In this Blog, I will be updating on whatever new information I have or thoughts about certain things. 06.06.2022 Would like to share some pointers which I have learnt over the years to better understand businesses: 1. Companies with good profitability does not need to depend on external capital for growth 2. If the company uses internal accruals to fund growth , the Cost of fund goes down. 3. If the fixed assets of the company are quite old & fully depreciated, the EBIT margins would be quite good. 4. As manufacturing companies capacity utilization crosses 70%, operating leverage kicks in ..read more

Go Fashion (India) Ltd came out with its IPO recently and was subscribed 135.5 times. It made their stock market debut with a strong premium of 90% at ₹1,310 per share on the NSE as compared to its IPO issue price of ₹690. Go Fashion (India) Ltd is a women bottom wear focused brand selling its products under the brand name "Go Colors" primarily through Exclusive Brand Outlets(EBOs). They claim to be Direct to consumer brand. Women bottom wear includes Churidar, Leggings, Dhotis, Harem Pants, Patiala, Plazzos, Culottes, Pants, Trousers, Jeggings, Denim etc Company has the first mover advantage ..read more

Incorporated in 2019, 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) with effect from February 1, 2021. JVL had identical shareholding as Jubilant Pharmova as on the demerger date. The objective was to create separate & focused entities & unlock shareholder value. Since the company was listed only in March 2021, there is very limited information available about the history of the demerged entity. I have tried m ..read more

Another excellent quarterly result by 'Greenpanel Industries' ltd despite one of company's plant not being operational for 43 out of 90 days of the quarter. The outperformance is derived by higher realization of MDF and prudent capacity utilization by the management. GreenPanel Industries Ltd- A brief Greenpanel Industries Ltd, a demerged entity from Greenply Industries ltd is one of the largest integrated MDF manufacturing companies in the country and commands an established position in the organized MDF market with its quality product and strong brand image. MDF as well as Plywood both find ..read more

There are certain ways stock prices move. If we understand this aspect of the market, investment becomes easier. I will try to explain this with various cases studies. Anyway, I am sharing the conclusion/learning here: There is NO WAY one can predict the future stock price movement. There is lot of randomness in stock price movement. No news, nothing can determine how the stock is expected to move in the future. Post the steep rise in stock prices there is a very very long period of consolidation. Best way to make money in the market : Look for GOOD companies trading at low levels of valuati ..read more

Glenmark Lifesciences struggle with growth continued for the second consecutive quarters. During the quarter, company's revenue grew by just 4.5%. Even this growth was feasible because of the CDMO business, which grew by 45% YOY, although on a very small base. Brief Profile: Glenmark Lifesciences Ltd Glenmark Lifesciences Ltd is a developer and manufacturer of select high value, non-commoditized active pharmaceutical ingredients (“APIs”) in chronic therapeutic areas, including cardiovascular disease(CVS), central nervous system disease(CNS), pain management and diabetes. The company also prov ..read more

I have obtained the below data from the RHP of Laxmi Organics, I found it interesting. Will be adding more points here as and when I get to know any. The global Ethyl Acetate market is expected to grow at a CAGR of more than 4.5% over the next decade in terms of volume. China is the largest exporter of the product, with EU and North-East Asia being the key importing regions. The other competitive solvents such as Toluene, MIBK, MEK, Acetone, Cyclohexane, etc. are getting replaced with the greener solvent Ethyl Acetate in the industrial applications. This is predominantly due to the following ..read more

Jubilant Ingrevia Ltd came out with its result on 19th of Oct with highest ever quarterly revenue of ₹1223cr. While the revenue growth was robust(56% YoY & 7% QoQ), the bottom line was hit by the rising raw material cost, leading to a sharp fall in share price by almost 15%. To counter the increase in raw material cost(Increased by 24.6%), the product sales price could increase only by 6.9%, leading to decline in gross margins. I also have written a detailed blog on Jubilant Ingrevia, which you can read below: Jubilant Ingrevia Ltd - Moving Up the Value Chain Financial Performance: Jubil ..read more

Polycab India Ltd seems to be on track to achieve its target of annual revenue of ₹20,000cr (by FY26). The quarterly revenue figure for Q3FY22 is the highest quarterly figure in the 58 year history of the company, growing by 23% year on year(YoY). Before we go any further, let me first give a brief about the company below. Polycab India Ltd- Company Profile Polycab India Ltd is the largest wire & cable(W&C) company in India with a 14% market share of the total market and 20-22% market share in the organized space. The company ventured into FMEG segment in FY14 to move towards higher m ..read more

Glenmark LifeSciences Ltd Q2FY22 result came amidst rising raw materials/ input cost. While the cost of solvent increased significantly for the company, other input cost such as coal also went up in a straight line, but the company was still able to pass on the cost, improving the gross profit marginally. Has it not for the sudden increase in cost, the gross margin would have been much much better. This according to the management was on account of non-commoditized nature of their products. You can read my blog about Q1FY22 Analysis of Glenmark Lifesciences Ltd: Glenmark Life Sciences Ltd- Q1 ..read more