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Vishnu Agarwal

@vishnuagarwal64

Jul 8

From Gujarat, sharing my recent visit to Swastika Castal Limited, where I had a conversation with Varun Sharda Ji!

This company is soon launching an SME IPO.

We explored their business, the upcoming IPO, and how they navigate challenges like the tariff war effects and the "China Plus One" policy-shaping global supply chains. A Factory Visit THREAD!

#SwastikaCastal #SMEIPO #BSE

What does Swastika Castal do?

They're an aluminium foundry, making ready-to-use aluminium castings based on customer specifications.

Their process involves melting raw ingots (from NALCO & Hindalco) and other materials like silicon, magnesium, and copper.

They even make their own alloys in-house!

Their manufacturing is intricate: melting, pouring, cleaning, heat treatment, fettling, and precision CNC machining.

While their foundry has ample capacity (nine furnaces), they face bottlenecks in CNC machining and advanced testing (e.g., helium testing), which they currently outsource.

Read 9 tweets

Vishnu Agarwal

@vishnuagarwal64

Jun 25

In a recent conversation with Rajesh Mittal Ji, the Managing Director of Cedaar Textile Limited, shed light on the company's reducing its exposure to Bangladesh, manufacturing processes, and future vision as it prepares for an SME IPO.

The company aims to raise approximately ₹50-60 crore through this IPO.

A Thread 🧵👇

#CedaarTextile #SMEIPO #NSE #SME

2/8 Business Segments & Differentiators:

Cedaar Textile operates across four major segments:

Mélange and Fancy Yarn, Technical Textile (made from specialized fibers), Dyed Yarn, and an upcoming Fabric manufacturing division.

Currently, 70% of sales come from Mélange & Fancy Yarn, 20% from Dyed Yarn, and 10% from fabric job work.

A key differentiator is the significant margin difference: normal yarns yield 4-5% margins, while Dyed Yarn, Technical Textile, and Fabric show 15-20% margins.

3/8 Manufacturing Capabilities:

The company operates from a 48-acre land bank featuring 45,000 spindles for yarn manufacturing and 11 TFOs for yarn doubling.

It also has a 6-ton yarn dyeing capacity. Notably, Cedaar Textile has ventured into producing pellets from sustainable biomass material, serving as a substitute for coal.

The spinning mill can produce up to 700 metric tons of yarn per month, operating at 75% utilization, while the dyeing unit runs at 95% utilization of its 6 tons per day capacity.

Read 11 tweets

Vishnu Agarwal

@vishnuagarwal64

Jun 23

We had the opportunity to visit Safe Enterprises Retail Fixtures Ltd. and meet CA Mikdad Saleem Merchant Ji in Pune, Maharashtra.

We delved into their business, products, manufacturing process, and future vision in this miscellaneous industry.

A thread with a closer look at the company for investor clarity (1/17) 🧵

#SafeEnterprisesRetailFixturesLimitedIPO #SMEIPO #NSESME #RetailFixtures

2/17 What Does Safe Enterprises Do?

Safe Enterprises specializes in manufacturing retail fixtures, essentially the furniture that takes up 80% of a shop's visual space, used to display merchandise.

They provide end-to-end solutions, including design, manufacturing, supply, and installation of these shop fittings. They also offer technology-enabled solutions to transform shops into "smart shops".

3/17 Manufacturing & Experience Centers

The company operates three manufacturing units, one warehouse in New Bombay, and an additional manufacturing unit in Pune through a subsidiary. They also have owned experience centers in Kochi and at their Bombay factories, along with two franchisee centers in Navi Mumbai and Hyderabad.

Internationally, they have display centers via distributors in Kansas City, the USA, and the UAE.

Read 21 tweets

Vishnu Agarwal

@vishnuagarwal64

Jun 18

SME Company Spotlight: Shera Energy Limited in manufacturing non-ferrous metal products and their alloy products, and winding wires

A few months ago, we visited Shera Energy Limited, a major winding wire manufacturer in India!

Let's deep dive into this company! 🧵

#Shera #SheraEnergy #SME #FactoryVisit

INTRODUCTION

Shera Energy Limited, an Indian SME, operates in the vital sector of manufacturing non-ferrous metal products and winding wires. The company's core business involves the production of copper, aluminum, and brass-based items, which are critical components for industries such as transformers, motors, and electrical panels.

The investment appeal of Shera Energy is underpinned by its consistent financial growth, a strategic approach to vertical integration, and recent international market penetration, all designed to leverage the expanding infrastructure, renewable energy, and electric vehicle (EV) sectors within India and globally.

The company has demonstrated robust financial performance, achieving a consolidated total income of ₹1,279.05 crore, an EBITDA of ₹60.48 crore, and a net profit of ₹22.40 crore for the fiscal year ended March 31, 2025 (FY25).

Furthermore, Shera Energy reported a Return on Equity (ROE) of 14.76% and a Return on Capital Employed (ROCE) of 39.31% in FY25, indicating efficient utilization of shareholder funds and capital.

Strategically, the company has enhanced its operations through backward integration by investing in Rajputana Industries for recycling, forward integration with Shera Metal Private Limited to produce value-added products, and has expanded its geographical footprint into Central Africa with Shera Zambia Limited.

Significant opportunities for Shera Energy stem from the projected growth of the global winding wire market, which is anticipated to expand from USD 14.88 billion in 2024 to USD 23.02 billion by 2030. Similarly, India's non-ferrous metals market is forecasted to grow at a Compound Annual Growth Rate (CAGR) of 5.23% between 2025 and 2033.

This demand is primarily driven by the increasing adoption of EVs, the expansion of renewable energy projects, and ongoing infrastructure development. However, the company faces inherent risks, including the volatility of raw material prices, intense competition from both large organized and smaller unorganized players, evolving regulatory compliance requirements such as new Extended Producer Responsibility (EPR) norms for recycled content, and the inherent execution risks associated with its ambitious expansion projects.

Company Overview & Business Model

Product Portfolio and Volume Composition

Shera Energy offers a comprehensive and diversified product range. This portfolio includes paper-covered wires, enamel and fiber-covered wires, round wires, rectangular wires, bunched wires, tubes, rods, and strips.

The company's volume composition across its key product categories for the past three fiscal years illustrates its evolving market focus and growth areas.

The detailed volume composition data reveal a strategic evolution and strong market acceptance for Shera's aluminum and brass products. Aluminum product volumes nearly doubled from FY23 to FY25, and brass products also experienced substantial growth. This indicates that the company is not solely reliant on copper, a metal known for its price dynamics and market cycles.

The management's commentary highlights a rising demand from the automotive, industrial, electronics, and renewable energy sectors. Aluminum and brass are increasingly favored in these industries due to their specific properties, such as lightweighting in automotive applications and particular electrical or thermal conductivity requirements in electronics and industrial systems. This diversification of the product portfolio helps mitigate commodity-specific risk and allows the company to tap into broader market opportunities, enhancing its overall resilience.

Read 25 tweets

Vishnu Agarwal

@vishnuagarwal64

Jun 14

Patil Automation's SME IPO is buzzing!

But beyond the hype, what are the true risks?

We tasked our AI with a deep dive analysis, and the findings are in.

A full thread awaits… 🧵

#PatilAutomation #PatilAutomationLimitedIPO #SMEIPO #nseindia

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Read 11 tweets

Vishnu Agarwal

@vishnuagarwal64

Jun 13

Hello Friends!

I've had the insightful opportunity to visit Influx Healthtech Limited's factory in Palghar, Maharashtra, and engage in a conversation with their Managing Director, Mr. Munir Chandniwala.

The company is set to launch an SME IPO, and this visit provided a comprehensive overview of its operations and future plans.

A Factory Visit Thread 🧵👇

#InfluxHealthtech #InfluxHealthtechLimitedIPO #SMEIPO #NSESME #IPOAlert

1/ Influx Healthtech Limited is a contract manufacturing organization (CMO) operating in the allied pharmaceutical space. They specialize in providing end-to-end services for nutraceuticals, cosmetics, veterinary, home care, and ayurvedic products.

2/ Financially, Influx Healthtech is demonstrating strong growth. They reported a turnover of approximately ₹100 crore last financial year. For the current fiscal year, they expect to reach around ₹105 crore by March 2025, having already achieved ₹62 crore by September 2024.

Read 25 tweets

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