Key notes on Mahindra Holidays

May 31, 2023 During the last 11 yrs Revenues have become >4x Net profits are at the same level (negligible growth) Balance Sheet size has grown similar to the revenues Though net worth has actually declined. Scale therefore has been totally funded with external capital/ liabilities. Current valuations on normalized earnings is a P/E of … Read more

Key notes on Shakti Pumps

May 29, 2023 Good Strong industry tailwinds. Significant government orders expected for atleast next 2 yrs. Impact should start reflecting from July 2023 onwards Company also working with EV industry to develop import substitute components. Impact however in this case will be slow and results would be known only after a year or so Negligible … Read more

Key notes on AIA Engineering

May 26, 2023 Good Solid conservative, transparent management Customer stickiness. A regular consumable business. It’s not much cyclical (many believe otherwise) Good operational track record 10 yr Sales CAGR of 11% and 5 yr CAGR of 15% Profit CAGR of 18% and 19% respectively Return on equity of 16-17% Net available liquidity of Rs 2300-2400 … Read more

Key notes on Coromandel International

May 25, 2023 Good One of the most well communicating and transparent management. Growth focused Company – both organic and inorganic Crisil recently in February 2023 upgraded long term rating to AAA Good operational track record 10 yrs Sales CAGR of 13%. 3yr at 31% Profit CAGR of 17% and 23% respectively 10 yr ROE … Read more

Key notes on

May 24, 2023 Good Nalanda is a believer in the story. Held 9.95% at March 2023 end. Cash balance of Rs 324 cr at March 2023 end, which is 25% of current market cap Consistent ROE generation of 17-18% Not so good Historical growth trends and expected short term growth. Revenues in last 10 years … Read more

Key notes on Balaji Amines

May 20, 2023 Company announced sudden resignation of all it’s independent directors and also moved it’s CFO to a subsidiary. The announced reasoning and subsequent explanation are two different stories. Such a major event is a big read flag for me on the corporate governance standards. Will not look at this Company in the foreseeable … Read more

Key notes on Borosil Renewables

May 26, 2023 Good Robust demand Significant revenue headroom based on the current capacity – Rs 1800-1900 cr annually compared with Rs 900 cr currently. Out of Rs 1800-1900, Rs 500-600 would be from the European operations. Concerns Govt removed anti dumping duty from August 2022 resulting in pricing pressures from the Chinese companies. Company … Read more

Key notes on Alkem Laboratories

May 19, 2023 Company’s effective tax rate is currently lower at 14-15%. In the concall with the analysts, the management informed that the lower tax rates would continue till March 2026 due to the tax advantage from the Sikkim facility.