Laurus Labs FY21 Annual Report Takeaways 🔬

'Capex plans are already under way to increase capacity by 1.8x by 2022'

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A Thread 🧵👇

Greenpanel Industries FY21 Annual Report Takeaways.

'27% market share of the Indian MDF market & growing'

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A Thread 🧵👇

1/ Basic facts about the business:

- Leader in wood panels in which their principal product is MDF (Medium Density Fibreboard)
- Demerged from Greenply in 2018
- 2 plants in UP & AP (this one being the largest MDF plant in the world.

2/ Product Offerings are dispersed over multiple types of wood panels: From MDF to specialty plywood to veneers.

3/ Challenges faced by the company in FY21 (Pic 1)

& How they tackled them (Pic 2)

4/ Financials: Performed better on all metrics.

Rev up 20%
Expanded EBITDA margin by 420bps
Net profit up 370%
Strong Cashflows
Receivables cycle down to 28
Paid back 157crs of debt

Talks of sustainable growth with a focus on cashflows & lower working capital.

Rallis India Annual Report Takeaways.

'Launched and promoted 2 botanical biopesticides'

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1/ From the desk of Mr. Bhaskar Bhat (chairman) ✒️

- Talks about how the reforms in the 🇮🇳's sector over the long run: will make it more organized
- Record production of foodgrains this year: 303 million tonnes
- Focus is to increase R&D infra & manufacturing capacities.

2/ Crop care business (83% of rev)

- 10% YoY growth in domestic & 3% growth in exports (incl. CDMO)
- Launched 4 new products in Crop Protection (3 in-house formulations) & 6 new products in Crop Nutrition (2 in Biopesticides)
- Enhanced dealer network by 5%.

3/ 🇮🇳 Crop care

- Formulations was up 14%
- Channel network of 3879 distributors & 48K dealers

Exports Crop care

- Acquired 9 registrations
- Global leadership in most active ingredients
- Adding 2 new manufacturing plants in Dahej & scale-up facilities for CDMO biz

4/ Seeds business (17% of rev)

- 11% growth in rev
- Challenging business environment
- Launched 4 new products
- Sharpening focus on segments having successful products
- Plans to set up new retailer loyalty programmes, combined with a hybrid demand generation model.

Happiest Minds FY21 Annual Report Takeaways.

'Investing in next-generation digital technologies like Blockchain, Robotics & Drones, and VR/AR.'

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1/ Happiest Minds completes its 10 years of business: They have 13Kcrs in just a short span of time 🤯

Starts with the COVID 2.0 impact on the company: 8% of the team was tested +ve by 17th May, 26% of which were hospitalized.

Led to the terrible loss of 5 young men.

2/ Coming to the wins:

- Employee culture has been the biggest investment as per the chairman Mr. Ashok Soota
- Customer retention: One CFO has been a customer with the 3 companies he worked with ( Power of 💪relationships)
- Invested in all new technologies including next gen.

3/ Did you know? IP-led services (High margin & High operating leverage) account for 10% of their revenues.

Restructured the three business units (PES, DBS, IMSS) such that each caters to their specific high potential industries 🚀

4/ Talks about their Vision 2021-2031: How most businesses survive less than a half-lifetime of humans

This wouldn't be the case for Happiest minds as it is being 'designed for perpetuity': addressed succession risks

Guidance: 20% organic growth+ Lower PAT due to higher tax

Godrej Agrovet & Astec Lifesciences FY21 Annual Report Takeaways 🌳

'Improving the productivity of farmers by innovating products and services that sustainably increase crop & livestock yields'

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1/ About the company:

The resilience of the Agriculture sector (3.6% growth vs economic contraction)

Focusing on People, Planet & Profits: Investments continue in Animal Feed & Astec's businesses

One of the challenges that management overcame was robust distribution in COVID.

2/ From the desk of the chairman (Mr. Nadir)

- Strong performance in Animal Feed biz (margins expanded) & Astec Lifesciences
- Being in 5 cyclical businesses, is a hedge as the outperformance of a few compensates for others
- Will continue to invest in R&D & a +ve outlook.

3/ Numbers that matter

Rev down 9%
EBITDA margin of 10%
PAT (ex. one-offs) up 60%
Weak cash flows: led to jump in debt

Diversified: 47% Animal Feed | 17% Crop protection | 16% Dairy | 11% Vegetable Oil | 9% Poultry & Processed Foods
4900+ Employees
15cr R&D Spend
256cr capex

4/ Agricultural sector macro overview

- Vaccination program is the only key to riches here
- FY21 was a windfall for Agriculture: Rainfall which was highest in last 25yrs, higher sowing, higher food grain production
- FY22 has started on a +ve note with better Rabi harvest YoY

Automotive Ancillaries Business Model 🏎️ (RT if beneficial)

A Thread 🧵👇

1/ What is an Auto Ancillary?

Well, a modern car requires 10s of thousands of parts; the OEMs that produce these cars don't make most of the components in-house. That's where auto ancillaries come into the shot.

From Seats to locks to braking systems, we have them all.

2/ Sounds simple, right?

Not really, the supply chain management one has to deal with as an OEM is extraordinarily complex.

The technical know-how required in every part of the chain is unique; leading to focused players with high market share.

3/ Auto Ancillaries with 20%+ market share in India or 5%+ market share Globally (Src: @Tijori1)

See, normally market share consolidation is common with time; Why is it so?

4/ High capital requirements: What makes this a moat is also why this biz is gruesome.

You as an ancillary, do the development today, you put the capacity today (~take multiple years); then wait on the hope that OEMs are able to sell vehicles. Now, Imagine a recession.

Laurus Labs Deep Analysis

Originally Published: @FinnickClub

Covers:
🧫 Management Analysis
🧫 API & Formulation Business
🧫 Custom Synthesis & Ingredients
🧫 Financial Performance Overview
🧫 Company Analysis by @soicfinance

@Investor_Mohit

Laurus Labs Double top buy active - 1%*3 Box size and reversal.

Laurus Labs - ⭕️⭕️⭕️

still no selling whatsoever. A strong point to accumulate further as the risk is minimum. at 20 EMA. Selling candles have fewer volumes.

#Lauruslabs new website for CDMO
https://t.co/8GsCECr9Wq

and biologicals
https://t.co/pBr3GKEi9G

Both are multiyear themes...