Any viewpoints around below aspects will be a great help:
Business journey from my viewpoint: 1st 50+ Yrs. mastered the art of making starch and its derivatives. Next 20 Yrs. spread the manufacturing footprint across India. Installation of mega-plant at Punjab in FY20 elevated the financial performance. Now, I sense that company wants to snowball capacities at a faster pace. What has changed in recent times to bring urgency in company’s aspirations in the form of establishing bigger plants and incremental capacity expansion?
Company intends to expand the capacity from 1600 TPD (Tons Per Day) to 2000 TPD over the next 24 months. But, the industry leader, GAEL, aims to add 2000 TPD in this period. Why Sukhjit’s expansion pace calibrated compared to the industry leader, considering that Sukhjit’s management consists of 5 owner operators who know this business very well?
Where company stands on the outlook envisioned under the company profile on the website? “Sukhjit sets out on a new journey by exploring fresh possibilities such as working with alternate commodities - Wheat, Rice and increasing its portfolio of value-added Products like HFCS, Sorbitol Powder, Functional Starches, Grain based Alcohol, Feeds, Pet Food, Bio-Fuel etc.”
What they meant by the idea ( "commitment to migrate customers in Tier 2 and 3 cities from the unorganized sector to the organized sector.”) touched upon by the MD in the latest investor presentation of FY23?
What is the rationale to hold Investment of 78 Cr. and Investment Property of 22 Cr. along with long term borrowings?
What is the plan for the phased-out unit at Sarai Road?
How much capacity expansion is doable in each of the other 3 plants at AP, WB and HP plants before space becomes a constraint?
How the business manages the impact from the volatility in the raw material costs and energy costs?
What’s the least operating margins of this business?
What are other factors that matter besides price to retain and grow the market share?
Disc: No position. Sent the above to the IR team as a due diligence exercise but never heard back.
My only observation is how does a company give such a high dividend when all financial metrics have deteriorated QoQ and YoY - PAT, EBIDTA margins, increasing debt…
and there is huge fluctuation in share price…
