LNPR Capital® Profile picture
Oct 9 19 tweets 6 min read
Rolex Rings Ltd Analysis!!
#ROLEXRINGS

A detailed thread 🪡🧵
#StockMarket #Investing
About -

Rolex Rings Ltd is one of the top 5 forging cos in India in terms of installed capacity & a manufacturer & global supplier of hot rolled forged & machined bearing rings & automotive components for segments of vehicles including two-wheelers, passenger vehicles,
commercial vehicles, off-highway vehicles, electric vehicles), industrial machinery, wind turbines & railways, amongst other segments. It supply domestically & internationally to large marquee customers including some of the leading bearing mfg cos, tier-I suppliers to global
auto cos & some auto OEMs. It is one of the key manufacturers of bearing rings in India & caters to most of the leading bearing cos in India.
Diverse Product Portfolio -

Co offers a diverse range of hot forged & machined alloy steel bearing rings weighing from 0.01 kg to over 163 kg, with inner diameter of 25 millimeters to outer diameter of 900 millimeters. This makes its products suitable for a wide range of
end-user industries such as automotive, railways, industrial infrastructure, renewable energy, among others. It also offers auto components such as wheel hubs, shafts and spindles, gears, etc.

Bearing Rings :
Automotive Components :
Bearings industry -

Indian bearings industry is expected to show healthy growth going forward.

• Increasing localization in Indian bearings industry (currently 40% imports), will help domestic suppliers of components for bearings.
• Demand for domestic bearing components (rollers, rings) is expected to grow at a faster rate (~CAGR of 10-12%) than the underlying bearings industry.
Well Diversified in terms of Product offering & Geographic Presence -

• The co has a product portfolio comprising of forged bearing rings, weighing from 0.01 kg to over 163 kg & diameter of 25mm to 900mm along with auto components like wheel hubs, shafts & spindles.
• Automotive components contribute 42% while rings constitute 58% of the revenue.

• Diversified product offerings helps the company cater to wide range of enduser industries such as auto, railways, industrial infra, renewable energy, etc.
Long Standing relationship with clients provides business stability -

• Co has been supplying 70% of top 10 clients for more than a decade. This testifies the customer stickiness.

• Major customers of co involve leading bearing manufacturers & auto players & domestic OEMs.
• Since components supplied are critical in nature and constitute a large part of RM cost, entry barriers are high & companies usually sign long term supply contracts.

• Long standing relationship with the customers helps co in expanding its customer & geographic footprint.
• Co is also able to leverage this relationship &increase its share of business amongst existing customers by widening the product offerings.

• Good customer relationships provides business stability.
Financial Summary -

Co reported rev of ₹ 294 cr during the period ended June 30, 22 as compared to ₹ 231 cr during the period ended June 30, 21.

Co posted net profit of ₹ 50 cr for the period ended June 30, 22 as against net profit ₹ 30 cr for the period ended June 30, 21.
Key Risk -

• Heavy dependence on auto sector.

• Exchange rate fluctuations.

• Co has defaulted in the past for loan payment.

• The delay repayment to financial institutions & banks for borrowings of w.r.t loan certain periods up to FY19.
A s a consequence of the same , the co may be restric taking some actions including buyback of securities.

Conclusion -

Rolex Rings is in the business of bearing manufacturing for auto cos & among the tier-1 supplier of major auto cos.
The future growth prospects are looking good with growing demand for autos in the future. Co aims to continue to improve profitability by cost optimization ,improving product mix by enhancing contribution of higher value added machined products & increasing capacity utilization.
Please 🙏 like 👍, comment & retweet ♻️ if you find this useful.
@nid_rockz @varinder_bansal @suru27 @sahil_vi

• • •

Missing some Tweet in this thread? You can try to force a refresh
 

Keep Current with LNPR Capital®

LNPR Capital® Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @LnprCapital

Sep 30
Craftsman Automation Analysis!!
#CraftsmanAutomation

A detailed thread 🪡🧵
#StockMarket #Investing Image
About -

Craftsman Automation Ltd, established in 1986, is a diversified engineering co with vertically integrated manufacturing capabilities. Co has 12
strategically located manufacturing facilities across 7 cities in India (Coimbatore, Pune, Faridabad, Bangalore, Jamshedpur, Image
Sriperumbuthur & Pithampur) with a total built-up area of over 1.5 million sq. ft. Co has recently commissioned a new unit in Pune with high end fully automated Italian and Swiss equipment.
Company has three subsidiaries, one in Netherlands (Craftsman Europe B.V) & two
in India.
Read 23 tweets
Sep 11
Sapphire Foods Analysis!!
#SapphireFoods

A detailed thread 🪡🧵
#StockMarket #Investing
About -

Sapphire Foods is one of Yum’s franchisee operators in the Indian subcontinent. Sapphire’s franchisee arrangement with Yum allows it to operate, on a non-exclusive basis, under the KFC brand in several states in India & across the Maldives, the Pizza Hut brand in several
states in India and across Sri Lanka & the Maldives & the Taco Bell brand across Sri Lanka, while leveraging Yum’s system and system property.
Read 20 tweets
Aug 23
Affle India Analysis!!
#AffleIndia

A detailed thread 🪡🧵
#StockMarket #Investing
About -

Affle (India) Limited is an India-based global technology company, which offers consumer intelligence platform that delivers consumer recommendations & conversions through relevant mobile advertising for brands & business-to-consumer companies globally.
Revenue breakup -

Coustomer platform - 98.3%
Enterprise Platform - 1.8%
Read 26 tweets
Aug 21
The Ethanol Policy is flawed !!

The bad economics of ethanol are clear, and the bad environmental science behind its usage is even more evident. Brazil has a large sugar and corn market, so they have long used ethanol.

@LuckyInvest_AK
They also provided a test case for what happened when it got too expensive in the early part of this decade - planting corn for food was overtaken by corn for ethanol in the U.S. and that gave Brazil a better export than domestic market for all their ethanol & costs rose sharply
so one million flexible-fuel vehicles in São Paulo switched back to gasoline. As a result of going back to gasoline, ozone levels dropped by 20 percent.Environmentalists who once demanded ethanol are now opposed to it. Farmers looking at the prospect of selling 2 billion more
Read 5 tweets
Aug 13
Sandhar Technologies

Few takeaways from Q1 concall

📢 RM cost impacted margins by 3.8% on standalone basis & 6.8% on consolidated basis. It has started stabilizing.

📢 Out of ₹ 549 Cr capex on 8 new projects ₹ 250 Cr already spent. ₹ 300 Cr will be spent in this financial
📢 Rev of ₹ 2000 Cr expected from planned capex. Asset turnover of 4X expected.

📢 JV loss at ₹ 2-2.5 Cr this Quarter. 60% of JV already turned around.

📢 Spain subsidiary showed muted performance as Gas prices have gone up 8X & Energy prices up by 4-6X.
📢 Existing Capacity can generate rev of around ₹ 4000 Cr. Capacity utilisation at current level around 60%

📢 Management expecting double digit margins as commodity prices starting to cool off.
Read 4 tweets
Jul 24
HINDWARE HOME Analysis!!
#HINDWAREAP

A detailed thread 🪡🧵
#StockMarket #Investing
About -

Hindware Home Innovation Limited is a leader in Building Products & one of the fastest growing players in the Indian Consumer Appliances segment. The co is involved in manufacturing, branding, marketing, sales & distribution service of various product categories.
The Consumer Appliances business consists of household appliances such as kitchen appliances: chimneys, built-in hobs, dishwashers, cooktops, built-in ovens, cooking range, water purifiers & sinks. The co also houses air coolers & ceiling fans. Hindware also has a
Read 21 tweets

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Don't want to be a Premium member but still want to support us?

Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal

Or Donate anonymously using crypto!

Ethereum

0xfe58350B80634f60Fa6Dc149a72b4DFbc17D341E copy

Bitcoin

3ATGMxNzCUFzxpMCHL5sWSt4DVtS8UqXpi copy

Thank you for your support!

Follow Us on Twitter!

:(