Presenting my study for educational purpose ๐Ÿ‘‡

@Atulsingh_asan - I know you have studied #Axtel in very detail your additional points/thought process/comments will be great addition to this effort !

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SSGR Analysis !

It gives +ive vibes for future growth. Further the Working Capital management & it's Free Cash Flow further strengthen the view.

SSGR (24%) > Current & Historical Sales Growth

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#AXTEL Retained Earnings vs Market Cap vs EPS Growth

In last 10 yrs ->

๐Ÿ“ŒFor every Rs 1 Retained by Axtel it has generated 17x of Market Cap (Big Boost for shareholders)๐Ÿ‘๐Ÿ‘Œ

๐Ÿ“ŒEPS Growth has been 7% higher than RE growth ๐Ÿ‘

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๐Ÿ“ŒLast 10yrs (incl TTM) in Nutshell (Screenshot) ->

Paying handsome dividend for last 3 yrs.

Remarkable improvement in Receivable Days & NPM.

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OPM has considerably improved 13% to 23%.๐Ÿ‘Œ

Last 5yr Sales Growth has picked up. Though as per management due to Lock down they couldn't ship orders in Mar 20 but still their Recent Sales growth is 23%.๐Ÿ‘Œ

Profit growth ๐Ÿ‘Œ

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Though #Axtel is in Machinery Manufacturing & supplying but doesn't seem much Capital Intensive.
Last 10yrs
Generated 66 Cr CFO
36 Cr Capex
13 Cr dividend Paid.
FCF of 30 Cr

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Overall Management Compensation seems higher than normally allowed. Future Profit incr with same pace might make them compliant in a yr or two.

Only related party transaction which I found little dicey was Rs 42 lakh Fees paid to a company belonging to Promoter's brother.

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๐Ÿ“ŒSome Figures which Impressed me
(Avg Last 5yrs)->

Cash Conv Cycle 77
Sales vs Receivables 29
ROCE 24%
ROE 19%
Small Other Income compared to PAT

Promoter Holding is 49.95%. Though it seems low but if you notice public shareholdings there are relatives of promoters (Babbars & Pathak) holding 16% share.

๐Ÿ“ŒSo there is very only 14% shares left as free float (which actually available for trading).

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Hold your thought from above๐Ÿ‘†
Check #Axtel Total no. of Equity shares = 1.2 Cr
Promoter holding 49.5%
Promoter relatives in Public 16%
Free Float -> 61 lakh

๐Ÿ“ŒHence only 61 lakh shares available for trading so small interest from few investors can move price crazily !

#Axtel has generated 30Cr of FCF in last 10yr on CFO of 66Cr.
FCF has been fluctuating (see red & green)
It has Cash of 6.5 Cr

Cash flow to Capex has been Impressive ๐Ÿ‘Œ

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If I summarize #Axtel Fundamentals in layman terminology ->

Profitability -> Excellent.

Efficiency, Solvency, Growth-> Good.

Quality is Ok.

Fin Trend is turning Very +ive.

#Axtel manufactures various Machineries & Equipments for the clients in Food Processing industry like

Continuous Fryers
Big Bag Filling Pasta Machines
Vacuum Gravity Separators
Universal Mills with Plate Beaters
Continuous Khoa Making Machines

Axtel has mainly 3 divisions -
Snacks, Spices, Confectionary. Apart from packaging it does everything.

Space is mostly dominated by European & American manufacturers like Buhler, Rockwell, SPX, Russell Finex etc

๐Ÿ“ŒAxtel has cost advantage against them.

Sales 81% in India, 19% Export.
Clients like
Nestle(India,Thailand,Bangladesh,Sri Lanka,Russia, Malaysia,Morocco,Vietnam,Phillipines)
Godrej Industries
GSK Cons Hlth
CCL Products
Mondelez(India, Singapore, Vietnam)

In Ist Tweet ๐Ÿ‘† above you will notice I have highlighted FY15 was disaster for #Axtel as a large order from a major client was cancelled.

Client Concentration is still little risk but after that setback they have been continuously diversifying in other FMCG.

No long term contract is another thing to watch out. For Example, Nestle contract is for 1 yr & gets renewed every year.

They don't have Intellectual Property rights on their design so need to continuous maintain their Quality standards to win more contracts.

I feel it has potential to grow as its clients in food processing industry doing Capex which results in orders for #Axtel. Good quality & low cost advantage helping it to gain reputed clients.
Financial Trend is coming on track. Corp Gov needs some improvement.

#Axtel features in my various #Screeners

See details in below tweets ๐Ÿ‘‡

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#Axtel in my Mid&TinyBambooUniverse #screener

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#Axtel in my LOW FREE FLOAT SalesProfitGrowthCashFlow&Safety #screener

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#Axtel in my ROCE Grtr WACC LowDebt HighFCF ROE SalesProfit OPM #screener

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#Axtel in my SIGN of Great & BEST Business #screener


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#Axtel in my InvestableSmallCapUniverse #screener


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Correction #Axtel Total no. of Equity shares = 1.62 Cr not 1.2 Cr. Rest is correct !
#Axtel Credit Rating(June 20)
LongTerm(12Cr)-CARE BBB; Stable/ CARE A3+
ShortTerm(8Cr)-CARE A3+

๐Ÿ“ŒKey Strength
Moderate scale Comfortable profit margins
Comfortable capital structure & debt coverage indicators
Experienced promoters operational track record reputed clientele

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๐Ÿ“ŒKey Weaknesses

No Price Contracts for Raw material supply

๐Ÿ“ŒCustomer Concentration-Top 5 customers contribute 52% in FY19 far better than 74% in FY18
(Diversification happening)

Adequate Liquidity
No major COVID impact. Receiving Regular Orders & Timely Payments

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#Axtel (dvanced Extrufoil Technology and Exports Ltd)
Kirit Kumar Pathak - holds 4.74% stake as a Public Shareholder.
He invested in Q4 2016 & didn't sell a single share yet.
Currently Non-Executive Director in Axtel & was Chairman from 01/2008โ€“04/2016.


Kirit Kumar Pathak is his brother-in-law of Mr Ajay Naishad Desai (Executive Director) Promoter and is reputed name in spices (Patak's) in UK.
He is also on board of Nilons pickles which is served in railway canteens.


Info Courtesy @jusdoitmt ๐Ÿ™

You can read more (Very inspiring story)->

Just a rough estimate of Expected Price for #Axtel based on Avg of EPS (last 3yrs) & Avg of EPS (last 3yrs+TTM) & Current PE (20.2), assuming it would be able to maintain the PE ->

Mar 23 Rs 476
Mar 25 Rs 897

Not a recommendation just an estimated calculation.


โ€ข โ€ข โ€ข

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More from @Coolfundoo

20 Aug
Q&A 157

Q-> How to filter stocks so that PE is below median line and EPS is going up as shown in graph ?

You can use this #thread of mine to learn how to use EPS formula quarterly YoY ->

For Historical EPS parameters like how we have for Profit Growth, I would request @screener_in team @ayushmitt @faltoo to consider adding it.

Possible workaround - Use Profit Growth instead of EPS.

For PE below 5yrs Median PE you can write following query at @screener_in ->

Price to Earning < Historical PE 5Years

Read 4 tweets
16 Jul
Q&A 148

๐Ÿ“ขStudy this short ๐Ÿงต

๐ŸŒŸIf you wish to know how to build your #thoughts in to a meaningful #screener Step-by-step โ‰๏ธ

๐ŸŒŸHow to deal with a tricky scenario in @screener_in โ‰๏ธ

#screener #transformation #tips #tricks #workaround

Retweet to help others !

Situation / Problem / Bottleneck !

Try to brain-storm yourself before you proceed to next steps in the ๐Ÿงต

2 Image
Step 1 - Identifying the problem correctly. Don't assume everything presented to you is correct.
Most people fail at this step. Sometimes there are data errors in examination paper as well. It's rare but it does happen !

3 Image
Read 8 tweets
5 Mar
My @screener_in Story !

This is coming straight from myโค๏ธ !

I have my regular job (8-9 hr just like most of us), need to take care of my India, US Equity & Crypto investments and above all need to spend some quality time with my family too.

@faltoo @ayushmitt

Finding right stocks which suits your profile isn't easy. Takes lot of time & info is scattered all over.
Compiling & making sense out of it is just cumbersome. Watching for alerts & news is another nuisance.
How to stay focused & not get diverted with new ideas every day ?

I faced all these CHALLENGES & I am sure most of us do. There is no one right solution. It's like trying to achieve salvation. No one path is right but Jumping paths will just leave you wandering.

I chose mine with @screener_in

Why โ‰๏ธ.. Read๐Ÿ‘‡

Read 11 tweets
23 Dec 20

#smallcap #stock

๐Ÿ“ŒPresenting my study for educational purpose ๐Ÿ‘‡

Will keep adding points to this #thread so you may bookmark & re-visit as you like !

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R Systems International incorporated in 1993 as a consulting firm in California, US.
Started its India operations in 1997 in Noida.

Per latest AR Dec19
Currently provide services in 40+ Countries for 200+ Active Clients.
7 - $3 Million Clients
26 - $1 Million Clients

๐Ÿ“ŒService & Solutions Offerings

3 ImageImage
Read 47 tweets
6 Nov 20
Q&A 63 #Thread

Chemicals , Manufacturing, Niche Technology & Overall Discussion on Quality Long term Businesses !


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Me-> Chemical Businesses !

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Honeywell, GMM, Havells !

Me->Honeywell you will find in my most screeners, Portfolio, low float screener... lot of places..

3 ImageImage
Read 11 tweets
26 Sep 20
LOW FREE FLOAT SalesProfitGrowthCashFlow&Safety
2nd Up - 25Sep2020

๐Ÿ“Œ#LowFreeFloat is Now a days #Moat for some good Quality Companies. Here is #stocks to chose from !


Read Criteria & Details in below #THREAD๐Ÿ‘‡


1/8 ImageImage
๐Ÿ“ŒFree Float = Public Float(DII+FII+ MF+ Corporate+HNI+Retail)

No. of Shares publicly traded which we buy/sell from exchange in everyday life.

๐Ÿ“ŒFor simplicity I assumed non-promoters shares though custodians & locked in shares should also be excluded.

๐Ÿ“ŒHigh Free-Float = Good Governance(In general). Promoters less influence & other shareholders can exercise their rights.

๐Ÿ“ŒLow Free-Float = More Promoter influence can easily manipulate stock price for their gain.

Read 8 tweets

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