Excel Industries : Experience Certanity

(Akshayag) #22

Totally agree with you. If you get growth then why not. And in our case it’s profitable growth (vs flipkarts) which makes all the more sense.


For the first time in last 10 years promoters diluted equity in FY15 and price is as per FY14 in which company used to trade in 60 odd levels. More over this is old issue and not relate to recent price fall.

(nerolu_praveen) #24

@Akshayag The equity dilution is not the only reason why I have sold it. There are a few,

  1. It’s top line has just doubled in last 10 years ( courtesy Screener). I had this noted when initially bought but their environmental division gave me some hope i.e. Waster convertible/Sanitreat/Occulam. But it would take ages for these products to get clicked in the market. This division is in fact making loses.
  2. Warrants issuing - not at all encouraged for capital intensive business to generate the working capital. Instead they should improve on the receivables and generate the cash.
  3. Promoter has interests in Excel Crop Care, Transpek. I don’t know when all three companies are in same sector why is this needed.
  4. Seasonal affect rain - I have decided that I am not gonna invest in a business that is going to be seasonal. If season turns out to be disastrous all profits will get wiped off.
  5. I was assuming that Pharma API division would help improving the topline and bottom line, couldn’t see it.
  6. Veterinary API - Don’t see this division contributing a lot. When poultry based business is growing in India, I don’t see it reflecting in their topline.

It was more of learning for me to have this stock. As I bought it during initial one year of my entry into equity investing.

(atishay1) #25

Some good news finally.


How can its a good news?
They raised funds at cheep rate 2 times in a year and using the same funds to buy back.
I didn’t understand the purpose.

(atishay1) #27

Isn’t so that the board has decided to buy back at a max share price of 275 compared to current market prices of 225. This can convey two things:
-management is ethical
-they value business highly than as reflected in CMP


Where the money came from to buy back?
If company have money to buy back then why did promoters issued warrants to themselves last year?

Disclosure: Exited completely.

(Kushal Masand) #29

The buy back is for max 5% equity…cmp jumped 15%…exited now…initially too have exited partially @ higher price.

(atishay1) #30

In my view, its not right to blame the promoters this way. When the warrants were declared it was at par with the market price that time. So market was under appreciating the business and promoters saw value in it and hence issued warrants. It so happened that the timing of the market realizing the value and promoters converting warrants coincided.

Now promoters are valuing business at 275 when the stock price was below 200, how would you explain the promoters did this? they can have very well bought back the shares at lower prices. And thats my point.

If you look through their eyes, I dont see they did significantly wrong. What I am more concerned about is why they feel a need to buy back, does it mean there are not enough expansion plans/opportunities, That for me would be the more important questions than doubting promoters’ integrity.

Discl. Invested

(manish) #31

Issue of warrants in my opinion is a negative and basically a legal tool to rob the minority shareholders. However many promoters do it frequently. If the promoters are truly ethical then they would have issued themselves shares at the market price rather than issuing warrants where you buy now and pay later at 0% interest.

(atishay1) #32

Scrip doing well! Any news in the making?

Discl. Invested from lower levels

(Tekumani) #33

Agro chemicals segment doing good in Excel industries Ltd, because of Chinese shutdown…Apart from this , is there any key take aways from the q3 Results

Disc:- Tracking position

(atishay1) #34

Excellent upmove driven by re-rating and improved earnings.

Discl. Invested and holding

(tejas75) #35

Company posted good results is anyone tracking. I have just noticed it and started researching and data digging.

(arvind1ahuja) #36

Disclosure - Invested heavily

Co. has entered a SUSTAINABLE GROWTH phase, starting 2014 and going into 2021

  1. 2014 onwards, tailwinds from product and market expansion and restricted Chinese supplies
  2. 2019 onwards, capacity expansion and expansion from new and existing products into new and existing markets.

FIRST re-rating has happened
Improving RoE and RoCE
Historically highest margins
If they sustain these margins, SECOND re-rating should follow
Management does not share commentary . Neither do they appear in public domain.
Second generation and now third generation are carrying the baton. Nothing fancy.
Push into human APIs appears promising.

(sunilgct) #37

Stock seems to be on down hill . Fundamentals look intact rather could not verify much apart from AR as there are no con calls.
is some on aware of any chines Pressure on RM ?
Appreciate if there are inputs on this