Atma nirbhar Bharat- The Naval Ship “Surat” next major combatant to join the Indian Navy
Surat is built indigenously by Mazgaon dock
Indus stake is not owned by VI but the parent Vodafone…
Hello, please can you tell, where can we find monthly share holding data??
News flow has been a mixed bag in the last 2 3 weeks.
While deleveraging and pre paying debt, renewed focus on Radiopharmaceuticals, Roorkee Generics UDFDA clearance and New Management are good ones.
USFDA adverse observations at Both Canada and USA plants don’t augur well. These plants are into CDMO sterile (most tricky from compliance POV), Allergy and Radiopharmaceuticals.
The stock is also also confused and hovering around 700 plus minus.
Not sure on the scope of revenue affected by adverse USFDA observations(Communication says Contract Manufacturing affected) . Spokane is already undergoing expansion with capacities expected to go live in FY26 and FY28.
What is the source for this information that Sterling tools has 30% market share in MCU business.
Also does anyone have insights on which are the other key players in MCU manufacturing Business in India?
Potential impacts for Indus from the VI stake sale:
Outstanding VI dues can be paid off in full: estimated VI dues based on accounts receivable and online reports is around ₹6,000~₹7,000 Cr. VI’s stake in Indus is worth ₹19,330Cr. Of course, VI also owes other people a lot of money, so not sure whether Indus’ VI dues will be fully cleared after the stake sale, but I expect a big part of the dues to be paid off.
If there is a lot of demand for the stake at current prices, that will provide the market assurance that Indus Towers’ share price is not overvalued. However, if there is no demand or less demand than VI expects, it could have the opposite effect.
FII/DII purchasing VI’s stake could mean a board re-jig, with VI board members replaced by the new FII/DII representatives. I view this as positive for common shareholders, as the new board members will be incentivized to increase shareholder value more than VI board members (will reduce some of the existing conflict-of-interest within the board). If Airtel buys vodafone’s stake, then it will have the opposite effect. More Airtel board members and stake will effectively make Indus a subsidiary of Airtel, which I don’t view as favourable (as then board has incentives to favour Airtel rather than the Indus common shareholders)
Disc. : invested / potentially biased
PS: I had valued Indus approximately 1 year ago, in July 2023. The shares seem fairly priced now, as shares are slightly higher than the “base case”:
Thanks,
Sharad
OpenSourceInvestor @ Substack
Thanks you very much
Indent and intent shouldn’t be mixed up. Indent here is a kind of call-off or request for services/supply against an agreed scope of work which is included in the purchase order. And which is what you see here.
Letter of intent is basically an unofficial agreement between seller and buyer to have a transaction without a legally binding purchase order in place.
So in case of Kotyark it seems they started the work not based on letter of intent but actual purchase order. But their problem as per the excerpt produced by you is delays in getting purchase order and not being committed the full scope of supply, as stipulated in POs, by their buyers. This leads to mismatch in booking and actual revenue of the company that eventually shows up in P&L.
Let’s hope they can resolve this with their buyers although I would say this is a very common with large government buyers.
thank you for the detailed post. Some thoughts/ questions
Per seat IRR | ||||||
---|---|---|---|---|---|---|
Y1 | Y2 | Y3 | Y4 | Y5 | ||
Capex / seat | 50,000 | |||||
Revenue / month | 6,500 | 6,825 | 7,166 | 7,525 | 7,901 | |
5% | 5% | 5% | 5% | |||
Occupancy | 92% | 92% | 92% | 92% | 92% | |
Annual revenue | 71,500 | 75,075 | 78,829 | 82,770 | 86,909 | |
EBITDA % | 25% | 25% | 25% | 25% | 25% | |
EBITDA | 17,875 | 18,769 | 19,707 | 20,693 | 21,727 | |
Depreciation | 10,000 | 10,000 | 10,000 | 10,000 | 10,000 | |
EBIT | 7,875 | 8,769 | 9,707 | 10,693 | 11,727 | |
Tax | 1,969 | 2,192 | 2,427 | 2,673 | 2,932 | |
PAT | 5,906 | 6,577 | 7,280 | 8,019 | 8,795 | |
Recievables @ 30 days | 5,958 | 6,256 | 6,569 | 6,898 | 7,242 | |
Increase in recievables | 5,958 | 298 | 313 | 328 | 345 | |
Cashflow from Ops | 9,948 | 16,279 | 16,968 | 17,691 | 18,451 | |
Maintainence Capex @ 3% of Capex | 1,500 | 1,500 | 1,500 | 1,500 | 1,500 | |
Cashflow | (50,000) | 8,448 | 14,779 | 15,468 | 16,191 | 16,951 |
WC reversal | 7,242 | |||||
18-Jun-24 | 18-Jun-25 | 18-Jun-26 | 18-Jun-27 | 18-Jun-28 | 18-Jun-29 | |
IRR | (50,000) | 8,448 | 14,779 | 15,468 | 16,191 | 24,193 |
15.0% |
Ofcourse the IRR is very sensitive to EBITDA margins - at 30% EBITDA, the IRR shoots to 22%. But not sure how to underwrite 30% corporate EBITDA since they are and will be in the growth phase, and supply side dynamics weigh on the margins over time.
How much capex are they doing in furniture factory? What makes them make such high margins in furniture despite being the lowest cost? Are there examples of other furniture companies making such high margins when they’re selling at lower than market cost?
Design and build is like an EPC business and have not seen other office contractors who make 20-30% margins. How does EFC achieve this? What do they do differently?
There’s no bidding here, Prachand is an HAL platform. 4 LSP units (2 each for IAF and Indian Army) were on user trials since almost a year.
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