Indeed! It could be very beneficial.
Posts tagged Value Pickr
Sharda Cropchem – Can it get into indian market in a bigger way? (25-07-2022)
Topline grew by 32%, however gross margins were severely impacted due to Euro weakening vs USD. Management is confident of recouping margins and is guiding for 15-20% sales growth & 18-20% EBITDA margins in FY23. Concall notes below.
FY23Q1 concall
- Expect sales growth of 15-20% with 18-20% EBITDA margins in FY23, expect significant margin revival going forward
- Gross margin impacted due to Euro weakening against dollar, PAT was impacted by higher depreciation and forex losses. Confused as what to do as Euro weakening was very unexpected. Don’t want to move all the Chinese supply contracts to Euro as Euro can also strengthen and company doesn’t want to lose that benefit if it happens
- Hoping to end FY23 with gross margins similar to FY22
- This Euro weakening against dollars benefit Indian suppliers tremendously, especially those who have lower import dependence i.e. their cost base is in INR and not USD
- Gross margin breakup for agchem: EU (31% vs 42% last year), NAFTA (24% vs 25% last year), LATAM (17%, same as last year), ROW (23% vs 31% last year)
- Agchem volumes: 4mn vs 3.5mn in EU, 2mn vs 2.4mn in NAFTA, 1.1mn vs 1.5mn in LATAM, 300’000 vs 340’000 in ROW
- Demand for agchem division is good in Europe, there has been pressure on demand in NAFTA due to weather. Not seeing much pricing pressure
- Contribution for Western Europe is higher than Eastern Europe for agchem
- Capex: 102 cr. (special focus is on expanding biocide registrations). This is expected to be in the same range or increase slightly
- Sales growth components for entire sales: Volume (-) 2.5%, Price (+) 38% and (-) 3.3% through forex loss. Is most of price increase due to non-agro division? Yes
- What is contributing to such high growth in non-agro business? Marketing strategy is helping where Sharda is supplying tailor made products to customers, also quality of products is much better. Additionally, Chinese suppliers had higher bandwidth to fulfill these orders. Margins have improved from 14% to 22% due to passing on of higher freight rates
Disclosure: Invested (position size here, sold few shares in last-30 days to bring position size closer to model portfolio)
Investing Basics – Feel free to ask the most basic questions (25-07-2022)
Regarding tax calculation in ITR
1.Having STCL of 3000
2.Having LTCG of 1000
LTCG less than 1 lakh is tax exemption.
But in ITR form it is setting off Current Year Capital Losses with Current Year Capital Gains(LTCG)
so i have only loss of 2000 to carry forward to next year. why it is calculating LTCG which is in tax exemption. or we no need to show LTCG with in exemption limit in ITR
Tanla Platforms ~ Leading player in the fast-growing CPaaS market (25-07-2022)
The recent dramatic drawdown and now the disappointing quarter!
I am afraid that possibly somebody else may be eating Tanla’s lunch.
“We are progressing well on our one platform strategy-Wisely. Q1 had some operational headwinds in the Enterprise business, but we have our building blocks in place to accelerate our momentum in the coming quarters. We have a strong balance sheet and excited by the opportunities ahead of us.” - Uday Reddy, Founder Chairman & CEO
“Market disruption: We saw market disruption of pricing both in NLD and ILD business in select customers which impacted our EBITDA. We have been quick to respond by taking an approach of making focused investments on our priority customers.”
Could somebody who speaks “management” decode this? To me, it appears competitors provided better pricing forcing Tanla to reduce their pricing? The usage of “priority customers” is very worrying. This means some big customers are bargaining hard on pricing.
If my understanding is correct, THIS SHOWS MINIMAL SWITCHING COST FOR CUSTOMERS- a definite negative for Tanla?
“From an internal perspective, we had some challenges in scaling our legacy infrastructure as our volumes have scaled substantially over the years.”
This is very worrying. Tanla keeps accumulating cash and does not upgrade infrastructure on a timely basis? Have they been boosting free cash flow at the expense of timely upgrade of computing infrastructure. Quite shocking tbh.
For now, my call is to sit tight. Will await Q2 results and take a call whether to REDUCE. I am afraid the stock will take a major beating in the coming days for sure.
Disc - Invested and hurting bad. Clearly, you should not take my words as
investment advice.
Astec Lifesciences (25-07-2022)
Another example of How peak PE+Peak Margins+Peak narrative can be deadly in the short term.
Realizations led growth in Q4 and that has reversed. Thus, it pays to track end product pricing in B2B businessess. Severe margin contraction in Q4 results
Disc: invested with 1% allocation. Looking for pain here as medium term seems solid.
Tanla Platforms ~ Leading player in the fast-growing CPaaS market (25-07-2022)
The results are worse than I could have even imagined. Worse than topline drop is the margin erosion. This sets back the business by 1yr+ . It seems enterprise business is getting beaten up pretty bad not only from revenue perspective , but even more so by margin perspective.
Will understand better when investor presentation comes out. But these are first thoughts for now. Unless Uday Reddy gives an honest account for the business in call tomorrow, lots of investors are gonna foldup.
Mangalam Organics Ltd. – A promising Pine chemistry story (25-07-2022)
Had mailed the CS regarding the same. After a couple of reminders got a response along the lines of Please ask your questions at the AGM.
Have never attended Mangalam Organics AGM, do they answer all the questions posed by the investors?
Also, the CS of the company resigned in June, not sure if a new one has been appointed yet.
Embassy REIT: Is this “Blackstone” promoted REIT is real diamond? (25-07-2022)
Well, I don’t know why my post was removed/flagged, it was some analysis on Embassy properties and it’s peers on a web site outside of share market. I thought it would have been useful.
(I will delet this myself in 24 hours)
Sharda Cropchem – Can it get into indian market in a bigger way? (25-07-2022)
I think sharda cropchem business model of buying raw materials from china in dollars and selling in Europe in Euros are responsible for current business headwinds due to dollar appreciation and freight cost increase. These headwinds are going to stay for few quarters. Mr. Market will give much better opportunity in sharda cropchem in terms of lower share prices. Ukraine russia war and climate change in europe are fuelling the headwinds.
Dis. Not invested will keep close watch.