The Biden administration has pursued a big shift in trade policy, but it’s not clear whether that will be enough to win votes.
Posts tagged All News
Yet another ARC to shut shop, this time an Aditya Birla joint venture (30-10-2024)
Aditya Birla Asset Reconstruction Company is winding down its operations in India, joining other fund-backed ARCs exiting due to challenges in the sector. The decline in non-performing loans and preference for government-backed NARCL’s terms have contributed to this trend, highlighting shifting investor interests.
Bhansali Engineering Polymers – An Import Substitution Story! (30-10-2024)
They had first mentioned the proposed capex in 2017-2018. Back then it was supposed to be a Greenfield expansion. 6 years later that has not only turned into a Brownfield capex but it isn’t even complete. The company does not conduct conference calls or give adequate quarterly updates. It’s a father-son run company with the Bhansali family closely holding ~55% of equity. Dividends too are a fraction of retained earnings. Even during the AGM, which is the only opportunity to ask questions they only take questions from relatives who thank them profusely for Re. 1/- dividend. This company has previously been taken to court for abuse of minority shareholders. Governance score 0/5.
Now let’s come to the actual business. This is a single product cyclical commodity business. They import Acrylonitrile and HRG which they convert to SAN and then ABS. Since most of their raw materials are imported you would think management would hedge their forex risks, right? Wrong, management to this day is happy to take the hit of forex losses rather than hedging. Majority of their business is still commodity ABS even though they have been trying (unsuccessfully) to secure speciality ABS contracts for 8 years. So the company basically has no negotiating leverage with its customers or suppliers. The reason the company says capex is “need of the hour” is because it truly is for BEPL. Operating Leverage is the only way this company can grow and those plans have been delayed for years with no end in sight. During that time competitors have rebranded and restructured their operations and taken market share away from them. The only thing the company can control is its own cost structure which they do very strictly, often to the detriment of the business. Refusal to take on any debt to fund capex is a glaring example. Business score 1/5.
In my opinion this company does not warrant long term investment. I use it to track the wider commodity chemicals cycle.
Disc: Was invested in the 2017-18 & 2020-21 commodity chemicals cycles. Please don’t construe my opinion as investment advice.
Top banks keen to share project loan for Adani Enterprises (30-10-2024)
Bank of Baroda (BoB), Punjab National Bank (PNB), Union Bank of India, Central Bank of India, ICICI Bank and Axis Bank have either committed or are in the process of committing funds to the $4-billion polyvinyl chloride (PVC) project at Mundra in Gujarat, people familiar with the developments said.
India’s consumption story has now gone in reverse swing, says Congress (30-10-2024)
Congress claims stagnant wages, high inflation, and economic inequality over the past decade have reversed India’s consumption growth. A CEO noted that the middle class is shrinking. The party warns without consumption growth, the private sector won’t invest in new production, creating a significant challenge for the Indian economy.
Volkswagen Profit Shrinks as Unions Threaten Strike (30-10-2024)
Germany’s biggest automaker said its profit dropped 42 percent in the third quarter, as union leaders warned that workers were ready to walk out over a wage dispute.
Ruling NC to shun Kashmir admin’s Union Territory Day function (30-10-2024)
The Kashmir administration will celebrate Union Territory Day on October 31, with the event scheduled at Sher-e-Kashmir International Convention Centre. Lieutenant Governor Manoj Sinha will be the chief guest. Meanwhile, the academic session for classes till 9th standard will be shifted back to November-December for Kashmir and winter zones of Jammu province.
Ruling SKM wins both Assembly seats uncontested in Sikkim bypolls (30-10-2024)
In a significant political development, Sikkim Democratic Front candidates withdrew from Soreng-Chakung and Namchi-Singhithang assembly constituencies, allowing Sikkim Krantikari Morcha (SKM) nominees to win unopposed. CAP’s disqualified candidates spurred allegations against SKM for undemocratic practices and manipulation of the electoral process.