Jiya Eco-Products Ltd. - Step Towards Green World


(padi) #41

Im not sure if you are aware of the recent GoI initiatives in this space.

Read this:
https://www.ntpc.co.in/en/media/press-releases/details/ntpc-invites-bids-agro-residue-based-fuel-part-environment-friendly-drive-ncr-encouraging

and this:
https://mercomindia.com/cea-biomass-pellets-power-generation-thermal-plants/

Releases apart, i am not sure when all these will actually get implemented. And thats not the point i’m trying to make. You know what caught my attention in these PRs? The NTPC press release says this: To attract start-ups and greater participation, NTPC has allowed participation of bidders without any prior experience. Companies/state or central PSUs/individuals/partnership firms/ NGOs/trusts/co-operatives/welfare societies/ limited liability partnership (LLP) having GSTIN and PAN can participate in the bidding process."

Unlike any govt tender which calls for financial and/or technical pre-qualifications, this tender actually calls for bids from start ups!


(padi) #42

Every promoter has his/her own strategy. In this case,

They could either wait, grow slowly, slowly generate cash flows sufficient enuf to only add so much capacity etc…and in the process allow competition to catch up sooner than later and kill them (possible…right?).

OR

Raise money (bcoz current model doesn’t generate sufficient), expand serious capacity, respond to the possibility of competitive threats in the near future by tweaking your biz model from B2B to B2C and build a economic moat around it AND be relevant by growing larger in size.

The mgmt of Jiya seem to have chosen the later :slight_smile:


(padi) #43

While i’ve tried to reply to several issues on which i had views on and my replies may sound biased or may hint positivity, i would prefer giving an opinion which i strongly believe in. Kindly do your own research and build your own conviction around stocks (not only on this stock). Please do not invest on borrowed conviction. Its not worth it. Investing is an art and science and one needs to have a lot of patience and discipline to make wealth. Besides, smaller stocks (micro caps, SME stocks etc) have their own perils (low liquidity, no serious track record etc), making it an even-more-difficult place for those who don’t have risk appetite and limited experience. I am NOT recommending any buy or sell on this stock. I am on this platform to merely share my views and knowledge on stocks which i may know of and am happy to learn from other fellow investors.


(neil_loamas) #44

Absence of positive free cash flows is off thing. Sales growth and PAT growth is impressive and hence I want to avoid this scrip. May the force be with investors in this company…


(KhokanSarkar) #46

Sep’18 shareholding pattern : Infosense Pvt lmt bought 456k shares of jiya eco…seems this company is technology based not investment company/fund still they are buying stocks. Why they are showing interest…around 3.37% shares . Anyone has any idea about this… thank you


(padi) #47

CRISIL has assigned its ‘CRISIL BBB-/Stable’ rating to the long-term bank facility of Jiya Eco-Products Limited (JEPL; part of Jiya group).

The key drivers for their rating are as hereunder:

Strengths

*** Extensive experience of the promoters and strong procurement network**

*** Moderate financial risk profile**

*** Easy access to raw material**

Weaknesses
*** Working capital-intensive nature of operations**

*** Reliance on collection agents and exposure to geographic concentration risk**

Outlook: Stable
CRISIL believes JEPL will continue to benefit from the extensive experience of its promoters, the advantage of being one of the first movers, and its moderate financial risk profile. The outlook may be revised to ‘Positive’ if liquidity profile of company improves sharply most likely through infusion of capital or enhancement in working capital limits together with correction in working capital cycle. The outlook may be revised to ‘Negative’ if increase in working capital requirement, or any large capital expenditure, weakens the financial risk profile, particularly liquidity.

Read the details in the link attached herewith:

https://www.crisil.com/mnt/winshare/Ratings/RatingList/RatingDocs/Jiya_Eco_Products_Limited_October_19_2018_RR.html


(hrdk3110) #48

Hi, Great Work and Thank you. Are you still eying on it ? Also, how did you get dial in details for Conference ? it seems they don’t provide it in the Analyst meeting notifications. I was thinking to attend Q2 2019 conference call. they haven’t notified for it yet


(rupaniamit) #49

I’ve a negligible small tracking position. Last quarter company shared earnings con-call dial-in info as part of the announcements it shares with BSE. I got it from BSE site.


(padi) #50

Hi Amit, All these data is uploaded on the BSE site. Hereunder are the links for your ready reference.

Investor Presentation

Conference Call invite


(padi) #51

Great work Amit :+1:


(hrdk3110) #52

Yes, I just saw that. Company has performed really well and management is very aggressive to expand and grow. Only thing I am apprehensive about is liquidity. Company has very low cash amount against its current liabilities. You or anyone has done that analysis/ Calculations ? I am attending todays con call and will try to make notes and share here.


(Chitresh Lunawat) #53

Any notes from the concall? Is company going to publish the concall text file? Any thing on the upcoming working capital requirement and the IPO of the subsidary?


(Chitresh Lunawat) #54

what is this joint ventrue with KORKIA? how is it going to benfit the company?


(hrdk3110) #55

Hi , Any idea why company is showing Basic and Diluted EPS same in both March 18 report and also in Sept 18 report?

they didnt consider future dilution effect of warrants ?


(nitinver) #56

Any business which has such huge divergence between profit accrued and CFO raises red flag.However small the business is,cash flow sustains and nurtures it.From '14-18 the PAT has been approx 22cr but CFO has been -10 cr.Demo effect/GST cannot be reason for this huge divergence. How is the management loooking to rectify this?


(rupaniamit) #57

I’m sorry…I don’t hold it anymore and I don’t track it


(hrdk3110) #58

In this quarter, their Receivable cycle has improved to 140 days. if they can improve a bit more or even maintain at this level, would solve cash crunch prblm by end of the Fincial year.
Also Gandhidham plant will add to margins as it wil cater to retail customer only
I have doubts regarding their accounting practise now. they issued warrants and didnt consider diluation effect. this is very obvious thing. Auditor also didnt mention this. i am not sure whats going on or… am i wrong here ?


(hrdk3110) #59

ohh!! Alright,
thanks Amit


(acido255) #60

as company is low on its cash-flow
it is issuing Bonus shares instead


(acido255) #61

Jiya Eco-Products (JEPL) has received an approval for setting up a joint venture (JV) with Korkia of Finland. The Board of Directors of the company at its meeting held on November 05, 2018, approved the same.

The project will focus on identifying opportunities that will aid in ramping up JEPL’S business. The project development aims to scale operations India-wide and to the volumes needed by large off-takers. JEPL’s responsibility is the availability of the bio fuels at an industrial scale and Korkia’s role is to help JEPL with process and business model development to enable scaling and to investigate potential industrial off-takers.

read more here

https://reut.rs/2AL6HzI