Could not find much data on this company. Mgmt does not conduct oncalls, press releases etc. Can anyone throw some light on near/mid/long term growth triggers for this company. Textile as a whole sector has multiple tailwinds which could increase demand for cotton machineries but apart from this are there any other major growth triggers ?
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Bajaj Steel- Highlights from Annual Report (FY 2020-21)
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The increase in turnover is attributable to the better explorement to new markets
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The profitability of the company has increased due to the increase in turnover including exports orders which has resulted in better allocation of fixed expenses.
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The company has developed Drying & Humidification Systems for cotton and cotton seed which are under testing
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The general engineering fabrication and machining work are now being undertaken by the company to enhance the capacity utilization.
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The growth potentials of products of all the divisions of the company are good. The Company is also expanding its activities in the selling of complete firefighting systems including Fire extinguishers, Hydrant systems, Sprinkle systems and Fire Diversion Systems and Steel Doors etc
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The future outlook of the company appears good as the cotton sector is doing quite well and with increased income in the hands of cotton producers more demand for the new plants machinery is likely to be there in the near future. The other sectors of operation of the company are also increasing their order booking to improve the working of the company.
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Dramatic decline in all segments.
Company is not bad, but no interaction with investors, maybe growth was just because of entering US and African market. Trying to do too many things, not worth the risk, as it is business is bound to be deep cyclical, once cotton machinery is bought, repeat/replacement sales will be tiny, difficult to predict growth here. Better to stay invested in predictable, well analysed, transparent biz
It may also just be a game to allow big fishes to make entry bit cheaply
Disc: exited
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Good video on cotton processing. Refers to cotton gin and one can see Samuel Jackson machines being used
They have a tie up with SJ
Disc- tracking position
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Bajaj steel - a lot seems to be changing, from a majority one product / one industry/ india focused to more of a engg solutions provider/ multiple industry /multiple country player. Corporate video above gives a good idea.
quick glimpse on numbers
recent developments
- Hived off loss making business
- Exiting of a set of promoter (took plastic biz) - clean run for current set of mgmt
- per recent credit report - sizable order book from PEB(pre engineering bldg - infra play - has done 1000+ projects per website) and many new customer + new geo for core biz
- Stable margins across last few qtrs (wd be better once hived off plastic biz no hit goes away)
- Focus on consumables + exports helping remove cyclicality for ginning machine consumables - AR and credit reports give good insights
- Strong export trajectory to US (via Baja coneagle - local setup in US)
- Good price action with good delivery based accumulation
- textile revival should augur well for ginning mills (a sizable end customer biz), as well as RM cool off to help
- Since they are one of majority player in ginning machinery exports - one can track same to get idea of trend - though that is not the only thing they do
Valuations - TTM basis 11PE is not demanding for a ginning leadership co and leadership position in ginning machinery and upcoming PEB verticals to expand opportunity size, clean bal sheet. Promoter holds substantial stake (incldg grp co under pulic holdg) and have increase recently.
Risk - Still ginning(cotton processing) heavy, Q2 and Q3 traditionally has been stronger though trend is smoothening, upcoming Q4 numbers need to confirm same. Not much communication from mgmt. to market besides YT channel. Success of other verticals stay a key watch out.
Conducive price action with good delivery % indicates accumulation. closer to ATH
D - Invested
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