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.
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.
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.
Axiscades Technologies Limited
Key Investment thesis –> Company focus on Aerospace, Defense, Semiconductor, Electronic system verticals and gearing up for FY26, FY27
Business
AXISCADES is a leading, end to end technology and engineering solutions provider aiding creation of innovative, sustainable and safer products worldwide. AXISCADES is headquartered in Bangalore with subsidiaries in USA, UK, Canada, Germany, India and China; and offices in Germany, France, Denmark, USA and Canada. AXISCADES has a diverse team of over 3,100 professionals working across 20 locations across North America, Europe, UK and Asia-Pacific, striving to reduce the program risk and time to market.
The company offers Product Engineering Solutions across Embedded Software and Hardware, Digitization and Automation, Mechanical Engineering, System Integration, Test Solutions, Manufacturing Engineering, Technical Publications, and Aftermarket Solutions. The solutions comprehensive portfolio covers the complete product development lifecycle from concept evaluation to manufacturing support and certification for Fortune 500 Companies in the Aerospace, Defense, Heavy Engineering, Automotive, Energy and Semiconductor industries.
Company Portfolio
Current serving Major Industries
Aerospace
Heavy Engineering
Products engineering
Products and Solutions for Defense
AIP and Energy
Semiconductors
Awards
Received 3rd consecutive Diamond supplier award from Bombardier for 2022. This recognition is a testament to our unwavering commitment to excellence, innovation, and delivering with the highest standards of quality.
Opportunities :
Unique positioning with deep domain capabilities ranging across competencies, with respect to – Electronics Products, Engineering Services and Defence
Growth driven by leveraging Digital ER&D and Defence
ER&D Services – A large and underpenetrated market with a Global TAM of ~$1 Tn
Strong Defence-Tech Play with leadership in Radar, Sonar and Electronic Warfare systems
Revenue Breakup
FY24 revenue breakup
Q1Fy25 revenues breakup
Q2Fy25 revenues breakup
Fundamental Ratios, Cash, EBITDA, PAT, SHP
Stable OPM, Stable tax, Quarterly YOY growth in sales and PAT, Borrowing reducing
DE ~0.4 , Free cash flow is good , Pledge is Nil, ROCE < 15 and ROE<10%
Promoter has sufficient skin in game, Cash flows are good, Cash conversion cycle is elongated
Triggers
Macro Trends :
Recent Triggers in last 1 year or so
Appointment of Chairman Mr. Abidali
Appointed Mr. Abidali Neemuchwala as Chairman of the Board and Non-Executive Director at AXISCADES. With a distinguished career spanning over three decades in the technology industry, he has earned enviable reputation for his expertise in aligning organizations, driving business results, and consistently leading transformational initiatives.
Strategic partnerships and Opening Engineering design center
Signed a strategic partnership with with Cantier, a Singapore-based powerhouse in Manufacturing Execution Systems (MES), with a specialization in Industry 4.0 integration to create a synergy that promises to elevate precision, efficiency, and innovation in the manufacturing sector.
Inaugurated Engineering Design Centre in Saltney, UK to serve the long-term requirements of the Aerospace Industry and various promising opportunities in the region.
Signed a strategic partnership with KANZEN Institute Asia-Pacific Pvt Ltd (KIAP), for new age Industry IIoT, Digital Automation and MES 4.0 implementation for delivering enhanced value to our Global customers.
Mergers and Acquisitionsand QIP
Completed the acquisition of add solution GmbH which will strengthen our service offerings and bring opportunities to deliver enhanced value to our combined global client base. . This will provide us with a strategic foothold in the automotive space, with significant offshoring opportunities and access to marquee global automotive OEMs.
The board has also approved the acquisition of EPCOGEN., a niche service provider in Energy space, specializing in engineering design and solutions. This proposed acquisition will strengthen our presence in energy vertical, provide access to Middle East and North American Energy markets
QIP in Jan2024 at 657Rs/share — The Company successfully concluded the Equity Raise of INR 220 Crores in January 2024, with marquee Institutional Investors subscribing to the issue. This will strengthen the balance sheet and improve profitability, Reduction in Net Borrowings by 60% from INR 214 crores to INR 85 crores, which will significantly reduce Finance Cost
Deal Wins
Deal win with Aerospace OEM with TCV of $ 18 Mn in the areas of in-service repair and manufacturing support
Design and prototype wins in several defense programs, such as HISAR, next generation ERP for combat aircrafts, Intel based SBC, DEAL satellite terminal design, DF for Naval program, adding to the production order pipeline
Digital Team ramped to 75+ FTEs with deep competencies in automation, AI/ML and robotics, with complete digital project execution capabilities
Acquisition of add-solutions GmbH and EPCOGEN, opens new vistas in Automotive and Energy Space, adding strategic logos and competencies
Q4FY24 updates
Revenue from new customer logos grows to Rs.69 crores, a growth of 5 Times over the previous year
Deal win with Aerospace OEM with TCV of $ 18 Mn in the areas of in-service repair and manufacturing support
Defense Production Revenues in Mistral triples from Rs.39 crores to Rs.112 crores, with Rs.272 crores in executable production orders
Commencement of delayed delivery of Man Portable Counter Drone System (MPCDS) to the Indian Army, with significant addressable
market in Indian Defense and Global Markets
Design and prototype wins in several defense programs, such as HISAR, next generation ERP for combat aircrafts, Intel based SBC, DEAL satellite terminal design, DF for Naval program, adding to the production order pipeline
Digital Team ramped to 75+ FTEs with deep competencies in automation, AI/ML and robotics, with complete digital project execution capabilities
Advanced level discussions with leading helicopter manufacturer for engineering and design support
New opportunities in counter drone system over next 5 years are highly promising with addressable market more than INR 3,000 Cr. 40 Nos of one of a kind Man Portable Counter Drone System (MPCDS) cleared for dispatch to the Indian Army. Balance 60 Nos under production.
Onboarded world’s largest phone and consumer electronic manufacturer as a customer with clear glide path on engagements into FY25
Order book at 30th Ap24 — 749Cr
Q1FY25 updates
Mistral Solutions received order of ₹90 crores from BEL for supplying Radar Processing Systems
Ramp up in aerospace with European OEM focused on production and plant migration efforts
Ramp up in high end cybersecurity solutioning with UK automotive manufacturer.
Onboarded an EPC major from Middle East as our customer with long term contract
Completed second tranche of delivery of Man Portable Counter Drone System (MPCDS) to the Indian Army
Expenses hit in past Q3/Q4 Fy24
Increase in finance cost due to debt funding for Mistral acquisition . In Q2 FY24, the material cost has increased due to increase in production orders in Mistral and increase in employee expenses on account of annual increments and investments in building competencies in Embedded and Digital for future growth
Q2FY25 Update
Defence revenues grew by a healthy 73% QoQ, with Defence production revenues surging by 84% QoQ, bolstered by a significant order backlog set for execution in fiscal years 2025 & 2026. With a healthy pipeline and focused approach, over the next 12-18 months, we aim the defence revenue to reach around 60% of the overall company’s revenue
Management commentary With latest focus areas
Unmanned combat, we are having anti-drone, drones, and drone controllers
Foreign OEMs, we have a three-pronged, that is, weapon package, submarine, and avionics. preferred offset partner for the weapon system, weapon package
new programs, all our missile programs, one is the largest missile program in India, another is an upgrade of the existing missile program, another is ground system for key programs
Product focus : particular product direct RF. Then there is, of course, our product X-band radar, which is primarily used in the submarine and marine systems.
Airbus, we have major programs running in India. C295, MRTT, Multi Role Transportation Tanker, which is going to be 330 based, And AVEX, of course, 319 based.
Tying with AgniKul, having an MOU with them, and approaching the ISRO, ISRO and other space agencies for two major things, NGLV, New Generation Launch Vehicle, and Bharatiya Space Station. So we want to add value to them significantly, and there could be opportunities in 3D additive manufacturing, and designing of certain subsystem blocks, etcetera. Then there is also chances for electronics-based algorithms and advanced systems, and for the guidance and navigation, that product we’ll be able to make. The third one is AI-based anomaly detection in the launching
Capturing some discussions from Dec24 confcall
C2P strategy, that is, chip to product. That is Mistral’s non-defense activity, or our group’s non-defense activity., we are shifting the center of gravity of C2P to US. Basically it will be driven out of US. We’ll have a small team there and driving the offshore team here. That’s the strategy
We are a very, very good RF in RF. We consider we are among the best in India for RF. RF and RF activities. Second is probably we are one of the best in handling mixed signals. We can handle analog, digital, RF, everything together. That is one of our forte. Third is sensor fusion. We can handle multiple sensor. Sensor fusion comes very, very handy when you deal with multiple sensor in a new AI environment, in new robotics or auto-driven and those kinds of things. We are extremely good in both. Then we are very good in ruggedization. We are especially because we are very defense focused. We can ruggedize any product and do that. And finally that we are very good in the chip, chip level, post-silicon, whatever it is, validation, verification, and take the chip to the product and then product to the customers
Continuous Hiring of Talent
Orders winning, Expansion in Middle east and Outlook for different segments by Management
Added this latest development on 17Jun25
INDRA SIGNS AGREEMENT WITH AXISCADES TO BOOST PRODUCTION OF CUTTING-EDGE SYSTEMS IN INDIA
Indra, a European-based global leader in defense, aerospace, and strategic systems, and AXISCADES a prominent technology solutions provider in defense, aerospace and strategic electronics, are proud to announce a strategic alliance.
Indra is keen to acquire defense-related products and services from AXISCADES, which will be delivered through AXISCADES’ comprehensive design, development, production, and supply chain center.
Both companies are actively exploring joint product development for the Indian and global markets, potentially adapting existing Indra products or creating new ones specifically tailored to meet customer needs.
TechnicalChart
Technical chart on 15-dec24
Technical chart on 29-dec24
Risks
Highly competitive industry
Acquisitions dont play out as anticipated
Customer concentration risk – On a consolidated basis, ~26% of ACTL’s revenues in FY23 were from its top two clients (35% in FY22).
Slowdown in Europe impacting automotive revenues
Heavy Engineering vertical remains a drag for few more qtrs although optimization work going on
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.
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.
Jash Engineering
Key Investment thesis –> Increasing Demand of Water Intake Systems, Water and Waste Water Pumping Stations and Treatment Plants, Storm Water Pumping Stations, Water Transmission Lines, Consistent Business and Order book
Jash engineering is dedicated to offering varied products for use in Water and Wastewater Pumping Stations and Treatment Plants, Storm Water Pumping Stations, Water Transmission Lines, Desalination, Power, Steel, Cement, Paper & Pulp, Petrochemicals, Chemicals, Fertilizers and other process plants. Headquartered in Indore – India, Jash has six well-integrated state-of-art manufacturing facilities, four in India and one each in the USA & UK. Global presence with bases in India / USA / Austria / Hong Kong / UK
Employees > 1075, Countries served 45+, Manufacturing units 6, Capacity utilization 70% approx
Company has many accolades, and technical collaborations
Joint Venture with Invent , Germany to manufacture their range of aeration and mixing equipment.
Technical & Financial collaboration with Schuette, Germany for Bulk solids valves
Technical Collaboration with Invent, Germany for Disc Filter
Technical collaboration with Rehart, Germany for Archimedes screw pumps & hydro power generation.
Technical collaboration with Weco Armaturen, Germany to offer its range of Valves in Asian market
Business Segments and Revenue Contribution and Products
Domestic 40%, Exports 60%
Water control gates –60% (FY24) 49%(Q1Fy25)
Valves -15% FY24, 13% Q1FY25
Screening equipment 15% FY24, 31% Q1FY25
Hydropower and pumping solutions 10% FY24, 7% Q1FY25
Clientele
Strengths :
Long standing relationships with domestic marquee customers.
Efficient business model
Strong project execution capabilities
Diversified geographical presence in India and world
Strong Technical Qualification to bid for new projects
Highly experienced Management Team
Fundamental Ratios, Cash, EBITDA, PAT
ROCE>25% and ROE> 22%, DE ~0.23 , Free cash flow is good , Pledge is Nil
Net Profit went 67X+ in 10 Years, Consistent Dividend Payout
Consistent Profit growth, sales growth, ROE over 3 years, 5 years, 10 Years
Triggers
Expanding presence and Acquisitions
Acquired Waterfront Fluid Controls Ltd, UK in 2023.
WATERFRONT UK PLANT & OFFICE INAUGURATION After successful acquisition of Waterfront Fluid Controls Ltd, UK, the company has taken manufacturing plant on lease which is adjoining shed to the present Waterfront’s shed. This plant was commissioned on 31st May 2024.
A new plant for manufacturing process equipment is under construction in Chennai. This plant will be commissioned in December 2024/Feb25. This facility is being built at an approximate cost of Rs. 20 crores and this will start contributing to improvement in revenue from April 2025 onwards. This facility at its peak production capacity will contribute up-to Rs. 100 Cr to company revenue.
A new land has been acquired for expansion of Unit 4 (Fabricated Products Plant), SEZ Unit. This new plant of ~ 55000 sq. ft. will be commissioned in FY 2025-26. Manufacture Stainless steel products for the growing export market. The construction of this plant will start in October 2024 and the plant will be commissioned by year end 2025. This plant will be constructed at a tentative cost of Rs 22-23 crores inclusive of land and at its peak production capacity will contribute up-to Rs. 100 Cr to company revenue.
Good execution and order book and Consistent new orders
946 cr order book on 1st sep24, 74cr orders in pipeline, negotiation
FY25 guidance ~675cr
New Product developments
First Vortex Grit Mechanism with Grit Classifier For 26 MLD STP Jhansi, UP Jal Nigam
Combined Screening & Grit Removal System-1MLD (PTU) for Enviro-Infra, Bareilly, UP
First set of Bladder Vessel 9 m3 x 3, 1 m3 x 3 supplied to Varanasi WSP Project
3 Wheel Sealed Version Disc Filter for 6 MLD capacity for Delhi Jal Board
Technical chart on 6 Oct 24
Risks
Large working capital requirement, cash conversion cycle is bit high Trade receivables and Inventory on higher side Rising raw material and commodity costs Increase in competitive bids for procuring the projects
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.
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.
Likhitha Infra Limited (LIL)
Key Investment thesis –> Increasing Demand of Gas pipeline Infra, City Gas distribution and National Gas policy 2030, Expanding Geographically, Consistent Business and Order book
LIL was incorporated in 1998 and is engaged in the business of pipeline laying providing comprehensive erection, testing, and commissioning of Oil and Gas pipelines, city gas distribution projects, tankage and operations and maintenance services. It is based in Hyderabad, Telangana.
Company has two (02) Joint Ventures viz., CPM-Likhitha Consortium, India and Likhitha Hak Arabia Contracting Company, Kingdom of Saudi Arabia. In addition, Company held 60% equity share capital in Likhitha Hak Arabia Contracting Company, and consequently, now it became a subsidiary of the Company
Has successfully laid over 1500 km of steel pipelines and over 1500 km of MDPE of oil & gas pipelines in the past years. Additionally, the company is laying approximately 1000 km of oil & gas pipelines for the ongoing projects Executed the First Trans-National cross-country pipeline of South-East Asia connecting India to Nepal in the year 2019, for the supply of petroleum products
Strong presence in more than 20 states and 2 Union Territories in India.
Business Segments:
a) City Gas Distribution Projects: This Involves laying of steel and MDPE pipelines for consumers across domestic, commercial and industrial sector, creating a network of pipelines along with associated facilities, Last Mile Connections, CNG Stations b) Cross Country Pipeline Projects: Laying of Cross Country Pipeline projects along with piping, civil, electrical, instrumentation and other associated works c) Operation & Maintenance Services: O&M services include providing skilled manpower, executing emergency repairs, overhauling, scheduled maintenance activities and operation of the network d) Tankage: Construction of fuel depots including storage tanks, Combined Station Works, mechanical, instrumentation, electrical, civil works, F&G system, and other associated facilities
Strengths :
Long standing relationships with domestic marquee customers.
Efficient business model
Strong project execution capabilities
Diversified geographical presence in India
Strong Technical Qualification to bid for new projects
Strong promoter holding showing skin in game
Strong Order Book 1500cr in Jun24
Highly experienced Management Team
Credit ratings –>Long term facilities A/Stable and Short term facilities A1
ROCE>30% and ROE> 20%, DE ~Nil , Free cash flow is good , Pledge is Nil
Stable OPM, Net Profit went 33X+ in 10 Years, Consistent Dividend Payout
Consistent Profit growth, sales growth, ROE over 3 years, 5 years, 10 Years
Promoter has sufficient skin in game at 70% shareholding
YouTube link
Triggers
Macro Trends :
India has set a target of increasing the share of natural gas in the overall energy mix to 15% from present 6.7%.
As per the Government policies, PNGRB has increased the number of Geographical Areas (GAs) to 228 comprising of 402 districts spread over 27 States and Union Territories, covering 70% of Indian population and 53% of its area. These recent Government initiatives have provided lucrative opportunities for Oil & Gas infrastructure service providers
Recent policy moves, including a wide-scale rollout of CNG and the expansion of gas infrastructure including LNG terminals, long-distance transmission pipelines and city gas distribution networks, will help drive 30bnm³ of gas demand growth over the next decade through fuel switching away from coal and oil. A recent switch to CNG from coal in India’s brick industry is encouraging greater gas use.
India is set to dominate the number of trunk/ transmission pipeline projects that are expected to start operations in Asia during 2024-2028, contributing about 43% (62 projects) of the region’s total projects count by 2028. The transmission pipeline length of 29,800 kms is expected to be added, says GlobalData, a leading data and analytics company.
The gas pipeline infrastructure has been seeing intense development activity. The Government of India has set a target to reach 34,500 km by 2024-25 end from 22, 335 km as on January, 2023. Furthermore, plans to connect states with the trunk natural gas pipeline network by 2027 are gathering momentum.
In terms of investments, the Petroleum and Natural Gas Ministry said about ` 41,000 crore ($4.95 billion) are expected from companies to build natural gas pipeline infrastructure in the northeastern states and northern federal territories of Kashmir and Ladakh. The thrust on natural gas and government policy initiatives are in line with India’s global commitments to boost the use of cleaner fuels and cut carbon emissions with the ultimate goal of achieving net zero carbon emissions by 2070.
Expanding presence
In line with growth strategy, Company has entered new markets such as the Kingdom of Saudi Arabia and the United Arab Emirates, where we see substantial opportunities in the oil and gas infrastructure sector. The company has been exploring growth opportunities beyond India. We have formed a joint venture firm in Saudi Arabia and have opened a branch office in Abu Dhabi, UAE to explore business prospects in the Middle East markets which promise long-term growth for pipeline infrastructure development.
The Indian government’s continued emphasis on expanding the oil and gas transportation network and promoting city gas distribution projects provides us with a steady stream of contracts.
India’s energy consumption is on the rise, with the country consuming 19.9 million metric tonnes of petroleum products and 5.51 BCM of natural gas during FY 2023-24. As the world’s third-largest consumer of energy, India’s demand for natural gas is expected to grow fivefold by 2047, in line with the nation’s vision of becoming a developed nation by its centennial year
Good execution and order book and Consistent new orders
Technical chart on 21st Sep24
Risks
Large working capital requirement, cash conversion cycle is bit high Trade receivables and Inventory on higher side Any change in CGD policy Rising raw material and commodity costs The Company is deriving significant portion of orders from major Oil & Gas distribution companies inducing a client concentration risk Increase in competitive bids for procuring the projects
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.
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.
Aeroflex Industries
Key Investment thesis –> Increasing Demand of HVAC system, Large Scale Industrialization, Modernization in Agriculture and Demand from new edge industries like Aerospace, Satellite, Solar and Robotics
Company is one of the leading Indian manufacturers of metallic flexible flow solutions made with stainless steel used for controlled flow of all forms of substances including Solid, Liquid, and Gas. Incorporated in 1993, co. is part of Sat Industries Limited.
Product Profile: Braided hoses, unbraided hoses, solar hoses, gas hoses, vacuum hoses, braiding, interlock hoses, hose assemblies, lancing hose assemblies, jacketed hose assemblies, exhaust connectors, exhaust gas recirculation (EGR) tubes, expansion bellows, compensators, and related end fittings.
Exports to 89 countries across Asia, Americas, Europe and Africa, through a diversified go-tomarket model
Scalable and Customized flexible flow solution products
Current serving Major Industries
Steel & Metal
Oil & Gas
Chemicals
Sea Port Terminal Handling
Paper & Pulp
Pharmaceutical
Strengths :
Extensive Promoter experience
Employee strength -500+
The company has 2500+ SKUs
Strategically Located Near JNPT Port
80+ machine lines
72+ Products across various stages of Research and Development
14 Qualified R&D Team
NABL Accredited Lab
ISO 9001:2015, ISO 45001:2018 and ISO 14001:2015 certified;
Adherence to global standards
Revenue Breakup
Fundamental Ratios, Cash, EBITDA, PAT
ROCE asnd ROE> 20%, DE ~Nil , Free cash flow is good , Pledge is Nil
Stable OPM, Net Profit went 8X+
Promoter has skin in game + Big Shark Ashish Kacholia holding 3.6%
Triggers
Macro Trends :
▪ Global market for SS flexible hose has grown at a CAGR of 8.2% to value at approximately USD 3.3 Bn in 2022 ▪ Traditionally, the demand for Flexible Flow Solutions made with Stainless Steel Corrugation was largely driven by the industrial sector – manufacturing plants and manufacturing products from chemicals to paper ▪ Between FY’18-9M FY23, over 1,840 projects (brownfield and greenfield) were completed in the manufacturing ▪ With Flexible Flow Solutions made with Stainless Steel Corrugation application being universal, this large base is believed to have supported a strong demand for the product ▪ Given the increasing preference for Flexible Flow Solutions made with Stainless Steel Corrugation in place of rubber / PTFE / polymer hoses, the demand for the former from the industrial sector would be stable
Company has worked on Capacity Expansion, value added products
Expanding our presence to:
Electric Mobility
Fire Sprinklers
Solar
Robotics
Semiconductors
Aerospace and Satellite
Management commentary in Q1Fy25 results
Increasing margins possibilities, Increasing orders from assemblies, Focus on value added offerings, possible inorganic Way of expansion, Acquisition
Technicals
Technical chart on 8th Sep24
Risks
PE is bit high in short term
Large working capital requirement, cash conversion cycle is bit high
Exposure to volatile raw material price
Acquisitions dont play as anticipated
Demand dont originate as anticipated
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.
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.
Servotech Power
Key Investment thesis –> Developing EV charging Infra and Delivering Solar Rooftop solutions across India. Key Business wins for EV charging Infra, Association with key businesses B2B
SPSL is in the business of high-end solar products and EV chargers. It develops ultra -fast DC chargers and Home AC chargers, and has installed over 2400 EV chargers in collaboration with oil marketing companies
Product Profile: a) EV Charger: Electric Vehicle Charging Station, AC Charger, DC Charger b) Solar Products: Solar Inverter, Solar Panels, Solar Batteries, ServPort, SMU c) Power & Backup: Battery, Servo Stabilizer, etc. d) LEDs: Domestic LED, Commercial LED e) Oxygen Concentrator: Oxygen Concentrator 5L and Oxygen Concentrator 10L f) UVC: UV-C Handheld Disinfection Lamp – 6W, Portable UV-C Disinfection Lamp – 36W (Sensor Equipped), Portable UV-C Disinfection Lamp – 38W, UV-C Disinfection RoboTruk – 150W, UV-C Sterilization Bag, UV-C LED Sterilization Box with 10W Wifi Charger, UV Sterilization Box with Charger, UV-C Car Intelligent Sanitizer, Car Air Sanitizer, UV Air Purifier, FAR UV-C Digital Sanitizer
Covered the thesis here in quick 12 min Video
Well-equipped 2 manufacturing facilities spanning over 80,000 sq. ft. and 1,44,000 sq. ft. respectively in Sonipat, Haryana
Capacity to manufacture 30,000 AC EV Chargers and 12,000 DC EV chargers annually
The company is majorly into B2B operations and having Marquee clientele comprising of BPCL, IOCL, HPCL, Nayara Energy, UPNEDA and others
Employee strength -500+
Revenue Breakup
Range of EV AC AND DC chargers
DC chargers have amazing features on fast port, advanced connectivity and user friendliness
Range of Solar solutions
Solar panels, Solar Inverters, Solar Batteries
ESS : Energy storage system (Major tailwinds may appear here)
Solar Street light (too much commodity)
Solar charge controller
EV CHARGER Components
Another interesting solution is Servport
Fundamental Ratios, Cash, EBITDA, PAT
ROCE and ROE > 10%, Pledging 0%, Debt to equity under control
High TTM PE and PB ratio
12X Sales and 12X PAT in 10 Years, Stable EBITDA numbers, Improving NPM
Promoter has good skin in game at ~60% shareholding, FII holding 5% approx
Cash conversion cycle have improved in recent years
Triggers
Macro Trends :
Developing EV charging Infra and Solar Rooftop solutions Infra across India
Journey and recent forays
Government subsidies & policies promoting local manufacturing of EV Components and sustainable energy resources
Growing need for carbon neutral has increased the demand forsustainable energy solution
Increasing demand for EV charging stations with healthy traction in order pipeline in addition to a sizable order backlog. Govt. allocate subsidies of INR 800 Cr to set up 22,000 fast chargers at various fuel pumps across India. The government has sanctioned 2,877 such charging stations across 68 cities in 25 states and UTs. In addition, 1,576 charging stations on nine expressways and 16 highways have also been sanctioned.
Projections indicate that fast-charging stations will witness a CAGR of over 40% by 2025.
New additions in budget 2024 like Pumped Storage Policy and exemption of customs duty on lithium will incentivize renewable energy integration and adoption
Rising urbanization and awareness of climate change have led to increase in demand for cost-efficient products
PM Suryodaya Yojana to solarize 1 Cr Households. 50 solar parks with an aggregate capacity of 37.49 GW have been approved in India
Company has worked on Capacity Expansion
Preferential shares allotment and warrants issued at 83 Rs (approx raised 74cr)
Backward integration efforts for key components (control set and power module) are on track, with the control set already being manufactured in India.
Solar Segment:
Regular monthly sales of ₹8-10 crores in the solar segment, targeting a total of ₹100-150 crores annually.
Plans to expand presence in 20-21 states within two months to leverage government schemes for household electricity.
International Expansion:
Export business is expected to grow, with previous year’s revenue at approximately ₹40 crores and positive momentum for future exports.
Attending international exhibitions and establishing a dedicated export team.
Patents; Innovation and Leadership
51% Growth in the Dealer & Distributor Network
Hired 128+ employees in Q1
Coninuous order wins from Major OEM’s —Current order book stands at approximately 8,000-8,500 pieces of DC chargers, indicating strong demand.
Order win from BPCL worth ₹120 Crs for the supply of 1,800 DC EV chargers
Order win from IOCL and other EV Charger OEM’s worth ₹111 Crs for the supply of 1,400 DC EV chargers
Order win from BPCL for the supply of 2,649 AC EV chargers
Order win from HPCL and other EV charger OEM’s worth ₹102 Crs for the supply of 1,500 DC EV chargers
Signed a contract with Adani Total Energies E-Mobility Ltd. (ATEL) for the supply of AC EV chargers
SPSL will be responsible for manufacturing, supplying and Installing AC EV Chargers at different Airports and other said locations
Collaborated with an international company to enhance its in-house components manufacturing.
SPSL will be constructing a cutting-edge manufacturing facility focused on the production of Power Modules, Control Circuits, and PLCs. The new plant will have an initial annual production capacity of 24,000 power modules & will ramp up its production capacity to 2.4 lakh power modules annually
Solar energy storage
Servotech Secures Order of around 1.2 MW Solar Energy Storage and Grid Connected Systems from Rural Development Department and UPNEDA. Servotech will be responsible for installing multiple 75kW solar-based energy storage systems, designed to provide reliable and uninterrupted power supply across Uttar Pradesh. Additionally, the company will also be designing, manufacturing, supplying, erecting, testing and commissioning 20 kW and 40 kW grid-connected solar power systems, contributing to the state’s renewable energy goals. This order will prove to be essential for overcoming geographical and infrastructural challenges in areas of Uttar Pradesh by enabling a broader reach of sustainable energy solutions and ensuring the penetration of renewable energy into the grid.
Creating new subsidiary “Servotech Sports and Entertainment Pvt. Ltd.”
Servotech aims to capitalize on the sporting fervor, its immense popularity, and global appeal to strengthen its brand presence and connect with a wider audience base. This strategic alignment presents an exciting opportunity for Servotech to extend its reach beyond its industry boundaries and tap into new avenues of success and engagement, establishing itself as not just a leader in the EV charging and solar energy sectors, but also as a prominent player in the sports industry.
Technicals
Technical chart on 21st Aug24
Risks
Consistent Equity dilution, consistent increase in borrowing and Negative cash flows poses risk to company business growth
PE is high and any 2 bad qtrs can screw the returns profile from the current levels
Large capital working requirements is another thing to watch out for
Highly competitive industry both in Solar and EV industry
Delay in projects due to Govt policies or Land acquisition issues
Components import is another risk
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.
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.
Oriental Rail Infra
Key Investment thesis –> Providing Infra to Railway sector. Govt focus and orders landing up fast to Railway vendors. Oriental rail Infra is prime contender for seats and birth for new coaches. Apart from that New wagons orders also flowing
Oriental Rail Infrastructure Limited (ORIL) (formerly know as Oriental Veneer Products Limited) is engaged in manufacturing and supply of rail products predominantly for Indian Railways(IR). It manufactures Seats and Berths, Chairs, Lavatory doors etc. for all types of passenger coaches. It also manufactures Heavy Engineering equipment’s like Railway Rolling Stock, a diverse range of products which includes Wagons, Bogie, Coupler & Draft Gears through its wholly owned subsidiary Oriental Foundry Private Limited (OFPL).
Manufacturing Facility for Silicon Foam, Seats and Berth, Rexine, Compreg Board, PU Foam used for Seats & Berths, Recron used for Seats & Berths
Only Listed player in Seats & Berths in Organised sector
RDSO Certified and preferred vendor
1000+ employee strength
This Wagon capacity has been increased to 2400 wagons in Sep2023
Preferential shares allotment and warrants issued at 169 Rs (approx 200cr raised)
Order Book and strength
Company has a strong order book of more than 1200cr
Strong promoter background
3 decade old company
Big clients
Fundamental Ratios, Cash, EBITDA, PAT
Sales and profit 7x and 10x approximately in last 9 years
ROCE and ROE >12 %
Debt to equity is okayish at ~1, Pledging is 0%
Promoter has good skin in game at ~55% shareholding and big players entered recently including Mukul Agarwal
Triggers
Macro Trends :
Amid rising demand for coal freight and an aggressive push towards diversifying its freight basket, IR is planning to buy 1,00,000 more Wagons over the next three financial years Under the National Rail Plan(NRP), Centre wants to significantly increase the national transporter’s freight numbers, along with its modal freight share to 45 per cent by 2030. As per GOI estimates, consolidated demand for freight will be over 6,300 Million Tons (MT) by 2026 and 8,220 MT by 2031 Having ferried 1,418 MT in this fiscal, the national transporter would need to account for over 3,600 MT in 2031 to meet its NRP targets.
Company has worked on
Backward integration, Capacity Expansion, High Value Products and Client Diversification
Technicals
Technical chart in 10th Aug24
Risks
Working capital intensive nature of operations
Operating Cash flows are not good. Working capital days, Cash conversion cycle, ROCE, ROE needs to improve
Strong dependency on big customer IR
Margins are fluctuating in past based on execution and delivery. Not easy to predict bad or good quarters for company business
Susceptibility of profitability to volatility in raw material prices – ORIL’s product mix mainly includes seats, berths, compreg boards wherein the major raw materials are wood, rexene, cloth, foams, recron and various other solvents. Major raw material is supplied inhouse like company manufactures rexene and foam useful in manufacturing of seats. Other raw material consumed for manufacturing of seats includes veneer, which is formed from timber and company procures timber from local market. Its profitability is susceptible to fluctuations in the prices of wood as it serves as the main raw material for manufacturing of veneers, particle boards, plywood and compreg boards. For wagons, bogies and coupler body, major raw material is steel or scrap of steel which is procured from local market whose prices are highly volatile in nature. However, the company has a price variation clause inbuilt for key raw material, i.e., steel and wheels if procured from Indian Railways, thus reducing the price volatility to that extant
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.
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This is a unique live program for 2.5years approx. with live classes for approx. 5-6 months (on weekends) and 2 years of handholding further
Where one can learn necessary
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Capex, Opex and how it impacts and when it impacts
Why certain high pe stocks keep on running and low pe stocks remain down
Red flags and green flags
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Technical understanding of Targets from different patterns, How to look for patterns and when to look for which pattern
Resources to analyze faster to analyze more companies faster
Understand Contrarian, Cyclical, Value and Growth investing
Bucket and GRADE Framework
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Exit Strategies in stocks
Reading Balances sheet in simple way to analyze results and issues to make quick exits or to do pyramiding after results
Reading Cash flows in simple way to understand where money is being moved in company
Reading Quarterly, half yearly, yearly results and interpreting them better
Tricks and Checklist for faster analysis of Annual Reports to help us all understand whether to deep dive or not
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Time period 2.5 Years
Starting time 21st jul24
Live classes on Sunday Morning/afternoon mostly
Time duration of each lecture –approx 1.5 to 2 Hrs
Time period of live classes 6 months approx.
Each session recorded and shared with participants
Next 2 years handholding to close the GAPS in knowledge with Handholding, Quizzes, Exercises, Bonus sessions, Charts, Fundamentals and Business analysis from time to time
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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.
Jupiter Wagons Limited (JWL) is a provider of comprehensive mobility solutions, with diverse offerings across Freight Wagons, Locomotives, Passenger Coaches (LHB), Braking Systems, Metro Coach, Commercial Vehicles, ISO Marine Containers, and products such as Couplers, Draft Gears, Bogies, and CMS Crossings. JWL has manufacturing facilities located in Kolkata, Jamshedpur, Indore, and Jabalpur with full backward integration to its foundry operations.
With a rich legacy over four decades, the Company has leveraged its deep technological capabilities and robust financial position to emerge as a one-stop shop for mobility solutions and reinforce its position as one of the fastest growing within the industry.
Products, Segments
Railway Wagons
Commercial Vehicles incluising Electric Light Commercial Vehicle business (eLCV)
CMS Crossing
Brake Systems & Brake Disc
Containers including Flex Containers, Marine containers , BESS containers
Strengthsand Certifications
The Group has established partnerships with leading global companies such as Tatravagonka (Slovakia), DAKO-CZ (Czech Republic), Kovis Proizvodna (Slovenia), Telleres Alegria S.A (Spain).
Marquee clients associated with company
JWL is one of India’s largest wagon manufacturers, with a capacity of 9,600 wagons per annum
Improving scale of operations
Healthy order book providing revenue visibility
Experienced Management and leadership team
12 World-class manufacturing facilities
3,000+ Workforce
Clients
Catering to industries such as Railways (Freight + Passenger), Metro Rail, Automobile, Transportation, Logistics, Construction Equipment, Municipalities, Healthcare, Energy, Mining and Infrastructure, the Company boasts a marquee client base including the Indian Railways, American Railroads, Indian Ministry of Defense, Tata Motors, GE, Volvo Eicher Motors
Joint Ventures
Fundamental Ratios, Cash, Loans, EBITDA,PAT margin, Shareholding pattern
Consistent increase in sales over last 12 qtrs barring a quarter or so Profits have multiplies by 8x in last 2 years
Consistent Tax records
ROCE and ROE is reasonably above 20%
Promoter has skin in game, FII is increasing stake, DII stake is stable
Recent Developmentsand Key Triggers
Dedicated Freight corridor, Projected Wagon demand, Improving logistics share through Railways are big triggers for continuous growth of this segment
JWL has made a strategic entry into the global markets by signing a long-term Memorandum of Understanding (MOU) with RITES Limited, a prominent PSU associated with the Indian Railways, to explore opportunities in the international market for railway rolling stock projects. JWL’s focus is on the design, manufacturing, and supply of Railway wagons.
The Company is focusing efforts on achieving Import Substitution, particularly in the areas of High-tech and Highend Containers. To further elevate global competitiveness, manufacturing facilities have been fully automated, enabling consistent production and maintaining world-class quality standards. The manufacturing facility is certified by both ‘LRQA’ and ‘BVQI’.
A new foundry is scheduled to be established in Jabalpur over the next 18 months with a capacity of 2,000 tonnes, catering to both captive use and exports. This initiative is expected to yield cost savings in freight expenses.
In the Marine Container Business, the outlook for specialized containers is improving as the Company has: Secured a contract for 40-foot ‘Open Top, Coil Containers’ with a pilot order worth ₹ 1,000 lakh.
Received a Letter of Intent (LOI) from an Indian Subsidiary of a Prestigious Global Group for the supply of 1,000 units of special Flex Inverter containers for the fiscal year 2024-25.
JV Company JWL DAKO CZ India Ltd. has received an order aggregating ~₹ 11,200 lakh for axle-mounted disc brake systems from Indian Railways.
The BESS container, a key element in Solar and Data Centre Containers, offering energy storage capabilities has a huge market opportunity in round-the-clock Renewable Energy Projects as well as Commercial Industrial Energy storage in both domestic and international markets. With Jupiter’s expertise in making containers for this application, we now are looking forward to adding more value for the same by creating complete integrated solutions for varied markets.
Successful Qualified Institutional Placement (QIP) in May and December 2023 amounting to ~ ₹ 528cr which includes prominent investors, including DIIs like Tata MF, HSBC MF, Bandhan Equity Fund, and FII’s like Societe Generale, and Copthall Mauritius Investment Limited.
JWL is one of India’s largest wagon manufacturers, with a capacity of 9,600 wagons per annum with plans to enhance capacity to 12,000 wagons per annum by Q1 fiscal 2025.
JWL has also ventured in brake disc, brake systems for rolling stock and weldable CMS Crossing manufacturing during fiscals 2023-24 equipping JWL to capitalize on robust spendings for developing high speed train infrastructure, and to fortify its market position in this segment, in Q1 fiscal 2024 JWL has acquired Stone India Limited, having extensive infrastructure and licensing for brake manufacturing.
Valuations
Looking at their growth currently and opportunity size in coming years, Stock is trading at fair value. Once the capacity comes online and if company executes the order well , it might look undervalued intermittently
Risks
Exposure to risks relating to fluctuation in raw material prices and intense competition: The key inputs include steel and related products. While the IR projects generally have a long execution period and are covered by a price-variation clause to a large extent, private sector orders are generally fixed in nature.
Cash flows poses a big risk due to intensive working capital operations
Valuations are subjective but definitely its not hugely undervalued in short term
Most orders are from Railways and have this dependency in business, though company is trying to diversify
Technicals on 11-May-24
Conclusion
If you have understood the triggers and industries it cater to + RISKS which can materialize and have patience then think of buying this company in every dip, market offers, else Ignore the stock
Stock might be volatile in short term and give a chance to buy around 425-525 range for long term investment purpose
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.
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.
Savita Oil Technologies Limited, established in 1961, is a specialty petroleum products company engaged in manufacturing Transformer Oils, White Oils etc.
The Co manufactures products like Transformer Oils, Liquid Paraffins, White Oils, Automotive and Industrial Lubricants, Coolants and Greases, among others. These products are essentially obtained through refining base oil, and topped with additives to derive the required characteristics. A wide range of lubricants, greases, and coolants of the Co are sold to retail customers under the brand SAVSOL
The Co has a market share of ~35% in the domestic transformer oil and white oil segments.
The Co’s manufacturing facilities are situated in the state of Maharashtra and at Silvassa in the UT of Dadra and Nagar Haveli and Daman and Diu with total refining capacities of 450,000 kilolitres per annum. Its windmills are located at 18 sites in the states of Maharashtra, Tamil Nadu, and Karnataka and have an installed capacity to produce 54.15 MW of wind-powered electricity
Company has 80 % domestic sales vs 20% exports
Revenue distribution 75% from petroleum and 25% from lubricating oils
Unit I – Navi Mumbai, Maharashtra Unit II – Mahad, Maharashtra Unit III – Kharadpada, Silvassa Unit IV – Silli, Silvassa
41 Stock points,
20,000 Retailers
400 Distributors
1,500 Franchise Dealers
Products, Segments and Strengths
Two major segments : Petroleum Oils and Lubricating Oils
Petroleum oils : Transformer oils, White and Mineral oil, Speciality oil : ~75% sales as portion of total sales over last 2 years
Transformer oils : These oils are used as an insulating and cooling medium in distribution transformers, power transformers and instrumentation transformers
White oils :
Offer wide range of highly refined specialty mineral oil based products under the “TECHNOL” and “SAVONOL” brand.
They manufacture petroleum jellies like Ultima White, Snow White, Yellow Petroleum Jelly and other specific industrial grade petrolatum’s under the brand “Savogel”
Key properties of this fluids are good lubricity, smoothness, softness and resistance to moisture in the formulations
Specialized waxes and emulsions including paraffin wax emulsions, microcrystalline wax, Polyethylene wax, oxidized PE wax and a range of wax emulsions. Wax Emulsion protect coating and ink surfaces for diverse applications
Cable filling and flooding compounds for copper cables as well as Optic Fiber Cables under “Savofil”, “Savoflod” and “Vitagel” brand names. This compound helps moisture tolerance, softness and stability at an extreme temperature
3.Formulated & Specialty Products
The 5G Telecom spectrum auction held in 2022 and subsequent rollout of the network is expected to generate healthy demand for this product
› Growing demand from end user market
› Government Linked PLI Scheme
Key Growth Drivers
Optic Fibre Cables
Textile & Leather
Auto components
Polymers
Refrigeration Compressors
Construction Compounds
Lubricating oils : Automotive and Industrial oils
Automotive oils
The lubricant brand SAVSOL manufactures and markets high performance lubricants, fluids, coolants & greases and is amongst the fastest growing lubricant brand of India
It has a comprehensive range of automotive lubricants meeting the growing demand for sustainable products in various categories, i.e., Passenger Car Oils, Motorcycle Oils, Commercial Vehicle Oils, and Other Specialty Products
SAVSOL portfolio has products which successfully meets the latest & stringent BS VI emission norms for automobiles
Savita Oil Technologies known for its high quality lubricant manufacturing with state-of-the-art plants and technology centre has been amongst preferred supplier to automotive OEMs for a wide range of lubricant applications
Trusted partner for leading automotive OEMs. Some of our OEM associations are existing for over two decades
A fully equipped technical and quality control lab ensures high quality standards
Industrial oils
Savita Oil Technologies has been a trusted partner to Industrial OEMs for a wide range of lubricant application needs.
› It has an elaborate product portfolio under Brand “SAVSOL” catering to various Industrial applications and provides
excellent lubrication, performance and protection to different types of Machines and Industrial Equipment
The exhaustive portfolio includes wide range of Hydraulic Oils, Turbine Oils, Thermic Fluids, Heavy Duty Industrial Gear
Oils, Transmission Oils, Greases, Heat Treatment (Quenching Oils), Metal Working Oils and other Specialty Oils
Strengths
Multi-decade relationships with many of our OEM and B2B customers across all product lines
In-house technology and R&D is the backbone of our company and has manifested many high quality products across the product portfolio.
Focus on innovation
Focus on sustainable products development
Management has almost 3 decades of experience.
Company has ISO and other necessary certifications in its field of operations
Clients
Fundamental Ratios, Cash, Loans, EBITDA,PAT margin, Shareholding pattern
Consistent record of Dividends since listing in 1994 Healthy cash generation over the years Debt free balance sheet Consistent track of profitability despite market volatility Longstanding relationships with customers and vendors
Consistent Tax records
Cash conversion cycle and working capital cycle is good.
Cash flows seems good
ROCE is reasonably above 20%
Shareholding pattern
Promoter has skin in game. SBI energy fund has entered recently
Transformer oils : Rising Investments over the next decade in transmission segment to support higher generation capacity and rural electrification Rising demand for modernization of aging grid infrastructure coupled with large scale capacity addition will boost the market
White oils : The Indian personal care industry is witnessing a boom due to changing perceptions, growing awareness, and the rise of direct-to-consumer (D2C) companies making waves in the online retail space Growing demand of cosmetic and pharma products from urban & rural India
Product Innovation
Company is focused on building an independent distribution network for our industrial lubricants and with this now in place , they want to rapidly scale up industrial lubricant volumes
Company has created a subsidiary and moving towards plastic recycling
Savita Greentec Limited (a subsidiary of Savita Oil Technologies Limited) is expected to commence construction of Greenfield Projects in plastic recycling in theQ4Fy24
SAVSOL Bio Boost, one of India’s most biodegradable engine oils is launched
Oct23 – successfully commissioned new Synthetic Ester manufacturing plant
Commissioned new Synthetic Ester manufacturing plant at Mahad, Maharashtra with a designed capacity of 5,000 metric tons of which current operational capacity would be ~3,000 metric tonnes per annum
The new synthetic ester manufacturing plant will provide a strategic advantage to Savita by making it the first company in the world to manufacture and market all three classes of Transformer Fluids vis. Mineral Oil Based, Natural Ester Based as well as Synthetic Ester Based Transformer Fluids. The applications of these Esters are very versatile, and we will be able to leverage our existing client base to cross-sell these products while tapping new clientele. With these plant-based esters, we will have a more sustainable and environment friendly product range in the premium and synthetic categories. We plan to launch a new range of EV Coolants and immersion Cooling Fluids based on Esters from this plant. One of our products has already been approved by a reputed OEM as an EV coolant. We are also undertaking trials with another potential customer for immersion cooling.
Environment friendly products
Company have evaluated the introduction of versatile ester-based compounds (esters) in product range to enhance our diversified offerings of environmentally friendly products. Group V Base Oils comprising Polyol, Phosphate and other Esters are the most superior performing fluids that exceed the performance of synthetic base oils on parameters of lubrication, thermal stability, oxidative stability, compatibility with most metals and sealants and biodegradable with low toxicity
Modernisation of Existing Transformers: Majority of India’s transformers and power infrastructure components are ageing and need replacement or modernisation. This drives the demand for newer, more efficient, and technologically advanced transformers.
Implementation of Smart Grid: The development of smart grids requires intelligent transformers that can handle bidirectional power flow, manage voltage fluctuations, and support grid automation. This opens avenues for technologically advanced transformers. Moreover, the demand for energy-efficient transformers that reduce transmission losses and improve overall grid efficiency is steadily expanding in India. The transformer fluids market in India holds promising opportunities as the country strives to meet its increasing power demands while addressing environmental concerns and adopting technological advancements.
Company is seeing a substantial increase in customer order books within the Power and Distribution Transformer sector, with their production capacity reserved for the coming 12-16 months. This heightened demand extends beyond India; the export segment to North America and other regions is also demonstrating promising growth potential. This is attributed to India’s competitive manufacturing ecosystem for transformers, well-suited to meet global requirements.
Alternative Fluids Bio-Based – Your Company also produces bioTransol, a natural ester-based insulating fluid designed for transformers. This groundbreaking product was originally launched by Savita Polymers Limited (earlier a wholly-owned subsidiary of your Company which is in the process of being merged into your Company), in 2015. Remarkably, it marked the first instance of an Indian company introducing such a product to the market. With an extensive reach, bioTransol has been applied to over 300 projects, solidifying its impact. This product promotes environmental consciousness with a high proportion of biodegradability. Moreover, its safety and efficiency surpass conventional options across various equipment applications. Your Company is actively engaged in collaborating with major national and state utility boards, as well as Original Equipment Manufacturers (OEM) clients, to showcase the product’s merits. Not only does bioTransol offer a more effective solution within its grade, but it also embodies environmental sustainability. In an environment where global OEMs are compelled to reduce their carbon footprint, the appeal of such products is further enhanced. Company is confident that the adoption of Natural Ester-Based Transformer Fluids will witness substantial growth, becoming an integral component of OEM consumption.
Synthetic Based – Your Company is poised to introduce Transol Synth100, a cutting-edge synthetic ester-based insulation fluid. This fluid represents a significant advancement in transformer fluid technology, surpassing existing solutions across a range of parameters. Transol Synth100 stands as the most robust transformer fluid to date. As this product comes at a higher cost compared to mineral or natural esters, Transol Synth100 finds application in highly sensitive applications such as Locomotives (Metro and Rail), Mining, and Floating Solar projects. The overall lifecycle cost of this fluid effectively offsets its initial investment which will serve as a key driving force in the gradual transition from mineral to ester fluids within the ecosystem. With the launch of Transol Synth100 in the coming financial year, your Company will achieve a remarkable milestone, emerging as the sole manufacturer of the entire spectrum of transformer fluids – Mineral, Natural, and Synthetic.
Capex
Capacity Expansion Increasing capacity through continued investments for efficient leveraging of comprehensive and balanced product portfolio
Valuations
Reasonable valuations with PE <20. If the company shows growth in coming years as per their talk and opportunity size, this price looks undervalued
Risks
During the quarter under review, two critical components – Base Oils and the Exchange Rate have witnessed major volatility and both of these impacted us adversely. Base Oils Prices have fallen about 25% since June 2022 and the Indian rupee also depreciated significantly in the Quarter ending December, 2022. This resulted in inventory and foreign exchange losses which have impacted our margins
Any policy changes can impact the company hard
Technicals on 28Apr24
Stock has given a breakout and volumes are supporting upmove as well
Conclusion
If you have understood the triggers and industries it cater to + RISKS which can materialize and have patience then think of buying this company in every dip, market offers, else Ignore the stock
Stock might be volatile in short term and give a chance to buy around 500-650 range for long term investment purpose
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.
With great pleasure and best wishes from all of you, we are delighted to launch new batch of
ALPHA Mentorship Art and Science of Investing(basics to advanced)
to make you Independent in stock markets
Make your journey faster in Stock market (by 3 to 4yrs) with ALPHA LEARNERS Mentorship program
Number of batches and batch size is very very limited considering live classes
A PROGRAM TO MAKE YOU LEARN AND EARN
This is a unique live program for 2.5years approx. with live classes for approx. 5-6 months (on weekends) and 2 years of handholding further
Where one can learn necessary
Fundamental Qualitative concepts to understand the things which create wealth in long run–like how to evaluate management, how to evaluate certain corporate actions, how to understand direction of company
Fundamental Quantitative concepts to substantiate what we have seen qualitatively, understanding ratios and numbers like margins and numbers like EBITDA, PAT, OPM, Financial Ratio, Valuation ratios PE, PB, PS, EVEBITDA, ROE, ROCE, Debt, equity and many other deep ratios to understand whether stock at right price or not
Learn about cost of capital, working capital cycle, inventory turnover, asset turnover, interest coverage, pledging(good or bad)
Why Dividend is good or bad
How long we can hold a stock or when to leave the stock
Capex, Opex and how it impacts and when it impacts
Why certain high pe stocks keep on running and low pe stocks remain down
Red flags and green flags
Necessary Technical aspect to make our entry and exit better in stocks ,oscillators and unique indicators including SMA, DMA, RSI, MACD, EMA, Trends, SL, , different time frames and some UNIQUE TECHNICAL INDICATORS NOT TAUGHT by ANYONE
Technical aspect and understanding of Price Volume action, candlestick patterns ( bullish, bearish, single, double, triple patterns)
Technical understanding of Targets from different patterns, How to look for patterns and when to look for which pattern
Resources to analyze faster to analyze more companies faster
Understand Contrarian, Cyclical, Value and Growth investing
Bucket and GRADE Framework
Business Moats understanding–how to categorize moats, what is real moat, what is fake moat
Exit Strategies in stocks
Reading Balances sheet in simple way to analyze results and issues to make quick exits or to do pyramiding after results
Reading Cash flows in simple way to understand where money is being moved in company
Reading Quarterly, half yearly, yearly results and interpreting them better
Tricks and Checklist for faster analysis of Annual Reports to help us all understand whether to deep dive or not
Conf-call understanding, Transcripts Concepts and Tricks to understand faster
Big money moves aspect to understand where money is moving
Concepts and tricks on various intricacies in stock market
Understanding about primary, secondary market
Also get a KNOWHOW on
Checklist for stocks to identify red flags faster
Checklist for deep dive into selected stocks
How to build Portfolio for Short term
How to build Portfolio for Long term
How to find Multi bagger stocks
How to avoid pitfalls in market
When to exit stocks
Free lifetime learning through a Whatsapp Community (apart from Program content) & Bonus Sessions
Join like minded people to interact with on CHARTS, Domain KNOWLEDGE, Sector Expertise etc
This is a program YOU CAN NOT AFFORD TO MISS
Other Details
Time period 2.5 Years
Starting time Jan24
Live classes on Sunday afternoon mostly
Time duration of each lecture –approx 1.5 to 2 Hrs
Time period of live classes 6 months
Each session recorded and shared with participants
Next 2 years handholding to close the GAPS in knowledge with Handholding, Quizzes, Exercises, Bonus sessions, Charts, Fundamentals and Business analysis from time to time
Have a Resolute NEW YEAR 2024
Let 2024 be the start of your journey towards INDEPENDENCE IN STOCK MARKETS
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.
With great pleasure and best wishes from all of you, we are delighted to launch new batch of
ALPHA Mentorship Art and Science of Investing(basics to advanced)
to make you Independent in stock markets
Make your journey faster in Stock market (by 3 to 4yrs) with ALPHA LEARNERS Mentorship program
Number of batches and batch size is very very limited considering live classes
EARLY BIRD DISCOUNTS if one Enrols before 25th DEC 2023
A PROGRAM TO MAKE YOU LEARN AND EARN
This is a unique live program for 2.5years approx. with live classes for approx. 5-6 months (on weekends) and 2 years of handholding further
Where one can learn necessary
Fundamental Qualitative concepts to understand the things which create wealth in long run–like how to evaluate management, how to evaluate certain corporate actions, how to understand direction of company
Fundamental Quantitative concepts to substantiate what we have seen qualitatively, understanding ratios and numbers like margins and numbers like EBITDA, PAT, OPM, Financial Ratio, Valuation ratios PE, PB, PS, EVEBITDA, ROE, ROCE, Debt, equity and many other deep ratios to understand whether stock at right price or not
Learn about cost of capital, working capital cycle, inventory turnover, asset turnover, interest coverage, pledging(good or bad)
Why Dividend is good or bad
How long we can hold a stock or when to leave the stock
Capex, Opex and how it impacts and when it impacts
Why certain high pe stocks keep on running and low pe stocks remain down
Red flags and green flags
Necessary Technical aspect to make our entry and exit better in stocks ,oscillators and unique indicators including SMA, DMA, RSI, MACD, EMA, Trends, SL, , different time frames and some UNIQUE TECHNICAL INDICATORS NOT TAUGHT by ANYONE
Technical aspect and understanding of Price Volume action, candlestick patterns ( bullish, bearish, single, double, triple patterns)
Technical understanding of Targets from different patterns, How to look for patterns and when to look for which pattern
Resources to analyze faster to analyze more companies faster
Understand Contrarian, Cyclical, Value and Growth investing
Bucket and GRADE Framework
Business Moats understanding–how to categorize moats, what is real moat, what is fake moat
Exit Strategies in stocks
Reading Balances sheet in simple way to analyze results and issues to make quick exits or to do pyramiding after results
Reading Cash flows in simple way to understand where money is being moved in company
Reading Quarterly, half yearly, yearly results and interpreting them better
Tricks and Checklist for faster analysis of Annual Reports to help us all understand whether to deep dive or not
Conf-call understanding, Transcripts Concepts and Tricks to understand faster
Big money moves aspect to understand where money is moving
Concepts and tricks on various intricacies in stock market
Understanding about primary, secondary market
Also get a KNOWHOW on
Checklist for stocks to identify red flags faster
Checklist for deep dive into selected stocks
How to build Portfolio for Short term
How to build Portfolio for Long term
How to find Multi bagger stocks
How to avoid pitfalls in market
When to exit stocks
Free lifetime learning through a Whatsapp Community (apart from Program content) & Bonus Sessions
Join like minded people to interact with on CHARTS, Domain KNOWLEDGE, Sector Expertise etc
This is a program YOU CAN NOT AFFORD TO MISS
Other Details
Time period 2.5 Years
Starting time Jan24
Live classes on Sunday afternoon mostly
Time duration of each lecture –approx 1.5 to 2 Hrs
Time period of live classes 6 months
Each session recorded and shared with participants
Next 2 years handholding to close the GAPS in knowledge with Handholding, Quizzes, Exercises, Bonus sessions, Charts, Fundamentals and Business analysis from time to time
Have a Resolute NEW YEAR 2024
Let 2024 be the start of your journey towards INDEPENDENCE IN STOCK MARKETS
ACT NOW for your Independence
FEEDBACK By ALPHA LEARNERS
EARLY BIRD DISCOUNTS if one Enrols before 25th DEC 2023
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.
With great pleasure and best wishes from all of you, we are delighted to launch new batch of
ALPHA Mentorship program
Art and Science of Investing (basics to advanced)
to make you Independent in stock markets
Make your journey faster in Stock market (by 3 to 4yrs) with ALPHA LEARNERS Mentorship program
Number of batches and batch size is very very limited considering live classes
A PROGRAM TO MAKE YOU LEARN AND EARN
This is a unique live program for approx. 5 months (on weekends) and 2 years of handholding further, Where one can learn necessary
Fundamental Qualitative concepts to understand the things which create wealth in long run–like how to evaluate management, how to evaluate certain corporate actions, how to understand direction of company
Fundamental Quantitative concepts to substantiate what we have seen qualitatively, understanding ratios and numbers like margins and numbers like EBITDA, PAT, OPM, Financial Ratio, Valuation ratios PE, PB, PS, EVEBITDA, ROE, ROCE, Debt, equity and many other deep ratios to understand whether stock at right price or not
Learn about cost of capital, working capital cycle, inventory turnover, asset turnover, interest coverage, pledging(good or bad)
Why Dividend is good or bad
How long we can hold a stock or when to leave the stock
Capex, Opex and how it impacts and when it impacts
Why certain high pe stocks keep on running and low pe stocks remain down
Red flags and green flags
Necessary Technical aspect to make our entry and exit better in stocks ,oscillators and unique indicators including SMA, DMA, RSI, MACD, EMA, Trends, SL, , different time frames and some UNIQUE TECHNICAL INDICATORS NOT TAUGHT by ANYONE
Technical aspect and understanding of Price Volume action, candlestick patterns ( bullish, bearish, single, double, triple patterns)
Technical understanding of Targets from different patterns, How to look for patterns and when to look for which pattern
Resources to analyze faster to analyze more companies faster
Understand Contrarian, Cyclical, Value and Growth investing
Bucket and GRADE Framework
Business Moats understanding–how to categorize moats, what is real moat, what is fake moat
Exit Strategies in stocks
Reading Balances sheet in simple way to analyze results and issues to make quick exits or to do pyramiding after results
Reading Cash flows in simple way to understand where money is being moved in company
Reading Quarterly, half yearly, yearly results and interpreting them better
Tricks and Checklist for faster analysis of Annual Reports to help us all understand whether to deep dive or not
Conf-call understanding, Transcripts Concepts and Tricks to understand faster
Big money moves aspect to understand where money is moving
Concepts and tricks on various intricacies in stock market
Understanding about primary, secondary market
Also get a KNOWHOW on
Checklist for stocks to identify red flags faster
Checklist for deep dive into selected stocks
How to build Portfolio for Short term
How to build Portfolio for Long term
How to find Multi bagger stocks
How to avoid pitfalls in market
When to exit stocks
Free lifetime learning through a Whatsapp Community (apart from Program content)
Join like minded people to interact with on CHARTS, Domain KNOWLEDGE, Sector Expertise etc
This is a program YOU CAN NOT AFFORD TO MISS LET THIS MONTH of 2023 be the start of your journey towards INDEPENDENCE IN STOCK MARKETS
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.
With great pleasure and best wishes from all of you, we are delighted to launch new batch of
ALPHA Mentorship program
Art and Science of Investing (basics to advanced)
to make you Independent in stock markets
AVAIL EARLY BIRD OFFER till 30th June23
Make your journey faster in Stock market (by 3 to 4yrs) with ALPHA LEARNERS Mentorship program
Number of batches and batch size is very very limited considering live classes
A PROGRAM TO MAKE YOU LEARN AND EARN
This is a unique live program for approx. 5 months (on weekends) and 7 months of handholding further, Where one can learn necessary
Fundamental Qualitative concepts to understand the things which create wealth in long run–like how to evaluate management, how to evaluate certain corporate actions, how to understand direction of company
Fundamental Quantitative concepts to substantiate what we have seen qualitatively, understanding ratios and numbers like margins and numbers like EBITDA, PAT, OPM, Financial Ratio, Valuation ratios PE, PB, PS, EVEBITDA, ROE, ROCE, Debt, equity and many other deep ratios to understand whether stock at right price or not
Learn about cost of capital, working capital cycle, inventory turnover, asset turnover, interest coverage, pledging(good or bad)
Why Dividend is good or bad
How long we can hold a stock or when to leave the stock
Capex, Opex and how it impacts and when it impacts
Why certain high pe stocks keep on running and low pe stocks remain down
Red flags and green flags
Necessary Technical aspect to make our entry and exit better in stocks ,oscillators and unique indicators including SMA, DMA, RSI, MACD, EMA, Trends, SL, , different time frames and some UNIQUE TECHNICAL INDICATORS NOT TAUGHT by ANYONE
Technical aspect and understanding of Price Volume action, candlestick patterns ( bullish, bearish, single, double, triple patterns)
Technical understanding of Targets from different patterns, How to look for patterns and when to look for which pattern
Resources to analyze faster to analyze more companies faster
Understand Contrarian, Cyclical, Value and Growth investing
Bucket and GRADE Framework
Business Moats understanding–how to categorize moats, what is real moat, what is fake moat
Exit Strategies in stocks
Reading Balances sheet in simple way to analyze results and issues to make quick exits or to do pyramiding after results
Reading Cash flows in simple way to understand where money is being moved in company
Reading Quarterly, half yearly, yearly results and interpreting them better
Tricks and Checklist for faster analysis of Annual Reports to help us all understand whether to deep dive or not
Conf-call understanding, Transcripts Concepts and Tricks to understand faster
Big money moves aspect to understand where money is moving
Concepts and tricks on various intricacies in stock market
Understanding about primary, secondary market
Also get a KNOWHOW on
Checklist for stocks to identify red flags faster
Checklist for deep dive into selected stocks
How to build Portfolio for Short term
How to build Portfolio for Long term
How to find Multi bagger stocks
How to avoid pitfalls in market
When to exit stocks
Free lifetime learning through a Whatsapp Community (apart from Program content)
Join like minded people to interact with on CHARTS, Domain KNOWLEDGE, Sector Expertise etc
This is a program YOU CAN NOT AFFORD TO MISS LET THIS MONTH of 2023 be the start of your journey towards INDEPENDENCE IN STOCK MARKETS
ACT NOW for your Independence
AVAIL EARLY BIRD OFFER (save 3000 bucks) till 30th June 2023
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.
With great pleasure and best wishes from all of you, we are delighted to launch new batch of
ALPHA Mentorship program
Art and Science of Investing
to make you Independent in stock markets
AVAIL EARLY BIRD OFFER till 31stDec 2022
A PROGRAM TO MAKE YOU LEARN AND EARN
This is a unique live program for approx. 5 months (on weekends) and 7 months of handholding further, Where one can learn necessary
Fundamental Qualitative concepts to understand the things which create wealth in long run–like how to evaluate management, how to evaluate certain corporate actions, how to understand direction of company
Fundamental Quantitative concepts to substantiate what we have seen qualitatively, understanding ratios and numbers like margins and numbers like EBITDA, PAT, OPM, Financial Ratio, Valuation ratios PE, PB, PS, EVEBITDA, ROE, ROCE, Debt, equity and many other deep ratios to understand whether stock at right price or not
Learn about cost of capital, working capital cycle, inventory turnover, asset turnover, interest coverage, pledging(good or bad)
Why Dividend is good or bad
How long we can hold a stock or when to leave the stock
Capex, Opex and how it impacts and when it impacts
Why certain high pe stocks keep on running and low pe stocks remain down
Red flags and green flags
Necessary Technical aspect to make our entry and exit better in stocks ,oscillators and unique indicators including SMA, DMA, RSI, MACD, EMA, Trends, SL, , different time frames and some UNIQUE TECHNICAL INDICATORS NOT TAUGHT by ANYONE
Technical aspect and understanding of Price Volume action, candlestick patterns ( bullish, bearish, single, double, triple patterns)
Technical understanding of Targets from different patterns, How to look for patterns and when to look for which pattern
Resources to analyze faster to analyze more companies faster
Understand Contrarian, Cyclical, Value and Growth investing
Bucket and GRADE Framework
Business Moats understanding–how to categorize moats, what is real moat, what is fake moat
Exit Strategies in stocks
Reading Balances sheet in simple way to analyze results and issues to make quick exits or to do pyramiding after results
Reading Cash flows in simple way to understand where money is being moved in company
Reading Quarterly, half yearly, yearly results and interpreting them better
Tricks and Checklist for faster analysis of Annual Reports to help us all understand whether to deep dive or not
Conf-call understanding, Transcripts Concepts and Tricks to understand faster
Big money moves aspect to understand where money is moving
Concepts and tricks on various intricacies in stock market
Understanding about primary, secondary market
Also get a KNOWHOW on
Checklist for stocks to identify red flags faster
Checklist for deep dive into selected stocks
How to build Portfolio for Short term
How to build Portfolio for Long term
How to find Multi bagger stocks
How to avoid pitfalls in market
When to exit stocks
Bonus sessions on (apart from Program content)
Financial planning &
IPO
Free lifetime learning through a Community (apart from Program content)
Join like minded people to interact with on CHARTS, Domain KNOWLEDGE, Sector Expertise etc
4-5 months of teaching and mentoring Can be extended based on queries, case studies
This is a program YOU CAN NOT AFFORD TO MISS
LET THIS Last MONTH of 2022 be the start of your journey towards INDEPENDENCE IN STOCK MARKETS
Number of batches and batch size is very very limited considering live classes
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.
With great pleasure and best wishes from all of you, we are delighted to launch new batch of
ALPHA Mentorship program
Art and Science of Investing
to make you Independent in stock markets
AVAIL EARLY BIRD OFFER till 15th Aug 2022
A PROGRAM TO MAKE YOU LEARN AND EARN
This is a unique live program for approx. 5 months (on weekends) and 7 months of handholding further, Where one can learn necessary
Fundamental Qualitative concepts to understand the things which create wealth in long run–like how to evaluate management, how to evaluate certain corporate actions, how to understand direction of company
Fundamental Quantitative concepts to substantiate what we have seen qualitatively, understanding ratios and numbers like margins and numbers like EBITDA, PAT, OPM, Financial Ratio, Valuation ratios PE, PB, PS, EVEBITDA, ROE, ROCE, Debt, equity and many other deep ratios to understand whether stock at right price or not
Learn about cost of capital, working capital cycle, inventory turnover, asset turnover, interest coverage, pledging(good or bad)
Why Dividend is good or bad
How long we can hold a stock or when to leave the stock
Capex, Opex and how it impacts and when it impacts
Why certain high pe stocks keep on running and low pe stocks remain down
Red flags and green flags
Necessary Technical aspect to make our entry and exit better in stocks ,oscillators and indicators including RSI, MACD, STOC RSI, EMA, TEMA, DEMA, Trends, SL, Heiken Ashi candles, different time frames
Technical aspect and understanding of Price Volume action, candlestick patterns ( bullish, bearish, single, double, triple patterns)
Technical understanding of Targets from different patterns, How to look for patterns and when to look for which pattern
Resources to analyze faster to analyze more companies faster
Understand Contrarian, Cyclical, Value and Growth investing
Bucket and GRADE Framework
Business Moats understanding–how to categorize moats, what is real moat, what is fake moat
Exit Strategies in stocks
Reading Balances sheet in simple way to analyze results and issues to make quick exits or to do pyramiding after results
Reading Cash flows in simple way to understand where money is being moved in company
Reading Quarterly, half yearly, yearly results and interpreting them better
Tricks and Checklist for faster analysis of Annual Reports to help us all understand whether to deep dive or not
Conf-call understanding, Transcripts Concepts and Tricks to understand faster
Big money moves aspect to understand where money is moving
Concepts and tricks on various intricacies in stock market
Understanding about primary, secondary market
Also get a KNOWHOW on
Checklist for stocks to identify red flags faster
Checklist for deep dive into selected stocks
How to build Portfolio for Short term
How to build Portfolio for Long term
How to find Multi bagger stocks
How to avoid pitfalls in market
When to exit stocks
Bonus sessions on (apart from Program content)
Financial planning &
IPO
Free lifetime learning through a Community (apart from Program content)
Join like minded people to interact with on CHARTS, Domain KNOWLEDGE, Sector Expertise etc
4-5 months of teaching and mentoring Can be extended based on queries, case studies
6-7 months of handholding
To clear doubts, correction of mistakes, independent walking in markets
10+ Assignments Based on actual events happening in markets during the course
Case studies Based on future growth understanding and pitfalls to avoid
Quizzes To help you assess yourself whether you are progressing or not during the program
Presenting Stock idea by Learners to bridge the learning gap –this will be an approximate six month effort by all participants
This is a program YOU CAN NOT AFFORD TO MISS
LET THIS INDEPENDENCE MONTH of 2022 be the start of your journey towards INDEPENDENCE IN STOCK MARKETS
Number of batches and batch size is very very limited considering live classes
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.
With great pleasure and best wishes from all of you, we are delighted to launch
ALPHA Mentorship program
ALPHA LEARNERS
Art and Science of Investing
to make you Independent in stock markets
AVAIL EARLY BIRD OFFER till 25th April 2022
A PROGRAM TO MAKE YOU LEARN AND EARN
This is a unique live program for approx. 5 months (on weekends) Where one can learn necessary
Fundamental Qualitative concepts to understand the things which create wealth in long run–like how to evaluate management, how to evaluate certain corporate actions, how to understand direction of company
Fundamental Quantitative concepts to substantiate what we have seen qualitatively, understanding ratios and numbers like margins and numbers like EBITDA, PAT, OPM, Financial Ratio, Valuation ratios PE, PB, PS, EVEBITDA, ROE, ROCE, Debt, equity and many other deep ratios to understand whether stock at right price or not
Learn about cost of capital, working capital cycle, inventory turnover, asset turnover, interest coverage, pledging(good or bad)
Why Dividend is good or bad
How long we can hold a stock or when to leave the stock
Capex, Opex and how it impacts and when it impacts
Why certain high pe stocks keep on running and low pe stocks remain down
Red flags and green flags
Necessary Technical aspect to make our entry and exit better in stocks ,oscillators and indicators including RSI, MACD, STOC RSI, EMA, TEMA, DEMA, Trends, SL
Technical aspect and understanding of Price Volume action, candlestick patterns ( bullish, bearish, single, double, triple patterns)
Technical understanding of Targets from different patterns, How to look for patterns and when to look for which pattern
Resources to analyze faster to analyze more companies faster
Understand Contrarian, Cyclical, Value and Growth investing
Bucket and GRADE Framework
Business Moats understanding–how to categorize moats, what is real moat, what is fake moat
Exit Strategies in stocks
Reading Balances sheet in simple way to analyze results and issues to make quick exits or to do pyramiding after results
Reading Cash flows in simple way to understand where money is being moved in company
Reading Quarterly, half yearly, yearly results and interpreting them better
Tricks and Checklist for faster analysis of Annual Reports to help us all understand whether to deep dive or not
Conf-call understanding, Transcripts Concepts and Tricks to understand faster
Big money moves aspect to understand where money is moving
Concepts and tricks on various intricacies in stock market
Understanding about primary, secondary market
Also get a KNOWHOW on
Checklist for stocks to identify red flags faster
Checklist for deep dive into selected stocks
How to build Portfolio for Short term
How to build Portfolio for Long term
How to find Multi bagger stocks
How to avoid pitfalls in market
When to exit stocks
Concept of Futures and options
4 Bonus sessions (apart from Program content)
Mutual Funds
Financial planning
IPO and
Big money moves
3-4 months of teaching and mentoring Can be extended based on queries, case studies
1-2 months of handholding
To clear doubts, correction of mistakes, independent walking in markets
10+ Assignments Based on actual events happening in markets during the course
Case studies Based on future growth understanding and pitfalls to avoid
Quizzes To help you assess yourself whether you are progressing or not during the program
Presenting Stock idea by Learners to bridge the learning gap –this will be an approximate six month effort by all participants
This is a program YOU CAN NOT AFFORD TO MISS
LET THIS NEW YEAR 2022 be the start of your journey towards INDEPENDENCE IN STOCK MARKETS
Number of batches and batch size is very very limited considering live classes
Major part of this initiative will go towards orphan children education and food
Do make use of this opportunity and be part of bigger initiative
Connect with us to help genuine needy children
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.
With great pleasure and best wishes from all of you, we are delighted to launch
ALPHA Mentorship program
ALPHA LEARNERS
Art and Science of Investing
to make you Independent in stock markets
A PROGRAM TO MAKE YOU LEARN AND EARN
This is a unique live program for approx. 5 months (on weekends) Where one can learn necessary
Fundamental Qualitative concepts to understand the things which create wealth in long run–like how to evaluate management, how to evaluate certain corporate actions, how to understand direction of company
Fundamental Quantitative concepts to substantiate what we have seen qualitatively, understanding ratios and numbers like margins and numbers like EBITDA, PAT, OPM, Financial Ratio, Valuation ratios PE, PB, PS, EVEBITDA, ROE, ROCE, Debt, equity and many other deep ratios to understand whether stock at right price or not
Learn about cost of capital, working capital cycle, inventory turnover, asset turnover, interest coverage, pledging(good or bad)
Why Dividend is good or bad
How long we can hold a stock or when to leave the stock
Capex, opex and how it impacts and when it impacts
Why certain high pe stocks keep on running and low pe stocks remain down
Red flags and green flags
Necessary Technical aspect to make our entry and exit better in stocks ,oscillators and indicators including RSI, MACD, STOC RSI, EMA, TEMA, DEMA, Trends, SL
Technical aspect and understanding of Price Volume action, candlestick patterns ( bullish, bearish, single, double, triple patterns)
Technical understanding of Targets from different patterns, How to look for patterns and when to look for which pattern
Resources to analyze faster to analyze more companies faster
Understand Contrarian, Cyclical, Value and Growth investing
Bucket and GRADE Framework
Business Moats understanding–how to categorize moats, what is real moat, what is fake moat
Exit Strategies in stocks
Reading Balances sheet in simple way to analyze results and issues to make quick exits or to do pyramiding after results
Reading Cash flows in simple way to understand where money is being moved in company
Reading Quarterly, half yearly, yearly results and interpreting them better
Tricks and Checklist for faster analysis of Annual Reports to help us all understand whether to deep dive or not
Conf-call understanding, Transcripts Concepts and Tricks to understand faster
Big money moves aspect to understand where money is moving
Concepts and tricks on various intricacies in stock market
Understanding about primary, secondary market
Also get a KNOWHOW on
Checklist for stocks to identify red flags faster
Checklist for deep dive into selected stocks
How to build Portfolio for Short term
How to build Portfolio for Long term
How to find Multi bagger stocks
How to avoid pitfalls in market
When to exit stocks
Concept of Futures and options
4 Bonus sessions from experts (apart from Program content)
Mutual Funds
Financial planning
IPO and
Accumulation Distribution session
3-4 months of teaching and mentoring Can be extended based on queries, case studies
1-2 months of handholding
To clear doubts, correction of mistakes, independent walking in markets
10+ Assignments Based on actual events happening in markets during the course
Case studies Based on future growth understanding and pitfalls to avoid
Quizzes To help you assess yourself whether you are progressing or not during the program
Presenting Stock idea by Learners to bridge the learning gap
This is a program YOU CAN NOT AFFORD TO MISS
LET THIS NEW YEAR 2022 be the start of your journey towards INDEPENDENCE IN STOCK MARKETS
Number of batches and batch size is very very limited considering live classes
Major part of this initiative will go towards orphan children education and food
Do make use of this opportunity and be part of bigger initiative
Connect with us to help genuine needy children
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.
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
Number of batches and batch size is very very limited considering live classes
Major part of this initiative will go towards orphan children education and food
Do make use of this opportunity and be part of bigger initiative
Connect with us to help genuine needy children
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.
Number of batches and batch size is very very limited considering live classes
Major part of this initiative will go towards orphan children education and food
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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
Prince Pipes Investor Presentation
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
In recent years, there is strong inclination see in investors for investing in US stocks. Of course there is a reasoning behind it. Let’s try to figure out WHY and HOW part of it
WHY?
To understand this let’s understand the returns by DOW and BSE in last 10 years
US market consistently outperformed Indian market in last 10 years. Although there is no guarantee that it will happen in next 10 yrs again
Source : Vested
Source Vested
So outperformance of US markets along with Indian currency depreciation widens this performance gap further and this makes a strong case for investments in foreign stocks
Buying foreign stocks allows investors to
Diversify their portfolio’s risk by investing across geographies
Giving them exposure to the growth of other economies like China, US
One can buy fractional shares of bigger companies unlike in India.
Take advantage of currency depreciation.
How much to put in US stocks?
As a thumb rule for starters, a 5% to 10% exposure to foreign stocks for conservative investors, and up to 10-25% for aggressive investors seems ok
How much investment can be made overseas?
Individual investors can invest up to $250,000 every year overseas under the RBI’s Liberalised Remittance Scheme. After opening an overseas brokerage account, investors will be needed to fund it by remitting money from his/her bank account
Now let us understand the 2nd part of it
HOW?
An account with Indian Brokers like ICICI direct, HDFC Securities etc having a tie-up with a foreign broker internally. They will help you to make the process simple
Open an account with the foreign brokers directly like E*Trade, Interactive brokers which permits Indians to open an account and trade in US stocks, mutual funds etc
Investing through Apps like VESTED
Buying Indian MF/ETFs with investing theme of global equities like Parag Parikh Long term equity funds, ICICI Prudential US Bluechip, Aditya Birla Sunlife International Equity etc
Invest in US focused international mutual funds like feeder funds, Franklin templeton feeder fund
Open a low-cost international broking account and invest in low-cost international exchange-tradedfunds
Let’s also understand the precaution or risks to be taken care of
Precautions/Awareness/Risks –
Currency conversion
Remittance costs
High charges
Limitation of total money that can be put to invest–Although current limit seems sufficient for large set of investors
How will I be taxed for these investments?
When you invest in the US stock market, , please be aware of taxation part
Taxes on Profit:
You will be not be taxed in US
In India, The threshold for long-term capital gain is 24 months, with 20% indexation benefit.
If you sell a stock in less than 24 months, capital gains are considered short-term and are taxed according to your income tax slab.
Taxes on dividends:
Dividends will be taxed in the US at a flat rate of 25%. Due to Double Taxation Avoidance Agreement (DTAA), taxpayers can offset income tax already paid in the US (Foreign Tax Credit)
Disclaimer : The article is written to provide information and make investors aware of potential avenues of investment. Please don’t treat this as an investment advice. There could be change in tax laws from time to time and one should track it before investing. Past performance of any index returns can not and should not be taken as reference for future performance. Percentage allocation for each investor can vary and its best to consult to one ‘s own financial advisor before making investment decisions. We don’t have any mutual agreement with the sources or apps shared for investmentand we dont gain/loss from your action in this regard
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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.
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.
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.
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.
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.
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