Thread by @drprashantmish6

Another Good company but nothing much data is available ( Warning –investing in this type of companies can be dangerous)
I am not mentioning the name at start otherwise people don’t read it properly ( i am mentioning name in between)and read it if you are a long term investor

Market Cap: 205 Cr.
• Current Price: 81
• 52 weeks High / Low 133.25 / 43.95
• Book Value: 75.09
• Stock P/E: 11.01
• Dividend Yield: 0.00 %
• ROCE: 13.05 %
• ROE: 10.05 %
• Sales Growth (3Yrs): 5.97 %

Listed only in NSE ( Listed 2yrs back in NSE emerge and recently shifted to NSE )
• SHP-Promotors 73.46 ( increasing)
Vantage equity fund 8.4%,MASSACHUSETTS institute of Technology 3.69%
• Debt 17 Cr

company is a global player in the field of Aluminium powders and Aluminium pastes and diversified in to Aluminium Conductors Division.
The Company is also engaged in trading and manufacturing of MnO and MnO2 Powder.( It’s Name is MMP industries)

Apart from domestic market, their products are exported across the globe to countries in Europe, Middle-East, Africa and the Asia Pacific.

Uses of its Products
Aluminium powders (pyro, flake and atomised) are used in many industrial sectors like construction (AAC Blocks) and mining (aluminised slurry explosives), agriculture (pesticides), defence (ammunition), fire crackers, railways (thermit portions)

aluminium pastes are used in automotive, decorative and industrial paints.

Aluminium Conductors are consumed by the power sector for laying of overhead transmission lines.
Some of its Clients-
AAC blocks- Siporex ,HIL,Ultratech
Aluminium Phosphides –UPL and Excel Industries

Explosives- Solar industries,Gulf oil,Coal india.
Upcoming Project-

ALUMINIUM FOILS
Company expects to begin production of both bare foil and converted foil during Q-4 FY 2020-21 or earlier. – Targeting Pharma industry and packaging (According to AR import is coming down )

ALUMINIUM CONDUCTORS
Aerial Bunched Cables (ABC) project is nearing completion. The Company expect a moderate continuing growth in the aluminium conductor and cable sector. Trial production is expected to commence during August-September 2020.

Joint Ventures-
STAR CIRCLIPS AND ENGINEERING LIMITED (‘Star Circlips’)
Star Circlips & Engineering Limited specializes in the manufacture of spring steel components for the automobile and industrial sectors.

. The Company continued to hold 26.06% shareholding in Star Circlips .( Profit 1.6 Cr in FY 20)and

manufactures over 800 products that is widely used in automotive industry. Customer list of Star includes Bajaj Auto, TVS Motors, Maruti, Hero Honda, Ford India, M&M

TOYAL MMP INDIA PRIVATE LIMITED (TMI) ( JV with Toyal Aluminium Japan )
. The Company continued to hold 26.00% shareholding in TMI during the FY 2019-20 and by virtue of shareholding( FY 20- 4.3 Cr Loss)

Revenue Mix-
Aluminium Powder and paste 81.75%
Aluminium Conductors- 18.25%
Risk in investment- not much data is available
Increase in raw material cost ( although they pass it to their customers)

Future Growth driver
1- Real estate activity if picks up then its uses in AAC blocks will be a growth driver ( AAC blocks are alternative to traditional bricks)
2- Aluminium conductor business may grow with governments electrification projects .

Aluminium conductor business they are new and competitors are well established, so execution is to be seen and with involvement in government projects cash flow has to be seen .

3-Aerial Bunched Cables (ABC) project
4- Aluminium foil- once project is complete then its uses in drug packaging and food packaging will drive the growth .

5- Its products are already used in explosive industry ( mining ) ammunitions and paint industry and i expect growth in this segment after covid

I would like to buy it between 60-70 but only for long term and will watch it’s performance closely and in case of any negative news I will exit from it immediately.

@threader_app compile