Suzlon Energy share price jump & uper circuit today

 Suzlon Energy is primarily engaged in the business of manufacturing wind turbine generators and related components of various capacities.

The major plants in India are located at Daman, Vadodara, Chakan, Chopadva, Coimbatore & Jaisalmer.

The SBICAP Trustee had earlier mentioned in its regulatory filing the company name as Adani Green Ltd, instead of Suzlon Energy.

With the recent pledge, the total number of Suzlon Energy's shares pledged with SBICAP Trustee stands at about 97.10 lakh or 9.92 per cent.

The SBICAP Trustee, a group company of State Bank of India acts as a security/debenture/share pledge trustee and is not in the business of lending money.

Vadodara is the key manufacturing plant of Suzlon. For FY21, the plant dispatched 122 transformers total 256.2 MV, it repaired 84 transformers and overhauled 153 transformers at various sites in Gujarat & Karnataka.

Chakan is committed to generator manufacturing & services. For FY21, Suzlon manufactured 94 generators leading to 197.4 MV, dispatched 111 generators leading to 233.1 MV, and repaired 164 generators.

The Kutch plant is responsible for tower manufacturing. For FY21, 101 tubular towers total 212.10 MV were manufactured & dispatched 138 tubular towers of 289.8 MV.

Wind Turbine Generator - 65% ,

Foundry & Forging – 7% ,

Operations & Maintenance Service (OMS) – 27%,

Others – 1% of the revenue.

Why Downfall :

During 2008, the company had global ambitions and took a lot of debt for acquiring foreign companies during the peak levels of the global economic cycle. The company was hugely indebted and consequently company's market cap eroded by >95%.

Co. was on the verge of Bankruptcy. 

Its Recovery:

However, it slowly started to recover in 2014 capturing a 20% market share of the Indian Wind Turbine Market.

Pros :

Company is expected to give good quarter

Debtor days have improved from 125 to 76.4 days.

Read More

Rajratan Global Wire Ltd stock up

Rajratan Global Wire Ltd :

                                         was established in 1989, it manufactures bead wire, high-carbon steel wire with specialisation in TBW, which is bronze-coated and used in tyres and drawn steel wire known as black wire used in automobile, construction and engineering industries.

ABOUT

Rajratan Global Wire Ltd was established in 1989, it manufactures bead wire, high-carbon steel wire with specialisation in TBW, which is bronze-coated and used in tyres and drawn steel wire known as black wire, used in automobile, construction and engineering industries.

KEY POINTS :

Product Offerings

Tyre Bead wire :

                          Used in all kinds of automobile tyres, tyres of earth moving equipment and aircrafts. It prevents vibration during driving and is required for safety, strength and the durability of tyres.

High Carbon steel wire :Used in automobile, construction and engineering industries. It is also known as black wire

Market Position:

The Company is among Asia’s largest bead wire manufacturers ex-China.

The Company's subsidiary Rajratan Thailand is the only bead wire manufacturer in Thailand and has a ~25% market share there.

Rajratan India is the largest manufacturer of TBW in India with a market share of ~50%, also there is a high entry barrier in the TBW industry due to the long approval cycle by tyre manufacturers, and it's a critical product.

Clientele:

As of Q3FY21 85% of customers were associated with the company for more than five years. It services customers in India, Italy, USA, The Czech Republic, South Korea, etc.

Indian Clients : Apollo tyres, ATG, Birla Tyres, CEAT, MRF, Balkrishna, etc.

Thailand Clients : Bridgestone, Sentury Tire, Destone, etc.

International Clients : Toyo Tires, Nankang, Trelleborg, etc.

Facilities:

Presently, the company has a combined installed capacity of 1,12,000 Tonnes p.a. (TPA) of bead and black wire from its facilities in India and Thailand :-

1. Pithampur (M.P.) India - 72,000 TPA

2. Ratchaburi, Thailand - 40,000 TPA.

It undertook aggressive CAPEX programs during FY19-21 and increased its capacity from 62,000 in FY19 to 1,12,000 in FY21.

Geographical Split FY21

India - 66%

Rest of the world - 34%

Customer Concentration:

During FY21, the top 3 customers of the company contributed ~39% of total revenues of the company.

Tax Benefit:

The company's Thailand subsidiary/division will receive tax benefit on the profits reported on all the production in excess of 22,000 TPA for a period of eight years.[12] This benefit is expected to expire by 2025.

Focus:

Rajratan is largely focused on the manufacture of bead wire 87% of total capacity and 90% of revenues in FY20.

It also plans to expand its Thailand plant's capacity to 60,000 TPA by the end of FY22.

Raw Material Fluctuations:

The company is able to pass on the Raw Material price increase with a slight lag to its customers.

• Market Cap:

• ₹ 5,765 Cr.

• Current Price:

• ₹ 1,136

• High / Low:

• ₹ 1,151 / 362

• Stock P/E:

• 42.1

• Book Value:

• ₹ 67.2

• Dividend Yield:

• 0.18 %

• ROCE:

• 39.7 %

• ROE:

• 43.8 %

• Face Value:

• ₹ 2.00

Share holdings patterns:

• Promoters: 65%

• DIIs:8.04%

• Public:26.96

https://stockmarketkidunya.blogspot.com/2022/08/best-chemical-stockfundamentally-strong.html

Read More

Best Chemical Stock,fundamentally strong

 SRF Ltd.

SRF Ltd is a fundamental strong company. Its established in 1970 

SRF Limited is chemical and multi business entity engaged in the 

manufacturing of industrial and specialist intermediates the companies diversified business  portfolio covers fluor

ochemicals,speciality chemicals. 

Technical textiles and coated and packaging films and laminated fabrics.

Revenues

Chemicals Business 43% of revenues

Packaging Films Business 40% of revenues

Technical Textiles Business 14% of revenues

Other Business 3% of revenues

• Market Cap ₹ 72,775 Cr.

• Current Price ₹ 2,455

• High / Low₹  2,773 / 1,743

• Stock P/E 34.6

• Book Value ₹ 289

• Dividend Yield 0.29 %

• ROCE 24.0 %

• ROE 24.5 %

• Face Value₹ 10.0

• Sales growth 5Years 20.9 %

• EPS₹ 70.9

• Sales growth 7Years 15.5 %

• Sales last year ₹12,434 Cr.

• Debt₹ 3,655 Cr.

• No. Eq. Shares 29.6

• Promoter holding 50.7 %

• CMP / FCF277

• Price to Earning 34.6

• Sales growth 3Years 20.5 %

• 3Yrs PE2 1.9

• PEG Ratio 1.17

• Price to book value 8.50

Share Holding Pattern

• PROMOTER: 50.73%

• FIIS: 19.21%

• DII :9.37%

• Public :20.69%

SRF Stock Price Analysis and Quick Research Report. Is SRF an attractive stock to invest in?

 

Stock investing requires careful analysis of financial data to find out the company's true net worth. This is generally done by examining the company's profit and loss account, balance sheet and cash flow statement. This can be time-consuming and cumbersome. An easier way to find out about a company's performance is to look at its financial ratios, which can help to make sense of the overwhelming amount of information that can be found in a company's financial statements.

Here are the few indispensable tools that should be a part of every investor’s research process.

• PE ratio: - Price to Earnings' ratio, which indicates for every rupee of earnings how much an investor is willing to pay for a share. A general rule of thumb is that shares trading at a LOW P/E are undervalued (it depends on other factors too). SRF has a PE ratio of 42.22 which is high and comparatively overvalued .

• Return on Assets (ROA): - Return on Assets measures how effectively a company can earn a return on its investment in assets. In other words, ROA shows how efficiently a company can convert the money used to purchase assets into net income or profits. SRF has ROA of 9.47 % which is a bad sign for future performance. (higher values are always desirable)

• Current ratio: - The current ratio measures a company's ability to pay its short-term liabilities with its short-term assets. A higher current ratio is desirable so that the company could be stable to unexpected bumps in business and economy. SRF has a Current ratio of 1.43 .

• Return on equity: - ROE measures the ability of a firm to generate profits from its shareholders investments in the company. In other words, the return on equity ratio shows how much profit each rupee of common stockholders’ equity generates. SRF has a ROE of 16.86 % .(higher is better)

• Debt to equity ratio: - It is a good metric to check out the capital structure along with its performance. SRF has a D/E ratio of 0.41 which means that the company has low proportion of debt in its capital.

• Inventory turnover ratio: - Inventory Turnover ratio is an activity ratio and is a tool to evaluate the liquidity of a company's inventory. It measures how many times a company has sold and replaced its inventory during a certain period of time. SRF has an Inventory turnover ratio of 5.94 which shows that the management is inefficient in relation to its Inventory and working capital management.

• Sales growth: - SRF has reported revenue growth of 9.09 % which is poor in relation to its growth and performance.

• Operating Margin: - This will tell you about the operational efficiency of the company. The operating margin of SRF for the current financial year is 24.92 %.

• Dividend Yield: - It tells us how much dividend we will receive in relation to the price of the stock. The current year dividend for SRF is Rs 24 and the yield is 0.68 %.

Business area of the company

The Company is a chemical based multi-business entity engaged in the manufacturing of industrial and specialty intermediates. The company classifies its businesses as Technical Textiles, Chemicals, Packaging Films and Other Businesses.

Products

The company’s product portfolio broadly categorized into - Technical Textiles, Chemicals and Packaging Films.

Milestones

• 1970: Incorporated as Shri Ram Fibers

• 1973: The Company established its first plant in Manali near Chennai.

• 1974: Commenced operations of nylon tyre cord at Manali.

• 1977: Production of fishnet twines started.

• 1979: Commenced production of nylon engineering plastics.

• 1983: Commissioning of belting fabrics at Viralimalai.

• 1986: Set up SRF Finance Ltd.

• 1986: Commissioning of coated fabrics at Viralimalai.

• 1989: Entered Chemicals Business with production of refrigerants.

• 1990: Shri Ram Fibers renamed as SRF Ltd.

• 1993: Divested SRF Nippondenso.

• 1995: Commercial production of Chloromethanes.

• 1995: Ventured into Packaging Films Business.

• 1995: Started Vision Care Division at Bangalore.

• 1996: Set up the company’s first overseas plant (tyre cord) in Dubai.

• 1996: Acquired Ceat’s tyre cord fabrics plant situated at Gwalior.

• 1997: Divested Vision Care Division.

• 1997: Divested SRF Finance Ltd. to GE Capital.

• 2000: Acquired Dupont’s tyre cord fabrics plant situated at Gummidipoondi.

• 2002: Polyester films, fishnet twines and engineering plastics businesses spun off as a separate entity; SRF Polymers Ltd.

• 2004: Became the first tyre cord company outside Japan to win the Deming Prize.

• 2008: Acquired two foreign companies - Thailand based Thai Baroda Industries Limited (TBIL), a manufacturer of nylon tyre cord, and South Africa based Industex Technical Textile (Pty) Limited, a manufacturer of belting fabrics.

• 2009: Purchase of two businesses of SRF Polymers Ltd., the Engineering Plastics and the Industrial Yarn Business.

• 2009: Became the first Indian manufacturer of polyester industrial yarn (PIY) by setting up a 14,400 MT PIY for producing PIY to be used in radial tyres, conveys belts and coated fabrics.

• 2010: Ventured into Laminated Fabrics by setting up a green-field plant of 900 sqm annual capacity at Kashipur.

• 2012: Commenced operations in the newly commissioned Chemical Complex at Dahej in Gujarat.

• 2012: Wins the prestigious Deming Prize for the Chemicals Business.

• 2013: Set up a green-field facility for BOPET films in Thailand.

• 2013: Ventured into BOPP films by setting up a green-field plant in South Africa.

• 2014: Scaled up its HFC 134a capacity by three fold to around 17,500 tonnes per annum with the commissioning for its second HFC 134a plant of 12,500 tpa capacity at Dahej.

• 2015: SRF acquires Global DuPont Dymel HFC 134a Pharma Business.

• 2017: SRF inks Pact to Buy Mexichem’s HFC-125 Assets.

Read More