My notes summary for conference call –

• List item
  Overall capacity increase from 29,000 MT to 34,000 MT this FY planned.
  This expansion in ready to eat would be available for the second half of the year. Realization 15-20% better for ready-to-eat compared to ready-to-cook

Freight cost for increased 11 K to 18 K

Increase expected in Q1 power cost due to need of running the generators for few days in Q1
Shipment equipment availability has been biggest challenge during last FY; This challenge has been easing currently effective from Q1’23. Volume wise, there would be improvement in Q1’FY23 and for the whole FY23 as well

Looking to increase market share & volumes in EU by penetrating beyond existing 5 countries; also targeting to increase more customers in US.

2,700 MT finished goods inventory as of Mar’22. This is being used during Q1’FY23. Hoping to reduce inventory days in Q1’FY23

Should expect the short term borrowings to come down as working capital days to come down over next few quarters

Fair to expect double digit growth in FY23 and improved margins around 11-12% compared to 9% in Q4’FY22

Ok here is my thesis behind it
1)Apl apollo Consumes 2% of entire Indian steel production and is the single largest buyer so it get 2-3% discount on HRC steels from tata/ jindal as compared to its competitor.
2) It has 11 manufacturing units and 29 warehouses which ensures lower logistics cost by 4-8% as compared to its competitor(freight heavy items).
3)Lowest cost producer because of economies of scale.
4) Capable of Passing the prices of fluctuation of raw material(Concall)
5) Company has differentiated product portfolio and in 40-50% of its product portfolio it doesn’t face any competition as it is the only producer. it has close to 1100+ sku’s
6) Introducing high margin product in upcoming Raipur plant thus ebita per ton will improve.
7) From financials point of view it has Good sales and profit growth which is above 25% and is trading at an p/e of 36(when i purchased it ).A good growth company at a p/e of 36 seems good to me .
Many think it falls into cyclical category but if you look at 5 or 10 year CAGR sales and profit growth it is constantly growing at 25% . I think it should fall under fast grower category .

when you talk about allocation.
How much of it is really out of fear of losing?
fear of being wrong?
There is no one conclusion in the world of investing to anybody.
The opposite of a good idea is also a good idea in investing.
you have to know the boundaries of
risk and risk-adjusted returns
allocation
churning
speculation
even cloning too.
Thanks again

Bit dated but insightful video on the PVDF market.

https://www.youtube.com/embed/3xuLXGQ46g0

The article is behind a paywall but mentions Nokia, Ericsson and Samsung as key vendors for the network equipment.