Rain Industries
1) Their vertical shaft plant should be online anytime which will make them lowest cost producer by a margin
2) Their chemical division is now working in full swing
3) With AL prices above $2100 US Smelters are now profitable and demand for CPC will be up #RKideas
4)They had a laggard in cement which too is now doing very well.
5) Their capex cycle is complete, now this company will become a cash producing machine with favourable tailwinds
6) See their operating cashflow numbers they are insane.
Stock is compressing with higher lows..close to a key resistance around 150 above which a new leg starts.
I will buy some next week heading into the result on 25th, post the concall if i like everything surely will double down. I believe this stock is a sleeping giant
The one concern is debt but you have to appreciate that the promoter is one who knows how to use debt coz they got the carbon business on 100% debt many years ago. Plus their borrowing rates r v low. I hope though they sell their cement business and reduce leverage now.
Also the second and more important risk for me is markets could be cooling off. I’m not that worried about the debt.
And the move in Rain bas started. 🤞🏼

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More from @rdkriplani

6 Nov 20
Guys technically Laurus looks weak...it’s also almost every Broker’s too recommended stock so don’t be surprised if it falls even further.

Like I had told you when it was 330, 280-250 was v possible and likely.
Looks like I stirred the hornets..so many DM's and so much panic. 😆 So im going to explain this and the thread might be long.
If you can take something away from it good luck, if you cant then also good luck.
Laurus Labs broke a short term support of 320/310 a couple days back..something we expected and i had tweeted about that the stock could give a buying opportunity around 250/280 levels. Now the story is the same. On the weekly charts its had 2 awful weeks so there is weakness.
Read 9 tweets
12 Jun 20
Force Motors

Market Cap: 1100cr
P/B 0.6

Market leader in the mini van segment with 68% market share. They also produce jeeps and LCV's.

Company is also a contract manufacturer for Mercedes and BMW. They supply engines and Axles. Almost 40% revenue comes from this segment.
They have formed a JV with Rolls Royce Global (51:49) to contract manufacture for them. Factory should start sometime in H2 2020. RR is shifting its entire manufacturing line from germany to India to supply particular engines globally from India
Approx cost 300cr.
Force has almost spent approx 1000cr on a new mobility platform for its minivans and recently launched the same.They plan to spend another 600cr towards the same. Also built a state of the art factory.The product is geared towards the international markets w diesel, cng & electic
Read 14 tweets

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