Is anyone tracking Maiden Forgings?

Bharat Bijlee (BBL) also holds 21,38,160 shares of Siemens India. The value is equivalent to 50% MCap of BBL.

yes, there is a concall today

@harsh.beria93 Hello Harsh, Even I could not find any reference to Pneumatic nails in their AR. Also, it is a high margin product and Geekay seems much ahead of Maiden forging in its production I am wondering why would company deny the product line in their AGM and does not capture in their AR. Any insights/inputs highly appreciated

Q2 FY 24 Short Notes:

Sales Growth and Potential:

Revenues have grown at 31% for the first half of the year.

Retail Sales grew 27% y-o-y with Same store sales growth of 23% (13% increase in number of transactions and 12% increase in average Ticket size per Transaction).

Channel and Enterprises segment has grown at 36% y-o-y with Real estate and infrastructure upcycle. Company believes this segment to grow in coming quarters and years.

Non steel Business grown by 30% y-o-y. Non steel building Materials industry is concentrated towards second half of the year. So, company expects good growth in this segment in the second half of the year.

Private Label Tiles Brand Fotia Ceramica introduced by the company.

Non steel revenue to be 25% from the current 10% in 4-5 years. Dedicated Team set up for achieving targets in the non-steel segment.

Q2 seasonally weak Quarter due to Monsoons and Floods in some areas.

Online currently does not contribute to the revenue and it is used as discovery Platform.

Concept of Store-in- Store started with Nippon Paints and may expand to other segments in future. Nippon Paints helps in Sales and marketing side.

Revenue contribution from APL Apollo products is 35-40% and volume contribution is around 40-45%. APL Apollo relatives has recently started SG Mart in the similar space but company does not feel it as competitor and APL Apollo is strategic partner for the company and that is the reason they have subscribed to the warrants.

Revenue Guidance of 25-30% for the entire year.

Company believes with the existing infrastructure they can double their turnover in next 4-5 years.

Margin Growth and Potential:

EBITDA Margins improved sequentially from Q1 by 13bps to 3.2% due to improvement in product mix within the steel category (Flat Steel and TMT grown by 60-70% while steel roofing grown by 35-40 %) and operating efficiencies.

Gross margins on Non steel Business is 10-12% and since this is the beginning expenses are high and EBITDA margin is 5-5.5%.

Company expects margins to improve with more contribution from Non steel products.

Working Capital Cycle maintained at 30 days in first half of the year.

Geography they operate and future plans:

Company is in the process of opening two new fulfilment centers, one in Maharashtra and the other one in Madhya Pradesh in the coming months. Given our established presence in the South our endeavor is to continue our cluster-based growth approach and strengthen our penetration in the Southern region by gradually expanding to other regions.

Key Monitorable to Track:

Non steel product composition in overall Sales as this is necessary for margin improvement.

Margin Improvement to check whether company is delivering on the promises.

Relationship with APL Apollo as majority of the revenues comes from selling their products.

Same Store Sales growth Rate as Retail has more margin than Channel and Enterprise Segment.

Disclosure: Invested and Biased.