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Posts tagged Value Pickr
Sirca Paints India Limited (22-05-2024)
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Carysil (earlier Acrysil) – Kitchen sinks (21-05-2024)
Gleaning from the Q1 and Q2 FY24 concalls I am inclined to conclude that the 1000 crs guidance was based on the acquisition of United Granite LLC, new products and new geography and not on further new acquisitions.
Q1FY24
Q2FY24
Disclosure: Invested and watching the trajectory for the next couple of quarters.
Screener.in: The destination for Intelligent Screening & Reporting in India (21-05-2024)
Is screener app not available on ios?
Sandeep Kamath Portfolio | Momentum Investing (21-05-2024)
can you please share that python script
CAMS – Indirect Bet on Financialization? (21-05-2024)
Q4FY24 Results Update
There is a consensus regarding CAMS that growth is not secular but shallow cyclical owing to the dependency on MF based revenue which ebbs and flows depending on whether bulls or bears are in charge. Thus, it is heartening to see the strong results coming from the optionalities that CAMS has been working on to make its growth more secular. Highlights from the Quarterly results is as follows:
- MF based revenue
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Asset based revenue has increased 21% YoY for Q4FY24 and 12% YoY for FY24. Non-Asset based revenue has increased 28% YoY for Q4FY24 and 20% YoY for FY24.
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Equity component of the AUM stands at 52% for Q4FY24 (Q4 FY23: @ 46.1% / Q3 FY24: @ 49.9%). Equity component for FY24 @ 49.1% (FY23: @ 45.0%)
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The non-asset based revenue for MF is not expected to be impacted by digitalization. As per management, about 8-11% of paper based transactions still come contributing to transaction fee. Furthermore, non-asset based revenue is expected to grow further as more and more call centres are opened, more and more people subscribe to CAMS APIs and applications. The company doesn’t see any big moderation happening in growth of non-asset based revenue given that the paper transactions continue to be range bound in terms of the percentage of total transactions. And the other components of this non-asset based revenue being on a upward trajectory even when digitalization happens.
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AUM fee growth to AUM growth is expected to be in the range of 70%. Can vary a little but ultimately company guided for reversion to mean.
- CAMS Alternatives
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Services provided to AIFs include data processing, reporting and MIS, reconciliations,
fund accounting services, corporate actions/tax-related support, investor servicing
and record creation, drawdown and collection management, and intermediary
revenue management -
Over 50% market share among AIFs and PMS which avail RTA services.
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24% revenue growth YoY in Q4FY24 and 18% annually over FY23.
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Good number of client additions (32) with positive reception in GIFT City (17 total). Total AIF+PMS is around 1000. CAMS services around 250.
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Digital onboarding has increased, Multifonds allows for multicurrency fund accounting and reporting and is a good addition to services being offered by CAMS, Fintuple’s platform integartes custody services of banks, AIFs and PMSs which opens up avenues in FPI, forex and treasury services are some of the triggers.
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Revenue in AIF business is not directly linked to AUM. Less than 25% billing is AUM linked, mostly it is linked to number of investors onboarded
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AIF revenue is primarily annuity. Onboarding revenue and implementation revenue is minimal, rest is annuity in nature. Revenue may vary across the life of fund as new funds get launches and old ones fade away, however, CAMS sees around 1.5 bps of yield. Currently INR 2.2 Tn is the asset under service (which makes it revenue of 33Cr, overall non-MF revenue is 41Cr in Q4FY24)
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View of management regd AIF market size (Q3FY23):
"AIF on the other side, have been significantly embracing outsourcing. You will see that from a total registered count perspective, there are almost 1,000 AIFs in the country, everybody may not have launched. We service about 200 of them. A lot of them may have outsourced or may have bought outsourcing services only for onboarding and TA kind of services. Now of course, you know that demat has become mandatory. So that and then fund accounting and other fund administration services, I would still say that the non-outsourced part is still quite large, it is sitting there.
*Most of the new funds that get launched are getting launched in a captive manner, which means *that they are priced and not coming to us, still they scale to, let’s say, beyond 100 investors or beyond a critical mark. So that, again, from an outsource versus non-outsource revenue perspective, you can say that we’ve perhaps touched less than 50% what is out there. Most of the large AIFs, of course, have outsourced. So they are customers, but there is a significant number, several hundreds of them, which can potentially become clients over the coming years. That’sfairly the addressable market for you"
- CAMS Pay
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In Q4 FY’24, revenue surged by ~20% compared to Q3 FY’24, culminating in a year-end total revenue increase of 24% compared to FY’23
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CAMSPay received the final authorization to operate as a payments aggregator, from RBI
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Pioneer of UPI Autopay, payment authentication services (replacement of penny drop).
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gone live with the authentication services for LIC and further planning to do Payment Gateway kind of work with Indian Bank, Bank of Baroda and Canara.
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Greater than 50% market share in MF ecosystem.
- CAMS KRA
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CAMS KRA continues to bolster its product superiority and is emerging to be a preferred KYC service provider – delivered a robust 90% YoY revenue growth in Q4 (28% growth QoQ)
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Added 20 new financial institutions and FinTechs as its customers, significantly adding non-MF PANs to its stock
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KRA’s seamless onboarding journey, powered by Think360’s Kwik ID KYC solution provides a compelling product suite to fintechs to build a frictionless journey
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For KRA business, to close the gap with onboarding new PANs is critical. Company was earlier focussed on MFs serviced by CAMS but is now looking at the entire set of MFs, brokerages and large fintech as potential market (3x to 4x of earlier market). Within brokerages winning big would mean converting one of the top 2-3 brokerages.
- CAMS Rep
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Only PDF issuance of policies mandated as per IRDA. So the immediate market unlocking that was expected is not happening. Company sees gradual ramp up over next 2-3 years.
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Atal Pension yojana opened by regulators for CRA where Protean is the market leader. As per management, market pricing is thin in the segment and customer switching is not expected (focussing on onboarding new customers)
- CAMS AA / Finserv
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expecting that in FY’25, account aggregator will also start making its presence felt in terms of making at least some increment to company financials, very small, but it will do that.
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13% market share for customers successfully linked to AA ecosystem
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Preferred AA partner in F&O account opening usecase
- CAMS Think (AI driven solutions)
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Think and Rep won insurance KYC contracts from SBI General and Oriental Insurance
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Received empanelment confirmation from India’s largest bank, State Bank of India, for its flagship product Kwik.ID and multiple other offerings
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Commenced the AI and Analytics transformation initiatives at Moneycontrol
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Deployed flagship alternative data enrichment and credit scoring product Algo360 for AngelOne, leading financial services firm
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Partnered with CAMSKRA to embed KwikID’s industry leading KYC and onboarding capabilities
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On pricing for non-MF Business: don’t worry too much about predatory pricing because a lot of CAMS’s competitors are stable, which means that one guy trying to just gain share basis asymmetry in price is something we don’t see often, prices have – in general, as consumption goes up, prices dwindle down. Across segments pricing is getting to a stable place as the number of transactions is increasing.
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EBITDA Margins for non-MF business has crept upto 20% from 15% earlier. Targeting 35-40% steady state EBITDA margins in long term. Margins peaked in MF business. Overall margin guidance between 45 and 46% driven by operating leverage in non-MF business (7 cr quarterly investment in platform)
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In terms of growth potential for non-MF, focus in on KRA, Pay and AIF in the lead.
Rategain – Fast Growing SaaS Leader (21-05-2024)
what I really like about Rategain is its world leader and innovative quality…in my honest opinion most LISTED indian IT companies are just doing bread and butter stuff(nothing particularly exciting) and mainly they just service the west because they can do things cheaper than in the west…Also most of rhese are very vulnerable with the advent of AI
But with Rategain there is not a lot of competion and they are very innovative
Who knows whether it is cheap or expensive though but its a company that India inc should be wholly proud of.
Dodla Dairy – South India Focused Dairy Player (21-05-2024)
Dodla Dairy ( very very bullish commentary ) -
Q4 and FY 24 concall highlights -
Q4 financial outcomes -
Sales - 787 vs 724 cr, up 9 pc
EBITDA - 75 vs 33 cr, up 123 pc ( margins @ 9.6 vs 4.7 pc )
PAT - 47 vs 22 cr ( up 108 pc )
Share of sales from VAP @ 28 vs 27 pc YoY. Sale of Value Added products increased by 19 pc YoY ( @ 221 cr for Q4 out of which curd sales were 182 cr )
Q4 saw an adverse impact of write down of inventories to net realisable value. This had an impact of (-) 24 cr on the gross profit
Cash and Cash Equivalents stood @ 286 cr as on 31 Mar 24. Gross Debt stood at 44 cr
Total capacity @ 24 Lakh Liters per day
97 pc of milk procured directly from farmers
No of standalone Dodla dairy parlours now @ 604 vs 580 in Mar 23
Company commissioned 1 lakh lit per day dairy plant in Kenya in Q4 FY 24
Expanded capacities @ Orgafeed ( cattle feed plant ) from 80 MTPD to 480 MTPD in Q2 FY 24
Management is confident that the write down / provisions made in Q4 will hold the company in good state in the coming Qtrs ( as it is likely to be reversed in FY 25 )
EBITDA margins for FY 25 should be 9 pc and above ( a key positive - imho )
Expecting milk procurement prices to stabilise near current levels
Expect new Kenyan capacity utilisation to be around 35 pc plus for FY 25
Avg milk procurement and realisation prices for Q4 at Rs 37 and Rs 57 respectively. Last FY, these were Rs 37 and Rs 54 respectively
Guiding for a 10-12 pc revenue growth in FY 25 mainly led by - value added products + sales from cattle feed plant + sale from the new Kenya plant
YoY Growth in Ice-Creams in FY 24 was 33 pc !!! ( although on a small base ). Aim to maintain these growth rates in FY 25 also
Animal feed revenues for FY 24 was around 83 cr. Targeting a 200 cr revenue from animal feed in FY 25 !!!
Disc: holding, added recently, not SEBI registered, biased
Ranvir’s Portfolio (21-05-2024)
Dodla Dairy ( very very bullish commentary ) -
Q4 and FY 24 concall highlights -
Q4 financial outcomes -
Sales - 787 vs 724 cr, up 9 pc
EBITDA - 75 vs 33 cr, up 123 pc ( margins @ 9.6 vs 4.7 pc )
PAT - 47 vs 22 cr ( up 108 pc )
Share of sales from VAP @ 28 vs 27 pc YoY. Sale of Value Added products increased by 19 pc YoY ( @ 221 cr for Q4 out of which curd sales were 182 cr )
Q4 saw an adverse impact of write down of inventories to net realisable value. This had an impact of (-) 24 cr on the gross profit
Cash and Cash Equivalents stood @ 286 cr as on 31 Mar 24. Gross Debt stood at 44 cr
Total capacity @ 24 Lakh Liters per day
97 pc of milk procured directly from farmers
No of standalone Dodla dairy parlours now @ 604 vs 580 in Mar 23
Company commissioned 1 lakh lit per day dairy plant in Kenya in Q4 FY 24
Expanded capacities @ Orgafeed ( cattle feed plant ) from 80 MTPD to 480 MTPD in Q2 FY 24
Management is confident that the write down / provisions made in Q4 will hold the company in good state in the coming Qtrs ( as it is likely to be reversed in FY 25 )
EBITDA margins for FY 25 should be 9 pc and above ( a key positive - imho )
Expecting milk procurement prices to stabilise near current levels
Expect new Kenyan capacity utilisation to be around 35 pc plus for FY 25
Avg milk procurement and realisation prices for Q4 at Rs 37 and Rs 57 respectively. Last FY, these were Rs 37 and Rs 54 respectively
Guiding for a 10-12 pc revenue growth in FY 25 mainly led by - value added products + sales from cattle feed plant + sale from the new Kenya plant
YoY Growth in Ice-Creams in FY 24 was 33 pc !!! ( although on a small base ). Aim to maintain these growth rates in FY 25 also
Animal feed revenues for FY 24 was around 83 cr. Targeting a 200 cr revenue from animal feed in FY 25 !!!
Disc: holding, added recently, not SEBI registered, biased