May I ask how is the company trading it’s material (majorly about steel). Are they establishing any outlets at each town as a franchisee or company owned. Doubt is, to deliver material to end users, they need to have outlets in each place.
If so,
infra.market readying for IPO. Will be interesting to see how this goes
Infra.market seems true formidable competition.
SG Mart is a child prodigy of Sanjay Gupta, the promoter family of APL Apollo Group. SG Mart has access to APL Apollo Group’s extensive network of 1500 distribution channels and over 50,000 dealers, serving residential, commercial, and infrastructure sectors.
Looking at their steel trading supply chain, the company strategically builds relationships with steel manufacturers. Both SG Mart and APL Apollo buy steel in bulk, which provides them negotiating power and allows manufacturers to prioritize bulk orders and offload inventory to protect themselves from pricing fluctuations that occur approximately once a month.
SG Mart conducts trading in two ways:
Direct trading - where they don’t stock the steel but sell it directly to buyers at specified quantities and in a timely manner.
Stock and sell method - where they buy at favorable prices and hold inventory in their service centers/warehouses. These service centers can semi-process the steel or HRC sheets according to client demands. SG Mart can provide tailored quantities on time at standardized prices, also saving freight costs. This benefits clients who order minimum quantities, and saving freight cost of 1.5% - 2% of total value, as previously they paid same freight costs for a full truckload despite using only a portion of the shipment space.
Currently, SG Mart operate three service centers located in tier 1 and 2 cities, with plans to expand to more centers in tier 2 and tier 3 cities. This expansion will give them an edge to reach the remotest areas, providing tailored end-to-end processed steel as well as products at standardized prices, timely deliver and saving freight cost.
How should one go about estimating the earnings of sg mart for Q4? I am skeptical about accumulating more but the price is tempting as of now
It’s simple you can’t it’s too early we don’t know how sustainable the metrics will be in terms of quarters, reaction to new service centres, new anchors, growth, change in prices, etc.
Where is the growth in bottom-line? Is return from the service center not coming? Waiting for management inputs in con-call
https://www.bseindia.com/xml-data/corpfiling/AttachLive/3e5683e6-311d-4473-886e-e286d8b6a469.pdf
Can I know why cash from operating activities showing nagative figures from past 2 quarters. Is that sign of caution? Please guide me.
SG Mart reported a positive operating profit of ₹111.25 crore, but faced a major cash outflow of ₹391.01 crore from operating activities due to adverse working capital movements. The company saw a significant increase in inventories (₹182.25 cr), trade receivables (₹235.93 cr), and other financial assets (₹189.93 cr), indicating a buildup of stock and delayed collections. Although trade payables increased by ₹283.17 crore, helping cash flow slightly, it wasn’t enough to offset the overall drain. This suggests inefficient working capital management or aggressive credit sales, leading to a sharp decline in operational cash flow despite accounting profits.
Can someone help with the company guideline for FY25? What revenue they promised against what they made(5856 Cr)
In concall someone mentioned that another company which is in the same line of business as SG Mart is planning for IPO at valuations of around 70000 crore.
any idea about this company?
Ofbusiness
OfBusiness, a B2B commerce platform, is currently valued at ₹23,900 Cr. This valuation puts it in the unicorn category. The company is also eyeing a potential IPO in the second half of 2025, aiming for a valuation of $6 billion to $9 billion.
Along with the above JSW One has also entered into this line:
www.moneycontrol.com/news/business/jsw-one-platforms-raises-rs-340-cr-from-principal-asset-management-others-13023299.html
JSW one will have advantage of access to steel from associate company JSW steel and their distribution channels not to mention financial backing and management expertise of the group
Short term competition intensity is going to increase
Disclosure: no investment
So a near miss for FY25 guidance. If someone gives a guidance, what is the margin of error to be considered. It seems they missed by 3%. Is this acceptable? Also, why the stock price holding up after such disastrous cashflows from operations ?
The reason for cashflow and working capital days are explained and also they have guided for double the revenue and PAT for next year as well as next to next year.
Management guidance carry little weight now specially after what happened to it in last 3 quarters. If they achieve it well and good.
Disc: significant investment in the company and advice caution
