Much of what I write here would not be new to the experienced, wise investors. The thread is aimed at picking their brains.
When the tyre shares started booming, I made a small investment in PCBL. It produces carbon which is an essential ingredient of tyres. I however, did not pay much attention to putting the lesson learnt in practice.
I should have remembered. During Covid, when I felt the likes of Cipla were expensive, the world and their aunt were making money by sackfuls in APIs-of which I had never heard.
I again emphasise, it may have seemed a new concept to me but after all investors have made money from batteries, and solar module makers.
Borosil Renewable is ancillary ka ancillary as the glass made by it is used in producing the solar modules.
Recently while watching videos of Atul Raval recently, this was again brought home to me. DDev Plastiks is into making plastic sheath for the cables.
Inspired by this I decided to explore further. Recently I read about the kavach technology. Kavach operates by automatically applying brakes to trains if the driver does not respond promptly . It uses

RFID (Radio Frequency Identification) tags placed along tracks and in station yards to determine track positions and train directions

.
My search for RFID tag makers or RFID readers has not made much headway. Any information on the related companies would be of great help.
Similarly, when studying about drones, I wondered about the parts that go into them. It seems most of them are off the shelf, majority being of Chinese make.
Or is it so?
Then I got the idea of idea of tapping into lists of vendors available on the sites of major companies. The list I have downloaded from BELL is attached.
List of BEL vendors.pdf (5.0 MB)
The idea was to find Indian, listed companies (even an unlisted company with shares available for buying would be good).
The enormity of the task may be seen by the screenshot

This list has upto now, revealed two gems to me. One is Avantel. IBeing technology challenged, I have not attempted to much editing. Accoring to its site, “Avantel has been supporting the strategic sector since three decades and has rolled out many unique products / solutions to Indian Defence Services and allied establishments. The company in its initial years, has manufactured various building blocks of the Radios.
It is into Satellite Communications, HF Communications, Electronic Warfare and Radar systems respectively. Presently, the company is in the process of enhancing its portfolio and developing SCA compliant Software Defined Radios, High Power HF systems, Air Defence Radars and Small Satellites.”

“Satellite Communications

Avantel is at the fore front of innovation in satellite communications. Avantel developed customized solutions for GSAT based Mobile Satellite Services with advanced microwave, digital wireless communications and signal processing products for military and commercial markets.

It claims that its SATCOM Radios operate in ‘S’ and ‘UHF’ band and provides Full-duplex Voice/Data Communications between Ships, between Aircraft, Aircraft – Ship, Ship – Base, Base – Ship etc. We are presently working on solutions in X-Band / Ku-Band as well.”
” HF Communications

We currently offer 1 KW and 5 KW solutions for Static and Ship borne Applications. The HF Radio operates in wideband (24 KHz) and consists of the latest state-of-art technology that includes FPGA, DSP, Direct Digital frequency synthesis, Automatic link establishment using 3G ALE (STANAG4538), 2G ALE (FED-STD 1045), Frequency hopping and customized waveform loading capability.

The HF transceivers system covers the 1.6 to 30 MHz frequency range in 1 Hz steps. Communication is possible in both simplex and half-duplex in Single Sideband (SSB), Amplitude Modulation (AM), and Digital modulation. These HF Transceivers provides the interface for high speed data and digital voice encryption using external crypto device.”
” Radar Systems
Our Radar systems portfolio comprises of Radar subsystems viz. T/R modules, Exciter, DTCSG, MTCSG, Distribution unit etc in the frequency ranges of HF, UHF, L, S, C and X bands. We also offer complete Radar solutions as per customer specifications.

• Timing and control generation
• Power output upto 7.5KW
• Solid state and fast switching.
• Active array based
• Local and remote operation.”

“Network Management Systems & Application Software * NMS for Mobile Satellite Services (MSS)

• UHF DAMA NMS
• HF Remote Control Software
• MMI for SATCOM Terminals installed on Aircraft, Submarines, Ships & Manpacks
• Real Time Train Tracking and Information System
• Radar controller
• Automated Test Equipment Software
• Simulation software
• Database generation for airfield simulation
• ERP for SME”

“Embedded Systems & Digital Signal Processing

• SCA development Environment
• Development environment for 8/16/32 bit micro-controllers, AD/TI DSP platforms, FPGAs
• Keil, Dynamic C, Silicon Lab, MP Lab, Code Composer Studio, Visual DSP++ for DSP Processors, Xilink Simulators (MATLAB)”
  ” Mobile Satellite Services (MSS) Network

Avantel has established the MSS network for Indian Navy for providing reliable, secured, real-time, long range (1000 nautical miles from shore) voice and data communications among Ships, Submarines, Aircraft and Helios. The network comprises of indigenously designed & developed Avantel’s Earth station electronics and platform equipment.

The network has S X C and C X S links for facilitating uplink and downlink communications. Each of the user terminals specially the aircraft and submarine versions are platform specific and designed as per the specified Mil standards. The NMS and Application software has been developed in house by Avantel as per applicable standards. Avantel is the first company to roll out indigenous Airborne Satcom solutions duly approved by CEMILAC and form part of this network.”
” UHF SATCOM Network
The IN UHF network comprises of SATCOM plus LoS terminals for Ship borne applications and Satcom only Airborne terminals and is extensively used for Beyond Line of Sight (BLoS) operations in high Seas.

The hub electronics and user terminals have been indigenously designed, developed and deployed by Avantel on various IN ships and Aircraft.

These terminals facilitate Full-duplex voice /data communication and work in Demand Assigned Multiple Access (DAMA)/Permanent Assigned Multiple Access (PAMA) modes.”

I will now abjure quoting further from the site. More equipment/parts/applications may be seen at Avantel
The Profit & Loss Account shows consistent improvement.

The operating profits are down in the two recent quarters. I have taken them in my strike as the price has also fallen recently. I feel happy with the CAGR.
Compounded Profit Growth
10 Years: 51%
5 Years: 42%
3 Years: 54%
TTM: 63%
It has recently won an order.
order_intimation_21_08_2024.pdf (508.8 KB)
Risks:The P/E is 83.1 which makes it a rather expensive buy. It has also shown some downside in the recent quarters.
I have not compared with any other company in the field. The effort is to find such companies.
The other company I found is ADC Communications. ADC is into wireless communications,Solutions For Wireless Service Providers – Wireless Service Providers
as also in broadcast Solutions For – Broadcast and Entertainment – Broadcast & Entertainment
The profit loss account of the company also shows improving grediant.

The purpose of this thread is not exactly to discuss these two companies.I am still looking for makers of BLDC motors, controllers etc that go into making drones. Or of RFID tag/reader makers (to cite two examples).
The above thread is to give a start to pooling any informaation experienced/canny investors may have on how to glean out such companies. Even more importantly, whether there is any simpler way of looking for companies in a particular product.

Must be some technical reason for classifying it like that

• Strong Q1 FY25 performance with 19.3% YoY revenue growth to Rs. 489.7 crore
• EBITDA grew 12.5% YoY to Rs. 64.9 crore, with 13.3% margin
• PAT increased 19.5% YoY to Rs. 34.9 crore
• HPPC division: 75% of revenue, grew 21% YoY to Rs. 365 crore
• Textile Specialty Chemicals: 20% of revenue, grew 21% YoY to Rs. 98 crore
• Animal Health & Nutrition: 5% of revenue, flat at Rs. 27 crore
• Focus on R&D and new product development, especially in green chemistry
• Expansion of ethoxylation capacities at Dahej facility
• Expanding presence in export markets like Bangladesh, Vietnam, and Egypt
• Growing institutional cleaning chemicals business
• Strong growth in exports, up nearly 50% YoY
• Cross-selling between subsidiaries increasing
• Focus on biosurfactants and other green chemistry products
• Tailwinds: Growing demand in home textiles exports, recovery in agro sector
• Headwinds: Challenges in Animal Health & Nutrition segment
• Adding 20,000 tons capacity for HPPC products at Dahej
• Adding 30,000 MT ethoxylation capacity at Unitop’s Dahej facility
• New product launches in esters, biosurfactants, and silicone block polymers
• Increase in container freight rates impacting logistics
• Focusing on FOB contracts to manage freight volatility
• Expecting continued strong growth in HPPC and Textile segments
• Institutional cleaning business target of Rs. 250 crore for FY25
• Positive outlook for home textiles exports
• Expecting agrochemical uptake to improve in coming months
• Opportunities in exports, especially Bangladesh textile market
• Risks from freight rate volatility and working capital management

Key takeaways from investing accelerator summit

By , Ishmohit Arora (SOIC/ Persistence Capital), has excellent business insights on Deepak Fertilizer

1.Whenever business margins become consistent despite the volatility in the past, then those businesses create huge wealth for investors. Past examples, like Neuland and Garware Hi hi-tech
2. ⁠In Deepak Fertilizers, the volatility of the margins is going down as business is getting backward integrated.
3. Here, the product mix is changing from fertilizers to mining chemicals and industrial chemicals; the fertilizer revenue contribution has come down from 80% to 45% now.
4. ⁠In the TAN business, they are moving forward with integrating explosive chemicals, similar to Solar Industries.
5. ⁠Their margins are becoming consistent to 18–20%.
6. ⁠After the capex, they will have the capacity to meet 60% of India’s domestic requirements.
7. ⁠Fundamental triggers are ammonia prices going up, TAN spreads increasing,and support from the government with an increase in import duty
8. ⁠During FY25, they can do 950 to 1000 crore PAT if commodity prices remain stable; so they are trading at a 12-13x PE ratio.
Link below

https://twitter.com/ias_summit/status/1826865267802079408?t=5miKuCDO0rgzp_Q3Iytxbg&s=19
Disc – holding, not a buy/sell recommendation

this side,dr Mehul Shah.
I require tracking for insolation energy .Will you please help me?thanks