Everest Industries - Multiple Drivers in place


(suhagpatel) #43

(lohiyaakshay08) #44


(Vikas Pandey) #45

promoters selling again ???


(tankerooooo) #46

Analyst report from Ventura on Everest Industries -


(suhagpatel) #47

Got a chance to talk to couple of distributors of Everest Industries in Pune today. Below is the brief of the details they shared.

  1. Company does not provide any credit to distributors. Distributors have to deposit amount to company as a rolling credit and they can purchase material only till the limit of their current deposit with company. Company adopted this practice after some of their distributors failed to pay money on time in past.

  2. GST is helping company to garner more market. Pain of GST is almost over now and things are back to normal.

  3. Rural area is driving the demand for company. Fiber cement roofs are preferred over traditional roofs due to their inherent advantages.

  4. Everest’s Rapicon cement walls are in demand in rural areas due to its portability, ready and easy to use nature. I was told that small rural homes are constructed as quickly as in two days using these cement walls. These walls are also used in making toilets for various Goverment schemes like swachha bharat.

  5. Mumbai is a big market for cement boards

  6. Shift from plywood to cement boards and panels is clearly visible and company is aggressively targeting customers there. This can be a huge market for company.

  7. Competitors in Cement roofs are Visaka and Charminar. They told that quality wise Charminar and Everest score over visaka.

  8. As per them company has failed in Pre-Engineered Steel buildings. When i told them that company has turned it around and reported profit in Q2, they were surprised a little. As per them, there is no market for PESB materials in and around Pune as of now. Company is targeting big industrial orders in this segment.

  9. Company provides training to them to promote their products and take them to site visits often.

  10. One distributor is with the company for more than 15+ years now and he was well aware about the company finances. He told that company should do roughly 1300-1400 crores of revenue this year. Not sure how a distributor can predict company revenue but he was very confident. Interestingly, after Q2 Everest has given guidance of 1200+ crores of revenues for FY18.

Some of these details are already shared in various research reports. However, it was assuring to here it from the people directly dealing with the company.

I am planning to meet more people associated with the company in next few days. Shall share details here if i find anything extra than what i have posted above.

Views/comments invited.

Regards,
Suhag


(Rohan) #48

As long as steel prices stay high , rupee is strong (raw material chrysotile is imported) and rural spending/monsoon is adequate, this stock has a lot of headroom for earnings expansion. The pricing in steel building contracts also seems to have improved as they have entered clause for price increases as per the management in one of their older concalls. Price to sales is still reasonable

Disc : Invested at much lower levels when I started the thread


(suhagpatel) #49

Vijay Kedia has increased his holdings from 2.51% in Sep-17 to 3.89% in Dec-17.

http://www.bseindia.com/corporates/shpPublicShareholder.aspx?scripcd=508906&qtrid=96.00&QtrName=December%202017

http://www.bseindia.com/corporates/shpPublicShareholder.aspx?scripcd=508906&qtrid=95.00&QtrName=September%202017

Disc: Invested and may add more at appropriate opportunities.

Regards,
Suhag


(Saravanan B) #50

According to Kenneth Andrade, rural spending would increase exorbitantly in the next 18 months. I have read the PMAY (“Housing for All- 2022”) scheme and the Govt targets to build 1 crore houses in the next couple of years. I believe Everest Industries will be a potential beneficiary through this. There is a strong reason for their revenue to double in the next 2 years.

image

Everest Solar business will be benefited through this project.