwinds, Lower seasonal illness admissions, seasonal imbalance, delayed mansoon, cyclone affect in Chennai which effected the business. Managment has given guidance of ~15-18% for topline growth. management is working on to improve its brand recall in Chennai and Bangalore in coming future these clusters will be growing near to same as the Hyderabad cluster. Balance sheet to remain robust, capex will be funded by internal accruals. Announced a capex of ~50cr.
Posts tagged Value Pickr
Beta Drugs Limited (22-05-2024)
thank you for this write up. One big concern I have is with these companies that are engaged in branded formulations is that they are competing against their CDMO client who are using them to manufacture the same formulations. Wouldn’t clients prefer to have a pureplay CDMO vs a branded player?
Rategain – Fast Growing SaaS Leader (22-05-2024)
Made Offers To 12 Cos In The Past 12 Months For Acquisition, But Valuations Are Too High: Rategain
Here’s the interview of Bhanu Chopra about the Guidance, M&A and the road ahead.
Action construction equipment ltd (22-05-2024)
Summary of presentation - slide 9:
- Highest ever Quarterly & Yearly Revenue and Margins in the history of the Company.
- Sustained growth trajectory : Operational revenue grew by 36% on a YoY basis and 11% on QoQ basis.
- Margin expansion : Driven by better capacity utilizations, product mix, improved price realizations along with efficient cost control measures and softening of commodity prices.
- EBIDTA expands by 520 bps, PBT expands by 453 bps, PAT increases by 387 bps on YoY basis.
- Strong Revenue growth across segments during the year:
- Cranes grew by 37.75% YoY
- Construction Equipment Segment grew by 54.82% YoY
- Material Handling segment grew by 8.6% YoY
- Agri segment grew by 12.06% YoY
- Expansion of Global footprint : 72 % YoY export sales increase
Going forward, in the first few months of FY25, muted growth is anticipated due to the general election and upcoming monsoon season. At the current juncture, 15-20% revenue growth expected for FY 25
Link: FY24 presentation
PI Industries – Superior Business Model (22-05-2024)
As per PPT - https://www.bseindia.com/xml-data/corpfiling/AttachLive/f0ce5213-df5c-4d98-a57e-6c840b6364ab.pdf
Slide 17 - targeting to achieve ~15% revenue growth with sustained improvement in profits.
On congervative if we consider 15% revenue growth with same profit margin of 22%, EPS of FY 25 is 127.6, with that EPS forward PE comes to 28. Seems cheap with PI quality.
Disc: Invested and views are biased.
PI Industries – Superior Business Model (22-05-2024)
Decent set of numbers from PI given the inventory build up and competition coming in key products. In the investor presentation, management has guided 15% growth, reducing from 18-20% being mentioned earlier. Looks like there will be slower growth for the next few quarters, need to wait for the con call tomorrow to get further details.
disc- invested and remains one of my top 3 holdings
Action construction equipment ltd (22-05-2024)
ESOP Filing Company has Employee Stock Options (“Options”) plan with a exercise price of Rs.1450/share, 1/3rd vesting every year. Interesting to see which level of employees this is being offered to. My understanding is that Employees will find this interesting/profitable if the price remains above (hopefully significantly) Rs.1450 (during each exercise period i.e. May 2025/26/27), since they have to pay the exercise price.
Maybe a indicator of mgmt expectation of company performance (indirectly translating to stock price) in coming years.
Link : ESOP Announcement
VP Group Navi Mumbai (22-05-2024)
Hello everyone,
I am also interested in joining the group. I have recently started and hoping to connect and learn from fellow value investors
Neuland Laboratories Limited – Transformation towards niche APIs? (22-05-2024)
Key takeaways from Q4FY24 Concall from own notes and screener:
Financial Performance:
- Total income for FY24 was Rs. 1,571.1 crores, an increase of 30.8% from FY23.
- EBITDA for FY24 stood at Rs. 474.5 crores with a margin of 13.2%, an increase of 6.8% over FY23.
- Total income for Q4FY24 was Rs. 390.4 crores, with EBITDA at Rs. 112.2 crores and a margin of 28.7%.
- Gross margin was 58.8% in Q4FY24.
- Profit after tax was Rs. 67.6 crores in Q4FY24.
Operational Efficiency and Cost Optimization:
- Continuous work on optimizing costs and processes for long-term sustainability.
- Reduction of debt by Rs. 39.4 crores, leading to a net debt position of negative Rs. 32.6 crores.
- Working capital cycle reduced to 122 days at the end of March’24.
Capex and Investments:
- Invested Rs. 143.7 crores in capex during FY24.
- Continued investment in upgrading facilities to enhance business resilience.
Business Trends and Outlook:
- CMS business contributed close to 50% of revenues in FY24.
- Anticipating a surge in new projects in the next 12 months.
- Expecting a normalization of revenue growth and margin in FY25.
- Optimistic about 20% CAGR growth beyond FY25 based on current visibility of projects and portfolio products.
Customer and Industry Dynamics:
- Seeing a surge in RFI and RFP activities from customers.
- Customers considering Neuland differently due to track record and quality culture.
- Seeing increased interest from generic customers in the API space.
- Customers making strategic decisions on outsourcing based on various factors including geodiversity.
Biosecure Act and Industry Changes:
- Monitoring the developments around the Biosecure Act.
- Potential opportunities arising from the Act in terms of customer inquiries and RFPs.
- Preparedness to capitalize on opportunities and overcome challenges in the evolving regulatory landscape.
The concall was led by Saharsh and Sucheth (sons of the founder). After attending the last few concalls, I have noted that they are smart, realistic and down-to-earth management. They paint a very realistic picture of the future growth of the company and are very honest about what the company can and cannot do. They stayed away from speculation (especially around the Biosecure Act) and gave very practical answers based on their internal research and company’s expectations
Disc: Invested since much lower levels and plan to hold due to honesty and integrity of management.