Dr Lal Path
Revenue growth 7.6%
Profit 43%
Profit margin improved but volume growth remained muted.
It simply indicates that pricing pressure in this space is easing out. When the volume growth kicks in, the market outlook will change.
Revenue growth 7.6%
Profit 43%
Profit margin improved but volume growth remained muted.
It simply indicates that pricing pressure in this space is easing out. When the volume growth kicks in, the market outlook will change.
Sudarshan Chemical
Revenue up by 9%
Profit jumped by 200%
Margin improved from 7.5 to 11.5% (YoY)
Quarterly dull result
Revenue dropped by 12%
Profit dropped by 28%
Note that historically, this company reports the weakest at first Q. So, it doesn't make sense to compare QoQ basis.
D/E ratio improving
This quarter 0.61, last Q 0.99, last year same Q. 1.04
Big capex is already done.
Profit is hit by depreciation.
Demand has collapsed after the capex. So, the company is sitting with an engine with no fuel.
Once fuelled, scenario may change drastically. However, it is a shallow cyclical company.
Disclaimer: Biased since invested @420.
Revenue up by 9%
Profit jumped by 200%
Margin improved from 7.5 to 11.5% (YoY)
Quarterly dull result
Revenue dropped by 12%
Profit dropped by 28%
Note that historically, this company reports the weakest at first Q. So, it doesn't make sense to compare QoQ basis.
D/E ratio improving
This quarter 0.61, last Q 0.99, last year same Q. 1.04
Big capex is already done.
Profit is hit by depreciation.
Demand has collapsed after the capex. So, the company is sitting with an engine with no fuel.
Once fuelled, scenario may change drastically. However, it is a shallow cyclical company.
Disclaimer: Biased since invested @420.
Aarti Industries
Aarti Industries is the big boy in the chemical class. The best way to look at the results of Aarti Industries over every five year basis. Over the long term, Aarti Industries will be thought of as a proxy of the chemical sector.
Results are bad as expected.
Revenue down by 12%
Profit down by 48%
Margin down by 3%
As communicated through video, I have strong reasons to dislike the company. However, Aarti Pharma Lab is looking very attractive at this price point.
No position, tracking the whole chemical sector carefully.
Aarti Industries is the big boy in the chemical class. The best way to look at the results of Aarti Industries over every five year basis. Over the long term, Aarti Industries will be thought of as a proxy of the chemical sector.
Results are bad as expected.
Revenue down by 12%
Profit down by 48%
Margin down by 3%
As communicated through video, I have strong reasons to dislike the company. However, Aarti Pharma Lab is looking very attractive at this price point.
No position, tracking the whole chemical sector carefully.
China minus one
Recent data showed that China is currently reporting deflation.
What is that?
Increase in commodity prices with time reduces the value of money. The opposite is deflation. Means , commodity prices softening.
After sleeping big time, China has opened up. Growth slowed down. The factories started producing, but very low demand. So, the price is down. Simple to understand.
If you are checking news/concall, you probably know that bulk chemical prices are dropping because china is dumping their products at a much cheaper rate. So, the same will continue for some more time.
Impacts: The company who are selling bulk chemicals will continue to report poor results. The company who buys raw material and converts them as a product that has a pricing power, will enjoy better margin. The best example: Domestic formulation branded generics.
Recent data showed that China is currently reporting deflation.
What is that?
Increase in commodity prices with time reduces the value of money. The opposite is deflation. Means , commodity prices softening.
After sleeping big time, China has opened up. Growth slowed down. The factories started producing, but very low demand. So, the price is down. Simple to understand.
If you are checking news/concall, you probably know that bulk chemical prices are dropping because china is dumping their products at a much cheaper rate. So, the same will continue for some more time.
Impacts: The company who are selling bulk chemicals will continue to report poor results. The company who buys raw material and converts them as a product that has a pricing power, will enjoy better margin. The best example: Domestic formulation branded generics.
Today's Results
PI Industries
Abbott India
Berger Paints
PI Industries: Chemical spaces, bad outlook as companies are reported drop in revenue, profit and profit margin. The market assumed that PI would show minor compression. Remember, Aarti Industries showed 3% margin reduction. Eager to see what happens for PI
Abbott India: As raw material prices are softening, margin sequentially would improve. The market is expecting a better margin with above average revenue growth.
Berger Paints: Asian and Berger together control >60% of Market share. Earlier, Asian paints published results. They showed muted growth in revenue but profit margins were very impressive. Will Berger show the same pattern? If so, is the paint demand softening? The market is looking for an answer.
PI Industries
Abbott India
Berger Paints
PI Industries: Chemical spaces, bad outlook as companies are reported drop in revenue, profit and profit margin. The market assumed that PI would show minor compression. Remember, Aarti Industries showed 3% margin reduction. Eager to see what happens for PI
Abbott India: As raw material prices are softening, margin sequentially would improve. The market is expecting a better margin with above average revenue growth.
Berger Paints: Asian and Berger together control >60% of Market share. Earlier, Asian paints published results. They showed muted growth in revenue but profit margins were very impressive. Will Berger show the same pattern? If so, is the paint demand softening? The market is looking for an answer.
Berger Paints
Revenue grew by 10%
Expenses grew by 6%
Profit grew by 33% (YoY)
Q-o-Q
Revenue up by 24%
Expenses up by 18%
Profit up by 93%
Raw materials last Year, same Q, 64% and now 60% of total revenue. So, raw material pricing cooling off.
Operating Profit margin now 18%. Last year same Q, 15%. Last quarter margin was also 15%. So, operating Profit margin improved.
Revenue grew by 10%
Expenses grew by 6%
Profit grew by 33% (YoY)
Q-o-Q
Revenue up by 24%
Expenses up by 18%
Profit up by 93%
Raw materials last Year, same Q, 64% and now 60% of total revenue. So, raw material pricing cooling off.
Operating Profit margin now 18%. Last year same Q, 15%. Last quarter margin was also 15%. So, operating Profit margin improved.
PI Industries
Revenue up by 25%
Expenses up by 21%
Profit up by 79% (YoY)
Q-o-Q
Revenue up by 21%
Expenses up by 18%
Profit up by 39%
Raw material prices this Q, 53%. Last Q, 55%, Last Y same Q, 56%. Raw materials prices are softening.
Operating Profit margin
This Q: 24%
Last Q: 22%
Last Y, Same Q: 22%
All agro chem (Yes, all) companies showed drop in revenue, profit and profit margin. Except for SRF and PI Industries.
In headwinds, these boats are sailing smoothly. Hallmark of moats!
Revenue up by 25%
Expenses up by 21%
Profit up by 79% (YoY)
Q-o-Q
Revenue up by 21%
Expenses up by 18%
Profit up by 39%
Raw material prices this Q, 53%. Last Q, 55%, Last Y same Q, 56%. Raw materials prices are softening.
Operating Profit margin
This Q: 24%
Last Q: 22%
Last Y, Same Q: 22%
All agro chem (Yes, all) companies showed drop in revenue, profit and profit margin. Except for SRF and PI Industries.
In headwinds, these boats are sailing smoothly. Hallmark of moats!
Abbott India
Revenue up by 15%
Expenses up by 8%
Profit up by 41% (YoY)
Q-o-Q
Revenue up by 10%
Expenses up by 6%
Profit up by 25%
Raw materials @ % of Revenue
56%, 57% and 55%, in order of this Q, last Q and last Y same Q
For Abbott India, the key point is Operating Profit margin.
This Q: 24%. Last Q: 22%. Last Y same Q: 22%.
Boring FMCG type of business. No acquisition. No capex. No concall. No big heading.
Revenue up by 15%
Expenses up by 8%
Profit up by 41% (YoY)
Q-o-Q
Revenue up by 10%
Expenses up by 6%
Profit up by 25%
Raw materials @ % of Revenue
56%, 57% and 55%, in order of this Q, last Q and last Y same Q
For Abbott India, the key point is Operating Profit margin.
This Q: 24%. Last Q: 22%. Last Y same Q: 22%.
Boring FMCG type of business. No acquisition. No capex. No concall. No big heading.
Which space looks the least expensive now based on PE?
Anonymous Quiz
60%
Large cap
17%
Mid Cap
23%
Small Cap
Which company deals with specialty chemical?
Anonymous Quiz
26%
Himadri Specialty Chemical
35%
Vinati Organics
31%
Deepak Nitrite
8%
Fairchem Organics
Long Journey Ends!
Uday Kotak has resigned as CEO and MD of Kotak Mahindra Bank. Look for a New CEO begins.
Uday Kotak has resigned as CEO and MD of Kotak Mahindra Bank. Look for a New CEO begins.
Bobcaps_Initiating_Coverage_on_Bajaj_Finance_with_29%_UPSIDE_From.pdf
1.1 MB
Insightful report on development of Bajaj Finance. When you read these type of reports, ignore the target price. Focus on the data and facts.
Promoters Buying
1. Minda Corporation
2. Lincoln Pharma
3. Adani Power
4. Gateway Distripark
1. Minda Corporation
2. Lincoln Pharma
3. Adani Power
4. Gateway Distripark
Small Cap 100 Index
We have had a steep runup since March with the 6th continuous month of serious gains. The trigger that caused this runup was probably:
1. Cheap Russian crude
2. Strong Rupee
3. Easing inflation and
4. Relatively benign macro.
Some of it at least might be changing just as we near crucial resistance in the smallcap indices - usd-inr breaching 83 (not a big problem of a runaway decline since we have good reserves and can defend), crude breaching 90 and russia crude imports declining in Aug, as Russia has cut production. So most of what to me were good positives when the market seemed to be bottoming last week of March are now reversing and that too right post a frenzied runup in everything.
Credit: Bull therapy, valuepickr
We have had a steep runup since March with the 6th continuous month of serious gains. The trigger that caused this runup was probably:
1. Cheap Russian crude
2. Strong Rupee
3. Easing inflation and
4. Relatively benign macro.
Some of it at least might be changing just as we near crucial resistance in the smallcap indices - usd-inr breaching 83 (not a big problem of a runaway decline since we have good reserves and can defend), crude breaching 90 and russia crude imports declining in Aug, as Russia has cut production. So most of what to me were good positives when the market seemed to be bottoming last week of March are now reversing and that too right post a frenzied runup in everything.
Credit: Bull therapy, valuepickr