👉If u search for mixer grinder than on the very 1st glimpse you will notice 'BESTSELLER' bagde on Butterfly Rapid Mixer grinder
👉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
👉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.
👉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.
NOT A RECO.
After Dolly Khanna , another renowned investor
MUKUL AGARWAL has been silently acquiring Butterfly Gandhimati ltd.
How Ethanol Policy changed the fortunes of GLOBUS SPIRITS❓
👉So, Globus spirits is one of the largest grain based distillers in India.
👉They sell country liquor in the markets of Rajasthan ,Haryana,West Bengal and Delhi.
Have 30% mkt share in Rajasthan in IMIL segment.
👉They enjoy around 30%+ Ebitda margins in IMIL segment (earlier they were 20%+)
👉So, the co. decided to enter Bihar market and set up a distillery there.
👉And when all the capex was completed,they faced a huge setback from the state govt.
👉After Nitish Kumar was sworn in as C.M., he declared Bihar a Dry state,as a result of which their plant was shut down.
👉After all the legal struggles and battle they received an order from High Court in oct 2019 whch allowed them to operate d plant in order to produce ENA.
Just a brief thread on what Route Mobile does & what the future holds for it?
Scroll down👇
📲Route Mobile Ltd (RM) provides cloud-communication platform as a service (CPaaS) to enterprises, over-the-top (OTT) players & mobile network operators (MNOs).
Confused❓
👉So what they basically do is that they act as an intermediary between enterprise & their customers.
Further Simplifying it ➡️ The msgs which u receive on ur phone for banks transactions,OTP,Order confirmation from e-comm etc. are all routed through CPaaS Software known as API’s.
➡️Their Api’s are integrated with the enterprises whch they serve and they get revenue per sms sent
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.
-Amng top 6 global players in the specialty food emulsifiers
-1 of d 5 global players in d polymer additives industry
-dey also claim to develop proprietary tech. to mfg green additives.
-Adi Finechem Ltd. Founded in 1985 by Shri R.Harivallabhdas and Shri Nahoosh J Jariwala.
-It is engaged in mfg of Oleochemicals & Neutraceuticals.
-They operate through only one plant in SANAND,AHMEDAAHMEDABAD,GUJARAT.
- With the capacity of 72K MT inc. from 45K MT up 60% from 2016.
-The plant has one of the largest processing capacities for natural soft oil-based fatty acids in India.
-Their main products are
i) OLEOCHEMS-dimer, monomer, linoleic acid etc.
ii)Neutraceuticals - (Natural) Mixed Tocopherol and Sterol Concentrate
They r further undergoing expansion:
-Neutraceuticals - to manufacture sterols and higher concentration tocopherols.
-to manufacture bio-diesel using three by-products of its manufacturing process:
LAURAS LABS Q1FY21: Marvellous no's
-Operating Leverage comes into play
-Margins aided by Backward Integration👍
-Finance cost ⬇️
-PAT 11x🚀
-Rev. +77%
- Ebitda Marg.- 29.29% vs 15%
-Pat Marg. 17.63% vs 2.74%
ROCE-32.3% ROE-37% (ANNUALIZED)
Co. has successfully derisked its business from mainly an ARV API co. to diff segments.
FDF
-Has been star performer. Reaping rewards of past inv.
-Good predictability of buss. bcoz healthy order book in both Tender & non-tender seg.
-As per mgt they r at full capacity utilization lets see how much more incremental sales it can generate in FDF.
#LAURUS LABS
-A HYDERABAD based pharma co. having presence in 4 VERTICALS - API’S, GENERIC–FDF(fixed dosage formulations), Synthesis and Ingredients.
- founded by Dr. Satyanarayana Chava (CEO) around 2007
- R&D spend 5.7% of Rev.
-750+ scientists and 50+ PHDs
-Carries out its operations through 6 plants – all USFDA approved except UNIT-5 (CDMO) which is a dedicated Hormone and Steroid facility for ASPEN PHARMA.
- Total capacity 3615 KL, 751 reactors and 5 billion tablet capacity
-65% is export revenue and 35% is domestic revenue
- UNIT1 & 3 contibutes 80% of topline.
- Unit-2 is sole US formulations facility wid capacity of 5 bn tabs/capsules per yr also undergoing expansion which will be operational by Sept’20.
-Unit-6 is for captive API consumption