Nissan projects a healthy outlook for F24 from the new products. Augurs well for the Nissan Bharat Rasayan JV
Link: https://www.nissanchem.co.jp/eng/ir_info/library/pdf/AM/am2024_03.pdf
Nissan projects a healthy outlook for F24 from the new products. Augurs well for the Nissan Bharat Rasayan JV
Link: https://www.nissanchem.co.jp/eng/ir_info/library/pdf/AM/am2024_03.pdf
While results look optically bad, the management commentary is important. During commercialisation of new greenfield capex some of the costs are bound to be front loaded which gets normalised as capacity utilisation kicks in. Overall looks quite positive given the sectoral headwinds
It will further increase 5% on merger with idfc
Nothing wrong with intangible. IT products do create IP, R&D,Brand, digital asset,SaaS platform, Goodwill etc. Can be classified as intangible and It qualifies for depreciation as well. Market is nit sure of European and US market retail segment, which is a big portion of their revenue. Cash balance shows company has surplus funds. My take is cheap stock but mangement lacks ambition.
Good Report Soourav. But Please look into corporate governance as well.
https://x.com/beatthestreet10/status/1739676867375050773?s=46&t=GZbLJTSVoviyMof1ELe2Mg
Holding it for the longer term for now. Trigger to exit would be next qtr results if management does not walk the talk. If election results are an upset, the larger India story will be questioned in my view irrespective of a particular stock
We are in the Business Investment Declines, Industry Consolidation, Firms Exit: Investor pessimistic phase for. (Phase iii)
Company Overview:
Company was earlier named as Century 21st Portfolio Limited - used to trade in equities and commodities, had wealth management and portfolio and software development operations.
Name was changed to Arunjyoti bio ventures ltd in FY 2015.
However the company did not turn around after new KMP from 2015 to 2022.
But looks like some turn around has been brewing since 2022 July & below info indicates the same:
In July 2022 - The current promoters issued an open offer, took over majority shareholding & also change in management control.
A brief about current promoters background: Has ran distribution business of non-alcoholic beverages for MNC’s in the state of Telangana & Andhra Pradesh for past 20 years.
Immediately after takeover - Company now purchases 2 lands - one in AP ( 3acres, 53 cents) & one in Telangana ( 2 acres 17 cents) on 24th aug & sept 1st 2022.
Beverage business: March 8th 2023 - Company announces to set up two beverage plants in above two land parcels.
Followed by trial production commencement from 18th May 2023.
So in a timeframe of 1 year - New promoters took charge, purchased land & setup beverage plants with initiation of trial production.
Now, there were further amendments & lets take a look below:
Business :
Company has two divisions now:
Capacities for beverage production:
Telangana plant has 24,000 cases per day with three lines & AP plant has 17000 cases per day with 2 lines. MNC has itself invested for a new line as they are launching a new product & do not want the co-packer to take the risk.
MNC to provide all the feedstock needed for production of beverages. Hence the raw material cost is nil as observed in Q4 FY 24. The only expense on P&L by the company is utilities, employees, warehouse, depreciation & finance. Company also states that they will be venturing in to capacity enhancements & possible integrations across value chain.
Financials:
Although there is a huge spike in sales this year - I assume a lot of growth to be coming in from next quarter due to stabilization of capacities and systems in place for procurement, production & distribution.
Sales: FY 24 : 20.4 crores.
Debt: After rights conversion of promoter loans - I assume debt numbers look different than reported as of 31st March 2024 which is 44 cr. It should be around ~24 crores after debt to equity conversion of unsecured loan extended by promoter.
Earnings are not +ve yet, but with Q1 being a hot summer, I expect sales & earnings to be better than FY 24 Q4.
Market cap looks expensive on trailing TM performance.
In public shareholding recently a couple of big names got added in April 2024.
Disclaimer: Added in family account.
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