Sanghi Industries - Turning dreams into concrete reality


(kartik.jajal) #1

Sanghi Industries Limited is the flagship company of The Ravi Sanghi Group dealing in the
production and distribution of Cement under the Brand Name “Sanghi Cement”. Sanghi Cement was commissioned in 2002 with one of the world’s largest single stream Cement Plant located at Sanghipuram, in the Abdasa Taluka of Kutch District of Gujarat State. This plant is fully automatic with state-of-the-art technology from Fuller International, USA and having present capacity of 4.0 MTPA.

Positive factors

  1. Capacity expasion to double
    capacityExpansion

  2. Save transportation coast to supply cement by using coastal route to dispatch cements from Kutch to Surat and Maharashtra region.

  3. Make in India, Smart city, affordable housing suppose to boost consumption of cement

  4. Sanghi Cements plans to set up floating facility at Kochi Port to reduce coast of shore base terminal. Once the project becomes operational, Kochi Port will be the first major port in the country to have a floating cement terminal,
    https://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=8&ved=0ahUKEwi8_IiNiJvXAhVCLY8KHTk5Cp4QFghIMAc&url=http%3A%2F%2Fwww.thehindubusinessline.com%2Feconomy%2Flogistics%2Fsanghi-cements-plans-to-set-up%2Farticle9854500.ece&usg=AOvVaw3M0ZLP9p6zjASuJ-IHf-ja

Results

CMP : 134
Promotor holding : 74.98
Pleadge shares: : 70.58

Disc : Added small quantity near 90 level. Waiting to add more after getting views from VP members

http://www.sanghicement.com/themes/bartik/pdf/Corporate%20Presentation_August-2017.pdf

Proposed Expansion Plan.pdf (575.7 KB)
Edelweiss-SanghiIndustries.pdf (897.8 KB)
Venture-Sanghi Industries.pdf (1.3 MB)
.


(Mute Spectator.) #2

HI Kartik , Good writeup but as you are writing on this platform it would be good if you try to put out your thoughts (I am not interested on Edelweiss thoughts ) on valuations.

I believe most people are value picker rather than story picker here …

Anyways at Rs90 Stock is already trading at 16 times FY19 earnings as per Edelweiss DCF model, At their cost price Rs 62, it’s still not that cheap around 11 times FY19 earnins.

How much are you expecting to make on this ? I feel its fully priced. I would love to buy it at trailing 15 PE rather than FY19 15 PE.

Thanks,


(anantshri_gupta) #3

Is the family feud over and settled completely? The four Sanghi brothers (one of whom is Ravi - MD of Sanghi Industries) were undergoing a separation couple of years back. I understand that this separation turned dirty… Anyone know the inside story and how it played out? Looking to see if management is a question mark.


(anantshri_gupta) #4

Why aren’t these guys paying any taxes?


(Marathondreams) #5

Great results from Sanghi. As compared to last Q2, Revenue up 38% , Profit up 190%. YOY profit up 5 times. Concall on 12th Feb at 11am should provide more details


([email protected]) #6

please note that sales change only 3 % and profit changes because reduction of excise duty , other income and tax reduction . there is no significant improvement in opreation perfomance. do u have insight on this


(Marathondreams) #7

There cement sales were up by 16% YoY whereas clinker sales (exports) were down impacting reduced overall sales growth. They also had kiln shutdown for 20 days in Dec qtr. On the concall, management mentioned that volumes and prices are recovering from H1 lows. Please see the attached KR Choksey research report with target price of Rs 155

20180214_Sanghi-Industries-Limited_44_QuarterUpdate.pdf (1.5 MB)

Disclosure - invested after Q3 results in last 2 weeks. Forms 2% of my PF