Hi there folks, just wanted to know if there is any impact or potential challenges of Trump tariff scenario on this company? Last 3-4 days the price action seem to be not that great which may indicate that there’s some fear. Thanks
ANUP’s export revenue was 46% in the last quarter and the company is targeting to achieve 50% by year-end. Of course, there is likely to be some impact due to the ongoing tariff issues, as they also supply to the United States. If an investor has a long-term perspective on this company, they should not worry about daily, weekly, or even monthly price movements. One should only buy if they believe the stock is at a cheaper valuation and closely track the business performance. Don’t worry about price movements as long as you feel that the growth story remains intact.
Disc - Invested at lower levels
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Thanks a lot, Avinash.
As per Q4 concall - Management has guided for revenue of 900 cr in FY26, with 20% + EBIDTA margin. With 25% tax outflow, PAT turns out to be around 124 cr ( EPS of 60 rupees).
For FY 27 in a best possible scenario company can do a revenue of 1270 cr, i.e. 1200 at 100% capacity utilization of all 3 plants + 70cr from technical service. Leading to EPS of 85 rs.
Even at 40 PE, I believe upside is very limited.
One key monitorable to watch out for is inorganic growth. Management is looking for acquisition to add capabilities. Hopefully it will fructify soon.
Disclosure - invested from lower levels.
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Q4 -may 2025 concall
PERFORMANCE
1…Plant
Ahmedabad: INR 565 crore
Kheda (first full year): INR 143 crore
Mabel Engineers: INR 43 crore
2…Industry
Hydrogen (30%),
Oil & Gas (30%),
Petrochemicals (23%),
Fertilizers (10%),
Others (7%).
3…Product Mix:
Heat Exchangers (65%),
Vessels/Reactors/Columns/Others (35%).
=Kheda plant’s focus is on vessels/reactors/columns
4…EXPORT@54%
US/Canada ~30%,
Middle East (Saudi Aramco, ADNOC) ~50%,
Australia/Nigeria ~15%,
Europe ~5%.
===============
FUTURE GROWTH
1…New products and diversification
A…Critical Equipment Foray: Successfully manufactured & delivered first chrome-moly-vanadium modified material equipment (critical metallurgy) for Indian client; first solid internal equipment (>200MT, single piece) for export customer at Kheda.
B…Clean Room Operations: Restarted titanium equipment manufacturing; further clean room projects underway for complex metallurgies.
2…Anup technical services
=Focus on high-volume, short manufacturing cycle jobs (“large volume play”); launch of Anup Technical Services (testing, health checks, site repairs) leveraging NABL-accredited lab and Mabel’s site capabilities.
=Already executed initial orders; services vertical expected to reach INR 200 crore in 3 years at >30% EBITDA margin.
3…Export Competitiveness:
= India remains cost-competitive vs. China, Mexico, and Europe, especially given recent tariffs and high energy costs in Europe. Management confident that “India still holds a dominant position in terms of being the most competitive country” for their product line.
4…Hydrogen Economy:
=Strong traction in hydrogen (esp. blue hydrogen, i.e., conventional hydrogen with carbon capture).
=Management notes: “when a blue hydrogen project comes up, it’s the conventional opportunity plus the CCU opportunity that comes your way.”
5…Capex
A…Kheda
=Phase 2 under Construction, completion in Q2 and commissioning in Q3
Capacity Utilization: With Kheda Phase 2, expected utilization in FY26 at 75–80%; currently operating at near full utilization without Phase 2.
B…Mabel Engineers acquisition
C…Total Installed Capacity (Post Kheda Phase 2)@ 1200 cr rev potential
: Potential of INR 1,200 crore annual revenue,
D…Long-term Capacity Plan: 2000cr rev potential
a…Kheda master plan for 7 bays (currently 4 after Phase 2), potential revenue of INR 1,000–1,200 crore from Kheda alone;
b…Odhav (Ahmedabad) INR 600 crore;
c…Mabel INR 200 crore;
= Total group potential INR 2,000 crore.
6…Growth guidance
=Ebidta guidance
20% EBITDA margin
=Revenue rowth u
25 % in 2026
=Future Business mix model:
-60% legacy products (>20% EBITDA), -20% high-volume quick-turnaround jobs (~15% margin),
- 20% high-margin services.
Disc…invested since 4 yrs
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