My thoughts aline with you. Recently, i had noted this down in my notes [image]. The indigo’s pricing and market share moat may be under danger as times pass due to increasing customer dissatisfaction and entry of lovable competitor (tata group).
Posts tagged Value Pickr
Raymond – The Complete Man (27-08-2024)
as per Motilal oswal
Smartlink — Cash for free (27-08-2024)
Great discussion on smartlink. Thanks for sharing the link to this discussion.
I had a similar view, small unproven company in a interesting space. Promoter is ethical, but capability to take to next level is not proven. This will be on my watchlist to see how things move, and if in required direction.
Companies With First ever concalls OR Investor Presentations (27-08-2024)
1st ever Presentation by Batliboi ltd.
Something is changing here, Merger, Foray into CNC Machines, Green Hydrogen, Preferential @ Rs 118.5, few months ago.
PMS Funds – India (27-08-2024)
(post deleted by author)
Ranvir’s Portfolio (27-08-2024)
Surya Roshni –
Q1 FY 25 concall and results highlights –
Revenues – 1893 vs 1875 cr ( despite slowdown due to elections, price erosion in Steel Pipes and Lighting divisions )
Gross Margins @ 24 pc
EBITDA – 151 vs 114 cr, up 36 pc ( margins @ 8 vs 6 pc )
PAT – 92 vs 59 cr, up 56 pc
EBITDA uptick led by sharp uptick in EBITDA / Ton in the steel pipes business and steady margin improvement in lighting and consumer durables segment
Company is debt free. Cash on books @ 156 cr
Segment wise results –
Lighting and consumer durables –
Revenues – 385 vs 374 cr ( despite 9 pc price erosion in LED lighting segment )
EBITDA – 35 vs 33 cr
Margins @ 9 vs 8.8 pc
PBT – 26 vs 26 cr
Steel pipes and Strips –
Revenues – 1509 vs 1503 cr ( volumes up 7 pc despite slowdown in Govt spending in Q1 )
EBITDA – 124 vs 83 cr
EBITDA / Ton @ Rs 6065 vs Rs 4388 ( on account of better product mix. Value added pipes – Galvanised, API and Spiral accounted for 46 pc of revenues )
PBT – 97 vs 55 cr
Steel Pipes manufacturing facilities –
Bahadurgarh, 53 acres
Anjar, 96 acres
Gwalior, 51 acres
Hindupur, 17 acres
Lighting manufacturing facilities –
Kashipur, 46 acres
Gwalior, 44 acres
Company is largest manufacturer and exporter of ERW pipes. Company is also No-2 lighting brand in India – mainly focussed on rural / semi urban areas
Company is the leading player in Large Diameter pipes, API pipes in India. Their products in these segments command a premium pricing of 6-8 pc over its peers – which is a very big deal in the pipes business. The company has earned this through 40 years to hard work
Fans business showed a 43 pc volume growth
Appliances business showed a 15 pc volume growth
Have launched – residential pumps in Q1
Aim to grow the consumer durables and lighting business by 10-12 pc in FY 25
Expecting 12-15 pc volume growth in steel pipes segment in FY 25
Gross margins improved in Q1 due company’s greater focus on value added products – both in Steel pipes and Lighting segments
Gross margins should further improve wef Q2
Additional capacities of 50k MT ( CR pipes and 8″ pipes ) should come online in Q3. Additional capacities of spiral pipes ( additional 60k MT ) should also come on stream in Q3
Company has lined up a capex of 250 cr and 200 cr respectively for this FY and next FY – for steel pipes division. Post this capex, company’s capacities will increase from 12 lakh MT / yr to 19 lakh MT / yr
Not likely to add any more capacities in Lighting and CD segment for next 1 – 1.5 yrs ( as they have adequate capacities )
Likely to maintain EBITDA / Ton > 6000 for FY 25
Aim to generate an EBITDA of 675 – 700 cr for FY 25
Company believes, there is a strong case for de-merger of both the businesses. The board will finalise the same
Company has good brand equity in the FMEG space. Hence the new launches in recent years ( like fans, pumps ). Company can leverage the same going forward. At present Fans + Consumer Durables account for 18 pc of this division’s sales
Lighting business had a rough past 2-3 yrs due steep price erosions. Going fwd, things should improve as a lot of unorganised and non-core competition is likely to abate. This should augur well for the company
Company is hopeful that lighting division’s EBITDA margins should improve to 12 pc levels in 1-2 yrs. In Steel pipes division also, EBITDA / Ton should improve to > Rs 7000 / Ton due greater focus on value added products ( this should structurally improve the margins trajectory of the company )
Disc: holding, biased, not SEBI registered, not a buy/sell recommendation
Hitesh portfolio (27-08-2024)
Evening Hitesh sir.
Aavas Financier has an open offer (Since more than 25% was acquired by CVC Capital) at ₹1766. The entire process will take almost 2 months to complete.
Is the share price capped at ₹1766 for the time being? What happens/has happened in such situations in your experience?
Thank you
DCX Systems Ltd (27-08-2024)
DCX meeting with Singular & Aditya Birla Money this Friday → https://www.bseindia.com/xml-data/corpfiling/AttachLive/957dd3b3-8d2b-43be-9be9-7f9237bff149.pdf
Singular Capital has a very accomplished team → Team – Singular Capital
Suprajit Engineering (27-08-2024)
I agee with you, through dividend, retail can always save taxes as they might own low number of shares at lower slabs. Also this buyback is exorbitant and seems beneficial for promoter. As this buyback is less than 10% of equity, no approval needed from shareholders. They should have gone through market route instead of tender for maximum return to all shareholders.
New tax structure I think is coming from October, that will make the shareholder to pay tax per tax slab instead of the company. This could be the reason that promoters are trying to get maximum benefit. Feel free to correct or add if I’m missing something.
Focus Lighting & Fixtures Limited (SME) (27-08-2024)
How do you find that the person in Outcome Health is Rishi Upendra Shah and not Rishi Rajendra Shah – shareholder of Focus…