Thread by @viveksingh2010

My two new investment IDEAs
Disclosure: I am a human and humans do mistakes. One should study, build conviction and then invest.
1-#Ashapura Minechem: Category- High Risk
~The largest exporters of bentonite from India and 3rd largest in the world.

~ In addition to bentonite, company is in the production of many other minerals including sizable operations in Bauxite, Kaolin, limestones..etc.

~Its major product –Benonite- is widely used in metal casting, iron ore pelletizing, civil engineering, drilling, paper, detergents, cosmetics.etc. Bauxite is the basic ore for producing Aluminium.

~Also they are the 3rd largest Bleaching Clay producer in the world, India's largest producer of refectory material and India's largest producer of proppants.

~Last few years were bad for the company due to some major litigations with shippers and banks. Company has come out well and recently acquired license for operating 3 bauxites and 1 iron ore mine in Guinea (Largest Bauxite base).

~As per 39th AGM, 10% revenue growth, have done 1 MT of exports till now; will export 4 MT next year; approx. Contribution from the same expected from later half of this FY. This acquisition will add huge value to the company and growth in top line.

~Huge promotor buying seen in recent times. I expect that the company is on the verge of turnaround and it will soon achieve its lost glory if things go as per management plans

2-Lancer Container: Category- Moderate Risk
Lancer is a small NVOCC (non vessel operating common carrier) means they don’t own ships, but own / lease containers that go on the ship and optimise inventory on ships. So, NVOCCs aggregate demand from exporters and package it .

It is an asset light model.Provides logistic services including shipping, freight forwarding, provision of yards for storage of empty containers, inland transport services. The company owns containers and currently has deployed around 9696 containers.

~Growth in the business has been driven by increasing the number of containers. As per CEO they are targeting 25% CAGR.
FY 19-20 performance:
-Revenues at Rs.265.3 Crores, up 34% YoY
-Containers deployed as on year end at 9696, up 14% YoY
-EBIDTA margins at 8.41%,

Total Debt declining, healthy ROCE at 24%, ROE ~ 25%, RONW ~ 30%, PE ~ 11, solid promotor holding ~ 74%, almost negative working capital cycle, have international operations as well. Debt reduced significantly from D/E 1.28 a year ago to 0.87 in FY2020.

Expansion of Coastal, land port roads & Economic corridor under schemes like Sagarmala, Bharatmala and Udan will create a robust connectivity network. The Recent Budget 2020‐21 has allocation of Rs.100 lakh crore fund over 5 year period is a big positive for infra and logistics.

it is likely to benefit from the increase in freight & container rates.
Cons- Thin margin business to volume is major factor. OPM has been reducing for last 3 years.
Illiquid stock and not much info available in the public domain.

Not much info for above two stocks are available in public domain. One may study and take small position and can review further course of actions based on QoQ.