LTI-Mindtree merger will lead to 1-1.5% cost savings: AM Naik, Group Executive Chairman, Larsen & Toubro

- LTI-Mindtree and LTTS combined revenue seen at $5.2 billion in FY23 and $6 billion in FY24

- Both companies will continue to operate independently even though they are part of L&T Group

- "We don’t foresee any challenges with people integration for LTI-Mindtree": Debashis Chatterjee, CEO and Managing Director of LTI-Mindtree.

Aditya Vision Ltd
Superb Q2FY23 performance

Revenue, EBITDA, PAT for Q2FY23 vs Q2FY22
Up 42.5%, 100%, 171% YoY
Ebitda Margin @ 8.9% up 256 bos YoY
PAT Margin @ 4.4% up 207 bps YoY

Though s/L hit in Aditya Vision LTD
But now we can see Rebound

Why Deepak Nitrite Gave bad Numbers?
All Due To following Reasons

1. Rising raw material prices
2. High electricity prices
3. Fire in Nandeshwari unit which lead to loss of production and ultimately lead to bad Qtr numbers

All above lead to fall in margin but in next 2 qtrs Company shld overcome it.
Even class companies have Temperory problems


So how was the Q2FY23 results of Deepak Nitrite

Revenue up 16.7%
EBIDTA dn 29.9% At 270.9 Cr
Margin At 13.81% Vs 22.99%
Weakness led by the phenolics division
Phenolics EBIT down by 53% YoY

🔸Sharp increase in raw material prices were another Reason for Bad Numbers from Deepak Nitrite

The company saw a sharp increase in raw material prices from anywhere ranging from 30% to 130%.almost

Prices of benzene, which is a major raw material for most of its products saw volatility as high as 45% To 50% Approx

Natural Gas problems

🔸Last quarter the company had to use Natural Gas to generate electricity due to the unavailability of coal.

🔸Due to sky-high prices of natural gas,the company again had to take a hit on the margins


Deepak Nitrite Future Outlook

🔸In last 5 years its market cap has increased from 1000 - 1200cr to 30000cr Currently and in last 5 years has given almost 3000% Returns

Strong Revenue Guidance from Management

It took Deepak Nitrite from 2018 to 2022 to double its revenue.

Now the company has been guided to double its revenue in the next 3 years!

All new capacities have already been booked with good orders

Capex Plans

🔸 In order to enhance its backward integration capabilities, the Company has proposed to add new capacities of key raw
materials. This will not only ensure a stable supply of key inputs but also offer a margin advantage

🔸 Rs.15 billion worth of projects lined up by the Company across key product lines, is a testament to Company’s focus on continued growth and profitability in medium-to-long term, and sustained shareholder value creation

🔅Brownfield expansion of select products

🔅Strengthening backward integration capabilities of key inputs which will also enhance margins

🔅 Value-added downstream derivatives of Phenol and Acetone

🔅 Adding new chemistry platforms of chlorination and fluorination

Disc - All views expressed are personal and only for educational and study purpose only.consult your financial advisor before investing or taking any position based on above article.

Kab Tak Midcaps smallcaps microcaps shant Rahega

Jaldi He Time aayega inka bhi

Stay Tunned

Budget ke Pehle can we see upmove??

Possibility are High

In 2023 a "DIP" will come 💯 definitely ...can we see Dip near by Feb - March - April

But abhi to TEZI ka maja lelo

Currently Not a Good Time for Bears
&
Individual PF also Down currently as only Index moving

16,900x Growth in Just 20 Years is Just Amazing

Focus on Growth stocks
But Sustained Growth stocks
Power of compounding
Needs lots and lots of patience & Vision( To hold stock till the time when there is no growth)

₹1 Lakh Invested In August 2002, ₹169 Crores Today 💰

Stock Name: Titan Company Ltd.

🔅 Dividends, Bonus Shares and Buybacks
A stock price surge is not the only way investors can make money. Here are a few other ways:

➕ Bonus Shares: When investors get additional shares at no extra cost.

🪙 Dividends: Monetary reward given to investors for staying invested in the company.

🔙 Share Buybacks: The company decides to buy its own shares back from investors.

🪓 Stock Splits: A single share turns into multiple shares without affecting the market capitalisation of the company.

⏳ A Stock That Stood The Test Of Time

🔅In the last 20 years, a single share of Titan has yielded 845% returns. But that's not all. Here's how this brilliant stock rewarded its investors.

👉🏽 Bonus Shares + Stock Split
On 23rd June 2011, the company announced bonus shares in the ratio of 1:1 and a stock split of 10:1. A stock split does not result in direct profit for the investor—it increases the number of shares an investor has but reduces the cost of the initial investment.

👉🏽 Cost Price Decrease
The input cost of the investors who purchased Titan's shares 20 years ago, in August 2002, decreased to 10% of their real cost as Titan announced a 10:1 stock split in June 2011. Therefore, the cost price for shareholders who invested 20 years ago further decreased by 50%, given the issue of bonus shares. As a result of the stock split, their input cost was already estimated at 10% of the total cost. Their cost price was further reduced to 5% of their real purchasing level by the bonus share issue.

👉🏽 Astronomical Growth
Due to the 10:1 stock split and 1:1 bonus share announcement, investors actually paid ₹0.15 for each share, rather than the original price of ₹3. For these investors, Titan's share price multiplied by 16,900 times in the last 20 years.

Stock Value
August 2002: ₹3
August 2022: ₹2535
NOVEMBER 2022 : ₹2650

One such stock is enough To Change your Life

Sakar Healthcare

Yest Low - 230

Today's Low - 235

Recent 15 days Low - 225

Stock trying to form a Good Base for next Upmove

More strength on close above 250

🔅Sakar Healthcare is a pharmaceutical company incorporated in 2004. They do contract manufacturing majorly for sterile drugs and they also export to various emerging markets under their own brands

🔅Sakar Healthcare manufacture a variety of dosage forms including Liquid Injections, Lyophilized Injections, Dry Powder Injections, Dry Powder Syrups and Oral Solids Like Tablets and Capsules. Their biggest therapy area is Antibiotics which contributes to 41% of revenues,followed by Vitamins (15%), Antimalarial (14%), Anti infectives (5%), Antacid (4%) and Laxative (4%). In antibiotics, the majority of their revenues come from the Cephalosporins.

🔶Business Segments:

Sakar has 3 business segments viz. Contract Manufacturing(CMO), Exports and Loan Licensing. Under CMO, they manufacture drugs for big pharmaceutical companies including Zydus, Intas, Baxter, Torrent, Merck, Ferring Pharma, Ipca Labs, Indoco Remedies, etc.

Under the export segment, the sell drugs under their own brands to 53 countries in APAC, Latin America, East & French- West Africa, CIS, Europe, etc. They sell their products through over 75 distribution partners.

Under the Loan Licensing segment, they collect fees from customers for doing conversion and packaging of finished formulations.

🔶Foray into Oncology:

The company has entered the oncology segment by setting up a greenfield facility in Bavla, Gujarat - about 15 minutes away from the existing facility. It is an integrated facility with in-house R&D, API and formulation manufacturing.

They have installed modern technologies in this facility like flow chemistry and are trying to develop green chemistries. They will be manufacturing Oral Solids (Tablets and Capsules) and Injections (Liquid and Lyophilized).

The R&D, API and oral solids units have been commercialized and the injectables unit is expected to come online by March 2023. The OSD and API units have received WHO GMP approval.

They will be exporting the drugs under their own brands as well as contract manufacturing for their partners. The company has already signed an agreement with Zydus for the manufacture of oncology drugs


🔶Capex:

The company undertook a capex of ₹194 Cr for setting up the greenfield facility for oncology. To fund this capex, the company has availed debt of ₹95 Cr. They also raised funds through equity sale to Swiss PE fund - HBM Healthcare.

HBM initially invested ₹14.85 Cr in March 2021 and then invested ₹24 Cr in June 2022. The balance amount will be funded through internal accruals and promoter’s contribution. Management has said that they expect 3X asset turns from this capex.

🔶Guidance:

The management has said that they are expecting additional ₹600 Cr coming from oncology alone in 4-5 years with 30% EBITDA margins. They are aiming for a ₹500 Cr topline by 2026 with 60-65% revenues coming from oncology.

🔶Risks Involved :

The company will be facing a lot of competition from much larger companies in the oncology segment. Players like Natco Pharma have already commercialized all the molecules the company is planning to launch and operate in the same markets the company plans to sell its products. The promoters also have another company - Bisil Plast which is into PET bottle manufacturing and is not traded anymore.

ROCE & DEBT

REVENUE & EBITDA MARGINS

Timken Indian

1160 To 3500 Done ✔️ Till Now

BEST AGRO

Launch of just 1 new product propelled sales by >100%, they have a pipeline of 27 new products to be introduced in coming years

Trading Cheap Vs Growth Outlook

Promoter bought from the open market yesterday

Stock is in uptrend