Well, results are bad and their half hearted guidance of 15% volume growth in FY25 is not very convincing either. IF real estate is doing well, wouldn’t these companies do well? Is it a matter of losing market share because of over capacity or just weak demand? Any thoughts?
Posts tagged Value Pickr
How to analyse Equity Mutual Funds? (15-05-2024)
@Girish_Kolari by churn rate do you mean the portfolio turnover ratio? Also, can you help me with the resources you use to gather these data points?
Venus Pipes- Pipes & Tubes (15-05-2024)
Hi,
I have recently started looking at Venus and would be thankful if someone could explain the margin outlook? Looks like the company has done a great job at generating higher EBITDA/kg, any thoughts on this shapes up in the future? Also thoughts on the companys growth profile would also be appreciated?
thanks
Sampre Nutritions (15-05-2024)
Current Mcap: 40cr
CMP: 59.2
Sampre Nutritions Limited is a Public Limited Company domiciled in the State of Telangana,
Hyderabad incorporated under the Provisions of the Companies Act, 1956. The Company is
engaged in the activity of manufacturing of confectionery products.
The principal place of business is situated at 133, TSIIC Industrial Estate, Medchal-501401,
Medchal Malkajgiri Dist, Telangana.
Total no of employees:128
The company is engaged in manufacturing complete range of confectionery, éclairs, candies, toffees, powder and centre filled products. The company is instrumental to deliver the growing volumes for most of the MNC’s and beside producing its own brand. The group one stop shop for complete range of confectionary productions.
Large companies such as Mondelez, Nestle, and Mars dominate the chocolate category, while regional firms account for over 35% of the confectionery market.
The Company had signed an agreement with The African Peace and Security Union to set-up of manufacturing plant for the complete range of Fortified Vitaminized Candies for African Countries and all related requirements in November 2022
As the current production capacities are being fully utilized and in view of request from M/s. Mondeleze India Foods Private Limited, Principal client of the company for additional capacities, agreement with Reliance Retail Limited for supply of complete range of confectionary and potential demand from export market, there is urgency to increase production capacities to serve the order of customers.
Considering 25 years of valuable association with Mondelez India, they have further approached the company for manufacture of caramel based lollypop in eclairs category. In this regard company has placed order for import of new line of machinery for manufacture of lollypops with capex of 2.5 Crores and this is expected to add another 350 tonnes per annum capacity to the existing capacity.
Company has also raised funds by way of issue of equity and Convertible Warrants
with the object of meeting the long-term funding requirements of the Company for
capital expenditure, working capital, general corporate purposes, etc. in order to
support the future growth plan of the Company. Also, Company has obtained
approval of members for raising of funds and issuance of securities through QIP
and/or FCCB and/or any other permissible modes not exceeding USD 100 Million
only.
Management of the company:
Red Flags:
1:) The company has significant related party transactions.
-
Significant increase in management remuneration.
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Wide fluctuations in operating margins of the company
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Decline in promoter Shareholding
Promoter shareholding has declined in the last few years due to dilution of equity by issue of warrants and equity to raise funds for capex of new plant that has commissioned. -
Pending litigations:
Disc: Hold a tracking position
Pricol limited – OEM automotive (15-05-2024)
Excellent results by the company. 12% topline growth and 39% profit growth YoY.
https://www.bseindia.com/xml-data/corpfiling/AttachLive/b22951d7-a2fa-4c3e-a143-b365292dc4ab.pdf
How to analyse Equity Mutual Funds? (15-05-2024)
If I have to consider active MF I track portfolio for last 5 years and see how they mange the fund and try to read fund manger commentary on different times. Key things I look in portfolio review
- Churn rate.
- What is the holding period.
- What are its key large holding.
- Wat are its failures.
Neuland Laboratories Limited – Transformation towards niche APIs? (15-05-2024)
Did anyone attend the conference call? Would be great if you could share key points/takeaways
AA – Abhishek’s Attic (place to store stuff to clear my head)! (15-05-2024)
EV Value Chain
Fig 1: The entire value chain of the EV industry along with their EBITDA margins
1. Cell manufacturing, Battery Management System and battery packaging
The first segment in the value chain is Cell manufacturing, Battery Management Systems and battery packaging. This segment has an EBITDA margin of 15-20%. A battery cell is the basic unit of a battery. A battery pack is an assembly of multiple battery cells. These battery packs are the energy storage system of an EV. BMS or battery management system is the brain of the battery which maintains the health and performance of a battery.
Examples of companies in this segment are LOHUM Cleantech, Battrixx in Cell Manufacturing and Cyient in BMS. The traditional battery giants Exide and Amara Raja have both announced their entry in this segment.
This segment also contains battery chemical producers like Gujarat Fluorochem, Ami Organics, Neogen Chemicals, Tata Chemicals etc.
2. Electrical systems, Mechatronics and Thermal Management
The second segment is Electrical systems, Mechatronics and Thermal Management of EV components. Here, some businesses specialize in manufacturing various parts that make up an electric vehicle and this includes everything from motors to inverters which contribute to the overall performance and efficiency of the EV. This segment has a 7-10% EBITDA margin. Some examples are Tata AutoComp, Sona Comstar, ElectraEV and Schaeffler.
3. Software and Telematics
The third segment is software and telematics which has an EBITDA margin of 15-20%. Just like your phone has sophisticated software even EVs are run by software. The electronic control units in EVs manage the battery, control the motor and user interface. This software is crucial for the efficient and safe operation of vehicles and this means as we move towards EVs and as more and more cars get connected to the internet, we will see a huge surge in in-car applications.
Tata Technologies, KPIT Tech, Cyient, ElectraEV etc are companies in this segment.
4. OEMs
The fourth segment is that of new age OEMs or original equipment manufacturers and they have an EBITDA of 8-10%. In this segment, you have companies like Tata Motors, Ather Energy, Ola, Atul Auto, Bajaj Auto, Kinetic Auto, Hero Motors etc which produce, design engineer and assemble EVs.
5. Charging Ecosystem
The fifth segment is for the charging ecosystem which has an EBITDA margin of 8- 10%. Tata Power and ABB are a major player in this segment.
6. Mobility-as-a-service
The sixth segment has companies in the mobility as a service segment with an EBITDA of 7 to 10%. It includes companies like Zip Electric, Bluesmart and ULU.