tag:blogger.com,1999:blog-45082270713487142742024-03-16T06:40:36.330+05:30VALUE PICK FROM INDIAN STOCK MARKETSDisclaimer:
This Blog,its owner,creator & contributor is neither a Research Analyst nor an Investment Advisor and expressing opinion only as an Investor in Indian equities. He/She is not responsible for any loss arising out of any information, post or opinion appearing on this blog.Investors are advised to do own due diligence and/or consult financial consultant before acting on any such information. Author of this blog not providing any paid service and not sending bulk mails/SMS to anyone.VALUEPICKhttp://www.blogger.com/profile/11796623051493581545noreply@blogger.comBlogger86113tag:blogger.com,1999:blog-4508227071348714274.post-48027206155129765312022-10-23T10:06:00.007+05:302023-01-28T10:29:12.455+05:30MAX INDIA - IN THE FOREFRONT OF AN UPCOMING MEGA TREND.<p> </p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjLsdVPOGnT-OPoGe_oI_NK7vrfu_NqrTUSqVQMw6l4l0AXi49ci7PB0AjkdH4pkRQD8hzszhylQz-9ZLqmA1GDvWWt-3ivb1VwdCJLg_yC3pgoXdZnn7e8VJLSAM3rBTn-Clm8D8Dp8ld3N1ERB9_QbvBjATBbH_czcM12ZguL5VIA6wuBD-kkVZnE/s1080/ANT.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="973" data-original-width="1080" height="288" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjLsdVPOGnT-OPoGe_oI_NK7vrfu_NqrTUSqVQMw6l4l0AXi49ci7PB0AjkdH4pkRQD8hzszhylQz-9ZLqmA1GDvWWt-3ivb1VwdCJLg_yC3pgoXdZnn7e8VJLSAM3rBTn-Clm8D8Dp8ld3N1ERB9_QbvBjATBbH_czcM12ZguL5VIA6wuBD-kkVZnE/s320/ANT.jpg" width="320" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><br /></div><p><span style="font-size: 12pt;">During last two Diwalis we have discussed two stocks
that supports two different mega trends. This year also let us discuss one such stock , that I believe will lead in
the forefront of an emerging mega trend</span><span style="font-size: 12pt; mso-spacerun: yes;">
</span><span style="font-size: 12pt;">.</span></p>
<p class="MsoNormal"><span face=""Arial",sans-serif" style="font-size: 12pt; line-height: 107%;"><o:p> </o:p></span></p>
<p class="MsoNormal"><span face=""Arial",sans-serif" style="font-size: 12pt; line-height: 107%;">Ageing is a reality and nobody can escape from this . Nowadays
rhythm of life changed a lot and everyone is running behind something that we
can’t even define. In our society, even if people making more than enough money, lot of people facing the issue of finding enough time to care their parents.
This is where the potential of Senior Care business lies. The senior care
market is still at a nascent stage India. As per a 2019 report by consultancy
firm McKinsey ,17% of the seniors in India are living alone and I believe this
number will increase drastically going forward considering the changing socio-economic
situation, increase in the number of <span style="mso-spacerun: yes;"> </span>nuclear families , improving<span style="mso-spacerun: yes;">
</span>life expectancy that results in increasing senior population in the
country etc. Migration of younger generation to foreign countries and unwillingness of their parents to follow the same adding fuel to the loneliness of elders in these days. All these are increasing the business potential of senior care business here . As per Industry analysis, “out of<span style="mso-spacerun: yes;">
</span>the 20,000 senior living units in India, about 55% are operational,
while the rest are at various stages of construction. The demand – pegged at
about 240,000 units – is almost 12 times the available capacity” . On the basis
of this background let us look into the only listed company operating in this
sector – <span style="color: red;">MAX INDIA</span> – through its subsidiary <span style="color: #800180;">ANTARA</span> .<o:p></o:p></span></p>
<p class="MsoNormal"><span face=""Arial",sans-serif" style="font-size: 12pt; line-height: 107%;"><o:p> </o:p></span></p>
<p class="MsoNormal"><span face=""Arial",sans-serif" style="font-size: 12pt; line-height: 107%;"><b><u>ABOUT THE COMPANY</u></b><o:p></o:p></span></p>
<p class="MsoNormal"><span face=""Arial",sans-serif" style="font-size: 12pt; line-height: 107%;"><o:p><b><span style="color: #2b00fe;"> </span></b></o:p></span><span face="Arial, sans-serif" style="font-size: 12pt;"><b><span style="color: #2b00fe;">MAX INDIA</span></b> evolved through an organizational restructuring
in Max group during 2020. It is</span><span face="Arial, sans-serif" style="font-size: 12pt;"> </span><span face="Arial, sans-serif" style="font-size: 12pt;">now the holding
company of Max Group’s Senior Care business Antara. Antara operating in two
verticals - </span><span face="Arial, sans-serif" style="font-size: 12pt;">Antara Senior living and
Antara assisted Care .</span></p>
<p class="MsoNormal"><span face=""Arial",sans-serif" style="font-size: 12pt; line-height: 107%;"><o:p> </o:p></span></p><p class="MsoNormal"><span face=""Arial",sans-serif" style="font-size: 12pt; line-height: 107%;"></span></p><div class="separator" style="clear: both; text-align: center;"><span face=""Arial",sans-serif" style="font-size: 12pt; line-height: 107%;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjHgk7b8JGbhezwlGww5Uae15LzdBBKGvf3iCuLQKc6EqWp_5L8N6PbnHnuR719Jk003DJ_DreP0LaeNhBApmUTOHjSysuFZJXykOhEGBZcyTgGagfti3qHLcUYgJ79oeWXnPLhUYr4to_2EMti8VD6wRZyuNN66o7YjQCYwTafM8AjmzLzwy4Qn_97/s1080/antara1.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="813" data-original-width="1080" height="241" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjHgk7b8JGbhezwlGww5Uae15LzdBBKGvf3iCuLQKc6EqWp_5L8N6PbnHnuR719Jk003DJ_DreP0LaeNhBApmUTOHjSysuFZJXykOhEGBZcyTgGagfti3qHLcUYgJ79oeWXnPLhUYr4to_2EMti8VD6wRZyuNN66o7YjQCYwTafM8AjmzLzwy4Qn_97/s320/antara1.jpg" width="320" /></a></span></div><span face=""Arial",sans-serif" style="font-size: 12pt; line-height: 107%;"><o:p><br /></o:p></span><p></p><p class="MsoNormal"><span face=""Arial",sans-serif" style="color: red; font-size: 12pt; line-height: 107%;"><u>Antara Senior living</u> </span><span face=""Arial",sans-serif" style="font-size: 12pt; line-height: 107%;">is offering
independent Residences for seniors. <span style="mso-spacerun: yes;"> </span>First
Senior residential community of this division started functioning in a 14 Acre
facility at Dehradun with 180 apartments in 2020. Its second facility is under
construction at Noida with 340 apartments that is expected to ready for
possession by 2025.As per latest update ,Company already sold out 300 units out
of 340.</span></p>
<p class="MsoNormal" style="background: white; line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span face=""Arial",sans-serif" style="color: black; font-size: 12pt; mso-color-alt: windowtext;"><span style="mso-spacerun: yes;"> </span></span><span face=""Arial",sans-serif" style="color: red; font-size: 12pt;"><u>Under the Assisted care division</u> </span><span face=""Arial",sans-serif" style="color: black; font-size: 12pt; mso-color-alt: windowtext;">,it operates<span style="mso-spacerun: yes;"> </span>Care Homes,
Care at Home, MedCare and <span style="mso-spacerun: yes;"> </span>Memory care
homes .This division cater to seniors over the age of 55, who need more
frequent<span style="mso-spacerun: yes;"> </span>interventions in their daily
lives due to medical or age-related issues. I strongly believe there is immense
scope for these verticals due to more than one reasons like<span style="mso-spacerun: yes;"> </span>the increase in seniors </span><span face=""Arial",sans-serif" style="color: black; font-size: 12pt; letter-spacing: 0.15pt; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>who are attaining an age where they are in
dire need of any type of home care due to increasing life expectancy</span><span face=""Arial",sans-serif" style="color: black; font-size: 12pt; mso-color-alt: windowtext;"> .</span><span face=""Arial",sans-serif" style="font-size: 12pt;"><o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span face="Arial, sans-serif" style="font-size: 12pt;"><span style="color: #38761d;"><b>Care homes</b></span></span><span face=""Arial",sans-serif" style="color: black; font-size: 12pt; mso-color-alt: windowtext;"> are s<span style="background: white;">pecialized residential facilities meant for short- and
long-term care, pre & post-operative care and memory care for seniors.
These assisted living facilities provide primary health care and emergency
response services. <o:p></o:p></span></span></p>
<p class="MsoNormal" style="background: white; line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span face="Arial, sans-serif" style="background: white; font-size: 12pt;"><b><span style="color: #38761d;">Care at home</span></b> providing<span style="color: black;"> </span>personalised care and attention under the
guidance and supervision of reputed clinicians.<span style="color: black;">
</span>A team of highly trained professionals provides care in the comfort of elder’s
home itself Instead</span><span face=""Arial",sans-serif" style="color: black; font-size: 12pt; letter-spacing: 0.15pt; mso-fareast-font-family: "Times New Roman";"> of
taking the sick and elderly people out for their homes for meeting appointments
and treatment. This is bringing the much needed care and services to the home
which is <span style="mso-spacerun: yes;"> </span>more convenient both for elders
and those who are responsible to provide care to them. In addition to the above
it is a fact that senior home care is a rather affordable route for giving
people the help that they need compared with treating them in a hospital. This
division’s service includes </span><span face=""Arial",sans-serif" style="background: white; color: black; font-size: 12pt;">diagnostics, nursing care ,
physiotherapy ..etc<o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span face="Arial, sans-serif" style="background: white; font-size: 12pt;"><b><span style="color: #38761d;">MedCar</span></b><b><span style="color: #38761d;">e</span></b> division providing a
range of medical products and equipments on rent/ sale for the recovery
and well-being of elderly people .<o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span face="Arial, sans-serif" style="background: white; font-size: 12pt;"><b><span style="color: #38761d;">Under the Memory Care homes
division</span></b> Antara takes care of Dementia patients and assists them in carrying
out their everyday tasks. </span><span face=""Arial",sans-serif" style="color: black; font-size: 12pt; mso-color-alt: windowtext;">Recently company
opened its first dedicated residential Memory Care Home in Gurugram for
Dementia patients. Max now planning to add </span><span style="color: black; mso-color-alt: windowtext;"><span style="mso-spacerun: yes;"> </span></span><span face=""Arial",sans-serif" style="color: black; font-size: 12pt; mso-color-alt: windowtext;">35-40 more care homes/ memory care homes<span style="mso-spacerun: yes;"> </span>with a bed capacity of approximately 2000</span><span style="color: black; mso-color-alt: windowtext;"> .</span><span face=""Arial",sans-serif" style="background: white; color: black; font-size: 12pt;"><o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span face=""Arial",sans-serif" style="background: white; color: black; font-size: 12pt;">This is the brief business
profile of the company. Since more details are available in company’s website,
I am not going in-depth. ( </span><span face=""Arial",sans-serif" style="background: white; color: #2b00fe; font-size: 12pt;">Link of Investor presentation and latest Conference call provided at the bottom which will help you to understand more about the Industry and specific to the company</span><span face=""Arial",sans-serif" style="background: white; color: black; font-size: 12pt;"> )<o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span face=""Arial",sans-serif" style="background: white; color: black; font-size: 12pt;"><o:p> </o:p></span><u><span face=""Arial",sans-serif" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: black; font-size: 12pt;">Why MAX INDIA ?</span></u></p>
<p class="MsoNormal" style="background: white; line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span face=""Arial",sans-serif" style="background: white; color: black; font-size: 12pt;">It is a fact that few other
business groups are keenly looking to tap the opportunities in this sector
.But<span style="mso-spacerun: yes;"> </span>I strongly believe , MAX group is
one of the most eligible business group to run<span style="mso-spacerun: yes;">
</span>such a business because of their experience in running hospital/medical
business for decades. In addition to this, company having a treasury</span><span face=""Arial",sans-serif" style="color: black; font-size: 12pt; mso-color-alt: windowtext;"> Corpus of<span style="mso-spacerun: yes;"> </span>around Rs.300 Cr
(after recent buy back) and other monetizable assets of worth Rs 160 crore to
fuel its growth going forward and its current market cap is even below the
combined figure of these liquid resources. Promoters didn't participate in the just concluded buy back ,hence their stake in the company increased from 40 % to above 51% .<span style="background: white;"><o:p></o:p></span></span></p>
<p class="MsoNormal" style="background: white; line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span face="Arial, sans-serif" style="background-color: transparent; font-size: 12pt;"><b><u>Conclusion</u></b></span></p><p class="MsoNormal" style="background: white; line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span face="Arial, sans-serif" style="background-color: transparent; font-size: 12pt;"><b></b></span></p><div class="separator" style="clear: both; text-align: center;"><span face="Arial, sans-serif" style="background-color: transparent; font-size: 12pt;"><b><br /></b></span></div><div class="separator" style="clear: both; text-align: center;"><span face="Arial, sans-serif" style="background-color: transparent; font-size: 12pt;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg-VZ35e6Dx-jMbsBGUzsloVmSwAgvFTxGrg1SwDs-_pRh-zXS6-gjomD_Sd3N5Hne5Fyg1DBOveotrgZQw_SJbvxWcCn64LQX91epNNMc3U3pyySIFa2vrNhVy0QQBdUvU9oiyFxKGOPdBQcVnkHR39YO1wvVd8UVxVagZtOodHfX0C1LrdVqx5SJE/s1080/oyo.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="536" data-original-width="1080" height="159" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg-VZ35e6Dx-jMbsBGUzsloVmSwAgvFTxGrg1SwDs-_pRh-zXS6-gjomD_Sd3N5Hne5Fyg1DBOveotrgZQw_SJbvxWcCn64LQX91epNNMc3U3pyySIFa2vrNhVy0QQBdUvU9oiyFxKGOPdBQcVnkHR39YO1wvVd8UVxVagZtOodHfX0C1LrdVqx5SJE/s320/oyo.jpg" width="320" /></a></span></div><span face="Arial, sans-serif" style="background-color: transparent; font-size: 12pt;"><br /></span><p></p>
<p class="MsoNormal"><span face=""Arial",sans-serif" style="font-size: 12pt; line-height: 107%;"><o:p> </o:p></span><span face="Arial, sans-serif" style="background: white; font-size: 12pt;">According
to the Global Health and Aging Report by the World Health Organization, people
aged 65 and above is projected to grow from an estimated 524 million in 2010 to
nearly 1.5 billion in 2050. In the US alone, senior care is an established
industry valued around $750 Billion at present and growing at 6% per</span><span style="font-size: medium;"><span face="Arial, sans-serif" style="background: white;"> </span><span style="background-color: white;">year. As per available statistics, percentage of senior citizens in India to total population is about 8% which is expected to increase to 20% by 2050</span></span><span face="Arial, sans-serif" style="background: white; font-size: 12pt;"> . Considering the huge population of India, changing life style and way of thinking,
more disposable income in the hands of citizens, possible government aid for
senior care etc., I believe this industry having huge potential going forward. In last FY company reported a turnover of Rs.230 Cr .</span><span face="Arial, sans-serif"><span style="font-size: 12pt;">Since this business is just taking off and company is now in the investment phase ,this is not a stock who are looking for historic data like ROE,ROCE, P/E ..etc at this stage and this company may not
report any commendable numbers for another few quarters . But I strongly
believe they are in a sweet spot with enough resources and experience, management bandwidth,
huge business potential ..etc and able to deliver good return to share holders in the
years to come. Max India is currently trading </span>around<span style="font-size: 12pt;"> Rs.80 in both exchanges.</span></span></p><p class="MsoNormal"><span face="Arial, sans-serif" style="font-size: 12pt;">Once again wishing a Happy Diwali to all my dear friends ...</span></p><p class="MsoNormal"><span face="Arial, sans-serif" style="font-size: 12pt;"><br /></span></p><p class="MsoNormal"><span face="Arial, sans-serif" style="font-size: 12pt;">For more details and Reports , go through the following links.</span></p><p class="MsoNormal"><span face="Arial, sans-serif" style="font-size: 12pt;">Antara Company Website Link<span style="color: #2b00fe;"> <b><a href="https://www.antaraseniorcare.com/">HERE</a></b></span></span></p><p class="MsoNormal"><span face="Arial, sans-serif" style="font-size: 12pt;">Antara Senior living Apartment Video Tour <b><span style="color: #2b00fe;"><a href="https://youtu.be/hXlEx75k7F0">HERE</a></span></b></span></p><p class="MsoNormal"><span face="Arial, sans-serif" style="font-size: 12pt;">Max India Investor presentation <b><span style="color: #2b00fe;"><a href="https://www.bseindia.com/xml-data/corpfiling/AttachHis/a5bfa782-4add-4d1e-be12-015b3fbb7957.pdf">HERE</a></span></b></span></p><p class="MsoNormal"><span face="Arial, sans-serif" style="font-size: 12pt;">Max India Q1 FY 2022-23 Conference call Audio link <b><a href="https://youtu.be/x9s-ToZfUH0">HERE</a></b></span></p><p class="MsoNormal"><span face="Arial, sans-serif" style="font-size: 12pt;">Article on Senior Care business <b><a href="https://www.newindianexpress.com/business/2019/feb/11/the-senior-care-business-what-to-know-about-this-industry-before-tapping-into-it-1937436.html"><span style="color: #2b00fe;">LINK1</span></a> ,<span style="color: #2b00fe;"> <span><a href="https://www.globenewswire.com/news-release/2022/04/08/2419283/0/en/India-Geriatric-Care-Services-Market-to-surpass-US-42-2-Billion-by-2028-Says-Coherent-Market-Insights-CMI.html">LINK2</a></span></span></b></span></p><p class="MsoNormal" style="background-color: white; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: 13px; line-height: normal;"><span style="font-family: Cambria, serif; font-size: 14pt;"><span style="color: #a64d79;">Discl:</span></span></p><p class="MsoNormal" style="background-color: white; line-height: normal; text-indent: -24px;"><span style="color: #a64d79; font-family: Cambria, serif; font-size: 18.6667px;">P </span><span style="color: #a64d79; font-family: Cambria, serif; font-size: 18.6667px;">Above note is prepared only for educational purpose .Part of data used in the above note taken from publicly available sources and credit of the same goes to the original owner . Few sentences are copy pasted without any editing .</span><span style="color: #a64d79; font-family: Cambria, serif; font-size: 18.6667px;"> Personally holding shares of Max India , hence views expressed here may be biased , do own due diligence before taking any investment decision.</span></p><div><span style="color: #a64d79; font-family: Cambria, serif;"><span style="font-size: 18.6667px;"><br /></span></span></div>
<p class="MsoNormal"><span face=""Arial",sans-serif" style="background: white; font-size: 12pt; line-height: 107%;"><o:p> </o:p></span></p><div class="separator" style="clear: both; text-align: center;"><br /></div><br />VALUEPICKhttp://www.blogger.com/profile/11796623051493581545noreply@blogger.com0tag:blogger.com,1999:blog-4508227071348714274.post-18809612841617899972021-10-30T10:45:00.011+05:302022-03-15T08:57:59.470+05:30COSMO FERRITES LTD - BENEFICIARY OF CHANGING TRENDS ...<p><br /></p><p><b></b></p><div class="separator" style="clear: both; text-align: center;"><b><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhu6FcEcqJUodflv2_6fsE66vBy0p0PxBQC8f3-kXRjubjKcwsPQGCnM5UCOk8X9lF6cVP-1upnq-FjmLRrGnr2TkbmneDolN-5e0V4DZ7F43nwUps0ztS9WVapcUc-64cJs5FcdjTbrP4/s1280/cosmoc.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1280" data-original-width="1280" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhu6FcEcqJUodflv2_6fsE66vBy0p0PxBQC8f3-kXRjubjKcwsPQGCnM5UCOk8X9lF6cVP-1upnq-FjmLRrGnr2TkbmneDolN-5e0V4DZ7F43nwUps0ztS9WVapcUc-64cJs5FcdjTbrP4/s320/cosmoc.jpg" width="320" /></a></b></div><b><br /><span style="color: red;"><br /></span></b><p></p><p class="MsoNormal"></p><p class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="color: black; font-family: "Cambria",serif; font-size: 14pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">As we are aware, long-term investors always searching for early
signs of emerging trends and try to make benefit out of it. Since our
government already declared their aim to make India as a manufacturing hub and
taking lot of efforts in this direction. We all know, without
developing Electronic Manufacturing, it is not easy to convert India as a
manufacturing hub to the world and recent issues related with semi-conductor
shortage underlining this fact. With this background let us look into a company
that may benefit immensely from India’s efforts to become an electronic
manufacturing hub and increasing Electric Vehicle (EV) penetration.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="color: black; font-family: "Cambria",serif; font-size: 14pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Government support with incentives is the major attraction of
common man to shift to EV for the time being. But factors like skyrocketing
fossil fuel prices, increasing awareness about environment protection may
result in a natural shift though it may take some time. Still there is lot of
experiments happening in the energy saving space and personally I am expecting
emergence of a breakthrough technology in this field which can revolutionize
the EV usage. It may happen in the form of quick charging- long lasting
batteries that will reduce the effective cost and positively impact ease of
usage. Because of this reason, I am not very enthused in the highly proclaimed
‘Lithium Ion Battery stories’ and not aggressively betting on such companies at
least till this industry show widespread acceptance even with the current limitations
of Li-Ion batteries. In this situation , let us look into a company that is expected to benefit from electronic manufacturing as well as EV penetration in spite of the
battery we are going to embrace in future.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><b><u><span style="color: red; font-family: "Cambria",serif; font-size: 14pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">THE INDUSTRY</span></u></b><span style="color: black; font-family: "Cambria",serif; font-size: 14pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="color: black; font-family: "Cambria",serif; font-size: 14pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Whatever be the battery pack, ‘Ferrites’ are unavoidable part of
an EV and more than that for the electronics industry. Ferrite can be defined
as “<span style="letter-spacing: -0.1pt;">Any of a class of metal oxides
which show ferrimagnetism; used in transformers, inductors, antennas, recording
heads, microwave devices, motors, chargers ,loudspeakers (copied from
publicly available sources). Ferrites are generally divided into two - Hard
Ferrites and Soft Ferrites.</span></span><b><span style="background: white; color: #202122; font-family: "Cambria",serif; font-size: 14pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";"> Hard
ferrites</span></b><span style="background: white; color: #202122; font-family: "Cambria",serif; font-size: 14pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";"> have high </span><span style="background: white; color: black; font-family: "Cambria",serif; font-size: 14pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">coercivity</span><span style="background: white; color: #202122; font-family: "Cambria",serif; font-size: 14pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">, so are difficult to
demagnetize. They are used to make permanent </span><span style="background: white; color: black; font-family: "Cambria",serif; font-size: 14pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">magnets</span><span style="background: white; color: #202122; font-family: "Cambria",serif; font-size: 14pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";"> for applications such as </span><span style="background: white; color: black; font-family: "Cambria",serif; font-size: 14pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">refrigerator magnets</span><span style="background: white; color: #202122; font-family: "Cambria",serif; font-size: 14pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">, </span><span style="background: white; color: black; font-family: "Cambria",serif; font-size: 14pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">loudspeakers</span><span style="background: white; color: #202122; font-family: "Cambria",serif; font-size: 14pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">, and small </span><span style="background: white; color: black; font-family: "Cambria",serif; font-size: 14pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">electric motors</span><span style="background: white; color: #202122; font-family: "Cambria",serif; font-size: 14pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">. </span><span style="color: black; font-family: "Cambria",serif; font-size: 14pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span><span style="background: white; color: #202122; font-family: Cambria, serif; font-size: 14pt;">Ferrites that are used in </span><span style="background: white; font-family: Cambria, serif; font-size: 14pt;">transformer</span><span style="background: white; color: #202122; font-family: Cambria, serif; font-size: 14pt;"> or </span><span style="background: white; font-family: Cambria, serif; font-size: 14pt;">electromagnetic</span><span style="background: white; color: #202122; font-family: Cambria, serif; font-size: 14pt;"> </span><span style="background: white; font-family: Cambria, serif; font-size: 14pt;">cores</span><span style="background: white; color: #202122; font-family: Cambria, serif; font-size: 14pt;"> contain </span><span style="background: white; font-family: Cambria, serif; font-size: 14pt;">nickel</span><span style="background: white; color: #202122; font-family: Cambria, serif; font-size: 14pt;">, </span><span style="background: white; font-family: Cambria, serif; font-size: 14pt;">zinc</span><span style="background: white; color: #202122; font-family: Cambria, serif; font-size: 14pt;">, and/or </span><span style="background: white; font-family: Cambria, serif; font-size: 14pt;">manganese
compounds</span><span style="background: white; color: #202122; font-family: Cambria, serif; font-size: 14pt;"> with low </span><span style="background: white; font-family: Cambria, serif; font-size: 14pt;">coercivity</span><span style="background: white; color: #202122; font-family: Cambria, serif; font-size: 14pt;"> are called</span><span style="background: white; color: #4d5156; font-family: Cambria, serif; font-size: 14pt;"> <b>Soft Ferrites</b> or <b>Temporary magnets</b> which
activate and work only under and </span><span style="background: white; color: #5f6368; font-family: Cambria, serif; font-size: 14pt;">electric</span><span style="background: white; color: #4d5156; font-family: Cambria, serif; font-size: 14pt;"> field</span><span style="background: white; color: #202122; font-family: Cambria, serif; font-size: 14pt;">. The low coercivity means
the material's </span><span style="background: white; font-family: Cambria, serif; font-size: 14pt;">magnetization</span><span style="background: white; color: #202122; font-family: Cambria, serif; font-size: 14pt;"> can
easily reverse direction without dissipating much energy. Out of these, </span><span style="font-family: Cambria, serif; font-size: 14pt;">soft
ferrite is more complicated both in terms of manufacturing process and
characteristic requirements hence we have limited manufactures in India for
this and demand for rest is met by imports.</span></p><p></p><p class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="font-family: Cambria, serif; font-size: 14pt;"> </span><span style="font-family: Cambria, serif; font-size: 14pt;">Let us look into the application of soft ferries in various fields.
In automotive electronics soft ferrites find applications in Battery Management
system, DC-DC converter, Car security, Keyless entry system, Auto
start/stop, Battery Charger, Lighting ..etc. Another emerging opportunity is in
the field of Solar inverter that is gaining wide acceptability in recent times.
LED lighting is another big opportunity for ferrites. Smart Energy meter is
another big emerging business opportunity for this industry. Among these let us
look into EV opportunities specifically. Since magnetic systems used in many
components like transformers PCB ..etc., this product is critical for an EV .It
is used mainly in EV charger and conversion units as part of Line filters,
Inductors, transformers..etc .Ferrite core transformers are present in PCB also
that find applications not only in EV but electronic industry as a whole. This
clearly means demand for ferrites will increase in tandem with the EV
penetration and India’s efforts to make our country a manufacturing hub going
forward.</span></p><p class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><b><u><span style="color: red; font-family: "Cambria",serif; font-size: 14pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";"> THE COMPANY</span></u></b><span style="font-family: Cambria, serif; font-size: 14pt;"><o:p></o:p></span></p><p class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="font-family: Cambria, serif; font-size: 14pt;">The company we are trying to study is BSE listed </span><b><span style="color: #2b00fe; font-family: "Cambria",serif; font-size: 14pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Cosmo
Ferrites</span></b><span style="font-family: Cambria, serif; font-size: 14pt;"> . Yes , the same company covered in this blog about 10 years back around Rs.13 .Few of my old readers may doubt why it is again now after more than 10 fold rise in its price. Changed business potential is my only answer for this question. This company belongs to the same business group that owned
another listed company Cosmo Films (market cap of around Rs.2800 Cr) which is operating
in packaging related business. This business group is perceived as clean and
minority shareholder friendly one. Manufacturing plant of Cosmo ferrites
located at Solan, Himachal Pradesh. Alisha Coils and transformers – a division
of Cosmo Ferrites- manufacturing SMPS Transformers from 10W to 250W as forward
integration. Citing better business prospects on account of emerging trends in
user industries, company now enhancing its production capacity by 50% from 2400
MT to 3600 MT at a cost of Rs.30 Cr. As per company estimate contribution from
enhanced capacity will start to reflect from first quarter of FY 2022-23. It is
a fact that, so far company’s performance was erratic. Only in recent times it
started to show improved performance with good profit margins that indicating
changing fortunes of the company due to emerging business potential. <o:p></o:p></span></p><p class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="font-family: Cambria, serif; font-size: 14pt;">Cosmo EV Video Link <b><span style="color: red;"><a href="https://en-gb.facebook.com/cosmoferritesltd/videos/1071129343420287/">HERE</a></span></b></span></p><p class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="font-family: Cambria, serif; font-size: 14pt;"><b><br /></b></span></p><p class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="font-family: Cambria, serif; font-size: 14pt;"></span></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg9x2PEFsG0NU91bpK8ee1ZmYAyve59mwceAPWv3eaSX6VNeeh3MOAM8TlyMlNGILNCE7_RjFcwcK6qhFH3gTb4g8I9fhTziO4VuQFHyXQlRp9g-y017OsE_3GdvoeAUarRfGXdq4HNTlc/s879/cosmop.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="357" data-original-width="879" height="130" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg9x2PEFsG0NU91bpK8ee1ZmYAyve59mwceAPWv3eaSX6VNeeh3MOAM8TlyMlNGILNCE7_RjFcwcK6qhFH3gTb4g8I9fhTziO4VuQFHyXQlRp9g-y017OsE_3GdvoeAUarRfGXdq4HNTlc/s320/cosmop.jpg" width="320" /></a></div><span style="font-family: Cambria, serif; font-size: 14pt;">In latest September quarter, Cosmo Ferrites reported a top line of
around Rs.27 Cr, bottom line of Rs.3.51 and an EPS of Rs.3. Considering
management’s confidence to enhance capacity by 50%, robust prospects of user
industries like Electric Vehicle, Solar Inverters, Energy meters, Battery
Chargers, Transformers ..etc it is expected to perform well going forward. At
present company exporting its products to more than 50 countries. Company
is a government recognized export house and as a testimony of
increasing export opportunities, Cosmo's export turnover reported a robust
48% growth in latest quarter. </span><div><span style="font-family: Cambria, serif;"><span style="font-size: 18.6667px;"><br /></span></span></div><div><span style="font-family: Cambria, serif;"><span style="font-size: 18.6667px;">CMP. Rs.168</span></span></div><div><span style="font-family: Cambria, serif;"><span style="font-size: 18.6667px;"><br /></span></span><p></p><p class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="font-family: Cambria, serif; font-size: 14pt;"><span style="color: #a64d79;">Discl:</span></span></p><p class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="color: #a64d79; font-family: Cambria, serif;"><span style="font-size: 18.6667px;">Part of data used in the above note are taken from publicly available sources and credit of the same goes to the original owner . Personally holding shares of Cosmo Ferrites , hence views expressed here may be biased , do own due diligence before taking any investment decision.</span></span></p><p class="MsoNormal">
<br /></p></div>VALUEPICKhttp://www.blogger.com/profile/11796623051493581545noreply@blogger.com19tag:blogger.com,1999:blog-4508227071348714274.post-5453951881487557012021-04-10T08:36:00.003+05:302023-01-28T09:33:35.715+05:30EKI - A NICHE PLAY ON ENVIRONMENT PROTECTION<p> </p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg_V1qhbkjrt8Z6CA82w5f0SEDAhSDvOBpn1ETIpxST00bV8AWGkhOpRTpGHj9RhSEkraPLmBbAC8iG6PymhGU72d7ygyqp5Vfld2P2v8rV1vkM9b7cxtgU-mVnp77CbzCEiQvQ7nLByqQ/s1059/ek.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="396" data-original-width="1059" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg_V1qhbkjrt8Z6CA82w5f0SEDAhSDvOBpn1ETIpxST00bV8AWGkhOpRTpGHj9RhSEkraPLmBbAC8iG6PymhGU72d7ygyqp5Vfld2P2v8rV1vkM9b7cxtgU-mVnp77CbzCEiQvQ7nLByqQ/s320/ek.jpg" width="320" /></a></div><p><span style="font-family: arial;"><span style="color: #2b00fe;">EKI Energy Services</span> - EnKing
International - ( EKI ) is a company listed in BSE ( Scrip Code-543284) just three days back. I am
aware about the fact that</span><span style="font-family: arial;"> </span><span style="font-family: arial;">there is many
additional risks in buying a stock just after IPO and listing . So please take
this note only as an introduction to a company that is operating in a niche
sector which I feel there is very big opportunity existing in the years to come
. Enking claiming that they are </span><span style="font-family: arial;"> </span><span style="font-family: arial;">the </span><span style="font-family: arial;"> </span><span style="font-family: arial;">‘ World largest Carbon Credit Developer and
Supplier’</span><span style="font-family: arial;"> </span><span style="font-family: arial;">. I have no statistics with me
to verify and ascertain this claim but it is a fact that company generating more than 90%
of its income from overseas markets.</span></p>
<p class="MsoNormal"><span style="font-family: arial;"><o:p> </o:p><b><u>The Sector
and Scope</u> </b></span></p>
<p class="MsoNormal"><span style="font-family: arial;">Global warming
is a threat in these days and all countries around the globe realized the
seriousness of the same and necessity to fight against it. It is widely
accepted that Green House Gases ( GHG)<span style="mso-spacerun: yes;">
</span>is the major reason for global warming . Kyoto Protocol was a landmark development in
the history of world for the fight against global warming.<span style="background: white; color: #202122;"> The Kyoto Protocol is
an </span><span style="background: white; color: black; mso-color-alt: windowtext;">international treaty</span><span style="background: white; color: #202122;"> which
extends the 1992 </span><span style="background: white; color: black; mso-color-alt: windowtext;">United Nations Framework Convention on Climate Change</span><span style="background: white; color: #202122;"> (UNFCCC) that commits state parties
to reduce </span><span style="background: white; color: black; mso-color-alt: windowtext;">greenhouse gas</span><span style="background: white; color: #202122;"> emissions, based on the </span><span style="background: white; color: black; mso-color-alt: windowtext;">scientific consensus</span><span style="background: white; color: #202122;"> that </span><span style="background: white; color: black; mso-color-alt: windowtext;">global warming</span><span style="background: white; color: #202122;"> is occurring and human-made </span><span style="background: white; color: black; mso-color-alt: windowtext;">CO<sub>2</sub> emissions</span><span style="background: white; color: #202122;"> are driving it. The Kyoto Protocol
implemented the objective of the UNFCCC to reduce the onset of global warming
by reducing greenhouse gas concentrations in the atmosphere to 'a level
that would prevent dangerous anthropogenic interference with the climate
system'. The Protocol's first commitment period started in 2008 and ended in
2012. All 36 countries that fully participated in the first commitment period
complied with the Protocol. However, nine countries had to resort to the
flexibility mechanisms by funding emission reductions in other countries
because their national emissions were greater than their targets. A
second commitment period was agreed in 2012, known as the Doha Amendment to the
Kyoto Protocol, in which 37 countries have binding targets.</span><span style="background: white; color: #202122; line-height: 107%;"> Negotiations were held in the framework of the
yearly UNFCCC Climate Change Conferences on measures to be taken after the
second commitment period ends in 2020. The Protocol defines three "</span><span style="background: white; color: black; line-height: 107%;">flexibility mechanisms</span><span style="background: white; color: #202122; line-height: 107%;">" that can be used by Parties in meeting
their emission limitation commitments. The flexibility mechanisms are
International Emissions Trading (IET), the </span><span style="background: white; color: black; line-height: 107%;">Clean Development Mechanism</span><span style="background: white; color: #202122; line-height: 107%;"> (CDM), and </span><span style="background: white; color: black; line-height: 107%;">Joint Implementation</span><span style="background: white; color: #202122; line-height: 107%;"> (JI). IET allows Parties to
"trade" their emissions that held in digital form (</span><span style="background: white; color: black; line-height: 107%;">Assigned Amount Units</span><span style="background: white; color: #202122; line-height: 107%;">, AAUs, or "allowances").<o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="background: white; color: #202122; line-height: 107%;"><span style="font-family: arial;"><span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span><o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="font-family: arial;"><span style="background: white; color: #202122; line-height: 107%;"><o:p> </o:p></span><span style="background: white; color: #202122; line-height: 107%;">Next to Kyoto Protocol,
another important event in the same direction was ‘The Paris Agreement’ which is an agreement within the UNFCCC on </span><span style="background: white; line-height: 107%;">climate change
mitigation</span><span style="background: white; color: #202122; line-height: 107%;">, </span><span style="background: white; line-height: 107%;">adaptation</span><span style="background: white; color: #202122; line-height: 107%;">, and </span><span style="background: white; line-height: 107%;">finance</span><span style="background: white; color: #202122; line-height: 107%;">, signed in 2016.
As of March 2021, 191 members of the UNFCCC are parties to the agreement. The
Paris Agreement's long-term temperature goal is to keep the rise in global
average temperature to well below 2 °C (3.6 °F) above pre-industrial
levels; and to pursue efforts to limit the increase to 1.5 °C (2.7 °F),
recognizing that this would substantially reduce the risks and </span><span style="background: white; line-height: 107%;">impacts of climate
change</span><span style="background: white; color: #202122; line-height: 107%;">. This should be done by reducing emissions as
soon as possible, in order to 'achieve a balance between anthropogenic
emissions by sources and removals by sinks of </span><span style="background: white; line-height: 107%;">greenhouse gases'</span><span style="background: white; color: #202122; line-height: 107%;"> in the second half of the 21st century.</span></span></p>
<p class="MsoNormal"><span style="font-family: arial;"><span style="background: white; color: #202122; line-height: 107%;"><o:p> </o:p></span><b><span style="background: white; color: #202122;">The concept of carbon credit and its trading.</span></b></span></p><p class="MsoNormal"><span style="font-family: arial;"><b></b></span></p><div class="separator" style="clear: both; text-align: center;"><span style="font-family: arial;"><b><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj9PVlzi5i2avZh-qaPr-QAcceZoxBsdZhAEXtVP6DLXrUszhdG4Vukr2VsiK0jlDRO67KNA_e08wq430GmBT2-ZYo48uK5hdkOiBJkTUff_dMlwM-oGsISLR_RKYP4LPeX9XHEYFRcoh8/s928/ct.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="530" data-original-width="928" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj9PVlzi5i2avZh-qaPr-QAcceZoxBsdZhAEXtVP6DLXrUszhdG4Vukr2VsiK0jlDRO67KNA_e08wq430GmBT2-ZYo48uK5hdkOiBJkTUff_dMlwM-oGsISLR_RKYP4LPeX9XHEYFRcoh8/s320/ct.jpg" width="320" /></a></b></span></div><span style="font-family: arial;"><b><span style="background: white; color: #202122;"><br /></span></b></span><p></p><p class="MsoNormal"><span style="background: white; color: #202122; font-family: arial;">A carbon credit<b> </b>is a generic term for any
tradable certificate or permit representing the right to emit one </span><span style="background: white; font-family: arial;">tonne</span><span style="background: white; color: #202122; font-family: arial;"> of carbon dioxide or the </span><span style="background: white; font-family: arial;">equivalent amount</span><span style="background: white; color: #202122; font-family: arial;"> of a different </span><span style="background: white; font-family: arial;">greenhouse gas. ( </span><span style="background: white; font-family: arial;"><span style="color: #0b5394;">Courtesy : Wikipedia</span></span><span style="background: white; font-family: arial;">)</span></p>
<p class="MsoNormal"><span style="font-family: arial;"><span style="background: white; color: black;">Let me explain the concept in
layman’s language , as per the agreements approved by the participant countries in UNFCCC a fixed level of GHC emission is permitted for each countries, that in turn divided among the industries/companies operating in that country. Suppose you own a polluting industry that generates 100
units <span style="mso-spacerun: yes;"> </span>of greenhouse gases beyond the
level permitted to you . On the other side , suppose one of your friend own a
large area of plantation or a large solar farm<span style="mso-spacerun: yes;">
</span>that generating pollutants 100 units less than the permitted level to
him. If you have no option left to reduce pollution( gas emission)<span style="mso-spacerun: yes;"> </span>below the permitted level or it is
uneconomical for you, you can buy your friend’s 100 units available with him to
offset your excess generation and comply with the rule . Ultimately this
resulted in transfer of some money from your pockets ( assume the seller is
someone you don’t know and sitting somewhere in the world ) to the seller .
Such an earning will help and encourage the seller to plant more trees or
establish another power plant using non fossil fuel unit <span style="mso-spacerun: yes;"> </span>. This is the basic concept of carbon credit
trading .The tradable carbon credits are held in digital form. </span><span style="background: white;"><o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="font-family: arial;"><span style="background: white; color: black;">There are two types of Carbon credit
market , one is mandatory by law of each countries and the other is voluntary .</span> The voluntary market is driven by
companies and individuals that take responsibility for offsetting their own
emissions, and entities that purchase offsets before emissions reductions are
required by regulation. Buyers are driven by corporate social responsibility,
ethics, a desire to enhance their reputation and so on.<span style="background: white;"><o:p></o:p></span></span></p><p class="MsoNormal"><span style="color: #2b00fe; font-family: arial;">As per reports by 'Reuters' , based on 2020 statistics ,The
turnover in global emissions trading hit a record high last year of $214
billion as prices rose on current or expected stricter regulation. The
turnover was up 34% from previous year and marked a third consecutive year of
growth. It is a fact that ,not even 25% of countries in the world started carbon credit trading and we can imagine the potential opportunity size from this statistics.</span></p><p class="MsoNormal"><b><span style="font-family: arial;"><o:p></o:p></span></b></p><p class="MsoNormal"><span style="font-family: arial;"> </span></p>
<p class="MsoNormal"><b><span style="background: white;"><span style="font-family: arial;"><u>Role of Company</u></span></span></b></p>
<p class="MsoNormal"><span style="font-family: arial;"><span style="background: white;"> EKI - acting as an advisor, facilitator <span style="color: black;"> </span>and
solution provider in environment protection initiatives of corporates ,NGO.s
,individuals..etc. .</span> They
are providing<span style="mso-spacerun: yes;"> </span>end to end solution to
achieve carbon neutrality. Their business activities can be broadly classified
into :<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family: arial;">* <o:p></o:p>Carbon Credits management.</span></p>
<p class="MsoNormal"><span style="font-family: arial;">* <o:p></o:p>Climate Change Advisory Services.</span></p>
<p class="MsoNormal"><span style="font-family: arial;">* Business
Excellence Advisory & Training Services.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family: arial;">* Electrical
Safety Audits.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family: arial;"><span style="background: white; color: black;">They are assisting in completing all
formalities for earning carbon credits that involved various inspections,
certification ..etc. <span style="mso-spacerun: yes;"> </span>and helping the
buyers and sellers of the same to find their genuine counter parties and smooth
completion of transaction. Though they are operating in these four verticals,
more than 90% of income coming from carbon credit trading and that itself from
overseas customers. Company’s client list includes various firms from countries
like<span style="mso-spacerun: yes;"> </span></span><span style="background: white;"><span style="color: #333333;">Australia, USA, Germany,
Europe ..etc. and its Indian client list includes Airport Authority of India,
World Bank, Azure Power, National Thermal Power
Corporation (NTPC), GAIL, GMR Energy Limited, NHPC, Indian Railways, </span></span></span><span style="color: #333333; font-family: arial;">etc.</span></p>
<p class="MsoNormal"><b><span style="background: white;"><span style="font-family: arial;"><u>Financial Performance</u>.</span></span></b></p>
<p class="MsoNormal"><span style="font-family: arial;"><span style="background: white; color: black;">Company reported a topline of </span><span style="background: white; color: #333333;">Rs.
66.02 cr and a bottom line of Rs. 4.47 cr in FY 2019-20. For the first half
of<span style="mso-spacerun: yes;"> </span>FY2020 -21 ended in September 30.
2020, it reported a turnover of Rs. 59.96 Cr. and a net profit of Rs. 5.39 cr.
</span><span style="background: white;"><span style="color: #0b5394;">Post IPO company’s equity will be Rs.<span class="MsoHyperlink"> </span><strong><span style="font-weight: normal;">6.87 Cr ( FV.10) and promoter holding will be close to 73%</span></strong></span></span><b><span style="background: white;"><o:p></o:p></span></b></span></p><p class="MsoNormal"><span style="font-family: arial;"><span style="background: white; color: #333333;"></span></span></p><table class="table table-bordered table-striped table-condensed table-nonfluid" style="background-color: white; border-collapse: collapse; border-spacing: 0px; border: 1px solid rgb(221, 221, 221); color: #333333; margin-bottom: 20px; max-width: 100%; width: auto;"><thead style="box-sizing: border-box;"><tr style="box-sizing: border-box;"><th style="border-bottom-color: rgb(221, 221, 221); border-bottom-style: solid; border-image: initial; border-left-color: rgb(221, 221, 221); border-left-style: solid; border-right-color: rgb(221, 221, 221); border-right-style: solid; border-top-color: initial; border-top-style: initial; border-width: 0px 1px 2px; box-sizing: border-box; line-height: 1.42857; padding: 5px; text-align: left; vertical-align: bottom;"><span style="font-family: arial;">Particulars</span></th><th colspan="5" style="border-bottom-color: rgb(221, 221, 221); border-bottom-style: solid; border-image: initial; border-left-color: rgb(221, 221, 221); border-left-style: solid; border-right-color: rgb(221, 221, 221); border-right-style: solid; border-top-color: initial; border-top-style: initial; border-width: 0px 1px 2px; box-sizing: border-box; line-height: 1.42857; padding: 5px; text-align: left; vertical-align: bottom;"><span style="font-family: arial;">For the year/period ended (₹ in lakh)</span></th></tr></thead><tbody style="box-sizing: border-box;"><tr style="background-color: #f9f9f9; box-sizing: border-box;"><td style="border: 1px solid rgb(221, 221, 221); box-sizing: border-box; line-height: 1.42857; padding: 5px; vertical-align: top;"></td><td style="border: 1px solid rgb(221, 221, 221); box-sizing: border-box; line-height: 1.42857; padding: 5px; vertical-align: top;"><span style="box-sizing: border-box; font-weight: 700;"><span style="font-family: arial;">30-Sep-20<br /><span style="color: #cc0000;">(Six Months</span>)</span></span></td><td style="border: 1px solid rgb(221, 221, 221); box-sizing: border-box; line-height: 1.42857; padding: 5px; vertical-align: top;"><span style="box-sizing: border-box; font-weight: 700;"><span style="font-family: arial;">31-Mar-20</span></span></td><td style="border: 1px solid rgb(221, 221, 221); box-sizing: border-box; line-height: 1.42857; padding: 5px; vertical-align: top;"><span style="box-sizing: border-box; font-weight: 700;"><span style="font-family: arial;">31-Mar-19</span></span></td><td style="border: 1px solid rgb(221, 221, 221); box-sizing: border-box; line-height: 1.42857; padding: 5px; vertical-align: top;"><span style="box-sizing: border-box; font-weight: 700;"><span style="font-family: arial;">31-Mar-18</span></span></td></tr><tr style="box-sizing: border-box;"><td style="border: 1px solid rgb(221, 221, 221); box-sizing: border-box; line-height: 1.42857; padding: 5px; vertical-align: top;"><span style="box-sizing: border-box; font-weight: 700;"><span style="font-family: arial;">Total Assets</span></span></td><td style="border: 1px solid rgb(221, 221, 221); box-sizing: border-box; line-height: 1.42857; padding: 5px; vertical-align: top;"><span style="font-family: arial;">2,186.19</span></td><td style="border: 1px solid rgb(221, 221, 221); box-sizing: border-box; line-height: 1.42857; padding: 5px; vertical-align: top;"><span style="font-family: arial;">1,609.68</span></td><td style="border: 1px solid rgb(221, 221, 221); box-sizing: border-box; line-height: 1.42857; padding: 5px; vertical-align: top;"><span style="font-family: arial;">412.31</span></td><td style="border: 1px solid rgb(221, 221, 221); box-sizing: border-box; line-height: 1.42857; padding: 5px; vertical-align: top;"><span style="font-family: arial;">276.60</span></td></tr><tr style="background-color: #f9f9f9; box-sizing: border-box;"><td style="border: 1px solid rgb(221, 221, 221); box-sizing: border-box; line-height: 1.42857; padding: 5px; vertical-align: top;"><span style="box-sizing: border-box; font-weight: 700;"><span style="font-family: arial;">Total Revenue</span></span></td><td style="border: 1px solid rgb(221, 221, 221); box-sizing: border-box; line-height: 1.42857; padding: 5px; vertical-align: top;"><span style="font-family: arial;">5,996.34</span></td><td style="border: 1px solid rgb(221, 221, 221); box-sizing: border-box; line-height: 1.42857; padding: 5px; vertical-align: top;"><span style="font-family: arial;">6,601.90</span></td><td style="border: 1px solid rgb(221, 221, 221); box-sizing: border-box; line-height: 1.42857; padding: 5px; vertical-align: top;"><span style="font-family: arial;">1,988.13</span></td><td style="border: 1px solid rgb(221, 221, 221); box-sizing: border-box; line-height: 1.42857; padding: 5px; vertical-align: top;"><span style="font-family: arial;">701.01</span></td></tr><tr style="box-sizing: border-box;"><td style="border: 1px solid rgb(221, 221, 221); box-sizing: border-box; line-height: 1.42857; padding: 5px; vertical-align: top;"><span style="box-sizing: border-box; font-weight: 700;"><span style="font-family: arial;">Profit After Tax</span></span></td><td style="border: 1px solid rgb(221, 221, 221); box-sizing: border-box; line-height: 1.42857; padding: 5px; vertical-align: top;"><span style="font-family: arial;">538.58</span></td><td style="border: 1px solid rgb(221, 221, 221); box-sizing: border-box; line-height: 1.42857; padding: 5px; vertical-align: top;"><span style="font-family: arial;">447.45</span></td><td style="border: 1px solid rgb(221, 221, 221); box-sizing: border-box; line-height: 1.42857; padding: 5px; vertical-align: top;"><span style="font-family: arial;">68.04</span></td><td style="border: 1px solid rgb(221, 221, 221); box-sizing: border-box; line-height: 1.42857; padding: 5px; vertical-align: top;"><span style="font-family: arial;">26.91</span></td></tr></tbody></table><p class="MsoNormal"><span style="background-color: white;"><b><span style="font-family: arial;"><u>Conclusion</u></span></b></span></p>
<p class="MsoNormal"><span style="font-family: arial;"><span style="background: white; color: black;">Having said, at present company generating more than 90% of income from overseas .It is not a surprise ,considering
the fact that still the rules prevailing in India is not strict in case of
environment protection and Greenhouse Gas ( GHG)<span style="mso-spacerun: yes;"> </span>emissions. </span><span style="background: white; color: #202124;">. If we consider only the
local opportunities at present, this company may termed as one <span style="mso-spacerun: yes;"> </span>'came ahead of its time ' as it started in 2011 but at present they concentrating in developed countries where rules are stricter. N</span><span style="background: white;">owadays we are in an effort to make
our country a manufacturing hub . When the percentage of agriculture reduces
and that of Industry increases, we have no other choice but implementing
stricter rules to stay within global standards .We can’t </span><span style="background: white; color: #202124;">unilaterally
move without adhering global treaties and other norms in future and this
situation will open up exciting opportunities for companies like EKI .Even in
the present situation, many Indian firms who are eligible to get carbon credit
not utilizing the opportunity due to their ignorance about it. Company is
planning to utilize majority of the IPO proceeds for working capital
requirements including strengthening the sales force both in India and abroad.
I believe this will surely bring better business going forward provided the
promoters are capable to execute. Company expecting </span><span style="background: white; color: #444444;">market
for carbon offsets is set to boom, especially once a solution arrived in the
issue of rulemaking for the operation of international carbon markets sorted
out among the countries that have signed the Paris Agreement. This is expected
to happen at the upcoming conference of Parties scheduled to occur in November
2021. The meeting should have happened in November 2020, but postponed by a
year due to pandemic. If there is no consensus in this meeting mainly about the
trading of carbon credits earned during Kyoto Protocol regime ,that may affect the entire reliability of
this mechanism. The question to be answered is whether the carbon credits earned between
Kyoto Protocol and Paris agreement is valid or not for trading. Whether it is valid or not, an early ultimate decision on it will end the uncertainty on this subject that is expected to bring new direction for carbon credit trading worldwide. </span></span></p>
<p class="MsoNormal"><span style="font-family: arial;"><span style="background: white; color: #444444;"><span style="mso-spacerun: yes;"> </span>It is a niche company in this sector and a pioneer in the industry that
started operations more than ten years back. The only (somewhat) similar pure
play company I could find in India is </span>Emergent
Ventures India that is an unlisted firm . If my understanding is correct this
is the first listed company from carbon trading space not only in India but <span style="mso-spacerun: yes;"> </span>in the entire world. Current price Rs.162<o:p></o:p></span></p>
<p class="MsoNormal"><o:p><span style="font-family: arial;"> Company Website link <a href="https://www.enkingint.org/">HERE</a></span></o:p></p>
<p class="MsoNormal"><span style="color: #cc0000; font-family: arial;">Points to Note
:<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family: arial;"><span style="color: #cc0000;">Company is a
newly listed one and came to my attention only recently , so I have no clear
idea about its promoter’s credentials<span style="mso-spacerun: yes;">
</span>and their attitude towards minority share holders. In few IPO’s ,companies' shown sharply<span style="mso-spacerun: yes;"> </span>improved financial performance in just
previous year of IPO through window dressing to attract potential IPO investors
, only time will tell what the case here in these above points. Since it is listed in BSE SME with a
market lot of 1200 shares , liquidity may be less compared with main board
listed stocks. Prepared this short notes on EKI purely to introduce a niche
company listed in a futuristic space , no need to take it as a recommendation
to BUY or SELL the stock</span>.<o:p></o:p></span></p>
<p class="MsoNormal"><o:p><span style="font-family: arial;"> </span></o:p></p>
<p class="MsoListParagraph" style="margin-left: 0.75in; mso-add-space: auto; mso-list: l0 level1 lfo1; text-indent: -0.25in;"><span style="font-family: arial;"><span style="background: white; color: black;"> </span><span style="background: white;"><span style="color: #6aa84f;">The above note prepared
based on the information taken from publicly available documents like
Wikipedia, Company IPO prospectus and other sources, few
sentences reproduced without editing</span></span><span style="background: white; color: black;">.</span><span style="background: white;"><o:p></o:p></span></span></p>
<p class="MsoNormal"><o:p><span style="font-family: arial;"><b> </b>You can refer the below links for more info :</span></o:p></p><p class="MsoNormal"><o:p><span style="font-family: arial;"><br /></span></o:p></p><p class="MsoNormal"><o:p><a href="https://carbon-pulse.com/90631/"><span style="font-family: arial;">https://carbon-pulse.com/90631/</span></a></o:p></p>
<p class="MsoNormal"><span style="font-family: arial;"><a href="https://www.indiancarbon.org/the-carbon-credit-market/">https://www.indiancarbon.org/the-carbon-credit-market/</a><o:p></o:p></span></p><p class="MsoNormal"><span style="font-family: arial;"><a href="https://www.thehindubusinessline.com/news/in-a-world-first-indian-carbon-trader-to-come-out-with-ipo/article33109195.ece">https://www.thehindubusinessline.com/news/in-a-world-first-indian-carbon-trader-to-come-out-with-ipo/article33109195.ece</a><o:p></o:p></span></p><p class="MsoNormal"><span style="font-family: arial;">Discl: Holding tracking qty shares</span></p><p class="MsoNormal"><span face="Arial, sans-serif"> </span></p><p class="MsoNormal"><br /></p>VALUEPICKhttp://www.blogger.com/profile/11796623051493581545noreply@blogger.com2