@chintans
I’m well aware that HDFC prevents buying or selling of Paushak stock. I’m questioning their right to do this. They also limit the quantity one can buy of any stock. How can they be allowed to do this is beyond me.
Also, Paushak is not traded compulsorily in physical format. I have myself bought it in demat form. How can it be in ‘P’ group, which I understand is for scrips traded only in physical form. Please correct me if I am wrong.
phew…this is how we have to learn about their communication to the external world…hopefully AGM should nail the doubts we have. In the meanwhile, the stock is on a scorching trail and hopefully things will hold
Disc - invested, a small %, views will be biased
I think numbers are slightly above expectations @NikhilJain. Anyways, great pick up in the business in Q1. Lets hope they continue the performance in FY16 and also power on in FY17!
Hey guys, I attended the AGM, just some facts from the AGM:
The market for Phosgene derivatives in all is about 50,000 MT, whereas Phosgene Derivatives for Pharma Products are likely to be less than 20% of the total demand
Paushak has an annual capacity of approx. 3000MT which they may increase to 4000MT over the next 2-3 years (haven’t chalked out any plans in particular).
That’s the international market size, they didn’t seem particularly confident about that though, because they said that there are some fairly large manufacturers in Europe. They said that there are some large manufacturers based out of Europe but they aren’t really competing because a particular manufacturer can only cater to companies geographically close to them.
They are currently investing into ensuring the safety conditions required to complete this expansion. I believe that the remaining expansion would be done altogether, however they haven’t reallt projected a timeline for this.
Sorry Nikhil, didn’t go through the list of questions before the AGM and saw it only after so I wasn’t able to get particular answers to each of the questions.
So I went through the list of questions again and these are the responses I got from talking to the company to some similar questions:
What percentage of sales is from exports? - The company’s sales vary largely depending on the orders without any particular trend/predictability of exports/domestic sales. They aren’t contract manufacturers so their orders depend on customer’s demand.
They were fairly resistent to giving out information about products since their products are specialized formulations developed by them. However, their isn’t any particular thing stopping their competitors to develop the same products (no patents/IP rights)
I think this is going to be a tough nut to crack from analyst perspective. We may need to connect dots to get the clear picture.
My gut for feeling is management will be reluctant to reveal expansion plans and growth projections. Why? Is there some kind of understanding not to reveal the information due to nature of the product, risks involved, etc? Just thinking loud.