Rajratan Global:
Company is well covered on the it’s thread on Value Pickr.
Pro:
- 30% demand from New Vehicles,70% from Replacement Tyre sector.
- ICE,EV,Hydrogen whatever it is All need Tyres .
- Recently Most of the Indian Tyre manufactures have increased capacities.
- ~50% market is with Rajratan, Approved By Almost every Major World Manufacturer.
- With Chinese duty going away chinese Steel is no longer competitive with Indian steel in terms of Cost so indirectly Chinese Tyre manufacturers are coming to Rajratan Thailand.
- 20K MTPA capacity is about to start Production in Thailand,60K MTPA will come online in 1 to 1.5 years.
- New Plant coming up at Chennai will work hand in hand with local OEMs and will Augment the Thailand Plant due to it’s port proximity. All this will help in Margin expansion.
- In recent Presentation they claim of trying additional sectors of aluminum cladding for Optic fibers.
Cons:
- Thailand plant enjoys tax benefit for existing capacity which will be levied from 2024.
- With Demand Increasing Arti Steel, Tata Steel(Read Competitors) may Increase capacity as well. With too much capacity sector may become commoditized and Margins will be compressed.
- Margins are at Peak, After enjoying 2 rapid years of growth company might slow down.