Compiled my learnings from my Stock market journey
— alphaaffairsf2f (@alphaaffairsf2f) January 1, 2022
I see them relevant today also for both new and old investors
Start of YEAR 22 –lead me to compile a thread of 22 learnings
please add further guys@sahil_vi @NiveshakBharat @Sandeep_Majjigi @719Freedom @VidyaG88
Thread🧵
1/n
Category: Stock Markets
20 Opportunities in mid 2025
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.
Protected: Positional Stocks 27-Jul-25
SYRMA SGS
We have covered this company earlier at
SYRMA SGS
Manufactures various electronic sub-assemblies, assemblies and box builds, disk drives, memory modules, power supplies/adapters, fiber optic assemblies, magnetic induction coils and RFID products, and other electronic products. The company is a part of Tandon Group with Sandeep Tandon as chairman of the company. Its manufacturing facilities are spread across Northern India (Bawal, Haryana, Manesar, Haryana, Baddi, Himachal Pradesh) and southern India – Chennai (Tamil Nadu), Bengaluru (Karnataka).
One of India’s Largest ESDM Company in the Non-Consumer Segment
300+ customers, 18 Facilities, 20+ exporting countries
with end to end capabilities and backward integration of PCB and components inhouse
Business verticals serving high growth industries
Four Dedicated R&D Facilities
1 in Germany & 3 in India
190 employees in RnD, 537 overall engineers
1800+ suppliers
Global certifications in place
Revenue splits
Opportunities and Growth Drivers
Government Initiatives
Capitalizing on government incentives such as PLI, MSIPS, ECMS, PM E-drive and EMC Tax incentives, infrastructure support
Growth of IoT & Smart Devices
IoT in industrial, automotive, consumer segments to drive customized solutions
Automotive IoT growth driven by connectivity, ADAS, personal UI, etc
Export Opportunities
Rising trend of supply chain diversification
India being favored as the global alternative as part of China + 1 strategy
Increasing outsourcing by OEMs
OEMs increasing reliance on ESDM players for cost efficiency, scalability, supply chain flexibility
Increasing focus area
Very very interesting chart on what SYRMA wants to do in coming time
RISKS
The company imports 60% of its material requirements, which exposes it to foreign exchange fluctuation risk. While part of the forex exposure is naturally hedged from exports (about 25% of the total revenue), the company takes three months forwards to cover part of the open exposure and is able to pass on the impact of foreign exchange fluctuation to customers to some extent, any major forex fluctuation can impact the margins.
Time to time changes in technology may impact business in short term
Intensive working capital nature of business may need consistent cash flows
Technicals
New CEO
Protected: Alpha 28
Protected: Positional Stocks 30-June-25
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Some interesting Snippets from Q3FY25
Data Patterns
Ami organics
Pennar Industries
Bajel Projects
Zaggle Prepaid
Blackbox
Time technoplast
Shivalik Bimetals
RATEGAIN
HSCL
Entero Healthcare
Avalon
KAYNES
KP green Engineering
Advait Energy
Antony Waste
Ganesha Ecosphere
Krishna Defense
Mtar Tech
Standard Glass
Protected: Positional Stocks 20-JAN-25
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Protected: Positional Stocks 30-Dec-24
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Time is your edge
Protected: Positional Stocks 26-Aug-24
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Hindenburg 2.0 : Its Sebi
Whistleblower Documents Reveal SEBI’s Chairperson Had Stake In Obscure Offshore entities
Mcap to GDP : India
FPI vs DII vs Retail
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Rise and Rise of individual investors
Cigar Butt Stocks
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Positional Stocks 17-Mar-24
Market took away updated SL and we did not lose anything on the positions. Following process saved us
No positions as of now. From January to March we have gradually reduced from 8 to 6 to 4 to 3 positions and did not add new ones. It really helped in this fall from Positional portfolio perspective
Act of faith
All Time high : Who will blink first
Protected: Positional Stocks 3-Mar-24
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SS-7
EMS limited
CMP 569, Market cap ~3150cr
ROCE ~32%, ROE ~24%, D/E ~0.07 PE ~29 (based on screener)
Also Read Pick1, Pick2, Pick3, Pick4, Pick5, Pick6
🟢EMS Limited is a multi-disciplinary EPC company, headquartered in Delhi that specializes in providing turnkey services in water and wastewater collection, treatment and disposal. EMS provides complete, single-source services from engineering and design to construction and installation of water, wastewater and domestic waste treatment facilities
🟢The company provides Sewage solutions, Water Supply Systems, Water and Waste Treatment Plants, Electrical Transmission and Distribution, Road and Allied works, operation and maintenance of Wastewater Scheme Projects (WWSPs) and Water Supply Scheme Projects (WSSPs) for government authorities/bodies.
🟢Healthy Order book of ~2100cr provides strong visibility of revenues over next few years. Company has repeat orders from various Government departments.
🟢EMS promoters have more than a decade of experience in executing water supply and sewage treatment projects
🟢Since incorporation, it has completed 67 projects in Bihar, Uttarakhand, Madhya Pradesh, Rajasthan, and Haryana. It has executed many projects awarded by government bodies such as Uttar Pradesh Jal Nigam (UPJN), Construction and Design Services (C&DS), Military Engineering Services (MES), and Indian Railway Construction Limited (IRCON). It has completed 4 O&M projects in last 4 years.
🟢Key clientele includes government bodies like Municipal corporation of Rajasthan (under AMRUT Scheme), Uttarakhand Urban Sector Development Agency and Bihar Urban Infrastructure Development Corporation (under National Mission for Clean Ganga ) and CPWD, Maharashtra
🟢EMS Limited has its own civil construction team and employs 57+ engineers, supported by third-party consultants and industry experts.
🟢Projects are mostly funded by World bank
🟢Development of Tier 2 Tier 3 towns, capital expenditure by Government gives good visibility for few years
🟢Promoter has sufficient skin in game with approx. 70% holdings, Sales are increasing and NPM is good
Risks
🔴Company works in a field of high capital intensive business and receivables will remain high
🔴Project execution risks within a budget are the ones which constantly hurts companies in these kind of businesses
🔴The company has not executed any HAM projects in the past but is executing one HAM project for the UP Jal Nigam. It has entered a joint venture with Ercole Marelli Impianti Tecnologici S.R.L. Italy.
🔴Revenue concentration from few clients/states poses a risk
Technical chart
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.
Protected: Positional Stocks 4-Feb-24
Stay away from FnO
Protected: Positional Stocks 27-Jan-24
SS-6
Kabra Extrusion Tecknik
CMP 417, Market cap ~1450cr
ROCE ~15%, ROE ~10%, D/E ~0.19 PE ~41 (based on screener)
Also Read Pick1, Pick2, Pick3, Pick4, Pick5
🟢Kabra Extrusion Technik Limited : It is India’s largest manufacturer of plastic extrusion machinery for more than 4 decades and recently ventured into manufacturing of Lithium-ion Battery Packs. The company is a part of the well-known Kolsite Group.
🟢In Extrusion Machinery Business it is India’s premier manufacturer & exporter of extrusion plants with presence in 100+ countries with +15,000 installations. also commands close to 40% market share in FY23
🟢Industry application in different sectors like -Packaging Industry, Infrastructure & Construction, Telecom and Plasticulture
🟢It has different products : Blown Film Lines, Pipe Extrusion Lines, Sheet Extrusion Lines, Compounding Lines and Auto Feeding Systems
🟢In new segment of Battrixx –Its an emerging leader and commands approx, 15% market share where
🟢Battrixx business is a battery related solutions for electric mobility and energy storage, Battery & related components constitutes ~35-45% of cost in an Electric Vehicle
🟢Products in Battrixx segment are Battery Packs across multiple chemistries, Battery Management Systems (BMS) and IoT Solutions
It is One of the few players with
- The ability to handle multiple chemistries & types of cells
- Chemistries – LFP, NMC, NCA, etc.
- Types of Cells – Prismatic & Cylindrical
- Expertise across Electrical & Electronics
- Smart BMS
- IoT & Telematics
- Data Analytics Solutions
🟢Company is continuously investing in RnD and want to enter E-trucks, E-buses and ESS(energy storage systems)
🟢Company is first EV battery-pack manufacturer to be accredited with ARAI certification under AIS 156 Amendment III Phase 2 for its batteries, conceptualized and designed in-house strategically with Hero Electric’s R&D team
🟢Company had earlier won 3L battery packs and chargers order from Hero Electric Mobility for FY24
Key focus areas of our R&D
Company has technical tie up with Battenfeld-Cincinnati, Extron Mecanor and Penta for different domains
🟢Company has right tailwinds in longer run
🟢Company business is profitable though facing short term headwinds
🟢Promoter has sufficient skin in game with 60% holdings, FII holdings increasing in FY24
🟢Company credit rating has been upgraded last year CRISIL A+/Stable (Upgraded from ‘CRISIL A/Positive’)
Risks
🔴Company was able to successfully established new business but EV Battery sector run into headwinds with new rules. Company was first to be accredited with certification for new rules but still headwinds not went away fully. Company might take more time based on customers business
🔴Crude oil has indirect dependency as customers order go down for new machinery with increasing crude oil price. Hopefully now Crude is stable and Pipe volumes may come up seeing the real estate boom
🔴Low OPM, NPM margins as of now –may improve with both domains of business picking up
🔴Technically weak structure for stock price
Financials
Company OPM have gone down recently and may take time to stabilize and come up. We need to carefully watch this space. Expected OPM is around 12% in longer run so enough space for company to showcase good results in coming years
Technical chart
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.
Protected: Positional Stocks 20-Jan-24
Protected: Positional Stocks 13-Jan-24
Fortnightly Thesis
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T+0
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Winner or runner up
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17 Qtrs ke baad
Survivorship bias
IPO : India Stock Market
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Junk galore
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Value creation Zone : Nifty50
Protected: Positional Stocks – 10-Sep-23
Smallcap Contribution towards 2 decade high
Give me 1 hr of yours!
Protected: Positional Stocks – 3-Sep-23
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NSE ka Dukh kab khatam hoga
Protected: Positional Stocks – 30-July-23
Winds of change
Protected: Positional Stocks – 23-July-23
New Favourite : India
You are an Idiot
ALPHA AFFAIRS 