Rounaq Bakshi notes

Gateway Distriparks can benefit from National Logistics Policy 1.Video:  https://youtube.com/shorts/lWaMI6xMrdU?si=MSQsQwTxFJ4FJs62 2.Video:  https://youtu.be/lwRrYfqWQ9M?si=u392JIrklGkoBJTF There are times, when i look at recent government policies and try to build a theme around it Name : PM launches National Logistics Policy “The notion that India is emerging as a manufacturing hub is stabilizing in the mind of the world” “Policy is just a beginning, policy plus performance is equal to progress” “National Logistics Policy has not come out of the blue, there are 8 years of hard work behind it” “From 13-14 percent logistics cost, we should all aim to bring it to single-digit as soon as possible” “Unified Logistics Interface Platform- ULIP will bring all the digital services related with the transportation sector on a single portal” “Gatishakti and National Logistics Policy together are now taking the country towa...

RSWM: brands associated: JCPenney, H&M, Zara, Levi’s, Wrangler, Diesel, Lee, Spykar, Hilfiger denim, and many more 1.  Video:  https://youtu.be/lP7QJWjqzmQ?si=6PqORSfmeMlFj98v 2. Video:  https://youtube.com/shorts/lxFvhNc22s0?si=_ZNO2hAil7Ki4XZJ Textile story is already very big in India and can grow more in future if Government provides further support. My theme says, that this sector can get re rated as well.  Huge capex plans for future plus decent valuations is a magical sauce that one can aim to find while screening companies Performance Overview:  FY23 proved to be a mixed bag for the Textile Industry, and  RSWM  Ltd. experienced a similar trajectory. The year began on a strong note with a positive Q1, but the industry faced significant challenges in Q2 and Q3, leading to a steep decline. However, there were signs of recovery in Q4 Business Environment Challenges: Geopolitical tensions and an unprecedented increase in cotton prices presented ...

EID Parry's operating profitability is expected to improve in the near term to low levels of 2.5-3%, due to higher cane crushing Susceptibility to volatility in sugar prices and regulatory changes:  While the input   prices are driven by the government, sugar prices are volatile and based on open market prices (which are dependent on the production levels), leading to volatility in players’ profitability.  Besides, the government regulates domestic demand-supply through   restrictions on imports and exports and stock holdings.  Regulatory mechanisms and dependence on monsoons have rendered the sugar industry cyclical.  Since the sugar indust ry is highly regulated, any change   in the regulatory stance and continuation of government support to sugar sector (including distilleries and ethanol pricing) will remain monitorable. The Government of India has showcased the intent to fasten the move to an ethanol-based economy, by advancing the 20% ethanol ble...

BHARAT SEATS: Car Seats to Maruti Suzuki India  Video:  https://youtu.be/HTUjbr-6sYc?si=brWj7eump0ucwWfR Have you read below news recently? What are your thoughts? We need to pick up themes that can play out well in next 7 yrs Maruti Suzuki would double its car production by the year 2030 from 2 million cars annually On the above story, i found a company that can benefit largely The Company is engaged in manufacture of  Seating  System, moulded carpets and extruded components for Car market leader, Maruti Suzuki India Limited and Suzuki Motor Gujarat Private Limited as well as  seats  and frames for Suzuki Motorcycle India Pvt. Ltd. two wheelers, at their plants at Gurugram in Haryana and at Surendranagar and Hansalpur in Ahmedabad, Gujarat Plot No.1, Maruti Udyog Joint Venture Complex, Gurugram Has 5 plants The Company is already in production for more than thirty seven years  Financial Collaboration with M/s Suzuki Motor Corporation, Japan, who holds...

Linc : Boring Earnings Transcript but helps me very well in understanding businesses 1 Video:  https://youtu.be/FoBEG7qapgk?si=wWypQ7vdbQjzwWpQ 2 Video:  https://youtu.be/wH3kmw8tBW0?si=qtlX1Z5q7fsxDNoE Linc : Boring Earnings Transcript but helps me very well in understanding businesses Advertising to sales is about 3%  Slightly better gross margins than the domestic market. So, let's say if on some product it is making 40% margin in the domestic, on the export front it would be additional 4%-5%. So, yes, so that is a kind of trend Some challenge that  Linc  face in the traditional channel across the country that the retailer has so many products. Of course, it is the job of people in the field to ensure that the dispenser is displayed properly   3% of revenues coming from e-commerce   India is a very unstructured market, so our sales team they have to keep a good relationship with all the retailers and at the same time we have to keep our br...

JM FINANCIAL: flagship business for the group is investment banking, with over five decades of experience Established market position across capital market businesses and diversified business model The group has developed a strong franchise in key operating segments such as investment bank, institutional and retail broking, wealth management and private credit syndication.  This is aided by the track record and reputation of its experienced management and healthy client relationship.  The group has a strong network of borrowers with whom they have long relatio nship.  Over the years the company has also strengthened its risk department.  Further, the group has gradually scaled up mortgage lending with a focus on the affordable segment. The flagship business for the group is investment banking, with over five decades of experience.  This has resulted in JM Financial group establishing a strong brand and a network of loyal clientele, making it one of the leaders i...

Andhra Paper to exploit opportunities in Paper Board Segment through expansion and capacity addition 1. Video :  https://youtu.be/gLae-CNb5bs?si=PDkGv-iZ2jcaowwa 2. Video:  https://youtube.com/shorts/ZsyDs8rLX9o?si=xUjwNxd_zmbR4c4Q When i first looked at this paper company, my first reason was low PE. Company was showing results that was not comparable to previous year's results. In such cases, it is difficult to digest on how the company is performing so well Then, i spent good amount of time in understanding the industry point of view where i found majority companies were showing similar lines results.  Paper industry as a whole has fundamentally changed and we can expect Re rating in these paper companies Video of paper industry:  https://youtu.be/dmLuhBOU8pw?si=oScyPiNbsNDmGzEV FY 2023 Vs 2022 EPS: 131 and CMP is 400 Net profit after tax :   522 Cr Vs 139 Cr  Investments: 800 cr and Market cap is 1600 cr Cash flows: 535 cr Vs 202    Expan...

#Maruti Suzuki plans to double capacity by 2030 : + for #NOCIL Video:  https://youtu.be/YhzyRaeDgXk?si=91-ee_UILs5iFYyS My base theme is China's dominant share in manufacturing should fall by 5% by 2030, although that 5% fall is less for China but can be game changer for India Numbers matter a lot:  Currently, China is a dominant player in the Rubber Chemical Industry contributing over 80% Coming to my company NOCIL, here my sub theme is Automotive sector to continue growing Maruti Suzuki plans to double capacity by 2030   Maruti Suzuki  to invest $5.5 bn to double production capacity by 2030       NOCIL  is Dependable, Non- Chinese Player enjoying a favourable positioning  FY 2023 Vs 2022 Operating EBITDA Margin :  15.6% Vs 18.2%    Net Profit:  149 Vs 176   Net Profit Margin:  9.2% Vs 11.2%   Net Cash flows generated from operating activities :  282 Vs (30)   Issue:  Chinese exports into oth...

Hinduja Global Solutions (HGS): Sitting on Cash= Market cap Healthy financial risk profile with strong capital structure and liquidity:   Financial risk profile will continue to be marked by moderate debt, high networth and low gearing. Gross debt (comprising bank and other borrowings of Rs 1,213 crore, and leases of around Rs 828 crore) remains moderate around Rs 2,000 crore as on December 31, 2024 along with low gearing of ~0.3 time.  However, healthy cash accrual, bolstered by non-operating income and surplus cash and investment balances, should suffice to fund annu al capex of Rs 100-140 crore (excluding lease related additions), ensuring lower reliance on additional debt and steady gearing of ~0.30 time over the medium term.  Interest cover, albeit moderated from 9-10 times historically, should be adequate at 3.0-4.0 time (pre-leases) over the medium term. Aggregate surplus funds of Rs 6,365 crore as on December 31, 2024, included  cash and bank balances of arou...

PCBL: company is exploring entering the highly lucrative battery chemicals market in USA The company is exploring entering the highly lucrative battery chemicals market in USA.  The subsidiary in USA will facilitate easier access to the North American markets.  A local subsidiary in USA would further help to gain strategic market access, proximity to customers and understand regulatory and incentive landscape.  Nanovace technology enables localization of supply chains of critical battery material like Graphite – Silicon composites, which is of critical strategic significance.  The company’s U.S. subsidiary would strengthen the company’s position as a global player in the battery chemicals industry Video 1:  https://youtu.be/YayqOrv9p1U?si=Lp3-aPfKl8X93egD Video 2:   https://youtube.com/shorts/cdEc31Urd50?si=zv-BOjP2Y-ca8Ciu Whenever, i make an investment be it 1000 or 10000 or 1 lac. I invest with a mindset of a business owner, this changes the vision ...

IRCTC : With the commencement of plant at Vijayawada, total production capacity of Rail Neer has increased to 18.40 lakh litres per day Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform that Rail Neer Plant on PPP model at Vijayawada (Andhra Pradesh) has commenced commercial production of Rail Neer. The production capacity of this plant is 72,000 litres per day. The distribution of Rail Neer manufactured at Rail Neer Plant, Vishakhapatnam is likely to start in a phased manner to Railway Station at Vijaywada, Tenali, Guntur, Rajahmundry, Khammanm, Samalkot, Miriyaguda, Ongole, Warangal, Kazipet, Kachiguda, Secunderabad/Hyderabad, Nellore etc.  With the commencement of plant at Vijayawada, total production capacity of Rail Neer has increased to 18.40 lakh litres per day. Video:  https://youtu.be/LK_RwnAc0vo?si=OGw7zb9TwSXbayWZ In my 13 yrs of investing, i have seen many cases where stocks run up like a rocket...

Sigachi, is one of the leading manufacturers of Micro Crystalline Cellulose (MCC) Video l:  https://youtube.com/shorts/cmIJY9OBvPM?si=XNBpgKat3hH1C6mg   Video 2:  https://youtube.com/shorts/CgVbB6lIALw?si=jG1a_w3xqYArcWLf Video 3:  https://youtu.be/YsxNGRc-aEQ?si=tbxg6cZysU0Pz_vt Net Debt to Equity (x):  0.03 FY23  ROCE:  19%  PAT Margins (%) : 13%  Q1-FY24  EBITDA Margins (%) : 19.36%      Q1-FY24 PAT : 10cr  Q1-FY24   Vs 12cr Revenue growth was driven by ~10% growth in realisations and 3% growth in volumes on a YOY basis Sigachi  Industries : Makes a 100 cr bet Acquisition of  80% in Trimax Bio Sciences for Rs. 100 Crores    Size and Turnover of the Company: Existing capacity is 92 KL and turnover for FY 23 is Rs. 35 Crores Huge Expansion Possibility from Current 92.0 KL to 540 KL which includes 11 API Suits & 100 Intermediate Reactors with Possibility of Dedicated Oncology Block Ab...