Let us know how we can test, I am Senior Test Engineer with Test Automation backgroung, also doing AI ML course
This would be an intresting for me test this model.
Let us know how we can test, I am Senior Test Engineer with Test Automation backgroung, also doing AI ML course
This would be an intresting for me test this model.
Thanks @sammy11 sir for the guidance
update on Fine Organics by Motilal Oswal TP -3460
All plants are currently running at optimal capacity, except Patalganga-II,
where there is still some headroom for capacity ramp up. However, the
management has ruled out debottlenecking existing capacities due to safety
concerns. FINEORG is currently awaiting physical land allotment (~30 acres) in
SEZ and expects to complete the whole process before Mar’24. Although the
board has approved the company’s capex plans, the official announcement will
only be made after the land is allotted.
**In a utopian world, it would take at least six months for environment clearance **
**(EC) and another 18 months (minimum) to set up the capacities. Although the **
**greenfield capacity is expected to take care of growth for the next 10 years, we **
do not expect the growth to start until 3QFY26. The plant is expected to cater
primarily to the export market. Currently, exports account for 49% of the total
revenue for FINEORG.
Management is of high quality with great track record of execution, volume growth is challenge here as all plants are already at optimum utilization, they had high share of exports and with global slowdown margin improvement chances are less. they are always trade at premium valuation. I will like to keep this under track and waiting for better valuation to enter.
Motilal_Oswal_sees_23%_DOWNSIDE_in_Fine_Organic_Industries_Slowdown.pdf (658.1 KB)
Usha Martin Q3FY24 Concall Summary
Present on the call :Rajeev Jhawar (MD), Anirban Sanyal (CFO), Shreya Jhawar (Strategy and Growth Team)
Management Tone : Extremely confident and Bullish.
Management
Business
Risk
One of the best concalls I’ve heard this earnings season. So, tried to make it as comprehensive as possible.
It was there in one of the investor presentations(recent one). I don’t find it now!
As expected, Indri story seems to be playing out in actual numbers now – excellent quarterly result !!!
I will ignore the sugar segment as that is of not much importance to us. We are here for the distillery segment.
Dec’23 Qtr Sales have grown by 60% YoY from 97cr to 155cr and by 48% QoQ from 105cr to 155cr.
EBIT has grown by 100% YoY from 19cr to 38cr and by 107% QoQ from 18cr to 38cr
EBITDA has grown by 100% from 20cr to 40cr YoY and 100% QoQ from 20cr to 40cr. (Depreciation of 2cr for distillery segment is assumed on a pro-rata basis from the total depreciation of 3.69cr)
EBITDA margin grown from 21% in Q3’FY23 and 19% in Q2’FY24 to 26% in the Dec qtr
More interestingly, sales increased by 50cr from Q2 to Q3, and EBITDA by 20cr, implying an incremental EBITDA margin of 40%. I guess it would be safe to assume most of it has been contributed by Indri. Thus, an EBITDA margin of 25% as was assumed in the post below seems to be quite conservative.
So, based on Q3 annualized number we get an EBITDA of 160cr per annum. And next year EBITDA should easily cross 200cr even with a 25% sales growth.
Now, Radico trades at almost 50x TTM EBITDA of 462cr. Piccadily with its superior growth and EBITDA margins comapared to Radico should also trade at that level implying a MCap of 50x 200cr = 10,000cr by next year compared to 2800cr MCap currently.
(PS: BTW Indri continues to go out-of-stock regularly in North India – It wasnt available at Delhi Intl. Airport about 10 days ago. Sales staff say stock sells out faster than they can replenish – one can verify this anecdotal evidence themselves)
Business finally seems to be coming back on track (8% sales growth, 48% EPS growth). Reduction in R&D, lesser capex and new product launches has finally lent support to their margins. Concall notes below.
FY24Q3
Disclosure: Invested (position size here, no transactions in last-30 days)
Concall Summary (Q3 of FY24)
Quarter Ended: December 31, 2023 (Q3 of FY24)
Period: 9 months ending on December 31, 23
CapEx Overview (Year Ended 31st December 23):
Net Block Increase:
Gross block Growth:
Debt and Financial Ratios (as of 31st December 23):
Receivable Cycles Improvement:
Order Book (as of 1st February 2024):
Equipment Hiring Services (Segment A):
Steel Logistics (Warehousing and Transportation) (Segment B)
EPC Business (Segment C):
Capacity Expansion Projects in the Steel and Cement Sector:
Overall Business Growth and Future Plans:
Interested and Tracking the Company
Regards,
Fawaaz.
Can anybody post the current ongoing projects of the company ,if having access to the same.
Thanks in advance.
The media folks don’t think or analyse before ‘creating’ news from regulatory filings.
HDFC Bank now is the promoter of HDFC AMC and HDFC Life.
Whenever an institutional investor such as life insurance companies and mutual funds want to increase holding in a bank, they have to prematurely apply to the RBI for approval.
This is exactly that – when HDFC Life or AMC want to acquire more stake in Yes Bank or IndusInd Bank – essentially as the owner of these institutional investors HDFC Bank (parent) must apply for RBI permission.
Remember when there was hurrah around LIC approval to own upto 10% of HDFC Bank. LIC buying the dip, bla bla bla. LIC doubling stake in HDFC Bank…
Focus on what matters folks – lots of noise around everywhere.
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