Has anyone got any idea, if they are really talking to state Transcos for acquisition of their assets ?
It’s a strange situation where in the sponsor (PG) has lost interest in invit route and thrown baby (PGinvit )out of the bath tub just after the birth (IPO ) . PG has adopted securitization route instead of Invit and unitholders are left to the mercy of junior babus of PG who rotate as senior management position in PGinvit! If boss (top leadership at PG) has lost interest in invit then it’s just a vacation posting for junior guys who rejuvenate by their stay in invit and once reenergised go back to parent company for productive service…
I don’t see any real hardwork and efforts these stop-gap management at invit are doing for AUM growth.
Now they have stopped concalls also, so no pressure of answerability to unitholders.

Disc: invested.

This is what the management clarified in the Q1FY24 concall. This is a snippet from my notes that I take after going through concalls of all the companies I hold/track. This info could be a bit dated especially when it comes to holding % of different promoters in the company.

Promotor Group Structuring:
□ One part is the promoter group from the Khaitan family. The Khaitan family holding is approximately 22% – 23%.
□ Second, we have a strategic investor who has invested by the name of Firstview Investments. It’s an investment arm of the OCCL group, which is Oriental Carbon group. This group holds 35%.
□ Promoters are there just to give strategic guidance, but it’s a professionally run company. Major promotors brought in new management to run the company but the promoters are not involved in day-to-day management.
□ One of the big changes that has happened is the management change. Mr. Khaitan just explained that now it’s a professionally run business. So, the decision-making processes are far faster, quicker, and very focused. This is a big change that has happened from the past.

Hope this helps to explain what Amritanshu Khaitan’s role is in the company.

Disc: Invested from lower levels.

Technocrat Industries –

Q1 FY 25 results and concall highlights –

Revenues – 620 vs 556 cr, up 11 pc
EBITDA – 146 vs 145 cr ( margins @ 24 vs 26 pc )
PAT – 84 vs 91 cr

Segment wise revenues –

Drum closures – 151 vs 127 cr, up 18 pc
Scaffoldings and Formworks – 334 vs 274 cr, up 22 pc
Textiles division – 104 vs 139 cr, down 25 pc
Engineering and Design services – 49 vs 42 cr, up 18 pc

Segment wise EBIT –

Drum closures – 55 vs 40 cr, up 38 pc
Scaffoldings and Formworks – 53 vs 77 cr, down 31 pc
Textiles – (-) 12 vs (-) 4 cr
Engineering and Design services – 8 vs 9 cr

Company is hopeful of an improved performance in the Drum Closure division. No major capex ( except maint capex ) planned in this division

Company is confident about a margin revival in Scaffoldings and Formwork division because of anticipated growth in infrastructure and housing led demand in India. Company’s 02 plants in Aurangabad to make 17,500 MT of Aluminium Extrusion and 6,00,000 Sq Mtr of Aluminium fabrication has commenced production in Q1 ( a reason for lower EBIT in this segment due higher depreciation ) . They will be ramped up over the course of FY 25

Expecting the demand for engineering and design services to remain strong due to the strong acceptance of their offshore global delivery model

Company is the second largest drum closure manufacturer in the world, currently exporting to 75 countries. Company is guiding for single digit growth in this segment but the margins will sustain in > 30 pc band

Because of commercialisation of the Aurangabad facility, company expects incremental topline of 450 cr and EBIT of 80 cr for FY 26. For FY 25, incremental topline and EBIT should be 60 cr and 10-15 cr respectively

The scaffolding business continues to be soft in Europe. However, demand from US is descent

In the textiles business, company has commissioned a new spinning unit in May. Revenue from that will start to flow in Q2 whereas the expenses started to come in Q1. From Q2 onwards, company sees a descent uptick in the textiles business. For full FY, should add around 130 cr of topline to the yarn business. All textiles divisions combines ( Yarn + Fabric + Garments ), topline should be around 650 cr

Also expecting the textiles division ( Yarn + Garments + Fabric divisions ) to be EBITDA positive for this FY ( EBITDA percentage in the range of 8-10 pc )

Company is still awaiting – B certification in Europe for its Scaffolding business. They are expected to get it sometime in Sep

Aluminium formwork’s demand continues to outstrip supply ( despite having local and Chinese competition ). Local demand is so good that the company is not even able to export this product. Company’s current Mkt share in India is around 10 pc or so

Company’s steel formwork business did witness softness in demand in Q1 – because of the elections. Should pick up going forward. However, company’s main thrust and bulk of the business continues to come from Aluminium formwork. ( Steel formwork is mainly used for Infra projects while Aluminium formwork is mainly used in Real Estate sector )

Company sees very good demand outlook for its MAK-1 – aluminium formwork business – both from domestic and export markets for next 2-3 yrs

LY, company’s scaffolding + Formwork division did revenues of 1030 cr. This yr, company is expecting to do around 1250 cr and next year, they are expecting to do > 1800 cr from this segment ( because of the new capacity coming online )

For engineering services segment, expecting to do 20-25 pc CAGR topline growth for next 2-3 yrs

Expecting to touch a PBT of 500 cr for FY 25

Disc : holding, biased, not SEBI registered, not a buy / sell recommendation

Hi! I recently started following this company. Does anyone know what “training expenses” of Rs. 86.5 lakhs the company is bearing on behalf of Mr. Ahaan Nachane (son of Mr. Rahul Nachane)?

              **Multibagger Hunt: Challenges and Opportunities Part II**

Maximum Point of Pessimism

Often, investors rush into buying a stock, eager to catch the next big winner in the market. The news is overwhelmingly positive, every analyst is recommending it, and trading volumes are surging daily. Everything seems perfect, and we buy in just when the stock has peaked. But the next day, the price starts to dip, bit by bit. As the initial excitement fades, the stock begins a downward spiral. We wait, hoping our analysis was not wrong, convinced the stock could not fall any further. But it does—first a 10% drop, then another, and soon it seems like everything is conspiring against us.

Regulators notice the erratic price swings and place the stock under surveillance. Now the real pain begins. The stock sinks even further. We cling to the hope that the so-called multibagger, which everyone was raving about, will recover. But eventually, the stock loses most of its value, leaving us with significant losses. At this point, we cannot take it anymore. We exit the stock, often at its lowest point—this is the maximum point of pessimism. Ironically, it is usually when the stock is ready for a rebound. However, the emotional toll prevents us from seeing any potential upside, and we hastily cut our losses, missing out on the eventual recovery.

One recent example, discussed in Part I, is that of Protean. After lacklustre third-quarter results in 2023, the stock plummeted to the 800-850 range, a steep drop from its peak of over 1500. However, the very next quarter saw significant improvement. New verticals were launched, new opportunities arose, and the stock took a dramatic U-turn, now trading well above 2000—all within six months.

Common Sense Investing

Investing does not have to be complicated. Most of it is rooted in common sense. Yet, we often think it is like rocket science and defer to so-called experts who bombard us with complex spreadsheets and formulas. We believe the more complicated the analysis, the more credible it is. But consider a company like Protean eGov Technologies, which builds digital infrastructure with funding from financial institutions and government agencies. It offers e-governance solutions, holds a market share of nearly 50%, and expands its verticals every year, winning global awards. Investing in Protean is almost a no-brainer.

I overlooked Protean when it was trading around 800-900. It only caught my attention after I read an article about digital infrastructure—an emerging theme as more government schemes move to digital platforms. Upon visiting Protean’s website, I discovered that they are leaders not just in PAN card processing but in several other emerging areas.

What’s Next?

With these new verticals, Protean is poised to become an industry leader. The only challenge is the collection of dues from various state government agencies, which sometimes causes them to miss quarterly targets due to delays in payment clearance. However, the growth potential from these new verticals should drive the stock to greater heights. All in all, the outlook for Protean is very promising.