Apologies skipped this one somehow.
Check tax % once for Mar 2023 Vs Dec 2022 — 25% to 41%
Deferred tax in march 23 and march 22 in the past too.
2 Likes
Hii…
Ca anyone share current outlook on Ikio lighting
Thank you
IKIO is most an integrated player. The market size is quite huge and going by the china + 1 thesis it remains a sector which can pick up considerably well for player like IKIO, Calcom etc.
IKIO is moderately bigger in size vs Calcom. U can study IKIO to check how they are cross selling and ramping up at RV Industry ( one of their recent clients ).
If u think Calcom can do such a thing with Amazon then probably calcom also makes sense. Else IKIO will grow as the sector is in tailwinds.
1 Like
I have gone through Annual Report - 2023 today, while there are many positives, I would like to focus/emphasize more on the negatives here as the concerns are high as per my understanding.
- Almost 38% of its purchase is imported (roughly). In FY23, it has imported 50.5Cr. worth of goods/machines. So, the question to find is whether the company is an Assembler (with only a few parts of in-house manufacturing). If that is the case, it is an ordinary company with all sorts of similar competing companies.
- The above fact is even more evidenced by the fact that Calcom’s Manufacturing Cost is reducing Year by Year and instead the Cost of Goods is increasing. Here is a rough common size:
-
The debtor days are increasing. It was 30 days (Low Point) in 2019 but increased to 41 in FY20/56 FY21/61 in FY22 and 65 in FY23. While debtors outstanding >6 months are not significant, rising debtor days all say either about competition or something else.
-
Ratios are at sub-par levels. ROE/ROCE/ROIC are very low to even beat the cost of equity. But as a growing organization, this is less of a concern and hence will require continuous tracking with an increase in revenue and operating leverage.
Note: These are only my negative pointers and there are many positives for the company as well. The first is Good Management and then Improving Product Expansion and Innovation. I would like if someone could point out the issues and highlight the counter for better insights.
Invested, but not a substantial amount.
Regards,
Mukul Jain
3 Likes
Teahwa Techno JV is a reflection that they do some global standards which is meeting already and this could lead to other JVs in the future too. As World moves away from china.
2 Likes
Good observations.
Even with these few -ve things, i feel that there is a good opportunity for the company to have decent growth in coming few years from BLDC fan & EV chargers.
They might be late entrants in the Smart meters category to gain market share but this wil l also push the revenue slightly in addition to the above fast growing products.
1 Like
Completely agree, apart from pointing out the negatives there are many positives as well:
- A tiny company doing so much.
- Very Good Client Base.
- Excellent Management.
- The sector runway is huge.
Not only new products like BLDC & Smart Meters, but the electronics space also has too many lists of products that could be made by the same company. There could be an exciting list of products to come in the future. The only concern that could turn out to be positive going ahead is that they start more and more raw materials sourced indigenously or manufactured. Yes, all cost structures and many more things are to be considered but dependence on imports will surely not be a good option in the long run.
Regards,
Invested
1 Like