Technofunda Study
Potential Upside (20-50% in 3-5 months)
Technocraft industries
KirloskarFerrous
Thread on business , details and chart are attached below.
This is not a buy/sell recommendation
Do ur own study before invest in it.
Don't buy in hurry , wait for opportunity
Technocraft Industries was incorporated in 1992. It has presence in five main business industries viz., Drum Closures, Scaffolding systems, Cotton Yarn, Fabric, Garments and Engineering Services.
Company has manufacturing facilities in India and China
Scaffolding and Formwork (38%)
It is a temporary structure used to support people and material in the construction industries, real estate and any other large structures. It is a modular system of metal pipes or tubes , exports approximately 70% Scaffolding Formwork out of india
Yarn and fabric (32%)
Company produces a variety of products ranging from NE 20 to NE 40, Carded and Combed varieties of Cotton Yarn. Company exports approx. 71% of Yarn products mainly in Europe, Asia, Latin America etc.
It has vertically integrated textile division of manufacturing of Yarn, Fabric, Garments, it has facility of producing cotton yarn, mélange yarn, also having facility of knitting, dyeing and printing and garmenting.
Drum Closures (26%)
one of the largest manufacturer of high precision and sophisticated Drum Closures Products. Out of the total revenue of the drum division approx 90% revenue comes from export sales.
It continues to enjoy a worldwide market share of about 36% excluding China.
Market Cap 1,661 Cr.
Current Price 679
Stock P/E 13.6
Book Value 438
ROCE 12.4 %
ROE 12.1 %
Investor Sunil singhania backed Abakkus Ewmerging Opportunities Fund hv stake around 2.5%
FII/DII increasing stake
Technocraft Industries
Can enter with small quantity on CMP add more in dips as given
SL below 550
upside as given in chart
2. KFIL, incorporated in 1991, is a part of the Pune-based Kirloskar Group. KFIL manufactures pig iron and ferrous castings
such as cylinder blocks,cylinder heads, and transmission parts and different types of housings required by automobile, tractor and diesel engine industries.
It is one of the leading players in foundry-grade pig iron manufacturing and ferrous castings in the domestic market
Vision
Be a sustainable growing organisation creating value to all stakeholders
Mission: To become a Billion $ company by 2030
PIG IRON
To be a lowest cost producer
Expand in to value added products
To achieve 0.7 Million Tons of liquid metal by 2022
Casting
Exceed customer expectation in Product development, Quality & Delivery
To achieve 0.2 Million Tons casting sales by 2025
Expand into new segments
The company's Pig iron division has a market share of 40-42% in its market & its castings division has a market share of 21% in its respective industry.
Manufacturing Capacities
The company owns 2 manufacturing facilities in Koppal, Karnataka & Solapur, Maharashtra. Capacities are:-
Pig Iron - 400,000 tonnes p.a.
Castings - 130,000 tonnes p.a.
Coke - 200,000 tonnes p.a.
With the future capex at Koppal plant & the commencement of Pig iron plant situated at Hiryur which is acquired from VSL Steel Ltd, pig iron capacity will increase to 680,000 tonnes p.a.
Expansion Plans
The company recently completed its capex towards solar power plant, railway sidings, acquisition of Hiryur plant & commencement of Coke Oven with Power Plant with investments of ~550 crores.
It has proposed capex outlay for major projects like operation of 2 iron ore mines, PCI & MBF-2 upgradation & phase 2 of its Coke Oven Plant from 200,000 TPA to 400,000 TPA. & Power from 20 MW to 40 MW.
KIRLOSKAR FERROUS (NSE CHART)
CMP 304 SL BELOW 260 CLOSING
UPSIDE 325 , 350 , 375 , 400
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