Thanks for your quick summary on con call, i have missed the call today.
As per presentation avg realization of ethanol is 66/-, if we consider new price of ~71.86/- then its almost add 20 Cr revenue in Q4. if we assume that RM cost is stable in Q4 then we may see decent jump in profits of Q4.
Borosil released scientific division results yesterday and it continue to face headwinds as management mentioned in the last concall. Revenue grown 6% and EBITDA/PAT grown at around 15% yoy. Its been couple of months already since the spin off but the shares are still not listed in the exchanges. This will be a point of discussion in the coming concall.
| Q3 FY24 | Q3 FY23 | YOY | Q2 FY24 | QOQ | 9M FY24 | 9M FY23 | YOY | |
|---|---|---|---|---|---|---|---|---|
| Revenue | 88.42 | 83.32 | 6.12% | 84.35 | 4.83% | 252.48 | 235.03 | 7.42% |
| EBITDA | 14.75 | 12.9 | 14.34% | 13.85 | 6.50% | 35.91 | 35.41 | 1.41% |
| EBITDA % | 16.68% | 15.48% | 7.75% | 16.42% | 1.60% | 14.22% | 15.07% | -5.60% |
| PAT | 7.45 | 6.45 | 15.50% | 7.74 | -3.75% | 19.39 | 18.92 | 2.48% |
| PAT % | 8.43% | 7.74% | 8.84% | 9.18% | -8.18% | 7.68% | 8.05% | -4.60% |
Even asset reconstruction business is also scalable. currently alts and reconstruction both looks good, while agency books are in de-risking mode
They probably do make an economic profit but the way the insurance business works GAAP profits are away.
In layman terms – you acquire a customer at t0 for 100 and over T1 to t5 you’ll make 120 NPV from them. However you must charge the entire CAC today to the P&L. so it shows up as a loss today.
My concern is that these businesses are subscale and the market is large though fairly competitive.
Probably best to sell them as they’re on the verge of making money since these are fairly capex hungry and will be for a while.
I think that’s it. It is the capital markets business – effectively Investment Banking which is more cyclical, hence should have a lower multiple.
However there is some value to a joint offering if you can offer a promoter wealth management services for their personal wealth and capital market services for their business – so the flywheel is stronger.
And to add, I don’t think you can pencil any multiple expansion here but earnings growth will be durable and strong. In a couple of years they should probably institute a significant dividend as well (as a % of PAT)
You don’t need a lot of capex and operating leverage will be very good. This is effectively a 100%
Capital Allocation is one to look out for, you don’t want them going further down on the income/wealth range and you don’t want a lot of acquisitive growth.
I expect similar situation with the Alts business for Edelweiss – probably worth the whole market cap here.
Is there any fundamental update that led to the recent 12% share price fall in 1 day? I went through the concall but did not notice any major issue
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Three patients are fully recovered from cancer as per the below report using CAR-T therapy in India developed by ImmunoAct where Laurus Labs has 33.86% stake.
What is CAR-T Therapy That Made A 6-Year-Old Cancer Free? | 8x Cheaper Than Other Cancer Cures