January 2023 - Jyadareturn.com

Vinati Organics Ltd – Amplifying Value through Undiluted Market Leadership in Niche Integrated Business in FY23 & Beyond.

January 27, 2023January 27, 2023 by manvik15@gmail.com

Founded in 1989, Vinati Organics Ltd. (VOL) Integrated Business Model has helped it to transform from a single product company to one of the world’s largest manufacturers of key specialty chemical products, while serving the customers across the globe.

As a market leader for key specialty chemicals (especially for ATBS & IBB where it commands more than 65% of global market share), VOL products play a very important role for several downstream industries. As such company is on the track to further expand its Niche Portfolio of products, which will enable Import Substitution and Create Superior Value for all the Stakeholders.

Vinati Organics is among the few companies in the sector with Sustained capacity expansion with Low-Gearing. This is a result of Prudent capital allocation and Disciplined cost management, resulting in high cash generation.

Hence company’s market capitalisation has grown by 49x between March 2012 to March 2022, while it was expanding its product portfolio through strategic CapEx all funded by the internal accruals.

It has become a consistently Free Cash Flow (FCF) generating Growth Engine which may last forever, given the multiple industries which VOL’s products caters to and the Structural Tailwinds to the Specialty Chemicals sector which Vinati Organics operates in.

Asian Paints the Undisputed Paint Industry Leader, looking for the Value Growth amid Unprecedented Uncertainties in FY23

February 6, 2023January 25, 2023 by manvik15@gmail.com

Problem for Asian Paints has started from FY21, when the strong economic growth led by resurgence in goods consumption across categories (especially in the developed markets), coupled with the supply chain bottlenecks, has led to significant spike in inflation. While the initial pick-up in inflation was led by demand recovery on the FY20’s low base, … Read more

APL Apollo Tubes – The Structural Steel Disruptor Revolutionizing the Growth in 2023 & Beyond

January 19, 2023 by manvik15@gmail.com

APL Apollo Tubes Ltd. has grown its Revenues at a CAGR of 25% in last 10 years, whereas its Profits have grown at a CAGR of 27% in the same period. Company has increased its Installed Structural Steel Capacity to ~ 31X in last 15 years.
Due to its Bargaining Power with the suppliers, company’s steel buying price is Minimum in the industry and as such it is Lowest Cost Producer. It’s a rare B2C business which is growing that rapidly, owing to its Robust Network of 800+ Distributors, 50,000+ Retailers, 200K+ Fabricators which help the company to churn Capital upto 8X in a year that helps them to generate higher ROCE.
With ~ 55% Market Share in the Structural Steel Tubing Industry, Multiple Competitive Advantages, and Ground Breaking Solutions with Innovative Range of 1500+ products under 14 Brands, Company is already on the Accelerated Growth Trajectory.
Tubular Technology, DFT (Direct Forming Technology) for Big Structural Products, ILG (In-Line Galvanizing) to replace traditional products, and Tailwinds for the sector which APL Apollo operates in, are going to be some of the key growth triggers which will ensure that this accelerated growth will sustain longer & beyond 2023.

Astral – Expanding Horizons to Sustain 35% EPS Growth Rate

February 6, 2023January 15, 2023 by manvik15@gmail.com

Astral Ltd. is a prominent brand name in the Indian home building material space. The Company is India’s leading manufacturer of plastic pipes, a well footed player in the adhesives business and is now making strong inroads in the paints, faucets and sanitary ware segments, so as to Transform itself into a “One-Stop Solution” for the Building Materials.
Company wants to Leverage its Large Manufacturing Footprint and Robust Distribution Network, along with – Experienced Leadership and Qualified Managerial Personnel, Marketing and Branding Acumen, Strong Balance Sheet & Cash Flows, Strong Innovation Capabilities, and Leadership in Piping Solutions – for its Future Growth & Expansion, so as to Sustain its High Earnings Growth in the future also, which has been growing ~ at 35% CAGR in last 4 years.

IEX and CDSL – 2 High Quality Asset Light Compounder Business, with Multi Decade Runway of Opportunities

February 6, 2023January 10, 2023 by manvik15@gmail.com

Both the companies are like Toll Collectors on the Growth of Others, both are Asset Light Compounder Business where OPM & NPM are as high as 84% & 71% for IEX (in TTM) and 62% & 52% for CDSL (in TTM) resp. and simultaneously as the CapEx requirement is very low compared to the CFO, hence EBITDA conversion to Free Cash Flow (FCF) is very high in both these companies. IEX in the Short Term Power Contracts has ~ 90.2% Market Share (as in Q2FY23) whereas, CDSL has ~ 71.5% Market Share with 73 mn BO accounts (as in Q2FY23), Both the companies have multiple Tailwinds for Growth, Both the companies have multiple Optionality in their business given so many inherent adjacencies to enter into, Favourable Govt. Policy and Regulation Environment for both the companies that has Triggered multiple avenues for the sustainable higher growth for the multiple decades, Both are the only listed Dominant Monopoly in their respective business, and in spite of all that has been mentioned here, stocks of both the companies have corrected ~ 55% (in case of IEX) and ~ 35% (in case of CDSL) from their all-time high almost a year back.
In this article, we will know how & why all that has happened and what is the future of IEX and CDSL – 2 High Quality Asset Light Compounder Business.

Tata Elxsi and Happiest Minds, will Stocks of these 2 Successful Digital Disruptors make a comeback in FY (2023-24)?

January 1, 2023 by manvik15@gmail.com

Both Tata Elxsi and Happiest Minds are in the Niche Business of providing Solutions & Services, for the Enterprise Digital Transformations and Next Gen Product & Platform Engineering through IoT (Internet of Things), Big Data Analytics, Cloud, Mobility, Virtual Reality, Cognitive Computing, and Artificial Intelligence (AI).
As by 2025, the enterprise digital spend is projected to be ~ 50% of the total technology spend, with the digital spending is expected to be growing at a healthy CAGR of 26.4% between 2021 to 2025, so there is a Strong Tailwind for both the companies given the diverse and differentiated multiple Industrial segments both the companies caters to. Both has been growing at faster growth rate compared to other IT companies because of which both the companies have been enjoying PE multiples of over 50+.
Whether the Correction of more than 40% from the life time high MP, is a Buying Opportunity or is Indicative of possible De-rating to the IT Sector itself (due to high anticipation of recession in developed economies like US and EU, from where both the companies gets there maximum revenue), we will come to know in this article. So, keep reading.