Very useful information @abhishek90 - Reaffirms my conviction.
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Check your inbox, have sent you guyz…
One more thing which I forgot to write, The china guy told that the MTM product is so safe that it is also used in food packaging…
As per the IR team, Mr. Asutosh Verma has a rich experience in this field and he is trying to turnaround the company. Vikas Garg is trying to change the things. He brought in Grand Thorton as internal auditor.
More on Prince Pipes from the IR team - Prince Pipes is exploring in US market, and Vikas Ecotech is their partner (raw material supplier).
Finolex is now a customer - IR said.
So, No2 and No3 pipe players are our customers now. Cheers.
He will come back after checking about the low R&D expense shown in the AR.
On EBITDA margins he said - they have to pass the low prices (but with some time lag). So, the EBITDA margins, 18% reflect some portion which is not sustainable (some 3-4%), but then he said that this will not go down. Instead it will go up to 20% because of product mix change…Company introduced MTM in the second half of last year (FY!6). He meant till then the company was not supplying this product. This is visible in their quarterly margins on screener.in
I am planning to meet the management, if you guyz have any other questions, please do let me know. Also let me know if anyone of you want to join.
Editing this post - https://www.linkedin.com/in/ashutosh2359 - this is the link to Ashutosh Verma’s linked in page. His education and experience looks impressive. Guyz, refer the comments (recommendations) given by some of his colleagues. They say he is best at his R&D. This validates the IR teams mention that Vikas Garg has brought this guy to do R&D. And, so the R&D issue we had is almost clear now. The R&D expense shown by the company in annual report is not correct - it has not counted Ashutosh Verma’s salary in it. Further, MTM technology is with company since couple of years and company was able to start the segment commercially in previous year only.
Certain other people like Himanshu Srivastav (Sr. Executive, R&D, INEOS Styrolution), Mithoo Prasad (R&D centre) have assigned him skill of R&D.
This guy has worked in multibase India and was a part of global R&D team. Multibase is a group company of Dow-corning group, which is a joint venture between Dow Cehmicals and Corning Incorporated.
Looks interesting now.
Disc - Please do your own due dilligence.
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Are technicals allowed here? Today it finished above 17. I wonder if the stock is at an inflection point both technically and fundamentally…
Disc: I am invested…
Sure guyzz…just a request…for those who have not yet posted in thread and want the content…send your email ids to me in my message box…posting here will extend the thread without any value addition…
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This is great work. Thanks. Just to clarify, I was referring to organotins in general and not MTMs. Perhaps a little more specifics on how 9.76 lacs has increased market share and production efficiency would be very helpful.
Disc: Not invested. Considering a very small position. .
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Thanks sn. About R&D I have written in my second thread…9.76lacs exp on R&D is not a correct figure…check the profile of Mr. Ashish Verma on LinkedIn…he has been brought in for R&D…his salary is not counted in the R&D exp…plus, MTM technology has been acquired by them…so no R&D cost incurred for that…
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abhishek, Can you please send me the details about Vikas Ecotech to me
I have sent the conversation. Let me know if anyone is missed out.
The latest shareholding details have been released by the company. http://www.bseindia.com/corporates/shpSecurities.aspx?scripcd=530961&qtrid=91.00
There is a decrease in promoter stake from 46.01% to 43.5%.
Why wouldn’t Prince buy from.open market? Promoter has sold in open market
@v4value - the 2.5% stake is sold to one of their biggest client.
Prince Pipes and Fittings Pvt Ltd’s CMD, Jayant Chheda, and his associates have
acquired, in their individual capacity, 6,346,501 shares - constituting
about 2.5 percent stake - in Vikas Ecotech Ltd in a block deal on July 7, 2016.
“Such large block of shares are not available with a single entity,
hence, the current promoter facilitated the deal by making available the
shares from his end as a gesture of goodwill,” said Vikas Ecotech in a BSE filing.
All are requested to send direct message to Abhishek rather than on this thread.
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VEL seems to be on a roll. Up 13.12% today. More expected this month 
and:
Vikas EcoTech Ltd has informed BSE that a meeting of the Board of
Directors of the Company is scheduled to be held on October 27, 2016, to
consider, subject to approval of Shareholders, to offer, issue and
allot equity shares / warrants to Promoter and Non-promoters, on
preferential basis.
Message from MD says it is “a science-led specialty chemicals manufacturer” but R&D spending comes down to 4.32 lakhs in AR2016.
Copy-pasting from AR2016, Pg 46, Para 2:
“Company’s CRI (Centre for Research and Innovation) team focuses on continuous and sustainable product innovations, working across the product lifecycle aspects including design, development, manufacturing and use phases. During the year, the R&D activities continued to focus on developing intelligent, eco-friendly and energy efficient products, as well as, extending the range of existing products”
So there is a team as well that apparently needs only 4.3 lakhs to run.
Also, wrt the “Hydal technology” article someone posted above, see Pg67. No transfer of technology in last three years.
Thanks sn123…your concerns are correct…but, don’t consider the 4.23lacs figure to be correct…R&D expense should include recurring and capital expenses…in recurring expense they must have mentioned ashutosh Verma’s salary of 18lacs…he is the R&D head…as per the IRs mention and I cross checked that with LinkedIn profile too…
Apart from that, MTM technology has been sourced from third party…it is not an in-house developed technology…so no exp on R&D incurred here…
The MTM technology had been sourced by them in 2011…but somehow were not successfully able to commercialize the operations…so no technology transfer in last 3 years…
Apart from that, one product ATH has been developed by them through reverse engineering…now to my knowledge, this should not be that expensive to do…I think the main cost of R&D should be the employee cost…rest all is chemicals and some rubber and plastic…
Hydal technology has been again sourced…so no R&D cost on that too…
Disc - purely my views…do your own due diligence…
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I think most of the R&D was tuned towards utilizing the sourced technologies better, maybe getting the workforce to conform to a newer better way of working.
Investor bias.
Hi Everyone,
I have got the contact details of Shitals marketing personnel who takes care after the MTM product. I had to pitch in as a purchase department personnel of a small pipe manufacturing company in India. I got the number only after representing myself as a client. But, now we can ask the marketing guy about Shitals installed capacity of MTM and how is Vikas Ecotech’s reputation in the market. Someone has to take the initiative, since I cant do it now. Can you SN123 do this? Reply in my inbox and we can discuss how to approach this guy.
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@abhisek90 Sorry. Can’t really help with that. I am not invested in Vikas. Have been considering it for a while unable to build any conviction. This is purely my view. Hope it is rewarding for those invested.
Hi sn123, no problem…