Hello sir. Can you please have a look at Committed Cargo?
It doesn’t have a thread of it’s own!
Thanks and very nice write up.
1.Is there any fire incident happened in the company history?
2. Any value addition products started from HFO
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Hi Anushka,
I had a glance at it, Its a low margin business. Has run up a lot and looks expensive. Anything interesting happening in Committed cargo ? Since they have not done con-calls could not find much data on this.
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Hi Krishna,
Its a recent IPO, I have not seen any recent filing regarding fire incidents, but its a likely risk we have to watch out for. We have to wait for any new filing from Stallion or the next next con-call to know about HFO progress.
Reg the fire hazard risk, I wanted to understand how this might impact Stallion. Below is the table with list of gasses and fire hazard profile.
Stallion works majorly with Low-risk A1 gases , but its growth will come from HFO-1234yf, R-32 blends and the small-pack hydrocarbons which are in the A2L–A3 bands. This is expected to fetch higher margins and possible low moat as handling this is not easy , but will also raise the compliance costs, training needs and higher risk of fire hazards.
| ASHRAE | Industry safety class | Stallion supplies these gasses | End usage os the gasses | Fire risk impact |
|---|---|---|---|---|
| A1 | Non-flammable gas for SF₆ / CF₄ | R-410A • R-407C • R-404A • R-134a • SF₆ • CF₄ | Room- & VRF A/C (R-410A) • Retrofit chillers (R-407C) • Cold-room refrigeration (R-404A) • Auto & domestic fridges (R-134a) • Switch-gear insulation (SF₆) • Semiconductor etching (CF₄) | Will not ignite under normal pressure & temperature. Fire risk comes mainly from stored-pressure cylinders, not from the gas itself. |
| A2 | Lower-flammability, Low-toxicity | R-32 • R-1234yf | Next-gen room A/C & heat-pumps (R-32) • New-model car A/C (R-1234yf) | Needs a strong spark + confined mix of gas/air to burn; flame front spreads slowly. Extra leak-detection & ventilation are required, but systems can still be serviced in typical workshops. |
| A3 | Flammable | R-152a | Aerosol propellant, foam-blowing agent, some HFO blends | Ignites more readily than A2L gases; service areas must be strictly spark-free and well-ventilated. |
| A4 | high flammability | R-600a (isobutane) • R-290 (propane) | Domestic & bottle coolers (R-600a) • Hydrocarbon heat-pumps & low-temp freezers (R-290) | Catches fire easily and burns fast; charged volume is therefore tightly limited (≤ 150 g in most fridges). Technicians need explosion-proof tools and strict charge-size rules. |
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@satishwe have you looked at Accent Microcell Ltd.?
Company manufactures Pharma Excipients - Micro Crystalline Cellulose (MCC) which is a binding agent. They are also moving into specialty products like CMC/SMCC which have nearly twice the realizations (MCC - INR 250-300/kg; CMC/SMCC - INR 550-650/kg). (competitor - Sigachi Industries)
Additionally, company is also undergoing a capex (current capacity: 9.2K MT for MCC, capex for specialty block: 2.8K MT by Oct’25 & additional bulk MCC capex - 12K MT by June’26) effectively a ~150% increase in capacity. Same is being funded by IPO proceeds + right issue.
Financials summary: Mcap: 650 cr, Rev: 265 cr/ PAT: 33 cr, PE: 19x, debt free, CFO/EBITDA ~0.5x.
Modelling in 60% utilization of the 12K MT plant, & 75% of the 2.8K plant by FY28 (considering company has been running at ~100% capacity for the last 3 years, so faster ramp up), we are looking at INR 575 cr revenue / EBITDA - 18-20% (uptick due to premium product mix) and PAT of 70-75 cr, which translates to 100-125% absolute PAT growth.
Considering PEG of 1x, the company looks to be interesting, considering it delivers on the capex and the ramp-up.
Would love to hear your thoughts on the same.
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Hi Satish, thanks for the reply!
Did good this year as compared to earlier earnings. FII’s have come in this quarter, which boosts my conviction a little more.
I am invested from 126 levels (a 2x for me already), so was just looking for someone more experienced with SMEs to have a look.
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Hi Vidhyut,
I am not tracking this one right now, used to hold some stocks last year. I dnt understand if they have any specific moat hence left it. But with competitor Sigachi in trouble due to recent Fire accident , this stock has started to run up a bit.
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Hi Satish, do you track Creative Graphics? They have leadership in flexographic printing plates and recently forayed into pharma packaging. Guiding for 100% growth. Could you take a look?
Hi Varun,
At first glance it looks good. I dont track this one yet, so cannot tell more for now. Will revert if i track this.
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Hi Satish,
Are you tracking parmeshwar metal?
Hi Arjeet,
I am not tracking Parmeshwar Metal. First glance seems like a commodity business with no differentiating factor. The Raw Material costs are 97%, and margins are at 1%. Feel very tough to make high returns in such commodity stocks.
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Hi Satish,
Have you analyzed Osel Devices? It has recently received license to manufacture Philips brand devices in India! Looking interestijg from technical point as well.
Thanks in advance
Hi Amrit,
I do track this one, need to see how well this Phillips partnership will work out, as globally I am not sure if Phillips phones are doing well. Last year they had -ve cash flows and Numbers dont seem good for the past year for cash conversion cycle, working capital needs are not great. Right now its in the watchlist for me.
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@satishwe Now we have a separate thread for this company. Should we not move all related news at one place? Thanks
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Satish ji is Pulz a listed player of 100 cr from Mumbai in same space and does cinema hall acoustic work and recording studios
@Naveen_Bhatia Pulz is not in sound proofing, its into speakers and sound systems.
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Your take on result @satishwe
Q1 FY 26 highlights -
Revenues - 110 Cr, up 51 pc from Q1 FY 25 - 73.2 Cr , 152 Cr Q4 25
EBITDA - 14.3 Cr, up 16 pc Q1 FY 25 12.4 Cr, 18.7 Cr FY Q4 25
Margins - 13pc vs 17 pc Q1 FY 25, 12pc FY Q4 25
PAT - 10.4 Cr, up 19 pc from Q4 FY 25 8.42 Cr , 13.3 Cr FY Q4 25
Concall scheduled on 12 Aug
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Top line looks great with 50% yoy growth, need to check on the concall on margins compression.
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