Abakkus Emerging Opportunity Fund Flashcards
(7 cards)
Ion Exchange
Idea generation- Structural
CMP : 531
Market Cap : 7788 Cr
ROCE : 33.8%
ROE : 26.2%
PE : 38.1
Book Value : 60.9
Stocks Price Growth(1,3,5,10) : 152%,91%,71%,50%
Profit Growth(1,3,5,10) : 15%,28%,37%,30%
Brief
Ion Exchange (India) Ltd manufactures and distributes water treatment equipment and products, which are used for a variety of treatment and conservation applications.
Market for water and water treatment chemicals is expected to witness strong growth due to focus on optimum utilization of water resources, ncreased investments by the government, industry and
rapid urbanization is expected to lead to greater demand for water treatment
The Group’s products include water treatment chemicals, exchange resins, ultra filtration and nano-filtration
membranes.
Ion also supplies bottled water, eco-friendly horticulture and total water management services.
Earnings are looking at be at inflection point.
Expect revenue and PAT CAGR of 20% over FY22-24E
Jindal Stainless Ltd.
CMP : 447
Market Cap : 36,808 Cr
ROCE : 20.8%
ROE : 19.1%
PE : 14
Book Value : 161
Stocks Price Growth(1,3,5,10) : 188%,97%,53%,40%
Profit Growth(1,3,5,10) : 2%,211%,44%,18%
Co Brief
Jindal Stainless Group-Jindal stainless (Hissar) ltd. &
Jindal stainless steel ltd. is amongst top 10 players
globally and enjoys ~50% market share of stainless steel
market in India.
Jindal stainless ltd. currently has a combined capacity of
1.9mtpa (Metric Tonne p.a.), which includes 1.1mtpa at the
Odisha plant and 0.8mtpa at the Hisar, Haryana unit. The
Company produces stainless steel slabs, HR and CR coils,
and blooms including coin blanks and precision strips
With merger underway between two group companies,
we expect progressive deleveraging/free cash flow
generation, improvement in consolidated RoCEs (because
of significantly lower capex intensity), and improvement in
valuation multiples.
Post Merger company will trade 6x EV/EBIDTA on
Rs20,000/t on expanded capacity as company will be
debt free, ROCE of 30%+, expect 55% market share in India
and dividend paying company post the merger
IIFL Finance Ltd.
CMP : 612
Market Cap : 23,311 Cr
ROCE : 11.5%
ROE : 19.4%
PE : 13.8
Book Value : 260
Stocks Price Growth(1,3,5,10) : 50%,94%,23%,36%
Profit Growth(1,3,5,10) : 26%,44%,14%,19%
Co. Brief
Idea generation -Through primary research identified
company that was ignored by investors due to
perceptions. Focus was to look at events / changes in the
company which can address market concerns and bring
the belief back (along with rerating)
Consistent and fast growing NBFC player with 90%+
granular retail book in secured lending of housing, gold
and other loans
Sizable INR 1,000+ crs of net profit, with 15% + ROE and
trading at 1.5x FY24e book value.
Allcargo logistics Ltd.
CMP : 266
Market Cap : 6,528 Cr
ROCE : 18.5%
ROE : 20.1%
PE : 38.1
Book Value : 60.9
Stocks Price Growth(1,3,5,10) : -16%,43%,26%,21%
Profit Growth(1,3,5,10) : -55%,48%,29%,14%
Co. Brief
Idea generation- Business turnaround (Events)
Companies that June benefit due to change in macro/micro
factors. Management can also trigger a course correction to
revive/accelerate growth.
Global leader in container load segment and leading fully
integrated multinational logistics company in India.
Company has set its capital allocation right by divesting
capital heavy business and improving on ROE/ROCE and
targeting to becoming debt free
Acquisition of Gati Ltd. helps Allcargo to become end to
end logistic service provider.
Have grown revenue and PAT at a CAGR of 29% and 32% in
last 5 years. Going ahead we expect steady 10-15% profit
growth with steady cash flows
Management is into the business since more than two
decades has been pioneering the Indian logistics sector
Founder successfully led Allcargo Group to a global
leadership position by leveraging well-timed organic and
inorganic growth opportunities
Stylam Industries
CMP : 1748
Market Cap : 2.963 Cr
ROCE : 31.8%
ROE : 26.3%
PE : 28.8
Book Value : 243
Stocks Price Growth(1,3,5,10) : 64%,61%,43%,61%
Profit Growth(1,3,5,10) : 51%,50%,37%,38%
Manufacturing of decorative laminates. First co to manufacture acrylic solid surface. 2% of the revenue to reach 5% by FY26
Triggers
Exports to European and South east Asian Countries. It A/cs for 2/3rd of its revenue. It is now India’s second largest Laminate exports after Greenlam.
Korean/Chinese are dumping acrylic in India.Mgmt is confident govt will impose anti dumping duty.
Segment to grow at 54% CAGR over FY23-26E
CAPEX plan in place to support strong growth.
Market share gain to continue.
Saregama India
Carasyl Limited
