If Naresh had to commit fraud, surely this would have been a stellar quarter don’t you think ?
I understand you’re not very optimistic about the company , which is fine, everyone’s entitled to their own opinions, but comparing with a fraudster is a serious allegation. Please don’t do it unless you have something solid.
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The Company wishes to clarify that under the heading “THE ROAD AHEAD: OUR 5 YEAR VISION”, the Investor Presentation stated that “Rs. 70 Cr invested in FY25-26”. The said statement was intended to convey the Company’s planned capital expenditure towards its ongoing expansion projects and not that the entire amount of Rs. 70 Crore had been invested during FY 2025-26.
There are still no signs of con-call. Hopefully,management would come up with the same soon. They did give a clarification on the 70 Cr CAPEX part, but need arrange for an investors meet so that investors can get confidence on how they are planning to achieve what they have written to achieve.
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So I learned from a friend who follows APPL Containers, that company has delayed it’s IPO plans, reasoning was delay in CMAS policy.
It would have been better if the management would have done con-call, we would have had much more clarity on the situation.
I think the CMAS policy will definitely come, given the strong structural reasons supporting it and the captive demand from BCSL as well. However, the timeline seems to have stretched for some reason, whether it’s due to the war or something else is difficult to tell.
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This happened after I reached out to Naresh and team and asked him to clarify.
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Few updates on my position. I have exited this stock. Steel prices were severely depressed last year which gave them healthy margins but once it moved up they cancelled container orders. This is a big negative to me. Also, I think they may not go for CMAS even if it comes. They did a lot of narrative building with results but fail to mention a single word on CMAS. Their speciality is customize containers not ISO which supports this ‘theory’.
I have confirmed with someone who recently visited their plants in Gujarat and Haryana. The land parcel is bought at the price of 5 lakh to 15 lakh per acre. Hence, this should not be a concern.
Disc: not qualified to advice. May enter again if certain things line up
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Honestly, my thesis was purely anchored to CMAS, everything else was an optionality.
If CMAS gets delayed, the thesis gets delayed.
So exiting the position is a rational decision, though would have been better if management did con-call.
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Yes, a big point here is narratives put out by the management. Naresh basically has self anointed himself as the creator of the double stacking idea on the western DFC, whereas the truth might be closer to the fact that he could have been for sometime part of committee of 25 people working over half a decade involved with development of the idea. He is not lying in his view, just that some people are prone to puffery.
CMAS is a game changer, and I am speculating Kalyani will be playing, casting ISO spec corners is a part of the guess.
A technocrat, close to the railways freight ecosystem is the thesis. He is going all in to align with the increased focus on its development, with specialised wagons, containers, muti-modal logistics terminal etc.
But the details are far and few. How much value addition can they give by wagon manufacture. Out of hundred parts, like frame, bogies, wheels etc what are they really making. There are many better companies in the wagon race (jupiter, titagarh, cosmic crf, neetu yoshi, even balu forge, also self proclaimed) hence management has now put out another self proclaimed revolutionary wagon design in the works.
They are executing though with defined timeline, so I am giving them the benefit of doubt for now.
Since steel price hardly moved up by 5%, order cancellation shows hardly any moat or pass through in the contracts.
Disc : invested
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See promoter is not much interested in normal container segment but if opportunity is lucrative then off course they will take it with open hands
one thing to correct here is that steel prices have not moved up by 5% but it has moved up by more than 20% so I don’t think even policy support can help the overall industry
specialized container can be a segment to watch out, they are going into reefer containers which is big thing and they have signed MOU with a Japan entity if I am not wrong and also they have made special salt containers and like that promoter is lobbying government to move commodity in container by removing the Act that is stopping it so this should be a thing to watch out
wagon is again a good segment to watch out and god knows if they can do some specialization to it too and the demand scenario here is good and we don’t have any pressure from import as such s
i think they will require funds in future as such expansion will require lot of working capital and also capex
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Yes, I tried searching for the context of this before but didn’t get it. What is the Act being referred to here, can you share/explain in more detail? Thanks!
They have been regular in holding concalls. However, this time they have given a commentary and stayed away from concall as of now. This raises the question “Is this another story investing?”. Time will tell. I have trimmed my position. As an Investor, I seek more value in Management who talks to the investor. The management stake have diluted, they get irritated when investors ask questions (already discussed this previously). This does not bring confidence but only doubts.
I think Aman is talking about RC-5 Policy which Nareshkumar mentioned to government. This policy restricts some commodities to transport through containers or wagon. If this policy gets changed, it will bring lot more business to this segment as well.
They are not looking for Iso container if they don’t get good margin in it. They are mostly after specialized containers and specilized wagons. Intresting to see is refrigeration container.
yes that’s what i am talking about
Latest CEO tweet, Two dedicated rail lines of 720m each = 1,440m total rail infrastructure, directly connected to Indian Railways network, serving dual purpose:
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Cargo handling (terminal operations)
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Wagon/container dispatch (manufacturing output)
RDSO/Railways Confidence Signal
For Indian Railways to connect a private siding to the IR network, the facility must pass:
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Track standards inspection
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Safety clearances
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Operational protocols approval
This connection itself is a quasi-regulatory validation — IR doesn’t connect random factories to its network. This suggests deep coordination with Western Railway zone authorities, consistent with the promoter’s demonstrated government relationships (DPA Kandla, RDSO Stage-1 approval).
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https://www.roompe.ventures/viksit-gujarat-industrial-policy-2026 outlines the newly unveiled Viksit Gujarat Industrial Policy 2026. . Shipping-container manufacturing is one of the thrust sectors mentioned in the policy.
For MSMEs
The major benefits are:
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Faster commencement
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Capital assistance
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Interest subsidy
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Power support
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Certification assistance
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Technology-upgradation support
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Market-access support
PM Gati Shakti Integration
The policy supports integration with PM Gati Shakti for coordinated planning of:
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Roads
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Railways
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Ports
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Airports
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Utilities
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Industrial corridors
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Logistics infrastructure
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