A small thread on how Co. hv changed over last few years🧵

👉With new & young mgt. they r aggressive in capturing market share


results r already visible.

@pd_log @mmvRavindra @SwarnashishC @AnishA_Moonka

👉Online sales contribute 20%+ of total Rev.

👉Co's products r bestsellers on FLIPKART

👉If u search for mixer grinder than on the very 1st glimpse you will notice 'BESTSELLER' bagde on Butterfly Rapid Mixer grinder Image
👉Same is the result with many other products like GAS STOVES & ELECTRIC KETTLES ETC.

👉Their Rapid Mixer grinder is among the lowest priced but Good quality products.

👉Their direct competitor PRITHI costs double than that of BUTTERFLY'S PRODUCTS ImageImage
👉Daily there are an average 400-600 new ratings on RAPID MIXER GRINDER

👉Despite being a new entrant on E-COMM co has been successful in gaining market share & earn BESTSELLER badge.

Covid too has helped them as most of buyer hav started looking towards online retail.
👉Though co. doesn't share online contribution but last they mentioned around 20%.

🥘It has also launched many new products & r currently focusing on launching Premium products.

👉with the help of E-com they hv been able to spread their brand coverage to NON-SOUTH markets too.
👉They hv also inc their serviced network in Non-South markets.

👉With young mgt in control they have an aggressive target of reaching 1000crs of turnover by FY23 but internally they r sure to achieve this target quite early.
👉Despite increase in raw material prices they have successfully passed on price inc. & do not see major issue going forw.

👉Coming to Cash flow from operations:
They hv implemented a software across all its dealer network to track their inventory level at daily basis.
& In case inventory is struck with one dealer they channelize it to others

👉So that inventory doesn't get blocked

👉As a result they r able to inc ROI for their dealers which ultimately inc collection efficiency.
👉With inc. cash flows co. immediately reduced its debt & is now almost a debt free co.

👉With inc debt 16crs of benefit will directly flow towards the bottomline

Their Debtor days now stand at around 35 days & mgt is confident to sustain it. Image
👉They r so confident that they r even planning to inc capacity by investing 15-20crs

they already hv land in place & only need to Invest in Machinery.
which will give them additional topline of 130-150crs

& fr longer term (3-5yrs) they plan to acheive 1300-1400crs of TOPLINe
👉Now with inc. brand visibility Both through Online & offline channels they should be able to achieve the scale which they enjoyed in the past.

👉Despite Pandemic Co. has targeted to grow by 10% this year & it would with around 750crs of TOPLINE.
👍with Mcap of around 930crs its one of the cheapest among its peers which trades more than 2 times sales.

Although on P.E basis it looks quite expenses.

but with 1000crs of turnover co. is targeting to do +10% EBITDA LEVELS which r quite healthy.
👍& with the benefit of operating leverage if the co. maintains the current debt levels.

👍they can easily get 6-8% of PAT margins resulting in 60-80crs of Bottomline.
👉Roce - if they are able to achieve scale of 1000crs (which they will) then ROCE can spike easily to +20%.

👍Even a 2x M.cap to sales will give inc m.cap to Rs.2000crs

🚀Peers do trade at a lot higher premium
💸All this will result in great FCF generation since the do not need any large capex to grow

💥Their asset turn r as high as 6-7X

💵The co. has also dividend after a gap of 4years
which shows their intentions with minority shareholders
🍰Dolly Khana's Re-Entry is really an icing on the cake.

👌He is among the best to play momentum in earnings as well as in stock prices.

🔥with only 40 lacs shares available for Individual shareholders its gonna catch alot of scarcity premium when it becomes fancy.
🔥Stock is already 5X from the lows but it still hv a long way to go if management is able to execute as per plans.

at the end i would say that

Butterfly is quite good though not so sure for lifetime but definitely for sometime.

After Dolly Khanna , another renowned investor

MUKUL AGARWAL has been silently acquiring Butterfly Gandhimati ltd.

Stake as on 31st March 2021 stands at 0.48%

With avg buying price Rs.430/share

Investment Value - 3.7crs

Source: Annual Report

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More from @aditya942000

26 Jun
How Ethanol Policy changed the fortunes of GLOBUS SPIRITS❓

👉So, Globus spirits is one of the largest grain based distillers in India.
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Have 30% mkt share in Rajasthan in IMIL segment.
👉They enjoy around 30%+ Ebitda margins in IMIL segment (earlier they were 20%+)
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Just a brief thread on what Route Mobile does & what the future holds for it?

Scroll down👇 Image
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FOIL is in d oleo chem based additives buss with majority of additives sales coming from food (30%) & plastic(40%) segm. together contributing 70% to d overall revenues & rest being contri. by additives like paints, rubber, cosmetics etc.
Founded in 1970, by Mr. Ramesh Shah, a Mumbai-based businessman wid experience in chem. trading and Mr. Prakash Kamat, a skilled technocrat from Institution of Chemical Technology.

Promoter hold 75% stake & only 3.48% (10.65 lacs shares) r available for Retail shareholders.
Co. claims to be d largest organised player of Oleo-chem based green additives in India.
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Adi-Finechem #FAIRCHEM

-Adi Finechem Ltd. Founded in 1985 by Shri R.Harivallabhdas and Shri Nahoosh J Jariwala.

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Co. has successfully derisked its business from mainly an ARV API co. to diff segments.
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