Yes, I’m tracking and had bought some post Q3 results (small allocation). The positives are that there has been a remarkable turnaround in the company over last few years…the margins have significantly improved and they are coming up with a capex etc. With the backing of blackstone and decent equity participation by the promoter it seems some interesting developments can happen.
But at the same time the challenge is that there are very limited details in the public domain and its tough to take a call. On diluted equity…the stock is not cheap now on current earnings.
The June 2014 qtr results were nothing spectacular. Perhaps the only attraction is the low PE, which means nothing. Does anyone have any information on this co?
This stock has moved 9x in last 3 years, seems company might be on verge of turnaround. Has anybody done any recent analysis on this company. Heard that the company caters to small effcient motors that will have wide usage in the automation world we are entering into especially the Internet of Things concept.
Another decent quarter from the company: http://corporates.bseindia.com/xml-data/corpfiling/AttachLive/3FD5D9D7_1306_4364_BB39_9C97CDE943F5_135039.pdf
There’s not a lot of information available on the internet about Igarashi and its products/customers etc. Is anyone tracking this and has an idea about the developments? @ayushmit It would be great if you can share your current views about this as you mentioned a year back that you were tracking.
Disclosure: Invested at lower levels
I am tracking this company., and haven’t invested yet.
The company profile, product range & its recent performance looks promising.
I have two concerns. Can you please throw some light on it.
As the share price is highly valued currently, the future growth prospects / outlook plays a very important role. But there are limited leads / links available that could help us determine the future prospects.
I came across the following news dated 29-09-2015, where the company cared little about the minority share-holders & were further opaque about the proposed Related Party Transactions.
This report explains the synergies and benefits of Agile’s reverse merger with Igarashi Motors. It also highlights the excellent corporate governance of the group. Looks like the company is set to compound at 25% over the next couple of years.
Hi, I’m new to analyzing this company. I’ll lay out my thoughts and couple of queries below. Any replies would be helpful.
Observations -
over last 7-8 years company has turned around nicely and has been able to come up with products which meets high productivity criteria of clients. Lunch of quasi generic platform is an example of the same.
R&D seems strong of the company. Their business profile has completely changed visible through improving gross margins, ROCE, cash flow generation etc
company is bracing itself for changing era in terms of technology and has started working on new products expecting the markets for them will pick up in upcoming 3-4 years
all the above points are positive. Below are some concerns and queries where I’m seeking more clarity.
change in ownership many times over in last few years. In fact, P Mukund who is promoter/MD got shares in the company in 2014 and then sold 1/3rd of that in 2016.
someone flagged above how promoters passed a resolution affecting minority negatively
and now, there is a reverse merger with the parent entity - Agile. At the same time, promoters issued bonus shares to only non-promoters shareholders thereby diluting its equity. On the face of it such an action seems very positive and reflects highly on corporate governance standards of the company.
However, all these things around changing corporate structure/changing ownership looks a bit too much. Will be very helpful if someone has any negative/positive explanation for the same.
I am no expert, but I came across this post which seems quite relevant in the current context (the price of the stock seems to be headed for a free-fall)
Is this an opportunity or red-flag? Experts can comment.
Anyone tracing this? The promoter/CEO, P Mukund sold his stake and stepped down recently and ownership is now with the Japanese parent. There was a hype of electric cars and being a supplier to Tesla couple of years ago which pumped up the stock price. Since than there has been a substantial price correction and DC motors doesn’t seem to be a bad business after all. Any views?
Japanese Promoter has solid reputation of good governance.
Although it manufactures DC motors and can be thought of as EV play, but these motors are predominantly used in controlling valves of Turbochargers, Throttle control and exhaust gas circulation in ICE Engines [ normal ].
The Tesla deal of retractors for the doors of some model did not go though.
This plus overall Global slowdown in Auto have not helped with the high valuations in 2017-18.
Things going for the company is continued attention to stricter emission control laws worldwide.
Company focusing more on the Comfort Actuator applications [ Seat height/recline adjusters etc] and diversifying into Brushless DC Motors used as Electric Powertrain for 2/3 wheelers.
As Narmad as mentioned, one set of applications (electronic throttle control, exhaust gas recirculation) are all for internal combustion engine and hence “terminal value” of this cash flow is now maybe zero. The comfort actuators (dc micromotors for seat reclining, windows, etc) can apply for both IC and EV.
The Q2 / H1FY20 results were very poor. At 22x TTM PE this still looks very expensive to me.
Hope its okay to bump up to an old post, but there’s some interesting commentary in Igarashi’s FY20 Annual Report has some very interesting commentary.
They are launching thier own range of 2/3 wheeler EV motors (the main drivetrain / traction motor that powers the EV). This puts them right in the heart of an Electric Vehicle. With PLI scheme being discussed for EV sector, this could be even more interesting. Of course it’s pre launch & the motor’s performance / VFM etc is an unknown, but an effective PLI-scheme and “Make in India” policies could make this a timely diversification.
They are also looking at supplying the motor electronics (driver/controllers) for 3rd party BLDC motors. This is a promising field. Antoher one is making motors for appliances as more of these are again “made/assembled in India”. Have had some success with fans already & could segue into other categories - power-tools, washing machines etc.
