Sahyadri industries is trading at a P/e of 8 with a current eps of 64.
Since everyone knows company does well in Apr-June quarter and the same is reflected in q1 numbers. (As you mentioned an EPS of 70 is easily achievable)
Is it safe to invest at current levels considering the timing or should I wait to get a better margin of safety at play?
Sahyadri can be bought in the range of 460 to 510 with a one year view as it quite likely to see further upside and can see levels of 600 to 650 . However, since majority of the sales is from asbestos , it is uncertain as to whether its PE can get re-rated currently, unless the company diversifies its product portfolio and reduces the dependence on asbestos products so that its get re-rated.
As the company has initiated the process of having investor meets , it is quite possible that large investors can take interest in this stock , which can take the stock to higher levels, as the floating stock is very low.
Disc: Invested
All time best quarter for Sahyadri. Congrats to all investors who are holding this. Summary of Q1FY22 results mentioned below
Revenue at 194.40 crores up by 47% QoQ and up by 33% YoY
PBT at 42.60 crores up by 139% QoQ and up by 36% YoY
PAT at 32.59 crores up by 92% and up by 38% YoY
EPS at Rs.34.08 up by 92% and up by 38% YoY
OP Margin at 22%
Demand for companyâs products is growing and it is visible company was able to increase the price of its products. With capex of Perundarai plant getting completed and commercial production getting started by Q4FY22. Sahyadri has a long way to go and rerating is expected soon.
Sahyadri Q1 results.pdf (2.8 MB)
Another capex coming.
Board of Directors ofthe Company approved the setting up a new unit in Orrisa state for manufacturing Asbestos Corrugated Sheet
plant of having capacity of 1,20,000 MT p.a, at cost of Rs . 95 crs. Which would be funded mostly by Internal accruals and debt
based on the cash flows.With this Expansion, Company would enter to the presently unrepresented market viz. West Bengal,
Bihar,Jharkhand and Orrissa. This unit would be expected to commence the commercial production during the third quarter of
financial year 2022-2023.
Awaiting views from learned members @jaman_valuepickr @easwar
Excellent investor presentation .
All is good for this company except the word âAsbestosâ. For me, it takes me back 25 years to school days, when we studied the hazards of asbestos.
So when a company says we are âincreasing capacity of Asbestos productsâ that for me is somehow not very optimistic.
Others like HIL who were in this space in past already reinvented their products.
Disc: Not invested, but tracking and educational interests.
Can any of the learned member pls tell when this company will come out of ASM LT-1 in BSE? All roofing stocks such as HIL, Sahyadri and Visaka are in ASM. Hence the movement of price and volume is minimal for last couple of weeks.
Results seems to be good even thought it is flat on YoY basis considering the demand for companyâs products are seasonal in nature. However there seems to be couple of positives which I feel Mr. Market will look forward.
Positives:
1.Commercial production at new Plant at Perundurai, Erode, Tamil Nadu is expected just ahead of Peak Season and therefore can expect good Results for June 2022 Quarter. Please note the Company s products are seasonal in nature and Bulk of the Revenue is earned in April to June Quarter.
2.Status of expansion of orissa project: company has applied with Orissa state government for necessary approvals and search for suitable land is started as per States norms.
3.Status of expansion of PERU plant: civil work is at its last stage of completion. Major machineries have reached at site and errection work is going in full swing. Trial production runs are expected to be completed ln third quarter of year 2021-22. Commencement of commercial production is scheduled to commence during fourth quarter of year 2021-22.
5.Recent brokerage calls company had will give enough confidence on the investor community to stay invested. I feel from the peak of 885 touched in August 2021, stock has corrected almost 25%, market may discount the results considering the positives and future triggers.
Last of couple of months, Sahyadri is meeting different brokerages for analyst meet. However none of them have published any research report on SIL to my notice if I am not wrong. If any VP member who is tracking SIL notice any research report on SIL, please share for the benefit of other members. Thanks
Has any body received reply from CS regarding request for listing of shares on NSE? I have sent couple of reminders. But he has not responded to any of the emails.
They just donât respond to any query. I also tried in past with few reminders as well.
Finally lost interest & good that exited.
Yes, you are right, it is prone to cancer RISK BUT
India is the world biggest importer of asbestos (around 2 billon dollar industry), people in rural areas used this sheets for home ceilings etc., environment will be treated in the same way cement industry makes.
Hi, Iâm also tracking the same. Can you please let me know from where you got this information?
Chrysotile the main raw material which is used in white Asbestos sheets is imported mainly from Ukraine/Russia . There will definitely be an impact on supplies but all building products companies stock prices including Everest / HIL are doing all right. Shouldnât there be concern?
Disc: Not invested
Iâd like to correct you here.
Sahyadri imports raw material from Kazakhstan primarily and Brazil is their backup option.
Theyâve got nothing to do with Ukraine or Russia
Sahyadri commences commercial production of Flat Sheet products: https://www.bseindia.com/xml-data/corpfiling/AttachLive/74ebca72-3abe-457a-bab0-2366a29d8a3f.pdf
The company got a recent patent in âMulti-Layered Breathable Prefabricated Precast Wall panels and Structureâ - any visibility on contribution to Topline in non-asbestos category ?
waiting for the concall. source is LinkedIn of MD Sayten Patel
Disc - Invested
