This is already discussed in this forum.
This is already discussed in this forum.
how big is the technological obsolescence n disruption risk in the shunt resistor segment as also mentioned in the tread earlier ? how is the opp size of the co n what abt competitive intensity with asian players?
As you must be aware, I think shunts as such have been there for decades. Perhaps its more about the quality, robustness and very low resistance and energy loss that Shivalik has been able to offer and penetrate and supply to global names.
I don’t think one can quantify the opportunity size and this also would keep evolving based on industry growth, new customer addition etc etc.
EV reality will happen slowly and it is not an event like election. As we see cars coming out with ability to charge at home, it will start to become more popular. We need better batteries, longer run per charge, lower cost per car, and also simple 240V charging at home. This will facilitate ordinary working class people (professionals) in non-big-cities getting these cars on EMI and running their life with these cars as ‘commute cars’. This is how many of the smaller Chevy, Nissan, Toyota, Honda and other cars are making their debut in the US and EU. They are simple and small, low cost cars compared to Tesla, Merc and BMW. But they also make the ROI for the car owner due to the lower cost of operation and almost no cost of maintenance with 2000 parts as opposed to 20000 parts in ICE.
So, invest slowly and consistently. I do not know anything about Shivalik, but will investigate. I am invested in Amara, Exide, HindCopper, MnM and TaMo for now as my EV plays, and in the positive on all of them even today based on my various buy prices. Hoping that the wave will come and it will start to take these stocks through the roof. In the meantime some of these give dividends which tells me to wait patiently.
H ow much is the competitive intensity for Shivalik Bimetal or pie big enuf for all and Indian low costs make Shivalik much cheaper then competition?
Kyoto and Santa Clara, Calif., Jan. 25, 2018 (GLOBE NEWSWIRE) – ROHM has recently announced the development of a more compact version of its highly regarded PSR series of high power ultra-low-ohmic shunt resistors for current detection in automotive and industrial applications.
Shunt resistors are widely used in the automotive and industrial markets to detect current in high power sets. In the automotive field, the shift towards computerization and electro-mechanical systems resulting from the need to provide greater safety and efficiency along with the emergence of electric vehicles has increased the number of number of small motors and ECUs required, driving the demand for compact shunt resistors that can support higher power. In response, ROHM has expanded its high power, ultra-low resistance PSR lineup to include even smaller sizes.
The PSR100 series adopts a high performance metal alloy as the resistive element to provide superior temperature coefficient of resistance (TCR). In addition, leveraging original precision welding technology makes it possible to successfully deliver high power (3W) in a compact 6.35x3.05mm form factor – impossible to achieve until now.
This ensures sufficient margin for use in sets with demanding temperature requirements, such as industrial equipment, reducing design load and contributing to greater end-product miniaturization.
1. High rated power in a compact size
Traditionally, there has been a trade-off relationship between rated power and size, making it difficult to achieve both at the same time. However, proprietary precision welding technology allowed ROHM to create a high heat dissipation structure that fuses small copper plates to a metallic alloy, delivering high power capability (3W) in a compact size (6.34 x 3.05mm). This makes it possible to meet customer needs for both power and size in the automotive, industrial, and other markets with stringent requirements.
2. Excellent temperature coefficient of resistance – even in the ultra-low resistance region
Generally, the lower the resistance the higher the temperature coefficient of resistance (TCR). However, the PSR series utilizes a high performance metallic resistive element that ensures superior TCR, even in the ultra-low-resistance region. This latest lineup is offered in resistances as low as 0.3mΩ, providing greater applicability.
Automotive: Onboard chargers, electric compressors, EPS
Industrial: UPS, base stations
About ROHM Semiconductor
ROHM Semiconductor is an industry leader in system LSI, discrete components and module products, utilizing the latest in semiconductor technology. ROHM’s proprietary production system, which includes some of the most advanced automation technology, is a major factor in keeping it at the forefront of the electronic component manufacturing industry. In addition to its development of electronic components, ROHM has also developed its own production system so that it can focus on specific aspects of customized product development. ROHM employs highly skilled engineers with expertise in all aspects of design, development and production. This allows ROHM the flexibility to take on a wide range of applications and projects and the capability to serve valuable clients in the automotive, telecommunication and computer sectors, as well as consumer OEMs.
I feel its obvious for more people to come into this as the market size and potential expands. However, its good to see that all the names that we all come across (as competitors) seem to be large companies and based out of areas where the costs would be much higher than India.
If Shivalik continues to grow then probably their cost structure would be lower than others and the company may continue to grow.
Bigger risks would be - technological advancements or obsolescence or fall in price of product etc due to high competition etc.
Find enclosed my view on Shivalik Bimetal in following link,
Discl: I hold investment in the company and my view may be biased. Investor shall consult investment advisor before making any investment decision. I am not sebi registered investment advisor.
As usual very good read and insights Dhiraj.
Nice to see your article in the national news paper like “The Economic Times”.
I wish you more success and good luck!
Good work of VPiers top contributors is being noticed by markets and market leaders.
Nickel prices are getting expensive
I think Nickel is one of the raw material for shivalik bimetal
Has Shivalik declared the dividend? I could not find announcement even though the due date was 12-Feb?
Excellent Set of Numbers
Revenue 45.28 Cr (Q3 FY 18-19) vs 41.66 Cr (Q3 FY 17-18)
Profit : 3.06 Cr vs 5.89 Cr [90% Growth YoY ]
Revenue : 145.71 Cr vs 118.55 Cr (23% Growth)
PAT : 17.25 Cr vs 10.33 Cr (67% Growth)
Dividend : 0.30 Per equity share
Shivalik Bimetal seems improving as a business … Key observations on Q3 19 results
- Gross Margin improved to 50% in Q3 19 from 48% Q2 19 and from 47% in Q3 18
- Top line down 9% QoQ but up 9% YoY from 42 cr to 45 cr
- Even though Top line grew 9% YoY, the EBITDA margin grew from 16% to 23% YoY and from 20% to 23% QoQ
- Net profit almost doubled YoY and up 6% QoQ in spite of QoQ drop in Top LIne
Seems there is a change in product mix and hence improvement in EBITDA margin.
Here on it needs to be seen how the top line grows? … 9 month growth in top line is 22% and Net profit growth in 70%.
Overall in this market it’s trading at trailing PE of 20 … Not cheap but if the top line grows at this rate YoY and can maintain the margin, it would be interesting to watch.
Dividend declared Rs. 0.30/- per share.
Production facility expansion on card within few months.
Came across a very old set of interview of the chairman - https://youtu.be/X6ZWh5UkkkY
Though its pretty old and may not be relevant in today’s context yet it was good to see.
CRISIL initiates coverage with A- rating to Shivalik Bimetal. Earlier, rating was BBB+ by CARE.
Rating from CRISIL carries more weight than CARE.
The consistent improvement in financial also resulting in constant improvement for credit rating. Last 4 years rating for Shivalik
Two notch upgrade in last two years take note of Shivalik’s improving credit profile (with with change in credit rating from CARE to CRISIL also I personally consider positive).
Discl: I have investment in Shivalik Bimetal and my view may biased. Investors shall undertake their own due diligence before investing.