I have recently started reading up on this company. 2 QQ:
ELCTRCAL RESISTANCE WIRE,BARE, OTHER THAN NICHROME : 15% QoQ, 23% YoY
PLATES,SHEETS ETC.OF OTHER COPPER ALLOYS : 7% YoY 30% QoQ
Good momentum in April 2022, data yet to be released for May/June.
Hi @ankitgupta & @Malhar_Manek, Technology at times is funny. You need one nitche to start and then build upon it. The risk of technology getting changed for some solution at times becomes moat for the company that builds & masters it first. Once you get a lead into certain domain and keep adding incremental value usually that tech survives quite good number of years. One example is CRT tube display. Its one of the most stupid solutions but once commercialized it remained into being for some time. It took good 3-4 decades to have LCDs then LEDS and what not. The threats we are looking for Shivalik is not only risk for Shivalik but also moat as new palyers would think multiple times before entering same domain. Shivalik has niche in manufacturing low ohmic shunts with superb temperature stability and great PPM, which only few in world could do. Developing that competence and making it commercially successful is time consuming and requires great degree of R&D. Once you are successful in building a product, selling it in volumes another challenge. I know more great product makers than good sellers being a R&D person, but at times generating volume sales and making the product commercially viable is challenging & good moat. It takes years of evaluation before volume sales start specially in automotive. Its combination of multiple items that gives advantage to Shivalik.
hi
really new to the forum and investing
but in RPT submitted by the company I could find that rent is paid to KMP of the company and moreover loan is taken from a company where KMP are the directors
thought this was looking like a red flag
i checked the annual report which states that 1 cr paid on 7.7 cr unsecured loans from related party
which comes to 13.5%
the company has 15 cr in its current account as well as FD of 4cr
so cant justify why paying 13% interest on loan
If I am not mistaken, the figures are in Lakhs. Hence it should be 7.7Cr not 77Cr and similarly.
Regards,
Raj
Disc: Invested and no transaction in last 6 months.
You are assuming that loan shown in the balance sheet on 31st March was consistent through out the year. Balance sheet only shows you the data on a particular date(31st March).
Regards,
Raj
I understand your point but you can check last year figure of RP debt that is the same some odd 7CR.
I take your point. Unfortunately, I am not very good at detailed balance sheet analysis.
I have seen related party loans in micro/small caps a very common thing.
I generally ignore it if it is not large enough.
For example you can read NGL Fine Chem AR. There are quite a few RPTs. Still a great value creator the stock has been and I would rate management as A+.
Regards,
Raj
Disc: Invested. No trading in last one year.
My assumption is that since Indian Bank has first charge of almost every property of the company(present & future) as a security for the secured term loan, its not easy for a small company to get another secured loan on the same set of assets from another bank. Whether anybody else would be willing to lend the sum at lower interest rate is the question that needs to be answered before deciding that its a red flag. 3 years ago the yearly profit was 4 crores . I would say that for a company based in far flung Solan , it would not be very easy to get an unsecured 7 crores from anyone else .
Disc: Invested and I have no degree in finance or accounting.
Q4 results press release
Q4 results
Growth is in line with scuttlebutt done by our smart VP folks…The stock will get rerated faster if company starts more interaction with investor community like regular concalls, investor presentations etc
Stellar performance continues!!!
Prese relese quality is good indicating better communication with market, a concall hopefully soon.
Whats heartening is to see is broad based growth, where shunt has delivered v well both YoY and QoQ , bimetal has delivered even better.
Given energy situations globally, some of EU competitors such as Isabellenhuette in germany etc may have temp setbacks,
Opportunity for Shivalik to spread wings. Given 3X capacities that were put in place duting FY 22.
Invested
gone through the results some notes on consolidated basis
2.material cost/revenue a concern as it has gone up to 62.7% vs 58.2% in q1 fy22 and 50.9% in Q4 FY22.
3.ebitda margin expansion to 29.4% from 23.23% Q4 FY22 and 23.73% Q1 FY 22.
SBEPL
valuation 3.15cr
sales multiple- 2.5x , net assets multiple 1.37x, net profit multiple 14x
SBECPL
valuation 23.56cr
sales multiple .59x , net assets multiple 1.75x , net profit multiple 9.77
both the valuations seem fair and good to the bussiness
overall a stellar quarter by SBCL
disc: have a small tracking position
There is a huge fair valuation gain sitting in other income. Margin needs to be seen removing this non operational profit. Pointed to me by another VP Friend.
See foot note on p 7 of result:
Even if you remove the extraordinary gains, we still have significant jump in all parameters. Net profit would have been 17Cr+ on a consolidated basis which is 50% jump over Q1FY22 PAT.
The best thing is the result of capex is visible and top line growth is coming.
Regards,
Raj
Disc: Invested, no trading in last 1 year,
