Thread 🧵 on #Gujalkali
Giant in Making ⚡️
CMP 799 💎
2018 highs around similar levels ⚡️ when the company was doing 2500 crs sales and had ~2000 crs FA
Note the 2018 numbers while you go through the transformation journey the company is into in last 2-3 yrs⚡️
#stockmarket
Giant in Making ⚡️
CMP 799 💎
2018 highs around similar levels ⚡️ when the company was doing 2500 crs sales and had ~2000 crs FA
Note the 2018 numbers while you go through the transformation journey the company is into in last 2-3 yrs⚡️
#stockmarket
#Productmix
Over the years, the product mix has changed from being heavy only on caustic soda to diversifying on caustic soda derivatives and other products like phosphoric acid, hydrogen hydrate, and many others
Over the years, the product mix has changed from being heavy only on caustic soda to diversifying on caustic soda derivatives and other products like phosphoric acid, hydrogen hydrate, and many others
#Productionmix
Against popular belief that company earns and is dependent mostly on caustic soda, its has diversified itself into derivatives and other product groups, a mix from FY21
Even the new capacities are taking care of the mix ⚡️
Against popular belief that company earns and is dependent mostly on caustic soda, its has diversified itself into derivatives and other product groups, a mix from FY21
Even the new capacities are taking care of the mix ⚡️
#Capex
JV with NALCO commissioned in May 2022⚡️
Other projects coming in Q2 and Q3
2022
So march 2022 end FA of 2700 Crs will increase to over 6500 Crs by March 23 along with the investment in JV ⚡️
Thats a massive 2.5x jump
JV with NALCO commissioned in May 2022⚡️
Other projects coming in Q2 and Q3
2022
So march 2022 end FA of 2700 Crs will increase to over 6500 Crs by March 23 along with the investment in JV ⚡️
Thats a massive 2.5x jump
Company’s market cap today ~5900 crs will be less than the FA+ Investment in JV at over 6500 Crs in a years time
Current Book value at 804 😅😇
Massive investment will lead to at-least 2x revenues, thus current mcap will be less than 1x sales ⚡️
Current Book value at 804 😅😇
Massive investment will lead to at-least 2x revenues, thus current mcap will be less than 1x sales ⚡️
Company’s dependency on caustic soda remains to be a risk
However, in the wrost case, increasing capacities will take care of absolute margins
Best part is even after all these investments, company has only ~600 crs debt
However, in the wrost case, increasing capacities will take care of absolute margins
Best part is even after all these investments, company has only ~600 crs debt
Debt will be repaid in next 2 quarters with the cash flows i.e debt free
⚡️ Future conservative numbers : Just to be on a safer side
FY 24 sales : Over 8000 Crs
Assets + Investment: Over 6500 Crs
5 yr avg margin of 25%
With this FY24 PBT at 1750 and PAT 1250 crs
⚡️ Future conservative numbers : Just to be on a safer side
FY 24 sales : Over 8000 Crs
Assets + Investment: Over 6500 Crs
5 yr avg margin of 25%
With this FY24 PBT at 1750 and PAT 1250 crs
Market Share Increase:⚡️
With the additions, MS to increase across the products
Caustic from 11 to 21%
Chloromethane from 12 to 23%
Phosphoric to 45%
Hydrogen Hydrate to 60% in the country and 9% global, monopoly in India
These are significant from price making prospective
With the additions, MS to increase across the products
Caustic from 11 to 21%
Chloromethane from 12 to 23%
Phosphoric to 45%
Hydrogen Hydrate to 60% in the country and 9% global, monopoly in India
These are significant from price making prospective
Do your own research on this and take a call accordingly 💡
Caustic soda demand has increased drastically in the recent times due to increased use of batteries and also in other applications
Never ever has the margin dipped to single digits in last 12 yrs, do your own cal ⚡️💎
Caustic soda demand has increased drastically in the recent times due to increased use of batteries and also in other applications
Never ever has the margin dipped to single digits in last 12 yrs, do your own cal ⚡️💎
At last Shareholding :
~80% is held by 12 entities ⚡️
So free float is just minimal of ~ 1200 crs
~80% is held by 12 entities ⚡️
So free float is just minimal of ~ 1200 crs
Recent tie up with #GAIL for bioethanol plant : 500 KLD is huge #ethanol
The one with #NALCO on caustic soda has already started production in May
So growing organically as well as through tie ups, Giant in Making (CMP 799) ⚡️
The one with #NALCO on caustic soda has already started production in May
So growing organically as well as through tie ups, Giant in Making (CMP 799) ⚡️
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