Shree Pushkar Chemicals


(chets) #61

Latest investor presentation: http://www.bseindia.com/xml-data/corpfiling/AttachLive/a1ef8d86-9d16-40b8-8f40-cb76836168cf.pdf

First slide says “On a full year FY18 basis, we believe we will close the year with revenues of Rs. 410 –425 Crores”

I wont be able to attend the conf call today. If anyone does, kindly share the notes.


(Mridul) #62

Basically they are sticking to their guidance given last year. Means next 3 qtrs would be 110 cr topline with roughly 17% EBIDTA margin… so roughly 40-42 cr PAT.


(DEEPAKSINGH) #63

Is it possible to do such yearly sales after doing 78cr in q1 …they now have to do sales of 110cr next 3quarters to hit the guidance…


(Changu Mangu) #64

Yes. I too heard the call. Mr. Makharia is extremely bullish on his company. He also said in the conf-call that his projections do not include further capacities coming online this year and that prices have bottomed out and will maintain or rise so that should help margins.
He also let out, since I think he knows that numbers were low last quarter that this current quarter they have already crossed 50 Cr in business. That was quite a revelation.
It helps to know that he keeps buying his stock back.


(Ravi Srikant) #65

Just to add to the above points

  1. Mr. Makharia was recently in China and according to him the environmental issues are likely to persist
  2. Dye exports were ~ 50% of total dyes segment revenue and 10% of total revenue
  3. Mr. Makharia believes the dye intermediate pricing is close to bottom and it should definitely go up over the following quarters
  4. The issue related to tax needs further clarification
  5. He was positive on GST as it has led to some saving for textile companies

(ramanhp) #66

The company aims to emerge a complete chemical solution for the textile industry. And says it has a high focus on quality.
The legal case with Huntsman was discussed as a caller wanted to know the liability of legal case. Some back and forth but not much clarity.


(shikhar mundra) #67

He mentioned about suing Huntsman for a huge amount equal to 250 cr! the market cap of Shree Pushkar itself is just 650 cr. He also mentioned filing a FIR against 17 Huntsman employees. From his tone he was looking very determined and confident to win the case.


(Changu Mangu) #68

Yes, I was actually going to ask them about the tax but they abruptly ended the call without taking all questions saying lack of time. I was expecting MAT to kick in. Wondering now, can someone here email them? I can’t since I have sold my holding for the time being.


(Ravi Srikant) #69

Yes, the exchange with the caller on Huntsman was a bit a strange to say the least. The caller is to blame for this though.


(Kumar Saurabh) #70

If you check FY 17, q1 contributed approx 20% of FY 17 revenue. If they want to achieve 410 crores after doing 78 cr in q1, it comes approx 20% again. Now, question is did it happen in fy17 purely due to seasonality or due to capacity expansion , supportive price movement etc but I think if company keep doing right things n prices donot crash big time (q3 fy17 had some price correction ), does not look impossible . Disc : invested with a small exposure . Looking to add at right right levels


(Changu Mangu) #71

They did mention in the conf-call that it is a seasonal and annual issue plus there was some impact of GST as many orders were not booked for 10 days or so. Also, they mentioned that good monsoons (which were missing the last 2 years) will help with fertilizer off take and they expect to do well this year with the fertilizer business with good monsoons for the current sowing and thereafter also the winter sowing. All monitorables.


(Kumar Saurabh) #72

Thanks . Ve not gond through con call this helps . Plus yes, in FY 17, we ve two quarters of lower base bit screwed up by demon plus q1 bit screwed up by GST . So this looks quite possible if prices do not fall by a big margin


(sathish kumar jalantran) #73

Shree puskar concal important take way:

  1. Vinyl sulphone price in q1 is 225-250 which is lower than last year q1
  2. H-acid price is 325-345 which is lower than last year q1
  3. Chinese pollution situation going back to more worst,as Chinese govt appointed new committee “CPA” which they are conducting audit each and every plant and so so many illegal intermediate company shutting down
  4. So mgmt telling there is no room for price go down from here .and it is only go up from here.

Regards,
Sathish


(chets) #74

Thank you @a0132256, @Mridul, @suru27, @valuestudent, @ravisrikant, @Shikhar, @ramanhp for sharing your notes.

@DEEPAKSINGH There is no easy answer to your question. Q1 sales were decent if you take into consideration the GST impact and lower prices of Vinyl Sulphone and H-acid.
However we need to take it quarter by quarter from here on. There are a lot of factors that can positively/negatively impact the story.
The management is making moves in the right direction and I have confidence in them. I have not seen them over commit yet.

Disc: Invested and looking to add more on declines.


(ramanhp) #75

It was mentioned that new accounting standards adopted by company has also affected how numbers are seen.


(DEEPAKSINGH) #76

http://news.xinhuanet.com/english/2017-08/04/c_136497664.htm


(DEEPAKSINGH) #77

http://news.xinhuanet.com/english/2017-08/04/c_136497664.htm

Some reads on china pollution .


(Jinal) #78

9425128c-ab54-47ff-a396-b197ae18b658 (1).pdf (713.5 KB)

What are the expectations in tomorrow board meeting? any acquisition plan


(rknshah) #79

http://www.bseindia.com/xml-data/corpfiling/AttachLive/5dce3be3-31df-4a35-af80-10c8dd358bb9.pdf


(Jinal) #80

preferential allotment to the promoter. they are having keen interest in there own companya62859c6-e747-46fa-8d0d-6b6c47bd5ccd.pdf (190.7 KB)