H2 &FY20
NSE INVITE LINK: https://www1.nseindia.com/corporate/SINTERCOM_04072020103506_EarningCallInviteSintercom.pdf
RESULTS LINK: https://www.sintercom.co.in/images/pdf/financial-results-for-the-half-year-and-year-ended-31st-march-2020.pdf
The Sintercom discussion seems to have gone quiet for sometime. However, multiple positive developments for the company.
- Recently, they raised 222 million from MIBA. The latter now has 26% stake in Sintercom.
- Around 90 million of funds will be allocated towards new machinery. Capacity expansion.
- The company is developing sintered components for electric vehicles.
- The company has seen orders from non-automobile industries. Including oil and gas.
- Further industry diversification on the cards.
A lot of stocks have run-up in the last few months. In the mid-cap and small-cap space. Sintercom seems to be in a accumulation zone. Possibly a good time a consider exposure.
Disclosure: I am invested.
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I have been following and tracking this company for some time. Never invested as the company hasn’t delivered on sales growth as well as profitability. I am also intrigued that the stock price hasn’t fallen in these years. Does anyone have a view on why they will start growing and what’s the growth potential here? And why they haven’t grown till now?
No posts here since January 2022. Not much has happened for Sintercom in terms of top-line growth. However, for the last financial year, they reported healthy EBITDA margin expansion.
I was reading the annual report today and the management has set a target of achieving revenue of 50 million euros in the next five years. That would imply 450cr to 500cr revenue by 2028 from current levels of 87cr.
With ample opportunities within the auto industry and plans for diversification, the target seems achievable. If I read between the lines correctly, the target will be achieved sooner than expected.
Quoting Jignesh Raval - “We continue our journey to achieve the collosal goal of making the company a EUR 50 million revenue in a span of the next 5 years.”
Further - “While we say we have taken this as a target, we are confident that with various new technologies we offer to the industry we are not far of from the same.”
Disclosure: Invested
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Looks like new products are getting launched as per the company website.
https://sintercom.co.in/electric-vehicles/
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Thanks for sharing.
Yes, the stock trending higher is an indication of something that’s coming. As I mentioned earlier, the management has guided for revenue of 50 million euros in the next five years. The growth story is just unfolding, in my opinion.
A part of the growth acceleration is likely to be diversification towards new industries.