This was my stance 9 months back, and this will be my stance till the company keeps delivering results. Dairy is extremely fragmented sector in India coupled with being heavily underpenetrated. Being a milk surplus nation, the entire sector (not just heritage) has good long term prospects. Important to note that the dairy industry is supply pushed rather than demand pulled. Heritage is one of the few which owns the entire supply chain unlike many cos who just do contract manufacturing and label them due to which they’d never have any inventory related shortages
Posts tagged Value Pickr
Heritage Foods Ltd (08-06-2024)
(post deleted by author)
Cyber Media Research & Services Ltd (08-06-2024)
Nothing unusual… management said they are contesting this in court and expect a favorable outcome.
Yash Pakka – (Previously Yash Paper) – Rising from ash (08-06-2024)
In Q4, Mr. Ved announced that they have switched their investment banker from a Latin American company to Nomura. Nomura indicated that there is no project similar to the one conceptualized by the Pakka team. Furthermore, Mr. Ved mentioned their plan to raise ₹175 crore through a Qualified Institutional Placement (QIP). However, investors wanted the pricing to be ₹250 per share, which was not feasible as the share prices had risen above ₹350. According to SEBI guidelines, the average price of the last six months must be considered. Fortunately, the share price has since decreased, and investors for the ₹175 crore QIP are ready. Once they can proceed with the placement at ₹250 per share in compliance with SEBI rules, it will happen immediately. If this does not occur, they have also filed for a rights issue at ₹250 per share as an alternative option.
The total capital expenditure for India is ₹675 crore, with an additional ₹75 crore required for equity infusion in the Gautmala project, bringing the total to ₹750 crore. The funding plan includes raising ₹675 crore through QIP, covering 20% through internal accruals, and financing the remaining amount with debt.
Tejas Networks – Product based IT business in a favored sector? (08-06-2024)
Tejas Networks
Proxy to: Telecom, Data Centres, AI, Utility, Infra, BFSI, Defence, Railways & Metro, etc.
Through Saankhya Labs, they have secured approval under the Semiconductor DLI scheme to develop a cuttingedge System-on-Chip (SoC) - a critical advancement in electronics, enabling the creation of powerful, efficient, and compact devices across a wide range of applications
Vessel Tracking Network, powered by Saankhya Labs’ award-winning SDR chipsets, signifies advancement in Indian coastal security and the safety of fishermen. With 2,500+ vessels already benefiting from its capabilities, there is an ongoing planned deployment of over 50,000 additional boats nationwide.
Over 60% of workforce is into R&D!
International Partnerships
FibreConnect partnered with Tejas to successfully deploy an end-to end optical network in Italy
Tejas signed a strategic partnership with Telecom Egypt to replicate the Bharatnet (Rural Broadband Project) and NKN (National Knowledge Network) projects in Egypt.
As a percentage of net revenues, the services expenses in FY 2024 decreased to 3.7% as compared to 9.5% in FY 2023.
As of March 31, 2024 they have filed for 446 patents of which 335 have been granted
Company has received 32.66Cr from the PLI scheme and total PLI accounted for stands at 156Cr
Majorly B2B, so quarterly fluctuation in numbers is normal
Order backlog of over 8200Cr in FY24 - Company expects to recognize revenue of around 93% within the next one year and the remaining thereafter.
Disc: Invested
Phantom Digital Effects Limited (08-06-2024)
I think management is trying to play ‘better safe than sorry’ here. From my understanding, they started out with 20-25% growth guidance and at one point, they said they may beat it and touch 50% as well.
Due to uncertainity in the last year, management has learned in this industry, things may not be as certain as they seem, so they are playing safe. This is good for the investors as well. I have held stocks where management used to give shiny projections only to later miss it by a huge mark. Markets punish such companies strongly.
To be honest, I am more concerned about the receivables than earnings growth in this industry. I hope what management mentioned in this concall that they are getting back on track regarding this is true and we see improvement on this front in coming quarters. This is something I will track like a hawk and take further decision.
Disc: same as earlier
Phantom Digital Effects Limited (08-06-2024)
Q4FY24
• Anticipate a substantial revenue growth of 20% to 25% (conservatively) in the fiscal year '24 to '25. Margins could be same or higher as what declared in this Q (46%)
• Exploring opportunities to diversify our revenue streams through licensing, intellectual property rights, original content creation and other innovative business models.
• We already have 5 to 6 million worth of orders for the first half.
• Rev split: 40% international and 60% domestic. This year planning this to be opposite as int’l business has more profit margins.
• Market wasn’t great last year
• We are expecting a very huge surge in project flow from July onwards.
Hollywood Strike:
• Phantom is not just dependent on the North American film market. They have a global client base. Looking at European markets as well.
Receivables:
• Collection days are 60-90 days. Max business has come from Feb to march so receivables look high.
• Have received almost 20%-25% of the existing receivables for March '24.
• So, this is not something like an old outstanding, which is to be recovered or a number of days or more than that.
• Allowing a bit more of credit period due to other competitors doing it. Don’t deliver the final output until the total amount it recouped. Payment also happens milestone wise.
• Now, we are back on track and we are putting the same credit timeline in our current contract. So, we are not expecting that delays in the projects going forward.
• For Ayalaan, acquired most of the money. In 30-40 days, will receive the rest.
• Have movie rights in China as well as satellite.
Equity dilution:
• Do not have any plans to dilute the equity further.
Future Plans:
• We are already working with a lot of gaming companies, developing assets and creatives.
• Only thing missing is the technical side of it. The coding and other parts. We are looking at a couple of companies where we will partially acquire takes from them.
• We are looking at the gaming arena in a very serious note
• We have a very detailed plan and execution strategy for the next 3-4 years
• We are not just going to depend only on VFX, but also on the other verticals as well. So, that is going to increase the profit margins, increase the turnovers.
• We have also figured out new regions that are giving a lot of benefit to Phantom
AI Impact:
• When you say AI is going to do all the VFX work, that itself is a myth
• We have developed a lot of software and tools. And we are doing research on AI for the last 3-4 years
• We have started implementing a lot of AI tools in our pipeline already.
• AI is going to increase the studio’s productivity. For example, when we develop concept sketches, we used to take 15-20 days before. Now, we are doing it in 2-3 days
Disc: Invested