@Pragnesh Bhai: What keeps you interested in Paushak ltd since I think that it is neither undervalued nor a 100 to 1 kind of bet due to very-very limited opportunity size?
Posts tagged Value Pickr
Valuepickr goes Europe (22-10-2023)
Hi,
I am new to forum and based in UK. Pls can you add me to group as well. Also, what best strategy for non-india based investor. Is it based to invest via local app e.g IBKR or Trading 212 or via demat account in indian bank. Just thinking in terms of taxes and difference in forex when we sell our investment and convert it in local currencies.
GHCL – Soda ash & home-textiles player (22-10-2023)
I also need help and some data regarding the same
Globus Spirits (22-10-2023)
I brought Globus Spirits at Rs 840, is it still good to hold for long term(5 years).I felt company is fundamentally strong. Please suggest.
KPI Green- Turning Sunshine Into Cashflows (22-10-2023)
I like that promoter increasing his stake in listed KPI Green , even buy selling Kpark. He will not cheat in case of KPI Green where retailers are stake holders. If he had opted for cash against selling Kpark pvt limited to listed company , we would have doubted his integrity.
Paushak Ltd. – Alembic’s agrochemical business (22-10-2023)
Paushak ltd
( update from credit rating and annual report)
PAUSHAK
1…Parental support
=Parental support from Nirayu Limited (Nirayu, rated ‘CRISIL AA+/Stable’), the holding company of the Alembic group. Nirayu overall holds a 53% stake in the company. This means a clearer intent by the parent to extend the requisite financial support in terms of letter of comfort, should it be required for future capital expenditure (capex) plans.
2…Capex
=Completion of 120cr capex in 2020-2022 for 3 times phosgene capacity.
=The company plans to undertake moderate capex plans of Rs 50-60 crore in the current fiscal, towards debottlenecking and corporate affairs.
3…FUTURE GROWTH
A…New plant
=The new plants have catalysed our growth while demonstrating our technical capabilities, commitment and our vision to become a global
technology leader in Phosgene and its derivatives while creating niche for us
B…Backward integration
=Backward integration of operations has led to robust operating margins (35% in fiscal 2023 and 36% in fiscal 2022). Return on capital employed was healthy at 19% in fiscal 2023.
=While most players in the specialty chemicals industry depend heavily on imports for their raw material supplies, the company has a low import bill.
C…New products
=We are working on new technology
platforms while launching new products in near future while investing more to create downstream capacities. We remain
committed to be “Partner of Choice” for our customers while expanding R&D capabilities to support such launches with addition of more technical resources.
D…Improving demand
=With the resurgence of Chinese manufacturers, pricing pressure and lower demand due to destocking being undertaken by customers, the first quarter of fiscal 2024 saw moderation in Paushak’s operating performance to Rs 49 crore of revenue and multi-quarter low margins of 25.4%
= However, with demand and pricing scenarios improving, operating performance is expected to recover, starting from the latter half of the fiscal, which would continue to be a key monitorable.
4…MOAT
A…Entry barrier
=The company is one of the few players licenced to manufacture phosgene gas, which is highly restricted by the government.
B…Backward integration
=Relatively stable margin despite headwinds of chemical industry.It is due to backward integration
=Paushak’s profitability, similar to other players in the specialty chemicals industry, remains susceptible to movement in the prices of key raw materials and end-user demand especially in the agrochemical and pharmaceutical industries.
=A dip in demand owing to destocking up the value chain, combined with some pricing corrections in the last 5-6 months owing to macroeconomic headwinds in 2023-2024 have led to margins moderating to 25% in the first quarter of fiscal 2024.
=However, a strong degree of backward integration and low fixed cost structure lends support.
Disc…invested
Shilchar Technologies – Power & Distribution Transformers – Sunrise Sector? (22-10-2023)
At the AGM,the management had guided for 360 cr revenues in Fy24 & had clearly said that they don’t have capacity to generate more than 400 cr annual revenue(500 cr post expansion) Interestingly,in Q2 itself they are at ~425 cr annual run rate. Moreover,they had said that Q1 margins were one-off & won’t sustain since export share was too high. Yet they have done 28% EBITDA in Q2.
If people scroll up they will see that even for FY23 the management had guided for 16-17% margins & 225-50 cr kind of topline. So it seems clear to me that the promoter group likes to underpromise. It could also be that since the company has never made such margins they are being cautious in guiding the investor community since the improvement in EBITDA & GMs has been stratospheric in recent years. Company’s GMs have expanded all the way from 22-23% to ~40% in FY24. I had asked the management about this at the AGM however this question went unanswered. In any case,the execution of this company stands out vs peers. They are able to deliver high revenue growth alongwith strong profitability quarter after quarter. Stock has done very well but multiples have again fallen to 23x ttm or 17x(Q2 annualized) On the macro front things continue to align both domestically & internationally as @Dev_S has shared in some articles earlier.
Only issue with the company is that they aren’t willing to talk to investors outside the AGM which delays price discovery. No interviews to blogs or biz channels either. At the AGM we were assured of a concall soon. Hoping that now with marketcap at 1600 cr company can open up to the community.
Disc.: Invested. Views are biased.
KPI Green- Turning Sunshine Into Cashflows (22-10-2023)
Latest Investor presentation sent to exchange by secretary Ravi Upadhyay . You are mentioning CMD sents disclosures to exchanges .
Century Ply – Khushiyon Ka Rangmanch (22-10-2023)
Oh cool, thank you so much for this information.
But still why too much difference? Is the company acquiring and disposing of assets in a short span of time?
Century Ply – Khushiyon Ka Rangmanch (22-10-2023)
The gross block is reported before depreciation. We subtract accumulated depreciation from it to reach the net block figure.