Dr Prashant Mishra Profile picture
Jun 24, 2020 20 tweets 3 min read Read on X
#FINE ORGANICS LIMITED
1-CMP 1875 , MCAP 5745 Cr , LAST 5 yrs OPM> 20% , DEBT 125 Cr , ROCE> 30% , RONW>20% PROMOTERS HOLDING 75% , MF 12.5% , PUBLIC Holding 3.86%
2-Company is the largest manufacturer of oleochemical-based additives in India and one of the few large players in global oleochemical-based additives industry.
3-Oleochemicals are chemicals derived from vegetable oil and animal oil & fat. In the case of Fine Organics Industries, they use only vegetable oil to derive their end product
4- The additives are derived from palm oil, castor oil, rapeseed and sunflower oil. It is the first company in India to introduce slip additives which reduces friction in polymers and is now the largest producer of slip additive globally.
5-Demand for oleochemical derived additives is increasing because
(a)As Green additives have been replacing potentially harmful synthetic chemicals in several industries like plastics, foods, cosmetics, rubber, paint etc.
b)In recent times, preference for consumer/environment friendliness products vs. petroleum-derived chemicals (huge carbon emission) is increasing. (C)Because of its bio-degradability, especially given implementation of stricter environmental norms
(d)Being compounds derived from natural raw material, waste disposal/ effluent treatment costs are lower. 6-More then 400 products and more then 650 direct customers and no customer accounts for more then 5% of overall sell .
7- 80% of raw material procurement from domestic suppliers with long standing relationships with suppliers .
8-Diversified portfolio with multiple end users like food additives, polymer additives, additives for rubber, additives for coating , feed nutrition and cosmetics.
9- entery barriers and limited players and highly regulated
10-Constantly enhancing the capacity because of full utilisation of existing capacity.
11- Total capacity at present is 101300 TPA and capex is going on for Patalganga facility for 10000 TPA and German Facility ( JV) for 10000 TPA
12 - Polymer additives Globar CAGR 6.4% and Indian CAGR 9.2% ( Polymer means packaging, consumer and construction) - Here additives reduces friction with other surface
13-FOOD Additives CAGR global 5.4% and India 7.36% , here additives are added to maintain quality and freshness of food products and increase shelf life
14-Feed nutrition additives-Indian CAGR 11-13% - to improve feed efficiency and technical advantage to end products
14- Costmetic additives Enables manufacturing of products with different structures like creams, gels, pastes, lotions Aids in achieving long term physical stability for transport and storage. Increases sensory perception and the chemical stability of the sensitive active agents.
15- Additives for coating -indian CAGR 8-10% ,additives are used anti-settling agents, emulsifiers, thickening/anti-sagging agents, wetting and dispersing agents, defoamers.Capable of improving the appearance and durability of a coating
16-Rubber industry Indian CAGR 6-7% Added to improve compounding & processing of rubber. Used in various types of rubbers for applications such as tyres, conveyor belts, dock fenders, automotive parts, hoses, shoe soles etc
17- Revenue 55% export and 45% domestic.I added Fine organics to my portfolio because of excellent growth ,excellent promoter holding, constantly increasing capacity by mangagement , highly regulated market , entry barriers, experienced promoters.
Fine organics decent results, good balance sheet , expanding , reducing debt , improving cash flow , better cash in hand , promoters 75% what else you want , it will continue to trade with premium valuations. ImageImage

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More from @drprashantmish6

Sep 5, 2023
Study this company -
Valiant Communications Ltd( Some Good Points from recent business updates)Although i consider Valiant name as a high risk investment idea because of my old experience with valiant organics , some similarities between valiant organics and valiant communications are
low promotors holding
Recently promotor sold some shares.
( Disclosure - Its not my original idea )
✍️Valiant has become the 1st Indian company whose make “Phasor Measurement Unit (PMU)” has been re-type test approved with latest technical specifications by the Council Of Scientific And Industrial Research–National Physical Laboratory (CSIR–NPL) Based on this approval, the Company has applied for Proof of Concept (PoC) to the Power Grid Corporation of India Limited. It is important to mention that PMU is a key component of “One Nation, One Grid, One Frequency” concept and smart-grid projects. PMU plays a key role in Grid Automation, Grid Stabilization and Load Management of the Power Grid. Globally, there are very few foreign manufacturers, manufacturing PMUs at present. The PMU opportunity is also of global nature. Being an indigenous manufacturer, Valiant is apparently a beneficiary of all business opportunities that are notably arising in the Indian Public Sector out of the ‘Make in India.
✍️Valiant has successfully partnered in the Indian market with Tejas Networks Limited. Both the Companies are determined to replicate their business synergies at the global level also. In a recently concluded tender at Bhutan Power, Tejas (with Valiant’s partnership) has been declared lowest bidder (L1), for which the final PO is awaited. Valiant has also partnered with Tejas and another Tata’ flagship company, for power utility markets in Australasia for multi-years contracts. Given the global reach of the Tata Group, the management is optimistic about the outcome about such opportunities.
✍️Valiant and Tejas have now partnered for the forthcoming large-scale business opportunities for their products supplies at the State Electricity Boards (SEBs) of Kerela, Tamil Nadu, Telangana and Gujarat. These business opportunities are valued at over ` 100+ crores for Valiant
✍️The management expects to improve its operating profit margins in forthcoming quarters in the light of
: • Expected better product-mix;
• Earlier years supplies are entering in AMC phase now, resulting a top-up revenue for services;
• New cutting-edge technology driven products are being offered.
✍️Target IndustriesImage
Cyber Security business: The Company is expected to receive its maiden government contract in the current
quarter. Our Company has already successfully conducted a Proof of Concept (PoC) trials with India's premier Grid
Operator for a few of its Cyber Security products and these successful trials for early detection and warning systems
of cyber-attacks, ransomware attacks and network intrusion to safeguard their Gird communication systems, will
start to generate business revenue in the coming quarters. This opportunity is of very large scale, both domestically
and internationally, due to the unique cyber-security solutions that our Company offers.
The Government has a heightened focus on Cyber Security for all its departments and with a view of protecting
critical infrastructure and its data. This should translate into induction of our Cyber Security products in the
Government Sector under the ‘Make in India’ and the ‘Atmanirbhar Bharat’, path-breaking initiatives taken by the
Government of India.
Read 5 tweets
Jun 22, 2023
Synergy Green -Why i like this company ( No recommendation )
1- Policy change in wind energy sector. Read this

2- Bullish wind energy sector ,read this

3-capacity addition-
4-Clients.



Image
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5- Raw Material Prices are now stabilized , so i feel with increase in capacity and stable raw material price now margins should be better. Image
Read Investor PPT from Inox wind- Favorable macro environment for wind Sector. Image
Read 6 tweets
Jun 9, 2023
Ami Organics Concall ( Only imp points)
✍️ our business model is designed in such a way that the revival of the Chinese chemical industry has a minimum to no bearing on us.
✍️On the demand side, we were witnessing gradual upswing in the demand in H2 FY '23. And I believe the revival will continue in H1 FY '24
✍️Electrolyte additives- we have received approval from 6 customers worldwide. We have also received plant-scale trial commercial orders of few metric tons. And we are also expecting a bigger commercial order during the current quarter.
we have developed 2 more products in this segment. One of them is liquid electrolyte additive to increase electrocapacity of the Lithium-Ion batteries and one more additive for solid-state battery
✍️we have been able to expand the scope of our contract with Fermion, and we have added a couple of high value intermediates for the same. This means we will now be doing 3 advanced intermediates for them which increases the value of our contract manyfold.
✍️Fermion contract-( darolutamide, Nubeqa )that is a long-term contract, and it will start supplying from Q3 of FY '24. The full capacity supply will be starting FY '25. Because it is a pharma business, and it takes some time for registrations in 180 countries worldwide. So, in Q3 and Q4, it will be giving us a sizable revenue. But from FY '25, it will be giving us a full revenue, And in that contract only, we have 3 more products, and all 3 products are additional to the contract. So that will also help us to grow more in terms of numbers in the upcoming years.
✍️This product is growing unexpectedly to 200 or 300x a year. Whatever they expected in 2026, they already closed in 2023. So, it's going very fast. And the basic API manufacturing plant in Fermion is fully utilized and the intermediate which they are trying to source from us, they are currently making it in-house. They don't have any source other than us.
✍️ Baba Fine Chemicals acquisition - we are gaining entry into a very high entry barrier semiconductor industry and its products main application in photo resistance chemical in semiconductor industries and they are making very high purity chemicals, And going forward the market is more than $2 million in photo resistance chemicals,It will definitely grow more than 3x to 4x in a year,Baba Fine Chem is currently manufacturing and delivering, is exclusively for one customer. But there are more than 40 products, which are already developed and the samples of which can go to the world. Apart from U.S., other countries like Japan, Korea, etc, we have started promoting this product in those countries also.
✍️Export for the year was at 59%, whereas domestic business was at 41%.
✍️ balance sheet, we have a net debt-free balance sheet with cash and cash equivalent of around INR59 crores
✍️We are targeting this year, that the specialty chemicals segment will grow around 25% to 30% against our normal growth of 22% to 25% of our pharma segment, developed some molecule in sp chemicals with versatile applications, including electronic donor, polymer industry as well as some paint industry additive, UV Absorber, as well as some electronic industry. So, cumulatively once it is all in, it will bring a lot of large volume and large value.
✍️Capex INR200 crores plus next year.

✍️Anticoagulant Basket-Apixaban and rivaroxaban is a growth driver for us for the next 2 years because it's going to be launched. And our generic player worldwide more than 26 customers in apixaban. They are all ready to launch. And also, they won some litigation in U.K. against the originators, so that will help us to start moving very fast. In rivaroxaban, the originator has qualified us, and they started placing order in Q4 FY '23. So now we are supplying to originator as well the rivaroxaban. So, it's a very good growth driver for us in the anticoagulant segment.For Edoxaban three customers in Japan qualified Us.
✍️Ankleshwar facility is upcoming facility which will be ready by December '24 operationally. So that will come with a very huge volume, 4x volume than our unit 1 in Surat. So that will be definitely help us with our FY '24, FY '25 & FY '26 growth of pharma.( Asset turnover Normally 3 but we have high value products.)
✍️Currently, on an average basis, considering sales as a base, our working capital cycle is 108 days. And I try to bring this at 100 days. So, we are continuously working on it
✍️The advantage for Ami Organics or, say, for Indian manufacturer, is that the U.S. and other European countries have stopped buying any battery cells or anything which is generated from China. So that is an added advantage that any manufacturer based outside of China will need to have a raw material from outside China. So that is helping us to push ourselves in a faster mode of getting the orders and all.
✍️Normally, our product basket is well distributed and none of the basket is more than 15%
Ami organics
Ami organics - Image
Read 5 tweets
May 11, 2023
See my f2f with @vivbajaj at 71 min how i identified John cockrail one year back which is now near to all time high , there is now substitute for reading and hardwork .
twitter.com/i/web/status/1…
John Cockerill- Decarbonisation of steel Image
Decarbonising Steel Production pib.gov.in/PressReleasePa…
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Sealmatic india -
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Read 31 tweets

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