Even I feel over supply is coming especially in ECH because Grasim and DCM both putting up expansion for this product.
Posts tagged Value Pickr
Roto Pumps – Fluid Engineering Company (27-12-2023)
Brief about the company: Roto Pumps was founded in 1968 and is a manufacturer of industrial pumps. Typically, a pump transforms electrical energy into hydraulic energy to move fluids (liquids or gases) or occasionally slurries by mechanical action.
Types of Pumps: Broadly there are 2 types of pumps i.e. pumps which are 100% based on centrifugal technology and other one is majorly based on positive displacement pumps.
Centrifugal Technology pumps (Traditional Pumps): Centrifugal pump is a very old technology used to move simple fluids (i.e. Water or thin liquids) by means of the transfer of rotational energy from one or more driven rotors, called impellers. The impeller of a centrifugal pump must rotate continuously and quickly in order for it to function effectively.
Limitations: Centrifugal pumps lose efficiency when dealing with more complicated fluids (i.e. thick fluids such as Oil, Chemicals, Paints Pharma etc.) because of increased resistance and the requirement for higher pressure to maintain a certain flow rate.
Positive displacement pumps: High viscosity oils or slurries like mud can contribute to overheating and excessive wear, which can result in damage and early failures. Positive displacement pumps are less likely to experience these issues and frequently run at much slower speeds. Moreover, a centrifugal pump needs to be primed with the pumped fluid at first since, in contrast to positive displacement pumps, it cannot create suction while it is dry. As a result, applications with intermittent supplies are not suitable for centrifugal pumps.
Advantage of positive displacement: More efficient in handling complex fluids with high viscosity. More efficient with increased pressure and does not require any priming (i.e. removing air from the suction line).
The centrifugal pumps market and highly competitive due to simple technology vs positive displacement pumps. The spare parts are critical in positive displacement pumps and have high margins.
Roto Pumps is the only listed player in India for handling complex fluids. The company manufactures Progressive Cavity pumps, twin crew pumps etc. They are now venturing into diaphragm and gear pumps and also focusing on solar pumps. Roto Pumps has wholly owned subsidiaries in America, Germany, Singapore, UAE and step-down subsidiaries in North America, Malaysia and Africa.
The company has an excellent track record of effective capital allocation with negligible debt and no unrelated diversifications. Over the past five years, the company has had gross margins of over 50% and operating margins of over 20%.
Revenue Break up: The company used to generate 2/3rd sales from export since complex fluid pumps market is still small in India. Almost 50% revenue is generated for the sales of spare parts. Since complex pumps required higher research and development hence the employee cost is almost 25% as per AFS of 2022-23.
Capex:
- The company has announced capex and new factory for manufacturing solar pumps in greater Noida under the name of Roto Energy Systems Limited is under construction and will be operation by the end of current fiscal.
- The company has already developed downhole pumps and mud motors pumps recently.
- Further the Company has initiated the installation of an additional solar power system of 550 KWp at Greater Noida Unit (Cost Rs 2.13cr). With this installation, the company is able to meet around 20% of its electricity requirement from solar power.
Disclaimer: Above study is for educational purpose only and not a buy sell recommendation by any means. Invested from lower levels and added more recently.
Eco Recycling Limited (Ecoreco (27-12-2023)
They had a large amount of unutilized funds invested in stocks, the same will be utilised.
IIFL Finance (erstwhile IIFL Holdings) ~ Retail focused diversified NBFC (27-12-2023)
Interesting. I didn’t go through the document (might have slipped from my mind to read it). Let me delete the comment then. I will comment again if needed, after I access this document
Eco Recycling Limited (Ecoreco (27-12-2023)
Pls read their last qtr transcript where this Q has been asked. They have already invested 30Cr so far, all from internal accrual.
Remaining 15Cr they plan on funding through internal accruals as well.
Piccadily Agro Industries Ltd (27-12-2023)
Piccadily Agro’s biz which until now is dominated by the cheap cuntry liquor has an EBITDA margin of 16-20%.
For single Malt, it is perfectly reasonable to assume EBITDA Margin to be greater than 25%.
Even if Indri ex-factory selling price was 1600, its EBITDA margin per bottle would be greater than 25% ,i.e, greater than 400 per bottle.
For 20,000 per day, it means = ~300cr EBITDA from Indri alone.
Add country liquor (which is also growing) to that, Piccadily Agro’s distillery unit would be throwing out ~400cr of EBITDA in a couple of years.
Radico which has EBITDA of 400cr, trades at 22,000cr Mcap.
I feel Piccadily Agro is a bargain buy at this price.
(PS: Indri continues to go out of stock despite frequent replenishment of stock in many small towns in North India – shopkeepers says huge demand and popularity – one can check themselves)
Eco Recycling Limited (Ecoreco (27-12-2023)
I have one question…for the 40-45 cr capex they are doing, from where did they get the funds?
IIFL Finance (erstwhile IIFL Holdings) ~ Retail focused diversified NBFC (27-12-2023)
IIFL has notified the exchanges on AIF’s rule’s impact on IIFL.
@Sambhav_Modi has already shared this document above.
Quoting the same here,
“Further all other AIF Investments of the Company aggregating to Rs. 909.81 crs as on current date does not include any downstream investments to which it has a loan or investments exposure currently or in the preceding twelve months. Thus, such Investments in the fund shall have no impact with regard to requirement of additional provisioning or capital adequacy of the Company. These Investments are carried at fair value basis the NAV published periodically by the AIF”
Quoted only the 2nd point from “materiality” perspective.
Kindly go through the document and assess yourself.
Disclosures: Invested & Biased
IIFL Finance (erstwhile IIFL Holdings) ~ Retail focused diversified NBFC (27-12-2023)
Did you read this exchange filing by IIFL regarding the same? It has been clearly stated by IIFL that the impact due to this is minimal.
In fact the filing has been shared on this thread recently. Read that and if you still feel there is a considerable impact on IIFL, please elaborate, otherwise please deleted that post. It does not add any value and it is misleading.