Elantas beck india

Thanks. However my concern is same happening repeatedly. last year also they faced the same problem. any insight on this chronic issue.
Also they had plan for expansion. will it not be hampered in such hostile environment?

  1. Company is looking to expand its capacity by 48,700 MT from its current 21,300 MT, both in primary as well as secondary insulation. The total capex envisaged for the same is 400 crores and the unit is expected to come up in Ankleshwar, Gujarat. However, the entire announced capacity is not expected to come up to steam at once (since the industry demand itself for primary and secondary insulation in India is 48,000 MT). Since GPCB shuts approvals for Ankleshwar every few years, company has taken permissions for this capacity.

  2. Many product lines within Elantas Beck are currently at 90% capacity utilization, while overall capacity utilization is 70-75%.

  3. Company gave multiple details with respect to the closure notice received from GPCB. As per the company, an illegal tenetment of people living 400 meters from the Ankleshwar site complained to the GPCB of contaminated borewell water. On inspection of its storage tanks by GPCB, a hole of 2*2 inches was found in one of the tanks which could have lead to leaking chemicals. GPCB issued a closure notice immediately (as per EBECK mgmt., this is a common practice by GPCB) and the company obtained the permission to operate it for 3 months and also to mitigate the issue.
    They have currently appointed a consultancy called ERM which is investigating the cause and mitigating measures for the site.

  4. Increase in RM costs has affected the compay’s margins (almost ¬10% increase). Company has taken 3 price increases in the previous year which have affected the volumes.

  5. Royalty is reported as 4% of sales.

  6. 90% of the end user industry of the company is in electrical appliances. Its difficult to break it down further for the company since the electric motor has wide number of uses.

  7. Global parent Altana is quite bullish on the EV trend and is adding capacity globally in its multiple business lines to cater to the same. Since an EV will consume much more copper than a locomotive, the demand for the enamel will be quite high. However, EV will take quite some time to come to India so the opportunity is quite far away. If and when it does though, EBECK management is confident that they will be a beneficiary. Even now, they ware the sole suppliers of enamel to Ather Energy, the indian EV startup.

  8. Company has been striving to localise the sourcing of raw materials in order to avoid fluctuations in prices and Fx. Imports as % of RM now stand at almost 30-35% from the previous highs of 60%.

  9. Company’s MS has slightly improved to 52% in primary insulation (industry capacity at 25,000 MT), while its 33% in secondary insulation (industry capacity of 22,000 MT)

  10. Mgmt. mentioned that its only through local manufacturing presence can a company establish a market in this industry since the level of customization is quite high (which is why Axalta or any of the others have not been able make a dent in EBECK’s India’s operations.

I have not repeated points mentioned in the previous note. Also, there was some discussion on change in method of production that I could not follow, so if someone followed it up, then can discuss here.

Hope this helps.

Disc: not invested.


Hi Sujay,

Unable to open the link you have given. Can you throw some light on this steep decline? I am trying to investigate the same. Thanks!

They tried to demerge the company.
However, following steep rise in market price they cancelled the offer after some time, and so the price declined.

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The yearly EPS is more than 77 - despite the fact that the June 20 Qtr was almost a washout due to covid. The company is well poised to capitalise on the increased capex and the anticipated growing demand in the Electric Vehicle (EV) segment, for which its technology is well suited. The technology is world class and entry barriers for new companies are difficult due to technology constraints. Zero debt , small equity base , BV of more than to 550, 75 percent holding with promoters , FII & DII holding close to 11.6 percent, MF holding increased to 7.5 percent , liberal dividend policy, increasing OPM and strong parentage with MNC are the positives. However the growth in top line is yet to pick up.

I maybe biased in my views as I am holding this share since IPO days from the 1990’s. I would invite comments and further visible growth of the company in the years ahead. Am interested in increasing my present holding. Request suggestion.

DISC - As I write this just noted that this share has gone up by 15 percent after the stellar results.


Thanks for your information…
can you elaborate more on the EV part of it

I did study its parents website altana but as of now in India nothing seems to be happening

Also is the expansion happening in talegaon or in ankeleshwar

Hi Aditya,
Kindly have a look at Note 4 of the results . The expansion is Happening in Ankleshwar, Gujarat. Kindly go up this thread and have a look at the post of Bozo Investor of May 2019. I am also making efforts to gather info about emerging opportunities in EV and its likely impact on the topline of the company. Hopefully the management will clarify / amplify in AGM or Investor presentation.Also read the Annual report of 2019 , pages 33 / 34 & 35 where the company has mentioned this briefly.

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If any member attended the AGM of Elantas Beck, kindly share notes. Thanks in advance.

The first Qtr results declared by the company are above expectations. There is a marginal increase in the revenue but the NP & EPS has increased due to better operating margins which have improved to 21 percent .

The Jun Qtr results are splendid - way better both QoQ as well as YoY . The topline has improved but with better operating margins the operating Profit has jumped up more than 20 percent YoY but same QoQ. The EPS has jumped to rs 44.7 for the qtr - tremendous if we compare it with Rs 26 of QE Jun 2022 and Rs 37.9 of QE Mar 23 . Incidentally this NP is the highest ever achieved by the company.
The half yearly figures are even better ( the Year ending is in Dec for this scrip) - the EPS is Rs 82.6 vs Rs 55.8 for the previous FY ( the full year EPS for the year gone by was Rs 123. Considering the trend the performance for this FY is anyone’s guess. A stock split is in the offing considering the small equity ( Rs 8 Cr only)and even the low floating stock ( 75 percent equity is with promoters and 12.25 percent held by DIIs / FIIs ). Talks of delisting have been doing the rounds in the past. The products manufactured by the company are niche having high entry barriers. The results have been well received as the stock price rose almost 10 percent after declaration of results ( results declared during market hours today) but finally closed 6.5 percent higher.

DISC - May be biased as I have some holding.