One independent director resigned on 20th sept and today compliance officer resigned. Red flag?
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Every top level resignations write personal reasons, how to differentiate.
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@KUMOD_KUMAR_GUPTA @Shubham_Dilawari
Many investors try to connect to their employees on call or LinkedIn to get to know real situation what’s happening in the Company
There might be some internal issues due to sales or growth or salary or handling responsibilities
Which creates a negative impact on directors and firm
But When a person leaves and another one is joining , vice versa Same work will be performed
( I m accepting experiences from old employees was not good but past is history and end of day , Company keeps growing and work keeps happening ) (logical side)
If I think about future
If Major Red Flag will be there , it will be seen in coming quarters( u look 8 quarter results before selling any stocks , warren buffet one quote said look for 5 year avg number or something )
, it will good for management to learn from red flag if some big mistakes happen and rise up again
Paint industry is growing double digit in percentage for next decade
Mr Sanjay Agarwal and Apoorv Agarwal will not destroy their hard work from so many years they have took to built these business
I think they are Only struggling to gain market share and sales from my view rest no issues in company
From previous survey , shopowner told me they are bunch of Finance Guys
New Person is also CA , this shows similarities and lack of Marketing boost from management as finance guys cannot do good Marketing,
I have worked in Nobroker Startup company , I know how speeches are given when u struggle to sales and that’s what I found in two /sec video in video in YouTube that Sanjay Agarwal Boosting employees to push this product like typical Sales company ( no negative reviews )
My views are totally Biased One can ignore
Sirca has shown good Results this quarter
It is good debt free company , buy and hold forever type , less risky small cap other than others and easy to understand business
My theory is mutual funds are not buying due to overall Indian market share has less captured by them
Pls happy to ignore if you find something offensive
Discl : invested ,
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All traders and gamblers maybe out of Sirca paints
But no need to worry for fundamentals
Once can look below chart which was shared previously in this post
Fundamental investor can average or can do their own study because good opportunity is there in Sirca paints
One should do their own research about macro factors in paint industry
If one looks Sirca patterns
These has been repeating
At start when I was analysing and older investors might also have experienced
Sirca used to 650 to 800 and again comeback to around 600 levels ( pre bonus price discussion )
This is also kind of positive sign , just traders and gamblers moving stock up and down
Also find updated candle chart with same price chart and technical level markings
Discl : invested for long term
Read concalls of paint players; wood coatings market has become highly crowded now, something Sirca also talked about few quarters back. The reason to get manufacturing in India was to deal with this heighted competition.
Past growth rates would be difficult to achieve going ahead.
Was invested, exited post Q3
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there are no clear leaders in wood coating in India
ICA pidilite seems to be in the lead with their PU and Polycoat products
Sirca seems to be somewhat ahead in Northern region
Asian paints is importing from Italy and the prices at which its selling its Wood coating products definitely seems undercutting to gain market share
in texture finishes there is no one Like OIKOS Italy which sirca has tied up for INDIA but i guess its costly and many people would shy away from spending that much so its,growth would be a challenge. The product is good the company needs solid marketing and distribution somewhat comparable to Asian Paints only then it can move up the Ladder
Currently no clear leader in wood coating everyone taking a hit on margins to gain market share
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@ankush12495
my last advice would be
sirca is always hold forever stock in current scenerio stock
as @Souresh_Pal said in previous comments
look on 5 year returns , money is made by holding not buying and selling
if you are fundamental , you have the idea already , you need to learn up and down s of market
that why sirca has good opportunity invest right now
we struggled very hard to get sirca , new retail investors are getting very easy opportunity to get sirca ,
it is time to promote them , and not de motivate them
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Does anybody have moneycontrol pro subscription? pls share the content or summary of this article. Thanks.
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90%-95% of Sirca’s revenues come from Wood Coatings, Thinners, Glass Coatings etc.
< 5% comes from ‘Decorative Paints’.
So its name, SIRCA ‘Paints’ can be misleading for now.
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@sameernics please find the article below ( mobile screenshots , pro not working properly on website )
Photo.pdf (4.6 MB)
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Sirca paints march 2024 results
Sirca paints PPT : -
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Sirca Paints had recently conducted a Investor conference on 22nd May 2024, key insights are as below:-
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Acquisition of New Wembley Products LLP (Under the brand name - Welcome) - On 21st May 2024 Sirca paints had acquired ‘Welcome brand’ for 20 crores. New Wembley products LLP is well known in Delhi NCR region and one of the emerging Thinner/Reducer manufacturer. The acquisition includes business undertaking, pertaining to sale and distribution of Products including technical know-how, all intellectual property rights. For FY24, Welcome brand reported a topline of 50 crores with 14% EBITDA margin. Sirca Paints aims to double the topline of 'Welcome band ’ in next year and improve the margins as well.
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Joint Venture with OIKOS Italy (JV share of Sirca 51:49) manufacture of high quality decorative paints. The production will start late June onwards and the company expects to generate modest 12-15 crores of revenue for the whole year. CAPEX of 10 crores will be made from internal accruals for producing OIKOS products. However this brand compliments Sirca products and it is not available in the Indian markets. The company expects to scale this segment of decorative paints very fast in the next 2 years and can contribute 200 crores of topline from present topline of 24 crores in FY 24.
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New geographies - Sirca paints have started to strengthen its retail networks in East, West and South regions as well. They have started to establish networks in cities in like Kolkata, Ahmedabad, Surat, Hyderabad, Bangalore and Chennai. They expect to add 50 retailers in each region this year.
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Middle east Export market - They have already sent there products for testing in Dubai, Saudi and some part of Europe and they expect some live action to happen in Quarter 2 particularly for Dubai region.
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Manufacturing capabilities - After receiving the license for manufacturing in November 2023 from Sirca Italy, production went live in full swing from January 2024 the utilization stands at nearly 50%. The company expects the utilization to hit 90% in next 1-1.5 years.
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Revenue and margin guidance - For FY 25 company expects at least 40% growth in topline followed by 25-30% growth over next 2-3 years. The margins should be in the range of 20-23%
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‘So, now we talk about the run rate of the manufacturing facility after the manufacturing
agreement coming live into action with the first full batches coming into place in November
from December, January, the facility has started producing in full swing and in March we
recorded a manufacturing volume quantity of about 7.5 lakh liters, which takes us to an annual count of about 8,400 tons and along with this, we expect that the kind of growth we are expecting this year, we should be able to reach to almost 90% of the capacity utilization, which is about 16,000 crore in next 1-1.5 year at max’. from page no 5 of concall… Can someone pls explain this?
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‘Yes. So, considering that exports will be a focus area and we are expecting it from these three containers which are going out in the market, we will have some commitments of the containers from each country, we will be doing 100% of CAPEX on the wood coating facility in the Gujarat region, space already identified with the minimum CAPEX, which will stand under Rs. 10 crores. But from the existing facility also with the 16,000 tons capacity yearly in single ships, we are already aligning ourselves and planning ourselves to take it to double shift’ page no 13… they wanted to say 16000 ton…
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Wood Coating revenue guidance 380 cr (PU is going to grow very aggressively and we are expecting that this year out of the total wood coating sale, we are expecting about Rs. 379-Rs. 380 crores and almost 30% will be contributed by the Acrylic PU which was vis-a-vis 15% last year - Page no 14), decorative 60 cr (So, considering the move with the OIKOS, we expect that it will help us to gain much more competitive advantage when it comes to selling of the decorative business in the retail segment with this high-end value products which will allow us also to sell the primers and the economy emulsions along with this OIKOS high end products and help us to reach a targeted sale of Rs. 60-Rs. 65 crores this year vis-à-vis Rs. 24 crores in FY24. And once we are able to cross this number of Rs. 60-Rs. 65 crore this year, we see that then the momentum can go very fast in the next 2 years, we can easily achieve a number of Rs. 200 to Rs. 250 crores.) welcome brand 75 cr (Yes, so acquisition we have taken as it is without the growth number, so 100 or 50 where we also intend to take it 200 this year. So, yes that is something which is additional.). Hopefully they will be able to cross 450 cr revenue (anticipating they have added welcome revenue in wood coating ) or else 500cr +…
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Apoorv clearly mentioned 25-30% growth in wood segment so that alone will be about 370 cr + wall paint and decorative paint about 60 cr + welcome brand 50 to 100 cr so its quiet likely they can hit 500 cr in fy25 with 20-22% ebitda they can easily do 70 cr profit in fy25.
With regards to cagr growth post fy25 there were 2 different statements…to 1 participant he mentioned 25-30% growth and in final closing question he mentioned 40% cagr for next 3 yrs…
looking at the current outlook on paint industry after birlas entry even 30% growth is quiet satisfactory.
Disc
Invested and will be adding on further declines
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