Of course it is attention grabbing, no doubt whatsoever. And, marketing is their job too.
Having said that, if these are lighter & more cost effective options to batteries, and in the event that they become a first choice above batteries, and maybe an inbuilt feature of drones in the future, then there is some merit in the context.
Sunteck Q2FY25 concall highlights:
Disclosure: Invested and added recently
So last con call, we had guided for a minimum of 40% growth for this financial year in terms of revenue and with EBITDA margins of 22%, 23%. But it seems we are not close to that. So would you like to revise our guidance for this year? Or still we can achieve this 40% growth?
Yes, quarter 2 including quarter 1, which was because of the extended summer and labour problem in quarter 2 because of the extended monsoons – August and September, the demand from the real estate and the home furnishing side went really down and it was quite a muted demand in both the quarters have – had led to a lesser percentage of growth in revenues than what we expected. Though compared to the industry, we moved a little better, thanks to the new addition of the brand and thanks to the acrylic range of products, where we are still dominating the market with very less competition, which helped us to achieve the numbers, which are much with a quite or much better than the industry results. But going forward, the second half, in any case, with our ground results are expected to be better in terms of the demand. The projects should open up and we are keeping our finger crossed that if the later chunk of the second half performed well. And with the better distribution network and acrylic products picking up, which are high value. We should be able, or we should be very close to achieve the number that we quoted in our last – in revenue calls and in last investor call. And so we are hoping, and we are quite positive that we should reach to those numbers.
And the EBITDA margins of 22%, 23% for the whole year?
So currently, we have taken a price hike, and which has been done across the sector. Along with that, we’ll have also a better condition related to the raw material. But considering our Page 7 of 17 Sirca Paints India Limited November18, 2024 acquisition of Welcome where the revenue, we have increased revenues at a gross margins, which are a little less than our gross margins of Sirca products. We are expecting that the EBITDA should stand – the whole year EBITDA should stand around or between 20% to 21%.
This is commendable technological achievement.
However, in my opinion, Linking drone market with type-3 cylinder lack any real correlation, apart from being attention-grabbing.
There’s no practical way to link Type-3 cylinders directly to the UAV and drone market growth. Even identifying who is testing Type-3 cylinders for UAVs—let alone their actual users—seems speculative at best.
It’s akin to linking washing machines with cotton production: a stretch too far!
TT ran a fine race recently, and I still like TT. Type-3 cylinders might find uses where smaller hydrogen cylinders are needed, beyond just UAVs, as the market evolves.
D-Holding.
Standalone Figures in Rs. Crores / View Consolidated
| Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | |
|---|---|---|---|---|
| Debtor Days | 84 | 70 | 57 | 62 |
| Inventory Days | 33 | 63 | 114 | 139 |
| Days Payable | 129 | 120 | 102 | 59 |
| Cash Conversion Cycle | -11 | 14 | 69 | 142 |
| Working Capital Days | 12 | 29 | 72 | 169 |
| ROCE % | 42% | 67% | 42% |
Cash Conversion Cycle and Working Capital Days are very high, any thoughts on same?
Also, stock has run up a lot and PE seems to be frothy.
Correct and whatever overhang is there, should be fine by April 2025 . All the lock ins are going to expire in March 2025.
If the company is going to add inventory, show strong revpar growth, improve their margin, the share price shall follow the growth. It’s just matter of time when this happens, just requires some patience here.
Noteworthy to mention, the demand is going to outpace the supply for next many years (at least for the next 4 years). The tailwinds and the hospitality cycle is here to stay for a significant number of years. Being capital incentive business and a significant lead time in construction to revenue generation is itself a strong moat. You can really count the number of hotel Operators (asset owners) on your fingertips and here Samhi is the 2nd largest and the cheapest (mcap side).
If you know several giant international hotel brands are aggressively buying lands in India because the same reason. They will only start adding to the inventory post 2030.
Disc: invested
The pace at which ola scaled leads to such service issues. Even management admitted that the service capabilities didn’t grow in line with production and distribution. The problem is the industry they are playing in. 1st it’s capital intensive. I agree that this forms as entry barrier. But at the same time the capital requirements might lead to continuos rising of capital which inturn leads to shareholders value dilution. As we know they will only survive if they retain market share but this inturn leads to continuos capital requirements. They attaining decent profitability in such a competitive industry will not be a normal feat. And coming to r&d looking at attrition and easy availability of tech everyone wants to play ev theme. Will they be the lone survivor and dominant player like indigo or airtel(I don’t know). Let’s be frank, this is purely founder play according to me. Agree it or not Bhavish is one of the few passionate enterpreneurs that India has ever produced. Not comparing him with Elon but the guy is passionate!! But businesses don’t work on just passion. I want this company to succeed. But the deep pocket and reputed competition(existing players and new players like aether), bad reputation, easy entry in ev segments all may hamper his vision. In automobile sector valuation of the company plays crucial role especially for rising capital in future. If market perception is not good, value erosion will be that much faster.
Disc: have small tracking portion in ola. But completely respect the man behind ola.( Happy to take counter argument. Here to learn:))
It has been roughly a year since taking this bet. It has played out way better than we initially expected. It was so complex a topic that we did not expect the market to understand and reward the way it has done. Our market is more mature than we give it credit for. Now, taking stock of what has happened in the past year – a few important things have changed that we should account for.
It could not have gone down any better than this in this past year. While our initial valuation of the company was 25k Cr when it was trading at 4k Cr levels, it may not be outlandish to consider further upside based on all the things that have transpired in the past year. Seen together, the seemingly small changes over the year completely change the overall dynamic of the business.
Disc: Invested
” We are pleased to announce that the Company has received an APPROVAL from the Nodal Agency, Petroleum and Explosives Safety Organization (PESO) for the manufacture and supply of HIGH- PRESSURE TYPE-3 FULLY WRAPPED FIBRE REINFORCED COMPOSITE CYLINDERS (6.8 Litres). These HIGH-PRESSURE CYLINDERS WILL FIND USAGE FOR STORING HYDROGEN TO POWER FUEL CELL DRIVEN UNMANNED AERIAL VEHICLES AND DRONE APPLICATIONS.
ThisisasignificantmilestonemakingTimeTechnoplastLtd.—theFIRSTCOMPANYININDIAtoreceive such an Approval for Manufacture of Type-3 Fully Wrapped Fibre Reinforced Composite Cylinders for Hydrogen Powered Fuel Cell, Unmanned Aerial Vehicles (UAV’S) & Drones. The Company is involved in developing additional sizes for the same application.
This confirms our unwavering commitment to “MAKE IN INDIA’ and advancing ‘sustainable green energy solutions, cementing our leadership in the growing Hydrogen Energy Sector. This follows our earlier announcement dated 20″ June, 2024, when we were accorded APPROVAL OF HIGH PRESSURE TYPE-4 (NON-METALLIC) COMPOSITE CYLINDERS FOR CASCADE STORAGE AND TRANSPORTATION FOR HYDROGEN.
TYPE-3_ FULLY WRAPPED FIBRE REINFORCED COMPOSITE CYLINDERS FOR HYDROGEN POWERED UAV’S / DRONES:
The current technologies to power UAV’s & Drones are through conventional batteries which are rather heavy and only offer limited time and distance travel. Type-3 Composite Cylinders offers higher power to weight ratio being light weight and carries energy dense hydrogen. The reduced weight allows higher load carrying capacity, longer flying times and dispensing the need to charge very frequently. This has been made possible by using the cutting-edge materials with latest technology, making them highly efficient and eco friendly alternative to traditional powering sources.
Key Benefits of Hydrogen-Powered Drones e Higher power to weight ratio
e Extended Range & Flying Time.
e Lightweight & High Payload Capacity. e Eco-Friendly.
e Faster Refuelling or Recharge.
e Lower Operating Costs.
Application
Defence
Surveillance & Monitoring e =Agricultural application
Aerial photography
Search & Rescue
Cargo delivery
As UAV’s and Drones continue to play a pivotal role for the above applications, the demand for high performance, long range, environmentally friendly alternatives to conventional power sources have never been higher. The UAV and Drone market currently valued at approximately USD 30 Billion. With projected CAGR growth rate of 11% to reach USD 60 Billion by 2032 according to the publicly available market data.
The approval from PESO bolsters our position as a local manufacturer of high technology solutions for adoption of sustainable energy solutions within aerospace sector. We are excited to be at the forefront of this transformative change in India’s Drone Industry.
We extend our sincere gratitude to al our stakeholders for their continued support in helping us achieve this significant milestone. Together, we are driving progress, advancing sustainable technologies, and contributing to a greener future.
Source: https://www.bseindia.com/xml-data/corpfiling/AttachLive/afecce3e-71c1-49c3-8e59-c219a11f6bb5.pdf
ATMOCTOBER20246CDDFC7E6BE7495B947FA39FD754E0C9.XLSX (29.7 KB)
This is Oct 2024 credit/debit card data for all banks. IDFC First seems to be significant player in Credit cards now.