Recently bought #GlobusSpirits. I see good value in this counter, can give multifold returns in 2-3 yrs.
Broad summary:
1. The company has paid off 110 Cr debt in 4 years
2. Debt reduced from 252 Cr to 142 Cr
3. Doubling the capacity from 140 to 280 KLPD in WB
Broad summary:
1. The company has paid off 110 Cr debt in 4 years
2. Debt reduced from 252 Cr to 142 Cr
3. Doubling the capacity from 140 to 280 KLPD in WB
4. Paying debt & increasing capacity- very good sign
5. Currently running at 100% Capacity
6. Margins have improved in last 4 yrs (8% to 20%)
7. Cash has gone up to 58 Cr
8. Present across the value chain
9. Supplier of hand spirit to FMCG player
5. Currently running at 100% Capacity
6. Margins have improved in last 4 yrs (8% to 20%)
7. Cash has gone up to 58 Cr
8. Present across the value chain
9. Supplier of hand spirit to FMCG player
10. Got pan India access due to merger with Unibev
11. Huge scope to grow in franchise bottling
12. Globus today stands where #RadicoKhaitan was 4 years back (7x rise in market cap).
11. Huge scope to grow in franchise bottling
12. Globus today stands where #RadicoKhaitan was 4 years back (7x rise in market cap).
13. Most interesting fact: Globus is the largest broken rice grain-based fermenter in India. They get similar benefits like the sugar industry on ethanol blending in petrol. This story seems completely unnoticed, farmers will get benefited & company need not pay heavy excise duty
#DhampurSugar has a current ethanol capacity of 300 KLPD. Globus is doubling the capacity from 140 KLPD to 280 KLPD in West Bengal. Dhampur has earned 200 Cr PBT in this capacity in FY21. I think Globus will earn substantially on this front.
100 Kg Sugar yields 45 Liters of ethanol while 100 Kg rice yields 30 Liters of ethanol. Though the ethanol yield from rice is low, this gives extra income to farmers from waste broken rice, hence looks accretive. The company will enjoy sustainable income in this segment.
Latest concall
As per this latest concall update, the Current total ethanol capacity is 500 KLPD. They are adding 420 KLPD.
So out of total 920 KLPD, 25% goes to ENA (liquor) rest 75% will go ethanol for petrol blending & sanitiser
So out of total 920 KLPD, 25% goes to ENA (liquor) rest 75% will go ethanol for petrol blending & sanitiser
#ShreeRenuka Sugar has an existing capacity of 720 KLPD. Stock is in continuous UCs.
Here #GlobusSpirits is emerging as the largest ethanol producer of the country with 920 KLPD capacity
Renuka Mcap 5600 Cr Debt 2900 Cr
Globus Mcap 1300 Cr Debt 140 Cr
Here #GlobusSpirits is emerging as the largest ethanol producer of the country with 920 KLPD capacity
Renuka Mcap 5600 Cr Debt 2900 Cr
Globus Mcap 1300 Cr Debt 140 Cr
Regarding the stock selling by a private fund, mgmt has clarified that they are invested for the past 8 years and it's normal selling.
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