(post deleted by author)

I was reading one of recent concall: their business model consist of 73% exports which accounts for higher margin and for exports generally the working capital cycle is high(since the overall manufacturing process is higher).

“I will also add what JJ said. Look, Devyansh to tell you very clearly when export
is growing, when our business is growing, Obviously working capital will
grow. So there is nothing to shy away from that WC will grow because, you
know, l our work here because if we are growing every year, 20 to 25 % and
30% obviously a major growth is coming from exports market. Obviously
export receivables, nothing is going to change for me. Because if shipping time
is 70 days, shipping time is 70 days. You will can’t really do much. Eventually
customer has to pay its own receivable time”

The stock price has increased by more than 13x from the IPO price. I think this now is trading at a very high P/E which probably would go down in the future. I see their disclosures are not very well articulated either (Not available on screener.in, had to check their website). Is there anyone who is tracking this company closely and has any information to share?

214fd8e9-bc9b-43cd-9c7c-ab0bca304484.pdf (4.1 MB)

Number is not speak but some of the points highlighted on presentation:
Page 3: Sugar business
“Our focus is to restore normalcy in our sugar operations and we are vigorously working in this direction –uprooting infected crop, substituting vulnerable varieties with more robust varieties, enhancing yields and step up surveillance to get early warning of any challenges to our crop. We have undertaken curative control
measures to contain and control the spread of red-rot disease, that affected our operations in previous season. We continue to focus on premium products such as refined sugar and pharmaceutical-grade sugar (now contributing to 70% of overall sugar production) to further improve the profitability profile of the Company.”

Power and Water business :
In our Engineering businesses, the Power Transmission business continues its strong performance by achieving new milestones including winning breakthrough international orders in line with its export focused growth strategy. The Water business continues to be muted in terms of market activity and finalization of orders. We expect this to improve in the coming quarters and the business is well-placed in terms of bids and credentials.”

Thank you – any names that are on top of your mind that I should look at? For textiles I am studying Nitin Spinners, Indocount, Welspun. For Water – Vabag, EMS, Jash. For O&G – HOEL, Selan, Deep Ind. Agrochem – PI(?)