Authors Saket Reddy
PAUSHAK - Leader in Phosgene Chemistry.
IONEXCHANG - Interesting biz in water treatment.
DYNPRO - Leader in food colours & dyes.
MOLDTEK - Proxy to consumption & paints.
DMCC - Very Interesting capital allocation & CAPEX plan.
ACRYSIL - Niche biz in hoke improvement Globally.
ASALCBR - Growing biz with good capital allocation, issue with promoter though.
NEOGEN - Leader in Bromine Chemistry, very interesting future ahead.
GANECOS - Vert interesting biz in PET waste conversion into yarn.
Interesting businesses in IMO with a good Industry structure now and going to improve in future with enough margin of safety.
Most of them generate decent ROCE, Earnings growth, clean balance sheets and cash flow conversion.
They are the real compounders, they've created massive wealth compared to others! https://t.co/PluVwU5OXG
Hope Everyone saw BANDHANBNK Numbers. I feel many such banks will go through a massive NPA Cycle followed by depleted Tier 1.— Saket Reddy (@saketreddy) January 24, 2021
Hence, stay with the Top 3 banks :-
They've low cost of funding, well provisioned Moratorium book, high ROEs & high Tier 1 CAR.
Double Top Buy above 3426.76 daily close on 1% box size chart. https://t.co/geOoLAc5XU
At realisation of Rs.150/piece, the facility would generate incremental revenue of ~600Cr, (2.5x Asset turns).
Current revenues are 3500Cr!
The new sugar and ethanol plant
is expected to be commissioned in Q3FY22. With the new expanded capacity in the sugar biz, the management is aiming at overall sugar revenues to cross 1000Cr in next 2 to 3 years.
Current Sugar revenues are 496Cr.
Considering the CAPEX being ramped up and current growth prospects, KPRMILL can notch revenues of Rs. 4800Cr and over Rs. 1100Cr EBITDA in FY23.
ROCE could improve as Garmenting CAPEX can generate 30% ROCE & Ethanol CAPEX 22%.
KPRMILL strategically has a vertically integrated alignment from yarn to apparels.
This has translated into lower RM volatility and steady EBITDA margins over the years.
Higher proportion of garmenting enhances overall margin profile as the segment yields over 20% margins.
The co is guiding for a > 30% Topline & Bottomline growth in FY22, would huge if they can really walk the talk!
The company has around 25-30% in all the segments that they operate in and would gain incremental market share once the new CAPEX in South gets commissioned and on the other hand SOLARINDS is the only company in India which is qualified for the production of the Pinaka Rocket.
Double Top Buy above 2233.36 daily close on 1% Box size chart. https://t.co/Grtz9Pi3vU
MINDTREE— Saket Reddy (@saketreddy) December 22, 2020
The company is an international information technology consulting and implementation organisation that delivers business solutions through global software development.
DTB above 1619.22 daily close on 3% box size chart, DTB active on 1% chart. https://t.co/dhQmouQ9Wt pic.twitter.com/g8Rgz7fA0A
Double Top Buy above 8474.79 daily close on 1% Box size chart.
Good opportunity to pyramid! https://t.co/ha9MYypzFm
Just stay the course and this superb management with a prudent capital allocation abilities will compound your wealth over the long term!
PIIND— Saket Reddy (@saketreddy) February 7, 2021
The case for Reinvestment of cash flows through Capex or Diversification into sectors with similar/higher Incremental ROIC & Asset turnover and growth prospects rather than pumping out bulk of the cash through dividends, hence earnings compounding at a much higher rate. pic.twitter.com/KJAhbIc1zv