there is another chart i would like to bring to attention of fellow members, which i felt was an interesting development… [will try to start an individual thread on this, since none is there in our forum]
Rajratan global wires…
a autoancillary and a tyre proxy play…
2 products mainly
Tyre bead wire[80% topline] which is used in all kinds of automobile, earth-moving
equipment and aircraft tyres. Its function is to hold tyre on the rim …
and high carbon steel wire.
a market leader in domestic market, with 40% current market share, pre capacity expansion which is planned to come online by the end of this financial year[expansion from 40ktpa to 72ktpa], and partial commission from q2… they also have a subsidiary in thailand, where it it is the sole inland production line, currently enjoying 20% market share[ increasing thailand capacity from 26,000 tonnes per annum to 34,800 tonnes per annum]…
Mention from AR-
1.Exports from Thailand accounted for 45% of
the revenues earned from that country, which could increase by 15-20% in quantum terms during FY2018-19.
2.The bead wire outlook for the Asian market continues to be
favourable. China is rationalizing its capacities in a bid to shrink its carbon footprint.
3.Even as automobiles go through an extensive structural
transformation – from fossil fuel driven to electric variants – we
do not foresee any threats when it comes to tyre substitution,
assuring steady growth over the long-term.
4.Most of our tyre customers are expanding their installed capacities, escalating the prospective demand for bead wire
5.The Company encountered unprecedented volatility on the raw material front: the cost of its
principal raw material increased virtually every month during the year (once on two occasions
within the same month). The cost of wire rods escalated from Rs. 35,300 per tonne to
Rs. 45,500 per tonne by the yearend. In a business where the cost
of raw material accounts for 65% of the total cost of production and where costs can be passed
on to downstream customers only once every quarter, this record increase in costs stretched the Company’s finances, propelling the management to realign its cost structure and revisit its working capital management.
6.With the demand for bead wire remaining robust in Thailand and the neighbouring countries, we will need to raise our production and productivity to service the growing appetite of our
customers. We expect to address this increased demand through concurrent capacity growth and line balancing exercises, some of which were completed during FY2017-18. Due to these reasons, I can safely say that we are wellplaced to report attractive growth from FY2018-19 onwards.
recent inv ppt-
A very well written annual report
the rating upgrade and rationale from crisil…
https://www.crisil.com/mnt/winshare/Ratings/RatingList/RatingDocs/Rajratan_Global_Wire_Limited_April_13_2018_RR.html
SBI small cap fun and HNI holds 14% stake and the promoters 63.5%
disclaimer… not invested, still researching the fundamentals, interested