Carysil (earlier Acrysil) - Kitchen sinks

[modiankush]

The management has provided a very bullish view on the growth targets.
The overall tone of the concall was extremely positive
Guidance:-
Target of 1000 Crore revenue by FY25
EBIDTA margins of 20%

Positives

1. Increasing SOM in International/Domestic geographies
   

   
   
   
   

2. Destocking issues over with rising volumes
   

   

3. Strong Order Book for Q3 and Q4
   

   
   
   
   

4. Upbeat on Domestic Market w/ strong Dealer N/w
   

   
   
   
   

5. Strong FY23 guidance w/ performance in H2
   

   

Negatives

1. Geopolitical and Macro issues continue to be a risk
   

   

2. Rising Debt due to multiple acquisitions
   

   

Summary

• The management is extremely bullish on the growth propspects
• One of the few cos. to acknowledge destocking issues are over
• Better cost management gives it and edge over the competitors in EU
• Valuations a tad expensive but can be justified with expected growth in next 2 years with increasing SoM and Operating Leverage
• Rising debt is something to keep a watch on. US acquisition will reflect in B/S only from Q3.

Disc: Invested and holding