They have received an order of 733 Crore and might receive one more similar order. We should be able to see their execution skills in coming quarters. I am tracking it and took an initial position.
Disclaimer: Invested
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They have also incorporated a new wholly owned subsidiary called Kotyark Bio Specialty Ltd.
The only description provided about the business of this company, is that it will deal in advance Glycerin.
This information can be found here
Company seems to have great potential to create wealth for the share holders. The only concern for me is governance and execution and they seem to lack in both as pointed in this discussion.
i donât understand why they are raising capital through preferential issue(of 55 Cr). they seem to have great order pipeline of worth more than 1500 Cr. they could easily make this money and pay within a year.
I would appreciate if someone can shed more light on these issues.
Disclaimer: Invested
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Company has allocated 6.35 lacs shares to promoters/non-Promoters/public aggregating to 49.5 cr on preferential basic at 780 rupees share.
Seems like a good news. We should wait and see who has bought these shares.
corp filing
Disclaimer: Invested
Was interested by the numbers so went through the filings and annual report. Found some points which were a bit intriguing/strange. If anyone has any counter-points on the same; would be extremely helpful since the order book is growing at a rapid pace and it seems like a structurally growing business:
- FY22 Gross block on which company did 150 cr and presentation claims utilization of ~15-20% was 10 cr. So on a 10 cr gross block, company can do 750 cr sales? And make double digit margin on the same? Seems too good to be true. What am i missing?
- CFO salary was only 3 lakhs. Seems too low for a company that does 100 cr+ of sales
- Hard to find any employees on LinkedIn/company page on LinkedIn.
- Some of the costs for eg. manufacturing cost of only ~15 lakh for a 100 cr+ revenue company seems too low.
- Value of RPTs with sister company Yamuna is quite high. Anyone have any insights on the corporate structure and the reason behind these being 2 separate entities?
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There are many points which donât get answered to reflect the tremendous growth which is about to be there in next 1 year.
- Whatâs the entry barrier for the bio-diesel? Why no other player has come close to it?
- Why there has been resignations of 4 KMP over the past year?
- Cash flows being negative?
Can Anyone answer the above points to throw light on it?
- Even mgt was asked and their simple answer is we canât comment on entry barriers. We like our business and hence we are into it. Previously Kotyarkâs promoter family business was mainly of the non edible vegetable oils(raw material of bio-diesel) before they started manufacturing bio-diesel. Also Kotyark is the market leader in bio-diesel currently in India and from last tender, itâs market share can likely increase
- I can asnwer on CFO resignation â Higher studies. You can check the mgmt commentary dated Oct 30, 2023.
- On operating level, they are cash flows positive. They are doing more capex and probably over all net cash flow negative. They have recently purchased 2 land parcels near their current factory (Got to know from nearby people)
Disclosure - Invested and could be biased
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