Aksh Optifibre fundamental analysis

(Rajeev M. Parashar) #183

Press Release

Aksh Optifibre Reports Second Quarter Results: On track expansion and diversification -
strategic acquisitions - healthy order book with diversified customer
base - increased investor confidence

Aksh Optifibre Limited [BSE:
532351 | NSE: AKSHOPTFBR], the leading Indian manufacturer of
Optical Fibre, Optical Fibre Cables, Fibre Reinforced Composites and a
major e-Governance service provider announced its Q2 FY17 results.

Revenue recorded at Rs. 90.41 Crore, EBIDTA at Rs. 10.68 Crore. Export Sales for the quarter at Rs. 50.96 Crore.

The company would like to thank all its shareholders for reposing faith
in AKSH values and business competencies which has led to 25% increase
in shareholder base.

The upgradation and expansion plans announced by the company
earlier this year is on track. Upgradation in Optical Fibre (OF) and
Optical Fibre Cables (OFC) has been completed while expansion in OF and
Fibre Reinforced Plastic (FRP) is progressing for
timely completion by March 2017.

To maintain leadership in FRP Rods and catering its strategic customers,
Company has acquired 100% share capital of “Unitape Mandovi
Composites Pvt. Ltd‚ÄĚ, Silvassa (renamed as Aksh Composites Pvt. Ltd).

Diversification planned by the company for ambitious ophthalmic lens
project is showcasing promising execution. Land has already been
acquired followed by facility construction and ordering of machinery.

Consequent to the planned expansion across all the
manufacturing facilities of the company, the total revenue was
recorded at Rs. 90.41 Crore.

The undergoing upgradation and expansion has enabled the company to enter into second half with a healthy order book.

With a view to mitigate demographic risks, the Company is focused to
explore new geographies with strategic long term alliances across the
world. Company’s export turnover in H1 FY 16-17 was 63% higher than H1
FY 15-16.

‚Äú1 Stop Aksh‚ÄĚ the E-Governance arm of the company has touched the silver
lining with kiosks exceeding 10,000 ahead of schedule. The company
has registered more than 18,000 students for
certification under ‚ÄúNational Digital Literacy Mission‚ÄĚ in more than 18
districts of Rajasthan.

OFC Installed throughout the world in H1 2016 was 210 million fibre-km
as compared to 189 million fibre-km installed in H1 2015, registering a
growth of 12%. The OFC market is expected to reach $12 billion by
2020. India is presently witnessing a huge upsurge in the use of
consumer mobile services coupled with increased use of data services has
fueled demand for 4G/LTE technology resulting sizable opportunities for
Cable manufacturers in India. As per leading industry reports, India
will have more than 670 million 3G/4G subscribers by the year 2020 which
is about 48% of the total projected subscriber base. India also
overtook the US in 2016 to become the world’s second-largest smartphone
market with an installed base of 275 million devices. India and ASEAN,
will be key contributors to optical fibre cable demand.

Mr. Satyendra Gupta - Deputy Managing Director, reaffirmed that the
expansion and diversification plans the company had undertaken at the
beginning of the year are on-track and significant progress is being
made to achieve the defined goals. Although planned upgradation and
expansion has led to anticipated dip in the turnover during the quarter,
however it has paved the path for bright and sustainable future. To be
in line with the vision of the Company to have a global footprint, the
Company has joined the elite league of fistful Companies across the
globe who export OFC to China and see tremendous potential in the
overall Chinese market. Under E-Governance initiative booking of 10,000
Kiosks is a remarkable achievement.

As it’s initiatives under CSR activities, the Company has
introduced smart classes in government schools and commenced
distribution of LED lights. The company has recently adopted a park
in Bhiwadi for the benefit of the local community.

About Aksh Optifibre Limited

AKSH OPTIFIBRE LIMITED is an over 30 year old organization which started
with the manufacturing of Optical Fibre (OF) and Optical Fibre Cables
(OFC) in 1994. In 1996-97 Aksh acquired Fibre Reinforced Plastic Rods
(FRP) business which is a key raw material for Optical Fibre Cables.
AKSH went Public in the year 2000 and is listed on National Stock
Exchange (NSE) and Bombay Stock Exchange (BSE).

AKSH OPTIFIBRE LIMITED is one of the leading providers of transmission
solutions for the telecom industries globally. Various products &
services are embedded in our diversified portfolio. We also
deliver to some of the most recognized e-governance services through our
flagship programme 1 STOP AKSH.

(Mehnazfatima) #184

Those who believe that Aksh is on the growth path, may continue to hold it…those sceptical may exit at a profit…

Personally, i would like to view the present dip in topline as a temporary affair…so i would continue to stay invested in this…

Lets see how the market reacts to the good prognosis.

Insofar as the price movement is concerned…I think the base now shifts to the middle fork on monthly charts…i.e to 23.60…the stock may range between plus or minus 2 to 3 rupees around this base for the next 1-3 months…i.e the price may range between 20-26…and if and when the NIFTY recovers, the next phase of the rally would begin…

Stock rallied from 14.45 to 30.90…a 50% retracement of the upmove would be around 22.60…stock has already touched 22.60 once and bounced from there…that level could be a good support for Aksh Optifibre…

Those interested in rudimentary Elliot wave analysis would calculate that the length of the first wave was 16.45 (from 14.45 to 30.90) and now the stock is in wave 2 pull back…this is followed by the longest wave - wave 3…which has a minimum length of twice the length of wave 1…thus the next wave (wave 3) may be around 33 rupees from the bottom of correction…so lets see how the eliot wave thing works on Aksh…

Note…Now that the Q2 result is done with…the discussion would shift to study of various tech analysis models…Andrews Pitchfork…Fibonacci…Elliot Wave…These are all for academic purpose only…should not be taken as any sort of price targets.

(Manish) #185

@Mehnazfatima ThankYou for this and all the regular Updates you dedicatedly keep on posting for benefit of All of Us …
I have Faith on ur Technicals and Hope on great future for Aksh Optifibre so I will keep holding :stuck_out_tongue_winking_eye:

@VIFL Thanks for posting this press release but could you just copy paste the link of this article where you read … I am not able to find it on BSE or Aksh Optifibre website.

(Rajeev M. Parashar) #186

@mani1 Here you go…


(Manish) #187

ThankYou so much …
That was Super quick …
Hope to see more updates from your side in near future :grinning:

(Mehnazfatima) #188

I think they have sent that press release to all the investors by email…atleast I got one by email too…sending email to investors can be taken as a sign of commitment by mngt.

(arvind) #189

Thanks Mehnaz The release is part of the result update to investors by mail. I too received it. Can you please enlighten us with your chart analysis on Aksh?

(Mehnazfatima) #190

(Ram Arvin) #191

As per the company quarterly presentation, the sales is down due to upgradation and expansion. We can wait for one more quarter to check the volumes.

But the services business is constantly incurring losses and the percentage of losses to revenue has increased…

@Mehnazfatima…can you please your point of view on the services losses.

(Mehnazfatima) #192

services business is mainly IPTV and Aksh e mitra services. As the mngt has already told, the IPTV is being discontinued and they are booking depreciation loss for taxation purpose…and aksh emitra services are expanding and have started making money…but I don’t think that the contribution of emitra to topline and bottom line is not going to be significant in the near future…

(Mehnazfatima) #193

I am posting the quarterly chart of Aksh Optifibre with Andrews Pitchfork…pl don’t take it as a price recommendation or a target…but just as an indication of the possibility as to how high this stock can go …if it is held for next 10-13 quarters…i.e for the next 2-3 years…when it reaches the upper fork line…earlier there was a turnaround on monthly charts…now even the quarterly charts show a turn around…

The only thing that can harm us is …being negatively affected by day to day volatility is stock price…if we just learn to focus solely on the bigger picture (Quarterly chart is big enough)…then we can benefit immsensely…

Guys…just close your eyes and sleep over this stock…

(Manish) #194

(Meetesh) #195

Very true Manish. India is on the cusp of a digital revolution and Aksh Opti will benefit both due to increased sale of optic fibres and cables as well as it’s 10000 e-governance kiosks.

(Mehnazfatima) #196

Aksh optifibre…very interestingly placed…and heading towards an eventful week…

(Mehnazfatima) #197

There is quite a lot of chatter on various message boards about the collapse of Aksh Optifibre to 18-19 levels…therefore I am posting daily charts of Aksh with different systems for calculating support levels for aksh…investors may take guidance from which ever technical system that they like…

.In my humble opinion, 21-22 appears to be a strong support zone for Aksh and should be used to buy more of Aksh optifibre in case the stock falls to those levels…

(Rajeev M. Parashar) #198

A good overview of Companies working on different aspects of Digital India.

(Ram Arvin) #199

The name of Aksh is not mentioned in this article. Where Sterlite name is given in both Digital Infra and smart cities.

(Meetesh) #200


(rahulparekh22) #201


I am studying the company but I have a query:

Has Aksh given out its utilisation rates for different verticals in its manufacturing division? ie for FRP, OFC etc?

I couldnt find them, please let me know I have missed them somewhere

(Mehnazfatima) #202

In the AGM they said that they are working at full capacity and have therefore gone for capacity expansion due to huge demand.

The only difference between Sterlite tech and Aksh is that Sterlite has mostly completed its huge capacity expansion…While for Aksh it will be completed by March 2017. Both expect the turnover to double by next year