#PAT #GROWTH 5 Year CAGR: 40.8%
In FY24, the net profit was โน149 cr and expanded by 12.9% YoY, mostly backed by rise in operating profits. In Q1 FY25, PAT reported was ~โน27 cr, de-growing by 14% YoY due to the additional depreciation charge on account of commissioning of the Tamil Nadu plant in September 2023.
In FY24, the net profit was โน149 cr and expanded by 12.9% YoY, mostly backed by rise in operating profits. In Q1 FY25, PAT reported was ~โน27 cr, de-growing by 14% YoY due to the additional depreciation charge on account of commissioning of the Tamil Nadu plant in September 2023.
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#EBITDA #MARGIN
In FY24, EBITDA margin expanded by 132 bps YoY and stood at 18.2% backed by rise in gross margins. A favourable product mix, coupled with double-digit growth across all categories and a prudent purchasing policy, led to better realization and increased gross margins from 44.5% in FY23 to 47.6% in FY24. The emphasis on high-margin differentiated products has been pivotal to this growth trajectory. EBITDA margin contracted by 180 bps YoY to 15.2% in Q1 FY25 mainly on account of increased employee cost.
In FY24, EBITDA margin expanded by 132 bps YoY and stood at 18.2% backed by rise in gross margins. A favourable product mix, coupled with double-digit growth across all categories and a prudent purchasing policy, led to better realization and increased gross margins from 44.5% in FY23 to 47.6% in FY24. The emphasis on high-margin differentiated products has been pivotal to this growth trajectory. EBITDA margin contracted by 180 bps YoY to 15.2% in Q1 FY25 mainly on account of increased employee cost.
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#MANAGEMENT #PROFILE
Hemant Jalan is the Managing Director and Chairman of the company. He was previously associated with AF Ferguson & Co and Vedanta Group of Industries. He has done his M.B.A. from the University of Chicago, M.Sc from Stanford University and B.Tech in Chemical Engineering from the Indian Institute of Technology, Kanpur. The board has recommended reappointment of Mr. Ravi Nigam as an Independent Director, for a further term of five years, with effect from 29th March 2024 subject to approval of the shareholders of the company. There has been an appointment of Ms. Ashwini Deshpande as an additional director (non-executive independent) w.e.f. 26th May 2023, subject to the approval of the shareholders of the company.
Hemant Jalan is the Managing Director and Chairman of the company. He was previously associated with AF Ferguson & Co and Vedanta Group of Industries. He has done his M.B.A. from the University of Chicago, M.Sc from Stanford University and B.Tech in Chemical Engineering from the Indian Institute of Technology, Kanpur. The board has recommended reappointment of Mr. Ravi Nigam as an Independent Director, for a further term of five years, with effect from 29th March 2024 subject to approval of the shareholders of the company. There has been an appointment of Ms. Ashwini Deshpande as an additional director (non-executive independent) w.e.f. 26th May 2023, subject to the approval of the shareholders of the company.
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#SECTOR #OUTLOOK
โข India's paints and coatings market, spanning both decorative and industrial segments is forecasted to grow at a CAGR of 8.75% by FY33. The country's growing population and rapid urbanization are driving demand across various sectors. India's construction chemicals market ranks third globally in profitability and leads in growth, projected to reach $5.02 billion by 2030 with a CAGR of 7.24%. The commercial sector holds the highest market share, followed by the residential sector. โข India's waterproofing chemicals industry has experienced significant growth due to rapid urbanization and the rising demand for resilient construction solutions. The country's climate necessitates protection against monsoons, humidity, and water damage, making waterproofing chemicals essential in construction. The market is expected to grow at CAGR of 7.4%. Government mandates and infrastructural development would further drive this growth. โข India's decorative coating market is projected to grow from โน70,000 cr in 2023 to โน1,59,000 cr by 2032, with an annual growth rate of 9.5%. The market is divided into organized and unorganized sectors, with the organized sector accounting for ~77% (โน54,000 cr) in 2023. This sector is expected to grow at a CAGR of 9.8%, reaching over โน1,25,000 cr by 2032. Factors driving this growth include new capacity expansions, rapid urbanization, increased preference for branded paints, and shorter repainting cycles. โข Eco-conscious consumers are fuelling demand for water-based, low-VOC paints that minimize environmental impact. In response, paint manufacturers are increasingly developing eco-friendly solutions to meet the needs of this growing population of environmentally responsible consumers. โข The rising disposable income of the expanding middle class is boosting demand for premium paints. These high-quality options blend aesthetics with features such as anti-bacterial properties, exceptional durability, and enhanced functionality, appealing to CASE STUDY consumers' growing preference for luxury brands.
โข India's paints and coatings market, spanning both decorative and industrial segments is forecasted to grow at a CAGR of 8.75% by FY33. The country's growing population and rapid urbanization are driving demand across various sectors. India's construction chemicals market ranks third globally in profitability and leads in growth, projected to reach $5.02 billion by 2030 with a CAGR of 7.24%. The commercial sector holds the highest market share, followed by the residential sector. โข India's waterproofing chemicals industry has experienced significant growth due to rapid urbanization and the rising demand for resilient construction solutions. The country's climate necessitates protection against monsoons, humidity, and water damage, making waterproofing chemicals essential in construction. The market is expected to grow at CAGR of 7.4%. Government mandates and infrastructural development would further drive this growth. โข India's decorative coating market is projected to grow from โน70,000 cr in 2023 to โน1,59,000 cr by 2032, with an annual growth rate of 9.5%. The market is divided into organized and unorganized sectors, with the organized sector accounting for ~77% (โน54,000 cr) in 2023. This sector is expected to grow at a CAGR of 9.8%, reaching over โน1,25,000 cr by 2032. Factors driving this growth include new capacity expansions, rapid urbanization, increased preference for branded paints, and shorter repainting cycles. โข Eco-conscious consumers are fuelling demand for water-based, low-VOC paints that minimize environmental impact. In response, paint manufacturers are increasingly developing eco-friendly solutions to meet the needs of this growing population of environmentally responsible consumers. โข The rising disposable income of the expanding middle class is boosting demand for premium paints. These high-quality options blend aesthetics with features such as anti-bacterial properties, exceptional durability, and enhanced functionality, appealing to CASE STUDY consumers' growing preference for luxury brands.
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#FUTURE #POTENTIAL
โข For the past two decades, a robust network and distribution strategy has established a strong presence in small towns nationwide. Recognizing the critical role of dealers in influencing consumer choices, particularly in Tier 3, Tier 4 cities, and rural areas, maintaining strong relationships with channel partners. Significant growth opportunities have been identified in Tier 1 and Tier 2 cities. The market penetration strategy in these areas is multifaceted, involving the establishment of an extensive network of depots to bring products closer to customers in these key markets. โข The putty expansion project is anticipated to be completed by November or December 2024. The commissioning of the solventbased plant is scheduled for March 2025, while the water-based plant is targeted for operationalization by the same month. the timeline by a couple of months. expected to contribute 8%-10% to sales over the next 2-3 years. However, due to recent labour availability challenges over the past two months, there is a possibility of a slight delay, extending โข The company's focus on the waterproofing and construction chemicals segment is delivering positive outcomes. These products are seeing strong sales traction in many states, with expectations for further growth in FY25. The waterproofing segment is โข It is targeting the installation of 1 megawatt of renewable energy via rooftop solar installations in FY25.
โข For the past two decades, a robust network and distribution strategy has established a strong presence in small towns nationwide. Recognizing the critical role of dealers in influencing consumer choices, particularly in Tier 3, Tier 4 cities, and rural areas, maintaining strong relationships with channel partners. Significant growth opportunities have been identified in Tier 1 and Tier 2 cities. The market penetration strategy in these areas is multifaceted, involving the establishment of an extensive network of depots to bring products closer to customers in these key markets. โข The putty expansion project is anticipated to be completed by November or December 2024. The commissioning of the solventbased plant is scheduled for March 2025, while the water-based plant is targeted for operationalization by the same month. the timeline by a couple of months. expected to contribute 8%-10% to sales over the next 2-3 years. However, due to recent labour availability challenges over the past two months, there is a possibility of a slight delay, extending โข The company's focus on the waterproofing and construction chemicals segment is delivering positive outcomes. These products are seeing strong sales traction in many states, with expectations for further growth in FY25. The waterproofing segment is โข It is targeting the installation of 1 megawatt of renewable energy via rooftop solar installations in FY25.
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Indigo Paints Limited1350-1465
Expected level 1700
Support1209
Expected level 1700
Support1209
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Stocks Shifted to T Group
Reliance Infra
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PC Jewellers
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Epack Durable
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Motisons Jewellers
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Panacea Biotech
Sequent Scientific
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Zenotech Lab
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Atul Auto
Black Box
BPL
Dredging Corp
Exicom
IFB Agro
Moschip
Prime Focus
Wockhard
Websol Energy
Reliance Infra
Reliance Power
PC Jewellers
Aarti Surfactants
Epack Durable
HCL Info
Motisons Jewellers
Optimus Infra
Panacea Biotech
Sequent Scientific
Zaggle Prepaid
Zee Media
Zenotech Lab
Stocks out from T Group
Atul Auto
Black Box
BPL
Dredging Corp
Exicom
IFB Agro
Moschip
Prime Focus
Wockhard
Websol Energy
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๐ฅPRIVI SPECIALITY CHEMICALS LIMITED COMPANY DETAILS
Prigiv Specialities Private Limited (Prigiv), a Joint Venture company of Privi Speciality Chemicals Limited, (Privi) a leading aroma chemicals manufacturer from lndia and Givaudan SA, (Givaudan) a world leading multinational company in the Fragrance, Beauty, Taste and Wellbeing industry, today announced that it has commenced operations at its greenfield facitity in Mahad in the state of Maharashtra.
This greenfield facility is a state-of-the-art manufacturing unit, custom-built to produce small volume fragrance ingredients of medium to high complexity exclusively for Givaudan. The total capital expenditure incurred for this project is approximately Rs.178 crore, funded through equity contributions from both partners and loan financing from Givaudan. Privi holds 51% equity stake in the joint venture with Givaudan holding the remaining 49%. The JV initially targets to manufacture a broad portfolio of value added products with a progressive ramp up in activities over the next two to three years. The Commercialization of operations further solidifies the partnership between the two companies, who have had a long-standing relationship.
The joint venture's infrastructure has also been expanded with an additional 5-acre area, adjacent to the existing 4-acre site, laying the foundation for significant future growth.
Prigiv Specialities Private Limited (Prigiv), a Joint Venture company of Privi Speciality Chemicals Limited, (Privi) a leading aroma chemicals manufacturer from lndia and Givaudan SA, (Givaudan) a world leading multinational company in the Fragrance, Beauty, Taste and Wellbeing industry, today announced that it has commenced operations at its greenfield facitity in Mahad in the state of Maharashtra.
This greenfield facility is a state-of-the-art manufacturing unit, custom-built to produce small volume fragrance ingredients of medium to high complexity exclusively for Givaudan. The total capital expenditure incurred for this project is approximately Rs.178 crore, funded through equity contributions from both partners and loan financing from Givaudan. Privi holds 51% equity stake in the joint venture with Givaudan holding the remaining 49%. The JV initially targets to manufacture a broad portfolio of value added products with a progressive ramp up in activities over the next two to three years. The Commercialization of operations further solidifies the partnership between the two companies, who have had a long-standing relationship.
The joint venture's infrastructure has also been expanded with an additional 5-acre area, adjacent to the existing 4-acre site, laying the foundation for significant future growth.
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PRIVI SPECIALITY CHEMICALS 1380-1480
Expected level 1800
Support 1200
Expected level 1800
Support 1200
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Thermax
Thermax Ltd. is prepared for large-scale capex to set up a solid oxide electrolysers manufacturing unit in India, the companyโs Chief Executive Officer Ashish Bhandari said.
Recently, the Indian multinational engineering conglomerate announced a partnership with UK-based Ceres Power Ltd. for green hydrogen production with large-scale solid oxide electrolysis cell manufacturing in India.
The two companies have entered into an agreement for Thermax to manufacture, sell and service stack array modules based on Ceres' advanced solid oxide electrolysis cell technology.
Thermax also plans to establish a manufacturing facility for the electrolysers, develop the supply chain, and localise critical components over the next two years.
โThe investment (towards indigenisation of the project) will change depending on the success that we get at each stage but we are prepared for hundreds of crores of investments on setting up full-scale manufacturing capability for solid oxide electrolysers,โ Bhandari told NDTV Profit.
The Thermax CEO said that hydrogen as a technology for the future will be important for Indiaโs many hard-to-abate industries like steel, refining, petrochemicals, and fertilisers
โI think solid-oxide technology for electrolysis is a key tech that can make this change happen faster,โ he said.
The company is focusing more on green technology, which is reflected in the breakup of its Rs 10,500-crore order book, Bhandari noted.
โRight now, we are running about 70% of what we call as green (energy) and 30% of traditional fossil fuel,โ the top executive said.
With the new opportunities towards green transition, Bhandari said that he expected the margins of the company to improve.
Thermax Ltd. is prepared for large-scale capex to set up a solid oxide electrolysers manufacturing unit in India, the companyโs Chief Executive Officer Ashish Bhandari said.
Recently, the Indian multinational engineering conglomerate announced a partnership with UK-based Ceres Power Ltd. for green hydrogen production with large-scale solid oxide electrolysis cell manufacturing in India.
The two companies have entered into an agreement for Thermax to manufacture, sell and service stack array modules based on Ceres' advanced solid oxide electrolysis cell technology.
Thermax also plans to establish a manufacturing facility for the electrolysers, develop the supply chain, and localise critical components over the next two years.
โThe investment (towards indigenisation of the project) will change depending on the success that we get at each stage but we are prepared for hundreds of crores of investments on setting up full-scale manufacturing capability for solid oxide electrolysers,โ Bhandari told NDTV Profit.
The Thermax CEO said that hydrogen as a technology for the future will be important for Indiaโs many hard-to-abate industries like steel, refining, petrochemicals, and fertilisers
โI think solid-oxide technology for electrolysis is a key tech that can make this change happen faster,โ he said.
The company is focusing more on green technology, which is reflected in the breakup of its Rs 10,500-crore order book, Bhandari noted.
โRight now, we are running about 70% of what we call as green (energy) and 30% of traditional fossil fuel,โ the top executive said.
With the new opportunities towards green transition, Bhandari said that he expected the margins of the company to improve.
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๐ Leading Solar Module Manufacturers ๐
1โฃ Adani Enterprises
1 Year Return: 34%
2โฃ Premier Energies
1 Year Return: 35%
3โฃ Tata Power
1 Year Return: 84%
4โฃ Solex Energy
1 Year Return: 234%
5โฃ Websol Energy System
1 Year Return: 620%
1โฃ Adani Enterprises
1 Year Return: 34%
2โฃ Premier Energies
1 Year Return: 35%
3โฃ Tata Power
1 Year Return: 84%
4โฃ Solex Energy
1 Year Return: 234%
5โฃ Websol Energy System
1 Year Return: 620%
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EPL Limited Company details
EPL Limited formerly known as Essel Propack Limited is the largest specialty packaging global company, manufacturing laminated plastic tubes catering to the Beauty & Cosmetics, Pharma & Health, Food, Oral and Home.
The company was acquired by the Blackstone group on Aug โ 2019 from the Essel group of companies. The Blackstone Group is one of the leading investment firms in the world with an AUM of around USD 511 billion across sectors like private equity, real estate, hedge fund solutions and credit businesses. The Group also has an exposure in the packaging industry through acquisition of varied companies such as the USA based Graham Packaging, Owens-Illinois Inc, Ohio and China based packaging firm ShyaHsin.
EPL functions in 11 countries through 21 facilities employing 3500+ people.
EPL Limited formerly known as Essel Propack Limited is the largest specialty packaging global company, manufacturing laminated plastic tubes catering to the Beauty & Cosmetics, Pharma & Health, Food, Oral and Home.
The company was acquired by the Blackstone group on Aug โ 2019 from the Essel group of companies. The Blackstone Group is one of the leading investment firms in the world with an AUM of around USD 511 billion across sectors like private equity, real estate, hedge fund solutions and credit businesses. The Group also has an exposure in the packaging industry through acquisition of varied companies such as the USA based Graham Packaging, Owens-Illinois Inc, Ohio and China based packaging firm ShyaHsin.
EPL functions in 11 countries through 21 facilities employing 3500+ people.
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Global Footprints
The company is the world's largest global specialty packaging company with annual capacity of ~8 billion Tubes with manufacturing units operating across USA, Mexico, Colombia, Brazil, Poland, Germany, Egypt, China, Philippines and India.
Category wise - Revenue Bifurcation FY24
Oral Care - 53%
Beauty & Cosmetics - 34%
Pharma - 10%
Home & Industrial - 4%
Geographical Revenue Bifurcation -F24
A) Europe - 21% of Revenue, 2 Plants
B) America - 23% of Revenue, 4 Plants
C) AMESA - 34% of Revenue, 9 Plants
D) EAP - 22% of Revenue, 6 Plants
The company is the world's largest global specialty packaging company with annual capacity of ~8 billion Tubes with manufacturing units operating across USA, Mexico, Colombia, Brazil, Poland, Germany, Egypt, China, Philippines and India.
Category wise - Revenue Bifurcation FY24
Oral Care - 53%
Beauty & Cosmetics - 34%
Pharma - 10%
Home & Industrial - 4%
Geographical Revenue Bifurcation -F24
A) Europe - 21% of Revenue, 2 Plants
B) America - 23% of Revenue, 4 Plants
C) AMESA - 34% of Revenue, 9 Plants
D) EAP - 22% of Revenue, 6 Plants
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Company Operational
EPL manufactures plastic laminate sheets in India and China, and supplies them to other plants which are then converted into tubes, printed, and capped before being sold. EPL is expanding its in-house production of caps and closures to further integrate operations.
It has multi-national and Indian clients such as P&G, Colgate, Unilever, GSK, Reckitt Benckiser, Johnson & Johnson, Dabur, Emami, Himalaya, Patanjali, etc. Its relationship with its customers has helped to maintain its market share and to face the competition from unorganized players
EPL manufactures plastic laminate sheets in India and China, and supplies them to other plants which are then converted into tubes, printed, and capped before being sold. EPL is expanding its in-house production of caps and closures to further integrate operations.
It has multi-national and Indian clients such as P&G, Colgate, Unilever, GSK, Reckitt Benckiser, Johnson & Johnson, Dabur, Emami, Himalaya, Patanjali, etc. Its relationship with its customers has helped to maintain its market share and to face the competition from unorganized players
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Subsidiaries
The Company operates in 10 other countries, besides India, through direct and step-down subsidiaries and one associate. They are divided into 4 regions โ AMESA, EAP, EUROPE, and AMERICAS. The Company acquired 73% equity shares in Creative Stylo Packs Private Limited (CSPL) and accordingly, CSPL became a subsidiary of the company on 1 February 2021. [6]
The Company operates in 10 other countries, besides India, through direct and step-down subsidiaries and one associate. They are divided into 4 regions โ AMESA, EAP, EUROPE, and AMERICAS. The Company acquired 73% equity shares in Creative Stylo Packs Private Limited (CSPL) and accordingly, CSPL became a subsidiary of the company on 1 February 2021. [6]
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EPL Limited 220-265
Expected level 300
Support 210
Expected level 300
Support 210
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Top Futuristic Multibagger Themes
๐บ Manufacturing
๐ค AI
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