Healthcare Spending : Long term !!
Category: Long term trend
Pediatric : Long term trend
Dessertsindia : Long term trend
Maritime Development : Long term trend
The Centre is significantly scaling up its proposed Maritime Development Fund (MDF) to ₹70,000 crore, 2.8 times the allocation announced in the February Budget, to boost shipbuilding, ship repair, ancillary industries, expansion of shipping tonnage, and port-linked infrastructure, according to a report by The Economic Times.
The revised corpus has reportedly already secured clearance from the expenditure finance committee (EFC), chaired by the finance ministry’s expenditure secretary, with Cabinet approval expected shortly.
MDF blended finance model
The MDF will operate on a blended finance model: 49 per cent concessional capital from the government, including contributions from state-owned major ports, and 51 per cent commercial capital from multilateral and bilateral lenders as well as sovereign funds.
Government estimates peg India’s maritime sector investment requirement between $885 billion and $940 billion by 2047, The Economic Times report said. This includes:
- $388 billion to expand shipping tonnage
- $260 billion for green vessels
- $224 billion for next-generation ports
- $18 billion to position India as a global shipbuilding and repair hub
- $8.82 billion to raise coastal and inland shipping’s share
- $1.65 billion to boost cruise tourism
Clinical Trials : Long term trend
AI enabled Medical Devices : Long term Trend
Weight loss drugs market : Long trem trend
Global AI opportunity : Long term Trend
Long term trend : Recycled Rubber
Long term trend : Migration to low cost
Food Delivery : Long term trend
Data centers India : Long term trend
Impact Of Data Localisation Laws
The Indian government’s push for data localisation, under policies like the Digital Personal Data Protection Act, has accelerated the establishment of data centres. Global players such as AWS, Microsoft, and Google are investing heavily to comply with these regulations, while Indian companies like Jio and Yotta Infrastructure are scaling up their capacities.
Green Data Centres On The Rise
Sustainability is a key focus for Indian data centres in 2025. Operators are investing in renewable energy sources like solar and wind to power facilities, with states such as Rajasthan and Gujarat leading in renewable energy adoption. Innovative cooling technologies, including liquid cooling and the use of natural resources for temperature management, are becoming standard practices to enhance energy efficiency.
Edge Computing And Regional Growth
India’s shift towards edge computing is transforming data centre architecture. With the rollout of 5G and the proliferation of IoT devices, smaller edge data centres are being established closer to users in Tier 2 and Tier 3 cities.
Expansion Of Colocation And Hyperscale Facilities
By 2025, colocation and hyperscale data centres will dominate the Indian market. Colocation facilities, which allow multiple organizations to share infrastructure, are becoming the preferred choice for startups and small businesses due to cost efficiency. On the other hand, hyperscale data centres, built to support massive data volumes for global giants like Amazon and Google, are rapidly expanding to cater to India’s growing digital needs.
Advances In Security And Automation
With increasing cyber threats, Indian data centres are integrating advanced security measures such as Zero Trust Architecture, AI-powered threat detection, and biometric access controls. Automation is playing a vital role in optimizing operations. AI systems are managing energy consumption, predicting maintenance needs, and ensuring seamless uptime, reducing operational costs while improving efficiency.
Government Support And Policy Initiatives
The Indian government’s initiatives, such as the National Policy on Software Products and state-level incentives, are creating a favourable ecosystem for data centre growth. Many states are offering subsidies on land, power tariffs, and taxes to attract data centre investments.
Opportunities In Tier 2 And Tier 3 Cities
As data consumption grows beyond urban centres, data centre operators are expanding into Tier 2 and Tier 3 cities. These locations offer lower operational costs, ample land availability, and growing demand for digital services, making them attractive for future investments.
Full article here
https://www.businessworld.in/article/data-centers-in-2025-whats-driving-the-boom-in-india-540530
Predictive maintenance : Long term trend
Hardware Security Module : Long term Potential
rPET : Long term trend
Data center : Long term trend
Ageing effects
OVER(Weight)
Data Center Capacity : Long term trend
Terminal Capacity
Credit cards rising faster : Long term Trend
E-Waste Generation : Long term trend
India AI systems : Long term trend
Bread and Bakery : Long term trend
Indian Jewellery market trends
Annual Highway Construction trend
rPET : Mega trend
OTT : Huge growth Opportunity
Demat accounts : Mega trend
Structural tubes : Long term trend
Protected: Designs make it worth
Merry Time
Lets Dive into our next research Idea
Marine Electricals
Read Pick1, Pick2, Pick3, Pick4, Pick5, Pick6, Pick7, Pick8, Pick9, Pick10, Pick11, Pick12, Pick13, Pick14, Pick15, Pick16
I also talked about the same company in my YT channel in ALPHA LEARNER DAY 28Oct 23
About the Company and Business —
Marine Electricals is an integrated technical services provider in the fields of electrical automation and information and communication technology solutions.
Marine Electricals offers integrated and multidisciplinary total solutions that lead to better business processes and more efficiency for customers and the customers they, in their turn, serve.
Established in 1978, Marine Electricals serves the market for about 34 years in diversified areas like Ship Building / Navy / Industries / Commercial Establishments. We are one of the largest supplier of Electrical & Automation Equipment for Marine Applications in India and Middle East Markets
In electrical engineering Marine Electricals covers the entire range of electrical engineering solutions of every size, such as low and medium voltage, energy distribution, measuring and control technology, instrumentation, infrastructure technology, electrical propulsion, integrated security, building management, access technology, system technology, and power electronics.
Buildings: All types of buildings including data centres, distribution centres, offices, government buildings, high rise building, laboratories, airports, penal institutions, leisure centres, stadiums, stations, universities and colleges, shopping centres, hospitals and care institutions.
Industry: A focus on power plants, the automotive industry, pharmaceuticals, chemicals and petrochemicals, the energy and environment market, pharmaceuticals, machine building, oil & gas, and the aircraft industry.
Marine: Naval vessels (logistic support ships, frigates, corvettes, patrol vessels and submarines), special ships (dredgers, offshore support ships, diving support vessels, crane ships) offshore platforms, cargo vessels (container ships, bulk carriers and other cargo ships), passenger liners and inland waterways vessels.
Company provide innovative state-of-the-art system solutions and products designed to meet the most exacting requirements for ships of all types and sizes through the entire life cycle. These range from coastal and inland shipping vessels, ocean-going passenger vessels, bulk carriers, tankers, container vessels, luxury yachts, tankers to specialist offshore, environmental and research ships as well as naval vessels.
One of the few companies in the world capable of supplying from a single in-house source the following:
- Electrical Power Packages
- Electrical Drive Systems
- Automation Systems
- Maritime Services
- Navigation and Communication Equipment
Employee –1000+
Manufacturing plants -6 across Goa, Mumbai, Chennai and UAE & Italy
Service centers – 14 Service Centers across Coastal locations in India ensures shorter Service Time for Clients
Subsidiary and Group companies
Evigo Charge Pvt. Ltd a subsidiary of Marine Electricals India Limited established in 2018, is an e- mobility venture, operating across the country and is visible through its brand Bijlify®. The company is one of the vertically integrated companies in the EV charging space, with its core activity being Design, manufacture and supply of various types of Electric Vehicle Chargers and powering up sustainable mobility through its mobile application under the Bijlify Brand. The company offers the complete eco-system including software, hardware and service for the same. The software set comprises of a next generation CPMS Terminal that is scalable and can be customized based on needs of our customers. The hardware boasts of AC and DC types of fast chargers that can accommodate the needs of most electric vehicles. All of these are designed in-house and completely tailored to offer maximum convenience to the end-user and manufactured in state-of-the-art facilities in Goa of Marine Electricals India Ltd.
STI is a group company of Marine Electricals, which is recognized as ‘Global Expert’ when it comes to renewable energy, energy efficiency and energy management.
Based in Italy, STI has its own production facility to design and engineer suitable renewable energy solutions as per the clients’ requirements.
As a leading EPC (Engineering, Procurement and Construction) company, STI provides outstanding design and engineering services, onsite project management, execution, installation, testing and commissioning as well as maintenance services across the world.
Different Segments (Industrial, Data centers, Marine, Solar, EV chargers)
Electric power generation, management and distribution is becoming increasingly important on modern day vessels. Marine Electricals can offer the entire power systems starting from the generators right up the lighting distribution panels and sockets thus offering a complete system responsibility, using the latest engineering tools Marine Electricals is able to ensure that individual components forming part of the complete system comply with the requirements( short circuit levels, discrimination, cascading, harmonic distortion, failure mode effect analysis, vibration etc.)
Marine Electricals provides solar power solutions to the industrial, institutional and commercial sectors. Right from design, engineering to project development and maintenance, we provide a comprehensive range of services to the clients looking for a reliable and environmental friendly source of electricity.
Strength, Triggers, Order books, opportunities
Strong Management team with extensive experience
CDR RAJEEV MALHOTRA
Chief Operating Officer Cdr. Rajeev Malhotra has worked in the Electrical department of Indian Navy from 1984 to Mar 2006 in various capacities at varied units of the Indian Navy, which included serving onboard warships, Warship Design directorates, Naval dockyards and ship repair yards, Quality assurance departments of MoD and Head Quarters . Thereafter joined Marine Electricals in Apr 2006 as a General Manager, Marine division. Besides steering the Planning, production, inspection and after sale service of varied customized Electrical Panels, he expanded the scope of offerings to providing solutions for Navigation & Communication for both Defense and Commercial Marine by creating required partnerships with leading manufacturers of these specialized systems, thereby providing a complete turn-key solution for new ship build programs of Defense and Commercial Marine.
CDR SHAMMI PUJJI
GM – R&D and Product Development Cdr. Shammi Pujji is management graduate engineer with more than 40 years of rich professional experience in Defence, Marine & Telecom. He heads the R & D division in addition to providing management support in business solutions. Before joining Marine Electronics family, he was Managing Director & owner of Oriole Technical Solutions Pvt Ltd ‘OTS’ specializing in indigenous solutions like WSDS (Wind Speed & Direction System), AFAS (Addressable Flood Alarm System), Ops Room Trainer (simulator for Navigation Training School, Navy), Missile & Sonar Recording Systems, and a host of software & embedded software solutions for Indian Navy. OTS is now one of the group companies of Marine Electricals.
Mr. Shammi started his career in Jan 1975 with Indian Navy as a commissioned Officer. In his 20 years of naval service, he received commendations from Chief of Naval Staff & Flag Officer Commanding-in-Chief for his out of box & innovations solutions complementing meritorious service rendered to the nation. After taking premature retirement in 1995, he served with a number of professional organizations.
As a topper in B.E. (Elec & Telecom), he pursued MBA with IGNOU, and he is a certified Lead Assessor for ISO 9001:1994 QMS. Apart from the commendations in Indian Navy, he received Bronze Medal at National Defence Academy as well.
MR. SRIRAM KRISHNAMURTHI
Solar Business Consultant Sriram Krishnamurthi has been working in Electrical and renewable industry for over 30 years. He has a PGDMM degree, and has vast experience in strategic planning, profit centre operations, business development, key account management, project management, techno commercial functions, and management in the electrical and renewable space. Adaptation to any new business and delivering results with effective peer management is one of his core competencies. He is also an expert in managing sales and distribution of B2B and B2C products, key accounts management, and effective policy management on a strategic and operation levels.
Milind Dalvi, CTO (Chief Technology Officer)
30+ years of experience into Medium Voltage and Low Voltage Switchgear Design, Instrumental in R&D, testing of equipment with certifying laboratories like ASTA, KEMA, ASEFA and CPRI. Previously worked with companies like Schneider Electric & Crompton Greaves
Esteemed clientele with strong relationships
Order book size
From Dec22 to Sep23
Current order book position standing at Rs. 482cr approximately at end of FY 2022- 2023. Considering below orders from Mar23 onwards minus the Q1Fy24–Order book looks to be around 482+102-101= ~482 Cr at 24Sep23. Few more orders came after that —so around 500cr order book is expected
From Sep23 to Jun24
To Expand Capabilities in
- IPMS for Navy
- Complete Installation Package for Naval
- Service Contract for Weapon System
Defense Tailwinds + Shipping ecosystem emerging + Increasing order book of Shipyards
Exploring new opportunities in Metro, Railways, Ports, EV Charging
Expanding Solution Offerings in Marine
- Providing IPMS for commercial ships, working on expanding it to Naval Ships
- Focusing on complete installation package for Naval Ships
- Targeting to receive Service Contract for Weapon Systems Geographical Expansion in Industrials
Geographical expansion in Industrial segment
- Entering South India with acquisition of Eltech Engineers
- Exploring acquisition opportunities to enter North & Eastern India
Evigo charge, a subsidiary, is eyeing a rapid expansion in the next couple of years. It is aiming to contribute to the country’s fascinating growth story by taking this charging ecosystem to the last mile. Over the next two fiscals it is eyeing a double digit growth.
EVIGO offers featurerich EV charging software solution
- Manage EV charging network via OCPP, handle management of charging station, partnership relations, tariffs, billing & payments, CRM & Statistics
- Provide convenient way to access charging stations through a mobile app
Certifications and Awards
Quality Management System, compliant with the international ISO 9001:2015, ISO 14001:2015 & OHSAS 18001:2007 Quality Management Standard, is certified by Indian Registrar of Quality Systems.
Financials
Time when I started buying Marine electricals
Improving sales , Stable OPM, Improving Cash conversion and Working capital cycle, Improving ROCE
Valuations
Looking reasonable considering the tailwinds in Navy and Ship building sector and upcoming Metros, Data center and EV charger industries
Technical Chart
Technical chart on 29-jun-24
Technical chart on 23Sep23 and Oct23
RISKS
Ongoing NCLT case — MEIL has purchased the property by making payment of sale consideration of Rs. 11.60 crore and stamp duty & registration fees of Rs. 1.11 crore towards registration of Sale certificate (ciemme jewels ltd liquidation)
Electrical business has high competition though their strong relationship should sail them through.
EV chargers business- Need to track this business carefully on how the margins, orders turn up in near future.
Solar panels business could be deworsification.
There is a GST notice which came in oct23 –which is also explained by company –that they have paid the GST earlier and its a mistake from Tax dept for the state in which they accounted it.
Update on NCLT case –Notification 4th oct23
Case is dismissed, Company expecting 11.6cr refund and it will be used for company own purposes, no acquistions planned in near future
Disclaimer – Analysis is NOT a BUY/SELL/HOLD Recommendation. It can be used for educational purposes. There can be lot of things which have been missed in analysis either due to lack of information or oversight etc.. Do your own diligence & contact your expert financial adviser before making any investment decision.
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
Moving ahead : Phantom FX
The visual effects of these films were done by an Indian company that has made these movies a thorough visual delight and provided millions worldwide with pulsating entertainment and ever-lasting memories.
Yes, We are talking about our next research IDEA
Phantom Digital Effect Limited (Phantom FX)
A Company that works passionately and diligently behind the Scene for hundreds of movies and documentaries to Bring Your Imagination Alive on screen
WHAT IS VFX?
Visual effects (VFX) refer to special effects that deeply reflect the story’s visual representation
VFX has evolved to deliver sights that cannot be filmed. This procedure involves the incorporation of live-action footage as well as the imagery created to create realistic scenes. It is expensive and requires considerable investment, which involves creating a large creative workforce, big state-of-the art studios and electronic instruments. Additionally, it needs an uninterrupted power supply and good cooling capabilities
Fun Fact
10% EVERY MOVIE IN ANY GENRE ACCOUNTS FOR 10% OF VFX USAGE
90% of all movies have some form of VFX involved
Before we move further , lets see what they do through a reel
About the Company and Business —
Incorporated in 2016, Phantom Digital Effect limited is a creative VFX studio that excels in creating jaw-dropping visual effects for leading movie/ documentary makers worldwide and in India. Company contribute to the production, pre and post production of feature films, web series and commercials. Besides working directly on a particular project, they take up subcontracts for large VFX studios.
PhantomFX specializes in various VFX services
- Completing a Shot with Final Compositing
- Creating 3D Elements, Photoreal creatures, and Environments
- Rig/Wire Removal, Paint cleanup, Rotoscopy
- 3D MatchMove
- 3D Animation (Story Board, Animation)
- Pre-visualisation
- Game Cinematics
- Fire/Water Fx and other natural phenomena
- 3D Ride films animation
Some stats
Geographical presence –Company has three state-of-the-art studios in Chennai, Mumbai and Hyderabad, India
And has marketing teams at Los Angeles, Vancouver and Montreal
Clients –500+
Employees/ Artists -500+
Office space 39000 Sq ft
Repeat clientele ~46%
Clients associated for more than 5 yrs –25%
International business vs Domestic business 40:60
Strength
Promoters have significant industry experience and have been instrumental in the Company’s consistent growth
Esteemed clientele with strong relationships
Good work done in past to showcase and bring new clients
Triggers
Phantom FX has recently acquired a new studio cum office space in Mumbai, Hyderabad and Chennai with the capacity to accommodate ~150, ~60 & ~50 employees, respectively.
Phantom FX plans to open office cum studio space in London and Dubai shortly
Latest update in 21Sep23
Planning to hire 2,000 more employees in the next two years.
Targeting significant contribution from the OTT sector and expects at least 50% of revenue from international operations.
The global VFX market is expected to grow from US$28.81 BILLION (2022) to US$65.45 BILLION (2030) AT 10.8% (CAGR)
According to an Indian I&B Ministry estimate, between 2023 AND 2024 the domestic VFX space is expected to GROW AT 30% (CAGR)
Increasing use of digital video streaming platforms and high-quality content has positioned VFX as an integral part of the OTT evolution
Expansion of OTT services: The proliferation of smart devices like smartphones, HDTVs, laptops, tablets and subscription-based video streaming services in both advanced and emerging economies are driving the growth in the VFX industry
Owing to the rapidly growing demand for OTT content driven by low data charges in mobile broadband, the Asia-Pacific region is expected to witness the fastest market growth till 2030. India and China are likely to surpass the continent over the medium term
Demand for highly realistic and super-quality content: Worldwide demand for high quality realistic content is driving the demand for the market. VFX alters, creates, replaces and enhances live-action media to include effects that are otherwise impossible to capture
To promote the animation, visual effects, gaming and comic sector in India, the I&B Ministry of India formed a task force likely to create nearly 2 million jobs in India. AVGC XR (Animation, Visual Effects, Gaming, Comics, and Extended Reality) Promotion Task Force recently submitted their plan with several recommendations to the Government.
Plans to foray into animation services space and tap allied field of gaming which requires extensive VFX by leveraging its capabilities and experience.
VFX Tailwinds emerging
VFX grew 30% to reach INR50 billion in 2022
- From delivering back-end services only, India has now emerged as the provider of turnkey services – from pre-visualization to final rendering. This also means an increase in both value and volume of work coming India’s way
- Indian creators investing in Advanced VFX and virtual production companies
- Domestic players expanding their base
- Tentpole movies like Avatar etc have always been heavy on VFX, and continue to be a major draw for audience across theaters as well as on OTT platforms globally
- The major draw in OTT today is episodic content across platforms. This content draws heavily on VFX and is the second-largest addressable market today
- There has been a 100% increase in high-budget films (INR100 crore or more) in India in 2022 over 2021, which increased the demand for domestic VFX services
- Large budget films tend to spend 25% to 30% of the entire budget on VFX. The corresponding number for a low to mid-size film is 10% to 15%
- Top global VFX players are turning to India to leverage the cost arbitrage that India continues to offer as sequels are generating a lower return in many cases. This will further increase the revenue from service exports
- Studios are embracing technologies like virtual production, machine learning and artificial intelligence. This is helping streamline the workflow with quicker iterations, thus improving efficiencies further
- Availability of capital for infrastructure and technology, and skilled talent are the two major challenges for growth in the segment
Top global VFX players expanded into India to leverage the cost arbitrage that India continues to offer
► For a global VFX player having operations in India, Indian VFX artists cost only one-eighth of the cost incurred on hiring artists in the UK or North America16
► In the last two years alone, the Indian visual effects industry has created 60,000 jobs, with studios like MPC in Bengaluru going for an extensive hiring spree
► In 2022, five global VFX players, including ILM, have either started operations or announced their entry into the Indian market
New subsidiaries, Offices, Capex plans, Orders, QIP
The company has recently been awarded a prestigious contracts worth Rs. 62.5 Mn which includes a significant deal valued at Rs. 40 Mn, in the field of international movie production.
Company has received work order from Netflix (Netflix Worldwide Entertainment, Netflix US and Netflix India Originals). VFX for Project includes Netflix-branded audio-visual content, whether produced directly by Netflix or licensed from a Licensor for exhibition on Netflix OTT. Time period of the order is 4 years with extension option for another 2 years. Estimated order is INR 120 Cr over 4 years.
Total order book from May23 onwards is 200cr approximately (100cr is estimated execution order for FY24)
Added 50cr more in Jan24 in order book from KJR studios after recent success of movie Ayalaan
Jun ‘23: BoD has approved the incorporation of a wholly owned subsidiary of the Company in London, UK. This will leverage the growth opportunities in the international market and avail the maximum benefit of the resources available. The business of subsidiary is in line with the main object of business of the Company.
Dec ‘22: Company has been endorsed as an Amazon-approved VFX studio. The same is notified to all Amazon productions. Due to this development, it will be able to provide various VFX services for Amazon’s production.
It has also been qualified for the Walt Disney Vendor Evaluation Program. It is authorized to receive content from Walt Disney Studios and/ or Television groups. There will be an increase in the total number of OTT Projects with the active participation by Amazon and Walt Disney for the same.
DNEG, one of the world’s leading visual effects and animation studios for feature film and television, has approved the Company as an Outsourcing Vendor to handle various assignments pertaining to their feature film, television, and multiplatform content. This association with DNEG will further boost Company’s order book and further enhance the quantum of projects.
Dec ‘22: Company announced its opening of a third office with the ability to accommodate 50 employees in Chennai.
Nov’22: Company is on the verge of completion of establishment of a new studio cum office in Bandra, Mumbai. Once operational, it will be able to accommodate 250 employees and will be equipped with infrastructural facilities for VFX studio to expand the services of the Company.
Openings recently in the company
QIP of 80cr done with renowned fund houses at 412Rs/share. What caught my eye is expansion in Gaming and Animation space
Success of Movie Ayalaan
15Feb 24 update on process of acquiring a company
Certifications and Awards
Phantom FX is TPN Certified, among the few in India with this coveted watermark.
This certification means that we are a ‘data-secure ecosystem’ that meets the rigorous standards of the MPAA.
- Excellence In Animation and Visual Effects In Times Business Awards 2022
- Company of the Year In Outlook Business ICON Awards 2023.
- VAM Awards 2022 for Best VFX Shot Award for the Movie, Dangerous
- VAM Awards 2023 – Best Simulation Effects for the Movie, Beast
- VAM Awards 2023 – “Best use of Previsualization” for the movie Beas
Financials
Management Guidance
Revenue is expected to grow by ~75-80% in FY24 led by inflow of demand for our services and effective execution of order book.
EBITDA margins is expected to stay within a corridor of 33-35%
Jun23 results shows management walking the talk
Skin in game along with FII and DII increasing stake
Valuations
Management guides 100cr revenue approximately leading to bottom line of approx. 22-27Cr
Estimated EPS 20-23, PE range 20-50 leading to price range of 400-1050
That means we are very close to low valuations
Technicals
on 27th Oct23
Interesting Pattern on 5dec23
Support demand zone seems to be respected in recent downturn
RISKS
Increasing assets and employees, if not ably supported by orders, can turn out to be a problem
Increase in trade receivables as business grows is an issue which needs to be monitored very closely
Just 1-2 bad reviews, bad work can lead to downfall of company faster than we can imagine. In simple words, clients will come because of work quality
Valuations –Company though looks undervalued considering the growth potential, but if growth stalls or new orders don’t come at an anticipated pace, then these valuations may turn out to be a trap
Heavy Dependence on Exports–Company and industry in general is dependent on International assignments. Recent strike by artists in Hollywood crippled the revenue in second quarter of H1FY24
Risk of talent poaching— The attrition rate in the VFX segment in 2022 was 25% to 30%. High poaching of mid-level talent was also observed in the segment. Almost all industry leaders were concerned about the inability to find technically skilled employees to meet the opportunities provided by the high global and domestic demand for content –Companies are working in it by implementing training programs to acquire, retain and up-skill talent
Competition: The high-margin business and its growing opportunities is attracting a number of players into this field which is increasing the competitive intensity.
Technology: VFX studios require cutting-edge technology and software to produce high quality visual effects, which can be expensive to acquire and maintain. Additionally, keeping up with the latest technological advancements can be a challenging task.
AI tools are posing a threat where with use of AI tools, movie can be created without much effort and labor. We see this as an accomplice for the company where such tools help to add value along with human creativity, Read few such article on AI impact and usage in VFX
Timeline issues: The VFX industry faces is the increasing demand for visual effects combined with tight project timelines. As clients demand high-quality visual effects in less time, VFX studios often have to work overtime to deliver the final product on time. This can lead to employee burnout and a decline in the quality of work produced, ultimately impacting the reputation of the studio
Disclaimer – Analysis is NOT a BUY/SELL/HOLD Recommendation. It can be used for educational purposes. There can be lot of things which have been missed in analysis either due to lack of information or oversight etc.. Do your own diligence & contact your expert financial adviser before making any investment decision.
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
Affordable Jewellery
Great Migration!! Not of Masai mara
Amused!!
Smart meters : Mega trend
Waste Management Industry : Long term trend
Sectors to focus in 2020-30 decade
Opportunity size in MPLS
Global Drone market
Recycling : Long term trend
Net Net Gain !!
Long term trend : Indian Air travel
Study and Play
Credit card Transactions : Mega trend
M & E sector : Long term trend
Consumer Durables : Long term trend
Data center demand : Long term trend
Some long term trends
It’s Waste!
Green Hydrogen : Long term trend
Paradigm Shift
PPE market : Long term trend
Mega trend : Lounge market
ALSO READ
Long term trend in Dairy
Domestic scrap increasing
Are we going to make J curve
Long term trend : Travel Luggage
Aluminium Freight rake : New trend
Lithium ion cell plant : Ex(cited)ide way
BESS way
Aatmnirbhar version : Toys, bicycles and gems
Renewables OA capacity
Seafood exports : Long term trend
India is moving towards…
Mega Trend: Gaming
Aatmnirbhar version : Drone manufacturing
ICE Age coming!!
Speciality Alumina Growth
Mobile vs Card Payments
Coin Based Laundromats : Long term Trend
Probiotics Bio-catalysis and Animal nutrition
Charging up : EVs
Jubilant Ingrevia : on path to be gigantic
Jubilant Ingrevia Ltd (JVL) houses the Specialty Chemicals, Nutrition & Health Solutions, and Life Science Chemicals businesses, which have been demerged from Jubilant Pharmova Ltd (erstwhile Jubilant Life Sciences Ltd)
It has a Strong presence in diverse sectors and its vertically integrated and due to this , it is Globally Lowest cost producers for most products.
Multi Location Manufacturing & Operation Excellence is achieved by company over the years
Leadership team has an average 30 years of industry experience
Company has expertise in 35 technological platforms at large commercial scale and
Company also has an expertise to handle multistep chemistry (up to 13 steps) at large scale.
Three major segments of Speciality chemicals, Nutrition and Health solutions and Life sciences chemicals
As shared from Company presentation 25% of Life sciences chemicals are consumed in house by specialty chemicals segment while for Nutrition and health solutions segment (vitamin B3, 100% in house sourcing done from Speciality chemicals)
Financial Highlights– RoE, RoCE stood at 15%+, EBITDA grew by 53% YoY while revenue from all segments growing well
Growth triggers
Company is planning to invest 900 cr (550 cr,100cr, 250 cr in different segments by FY24) and expecting 2x revenue in ~5 years
Multiple products in different segments are in pipeline to be launched in coming years
There is a strong demand for Acetic Anhydride and there is no new facility addition announcement globally in the recent past. Company’s customers are exploring to shift from high cost to low-cost countries. They are adding another Acetic Anhydride facility to increase capacity by ~35% by investing ₹250cr over next 3 years.
Co is planning to increase focus to leverage its long standing relationship with innovator pharma & agro-chemicals companies to expand its CDMO operation.
Company is also moving up the value chain in most of their product segments
In the process of launching its diketene (highly complex due to high temperature cracking and storage hazards) and its value added derivatives.
Risks
Raw Materials Prices: Key raw material for life sciences biz is acetic acid. Hence, dependent on the prices of Acetic Acid(Very volatile).
Large capex in next few years: he funding of this 900cr capex will largely from internal accruals. But if for some reason this capex is not completed on time or need more debt then it may affect profits in coming years
Exit Strategy
Acetic acid Raw material prices hurting company growth or
Any ban on application of its pyridine and similar substances by other countries can hurt the company growth
In such cases , its better to exit and have a relook on invested amount
Current Market price of 760 Rs, Company looks optically expensive for investment but looking at big picture if it sustains 10.5 eps for next 3 quarters giving 42 eps for FY22 , stock price looks to have decent upside available
Update on Q2FY22 by Company on business outlook
Update on Q3FY22 by Company on business outlook
Aatmnirbhar version : BEV and Hydrogen fuel cell
Private Labels : New trend for Food delivery
Aatmnirbhar version : PLI for electrolysers
V for VEGAN
Aatmnirbhar Version : MMF and Technical Textiles
AUDIUS : Blockchain protocol on Music
Decade of Energy transition and non ferrous metals
Innovative Agile Platforms
Farm-to-CUP on IOT : Cherise
Private trains : No Takers, still on paper
New opportunity coming : Trading in global stocks
Private Life insurers : Growing well
mjunction and mpro
PPF : Details
Prince Pipes and Fitting makes polymer pipes and fittings in India that are used in plumbing, irrigation and soil, waste and rainwater (SWR) management
It has 7,200 stock keeping units (SKUs) and 1,500+ channel partners.
Company has strong cash flow from operations and business share in Q4FY21 has been 69% from construction
Company current strategy is to expand in south india and increase distribution network while keeping the margins(EBITDA,OPM), ROCE in similar range
Company has been able to make use of 3 drivers of margin expansion in FY21 : inventory gains, product mix change, superior pricing power: past 8 Quarters company has been aggressive in passing on price .
Growth triggers
Total installed capacity of approximately 259,000 tonnes per annum (TPA). This will increase by a further 51,000TPA once its Telangana plant is fully commissioned- that means almost 20% increase in capacity
Various Government initiatives like AMRUT scheme, which is aimed at providing basic services, such as WSS, and ensuring that every household has access to assured tap water supply and a sewerage connection. Jal Jeevan mission (Urban) focuses on providing water supply to 4,378 urban local bodies with 260 million household tap connections. Nal se Jal scheme is planned to offer piped water to every rural household by 2024 –all these schemes is helping industry to grow by 35%(estimated) in next 2-3 years
There is a visible structural shift from unorganized to organised players and Prince pipes has shown both volume and sales growth wile other major players have shown de-growth in FY21
PPF is gradually increasing its emphasis on high-margin business of CPVC and double-wall corrugated pipes (DWC).
Recent tie up with Lubrizol will help the company in getting its supplies secure and as well as will attract more distributors towards company
Expansion into South India with Telangana Plant and focus on east india in coming years may keep the growth rate intact
Data-driven pull against conventional push is the new sales strategy of the company for the retail segment. Business-to-business (B2B) remains an area of improvement where PPF sees ocean of opportunities. It has moved into technology driven plumber data to move into B2B business as well as for normal business
Risks
Raw Materials Prices: Raw materials (resin) are derived from crude oil and any increase in crude oil price can hurt margins in short term.
COVID Lock-downs: Second wave of COVID, many states have had to announce lock-downs, although this time plants were not completely shut but still first quarter at least, could be dampner.
Corporate Governance Issues: There have been allegations of inadequate disclosure in the IPO prospectus of PPF PPF did not disclose all litigations, claims and criminal proceedings against the promoters (although re-filed DHRP corrected anamolies but still some differences are claimed)
No moats and No barriers to entry in this business
Fake / duplicate products can hurt company business
Exit Strategy
COVID-19 third wave creating more havoc than 2nd wave can impact the company balance sheet in big way for construction and this should be on radar
Break up with Lubrizol will definitely hurt the company and we need to relook if such thing happens in future
Any negative change in Govt policy for water schemes can hurt the growth prospects and may warrant an exit
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ALPHA AFFAIRS 