| NAME OF COMPANY | CMP 18-04-2022 | Allocation | UNREALISED GAIN | |
|---|---|---|---|---|
| AVG INVST PRICE | ||||
| SATIA IND | 95.89 | 146.95 | 43.4% | 53.2% |
| TIME TECHNOPLAST | 37.99 | 88.00 | 18.7% | 131.6% |
| VIPUL ORGANICS | 114.11 | 193.40 | 14.8% | 69.5% |
| KG PETROCHEM | 183.57 | 324.55 | 9.8% | 76.8% |
| DHP INDIA | 426.79 | 878.95 | 13.4% | 105.9% |
22 Likes
Dear sir,
Is satia industry @ 145 is still a good add now?
Any other from these which are still good at CMP ?.
Are you pyramiding any of these on rise?
Can you provides links/docs for vipul organics apart from annual reports…
As per me all my 5 stocks have lot of runway to go,
as long as current management is in charge, Satia will keep growing for long long time, It’s cyclical business & I expect it to make higher highs with each cycle.
5 Likes
You can read credit rating reports, youtube videos, AGM, company website etc,
also read Sudarshan Chemical AR & credit rating reports, concall transcripts etc to understand the business
Nath Industries
Paper & chemical manufacturer spending on power approx 13-14% of sales every year, now going for In-house power generation by doing capex of 19 cr.
which may result in bringing down power(electricity) expenses.
That could increase OPM by may be 4-6% which is huge.
(9-11% OPM at present may go to 15-16%)
These are not true projections, need to find out exact savings that will come from new in house power plant.
Need to deep dive
Disc: No invested
4 Likes
Appreciate your research. Did you got a chance to check top line triggers and industry tailwinds wrt chemicals
Sir, I appreciate this pick, as I always wanted to find microcap stock research. I’m amateur in this. Can you please do one full detailed YouTube video, how it’s done .?
How you have done sir.
Thanx.
I have not done detailed research on Nath Ind., they are focusing on both Paper & Chemical Business at the same time, which I don’t like, not yet completely rejected the idea but its on hold at the moment.
I’m also looking at other businesses for e.g. Sudarshan chemicals, NGL fine chem etc which are trading at under valuation due to pressure on input costs.
2 Likes
Rejected NGL Fine chem for below reasons -
- Asset turns are good at 2 to 2.5 which is illusion due to outsourcing, real asset turns may be 1.5 which makes this business capital intensive to grow.
- 100cr greenfield expansion is gone to become 140cr, that too will increase capacity by only 50%. will increase revenue by 150cr, which is asset turns of only 1.07.
- Margins are volatile.
- Other good businesses available at this point of time at even better valuations.
6 Likes
Really like Sudarshan Chemicals, have some issues in understanding, sent an email to CS to get clarity,
Management is focused
Business economics are excellent
Undervalued at the moment due to below reasons -
- Raw material cost have gone up
- Logistics cost gone up
- Coal cost gone up
- Dependent on china for RAW material (30%) and china under lockdown at the moment.
Management comment - We are able to pass on absolute cost increases & not percentage cost increases at this time.
I will call this company semi-speciality rather than speciality chemical company.
All these problems are not permanent and will get solved some time in future, till then I have a serious problem of deciding what to sell to buy this one 
7 Likes
Kalpesh Sir
please share your views on today’s results of Satia ind & future outlook.
will you add, reduce or hold present quantities/
Thanks & Regards
I’m not going to sell single share,
Let the management explain what exactly happened, concall on 31st May.
3 Likes
Thanks for your response
Kindly share your take aways from concall on 31st please.
SATIA INDUSTRIES
“We saw the cost of our key raw materials like Agro, Wood Chips and Waste Paper (Indian) rise by ~65 %, 5% & 6.5% respectively”
Mr Chirag Satia on Q4 performance
4 Likes
Hopefully agro prices will should subside soon and profitability will be back in coming quarters.Most of their other plans seems to be on track.
Sold KG petro entire stake today.
2 Likes
Bought more Time techno, DHP India, Vipul organics & Satia from the proceeds
8 Likes
KG Petrochem
Reason for sell -
Their artificial leather business not yet producing any profit, and interest on debt taken for this business will start from next year.
It will be the case of producing cash from textile business and burning it in art leather business.
I think it was a wrong capital allocation decision by management and now they stuck with huge debt and a cash burning business.
stock is trading well below the intrinsic value of its textile business alone but I doubt rationality of management, so sold entire stake.
2 Likes
Sudarshan Chemicals
Rejected the idea as I suspect governance issue.
Its an excellent business available at excellent valuations but I found they have related party transactions with “Rabro Speciality Chemicals Private Limited” which is a related party and owned by same promotors as of listed company.
In AR they did not mentioned much about this entity except Commission to selling agents 17.51cr for FY20 & 17.24cr for FY21
This is a huge amount compared to net profit of the company for the same period.
I wrote to the CS and even after repeated follow up he has not replied.
I have also gone through last 19 con-call transcripts and surprised that not a single analyst asked any question about this related party transaction, and this company is widely followed by huge number of analysts
Why would the company cannot employ the same services inhouse that the same promotors can provide through a related party?
I think there is a possibility of siphoning money off from listed entity by promotors,
These are my thoughts and I could be wrong.
7 Likes