Laurus Labs FY21 Annual Report Takeaways 🔬

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

Hit the 'retweet' & help us educate more investors.

A Thread 🧵👇

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.

Godrej Agrovet & Astec Lifesciences FY21 Annual Report Takeaways 🌳

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

Hit the 'retweet' & help us educate more investors.

A Thread 🧵👇

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

Saregama India 🎼FY21 Annual Report Takeaways

'India's only entertainment company into Music, Films, Web Series, TV Serials and Retail'

Hit the 'retweet' & help us educate more investors.

A Thread 🧵👇

1/

India’s Largest Music IP - 130k+ Songs
Content IP rights of - 61 Films

Retail Business

Distribution network - 30k+
TV Serials - Content IP rights of 6k+ Hours of Television Serials

2/

To take pole position as a Pure play content company, capitalizing on the global boom in content consumption

IP CREATION OVER THE NEXT 3 YEARS -

20-25% Market Share in New Music
50 New Films and Web Series
1200-1500 Hours of new TV serials content

3/

Monetization of Existing IP

Through licensing to EVERY 3rd party digital and TV platform

Carvaan transitioning from being a Product with only a one-time margin to a Platform with upfront margin and recurring advertising and subscription revenue

4/

Building of New IP

Cementing leadership position with New film and non-film music acquisition across Hindi, Tamil, Bhojpuri, Punjabi, Gujarati, Telugu, and other regional languages.

Producing Thematic films & series, with Story as the only hero, targeted at youth.

Greenpanel Industries FY21 Annual Report Takeaways.

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

Hit the 'retweet' & help us educate more investors.

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.

Sterlite Tech: Stable (Low Base)

🗼Rev up 49% YoY, 18% EBITDA margin, Pat of 116cr (vs 6cr)
🗼 Order book at 11.2Kcr
🗼 Successful field trials for programmable FTTx
🗼 New R&D facility in 🇬🇧 & Optical Fiber cable facility in 🇺🇸 committed to

#Q1withJST #Telecom

Acquisition of Clearcomm: a 🇬🇧 based network integration co.

🗼 At less than 0.8 times Price/Sales, growth of 25% cagr in the last 3yrs
🗼 Capitalise the fiberization wave in 🇬🇧
🗼Has customer relationships with tier 1 telcos.

Laurus-Invested pre-split @ 99-huge growth potential-Updated technical chart

Gross margins-54-56% Sustainable
Ebitda margins-30-33% sustainable

New capacity in API, fdf & CDMO to come on stream in 4-6qtrs

https://t.co/HqYTf3dN9N

@punitbansal14 @unseenvalue @kuttrapali https://t.co/K6bFTjPN1X

LAURUS - Just updated the long-term chart which was posted earlier.

Sometimes it is good to forget quality companies in PF instead of tracking daily.

Going as per projections!!

@punitbansal14 @unseenvalue @nishkumar1977

#lauraslab
Probable Bullish ABC
close above 690 entry with SL 666 on closing basis TGT 797-805-924-1041
#relativestrength #outperformance
#AhmedabadNest #investing
#NISHSHKUMAR

#LAURUSLABS
close abv 708 SL 592 on closing basis for 1769
#Relativestrength #outperformance #investing #india
#AhmedabadNest

close abv 708 will trigger super pattern
institutional holding increasing icing on the cake

📢 Announcement 📢

Every few days, I will post an infographic on some of the topics related to industries I am exploring.

Follow along and retweet to learn with me.

#LearnWithTar

Issue #1
What are Recombinant Proteins?

https://t.co/f8AE9aYqGF

#Laurusbio #RDNA

I now realize the typo with the spelling of Bacteria 😓

Here is a corrected version, if you want to download.

STOCKS OF THE WEEK
+++++++++++++++++++

Morepen Labs : Upside Of 30 %
Transport Corporation Of India : Upside Of 20 %
Laurus Labs : On Verge Of Breakout.
Equitas Holding : Upside of 40 %

#pricenpedia #stockmarket