DEEPAK FERTLIZER

Getting Ready for 650 - 700+

Cmp - 572

ISGEC Heavy Engineering

Cmp - 614

Market cap - 4515cr

52wk High/Low - 642/418

Book Value - 313

Dividend Yield - 0.33%

ROCE - 10.5%

ROE - 8.88%

Strong play in Capital Goods space.

ISGEC is a 90-year old diversified heavy engineering and EPC business. Order book stands at
Rs 8321 CR (March 2023) and the market cap stands at Rs 4515cr

The company has three major divisions:-

1. Manufacturing (34% Revenues)
2. EPC (50% Revenues)
3. Sugar and Ethanol (16% Revenues)

The company is into manufacturing of Boilers, Process Equipment, Presses and Casting. It has a strong presence in EPC projects to help clients with their power projects, Sugar plant and distilleries, Civil Construction, Waste water treatment projects and Air Pollution Control Equipment.

How does an industrial boiler work? realpars.com/boiler/

What is casting?
youtube.com/watch?v=ahqqmC…

ISGEC has presence across the manufacturing space.

Order Book Breakup across Sectors:-

1. Refineries 28%
2. Power 21%
3. Steel, Cement and Aluminium 14%
4. Sugar 13%
5. Chemical and Petrochemicals 12%
6. Railways 2%
7. Others 10%

10% of order book comes from International sales. ISGEC commissioned an ethanol plant in 2021.

ISGEC has a strong clientele base (see attachment)

Q4FY23 Earnings Update:-

1. Sales up 24% YOY
2. PAT up 138% YOY
3. PAT Margins at 4.5%
4. Positive cash flows from operations in FY23 (Huge increase in receivables and payables)
5. Strong balance sheet. No ALM Mismatch with CA>CL and no long-term borrowings.

The EPC segment (50% Revenue) has razor-thin EBIT margins of 4%. The other segments has higher margins averaging around 8%.

It is in the nature of the model to have high CAPEX Model indicated by the low ROE Model.

ISGEC is an interesting model that can benefit immensely if the manufacturing theme comes alive in the next decade for India.

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

ISGEC

KEEP ON RADAR

CMP - 629

Once crossed & Closed above
645 - 650 zone
Shld see Good upmove

Mk EXIM ( India) Ltd

Cmp - 83.80

Sector - Textile

Market cap - 225cr

Book Value - 24.50

FV - 10

52wk High/Low - 102/66

ATH - 165

ROCE - 36

ROE - 28

Promotor Holding - 41.92%

Public Holding- 58.05%

Sales at ATH

Operating profit margin at ATH

Net profit margin at ATH

Current PE less than half of ROCE & ROE

Company has delivered good profit Growth of 116% CAGR over last 5 years

One year profit growth 23%

One year price growth(-2%)

change of management during 2018-19

Promoter has been increasing stake as well as FII also taken positions.

http://www.mkexim.com/

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

DEEPAK NITRITE

Aft Long consolidation

Moving & Breaking out

Days High - 2214

Now @ 2189

VIKRAM THERMO

Fresh ATH

94

DEEPAK NITRITE Gave Breakout

DEEPAK FERTLISER too shld come out of long consolidation zone ( possible in 1 to 2 months)

Watchout for close above 650
Cmp - 586

DEEPAK NITRITE

DAYS LOWS - 2176

Breakout zone Rested

Shld recover in coming few days