Deepak Fertiliser Shares Analysis | Deepak Fertiliser Shares Fundamental Analysis

Deepak Fertiliser Shares Fundamental Analysis

Reduced loan: 840cr in 2021
Reduced pledging

  1. Industry chemical - Pharma - IPA and others
  2. Mining chemical - cement, Power, Coal
  3. Agri chemical -

Shift From china to India => nitric acid business
Commodity to Speciality Chemical
Cost optimizing - margin improvement

over the last now more than a decade all are the three businesses that we are into that is industrial chemicals mining chemicals and fertilizers all three we are finding are beautifully aligned with the India growth story.

We still have around 15 to 20 percent headroom in our capacities.

key raw material  for all the three businesses => ammonia  => backward integration
logistics costs => half a million tons in a year => 70 to 80 dollars per ton
ammonia facility next door to our current complex
March 2021 => 1500cr investment
Plan => 24 to 36months
next two yer => 1350cr per year

Tip: in the future ammonia can be used as fuel as scientists suggest.

LNG prices => global LNG prices on a longer-term basis are indeed soft and very attractive and that LNG is the key raw material for our ammonia project so that is something that we are looking at
rate of return (RR): 18-20% from ammonia plan because of the low value of LNG

it's a huge import substitution Aatmnirbhar Bharat project and we could be looking at somewhere close to 25 000 crores in a 10-year period that could be something that would be a forex saving.

From product to solutions
in the fertilizer business unlike the traditional method of focusing on the product whether its urea and pk ssp you know instead of the product focus kind of an approach that typically is there in the industry we are moving towards a more holistic solution-oriented approach where we are looking at a nutrient basket for sugarcane a nutrient basket for cotton a nutrient basket for fruits and vegetables so we are bringing about a complete shift from product to solutions and they shift from customer to consumer so instead of focusing on the channel we are going to be focusing on the farmers.

performance fertilizers

Laurus Labs Shares Analysis | Laurus Labs Shares Fundamental Analysis

Laurus Labs Concall takeaways-:

* Crams including FDF and API are more than 25% currently.
* 80% of Future Capex in Non ARV.
* Huge FTF and Para IV opportunities post 2025 where drug market size is more than billion dollars.
*Expertise in Chiral chemistry, High potent capabilities.
* Will be among the top 5 Indian players according to reactor capacity soon.
* Have developed New complex API's in Non ARV space.
* 1500-1700cr capex plan by end of FY23, 213 capex done in this quarter.
* New 500cr capex will be happening in CDMO. Asset turn will be around 1.4.
* CDMO- Multiple opportunities here due to their process innovation expertise and reactor capacity.
* Acquiring 25 acres of land which will have the potential for 3-4 million litres fermentation capacity. In phase 1  will start with 1 million litres.
Current Capacity -1.8 lakhs by Q3.
I feel a long runway for growth with multiple levers is in place. CDMO and Biologics will be the future growth drivers and with the impeccable execution capability and chemistry expertise of the company, Laurus will positively surprise us every now and then.
Invested and biased

Deepak Nitrite Analysis | Deepak Nitrite Shares Fundamental Analysis

Deepak Nitrite Shares Fundamental Analysis

Deepak Nitrite FY 2021 AGM notes
  1. Dahej 02 new CAPEX coming at 125 acre
  2. To enter the Fluorination process to create advanced intermediates for life science products
  3. FY 21 investments
  4. Deepak Nitrite: 350 cr
  5. Deepak Phenols: 750 cr
  6. R&D spends is up 2-3X
Brownfield expansion of IPA is also nearing completion which will double our IPA capacity to 60,000 MTPA. Probably it will available in Q2FY22.

Capex Programmes 

  • We have committed around ` 300 Crores towards new products in the immediate future at newly acquired land at Dahej. In addition to this, 
  • another amount of around ` 100 Crores has been committed in various brownfield expansions of existing products. We are also doubling IPA capacity at our Dahej (DPL) plant.

Management Plans

  1. Based on the encouraging demand trajectory, we have initiated key capex projects during the fiscal. This includes land development at our newly acquired Dahej site, comprising 55 acres out of total 127 acres in the first phase. This facility will support capacity enhancement for key products in the standalone business. 
  2. Brownfield expansion of IPA is also nearing completion which will double our IPA capacity to 60,000 MTPA, and other existing products are being expanded inline with market growth. 
  3. Forward integration projects based on phenol and acetone is currently being finalized, and shall be launched soon. 
  4. In another important development, we will be investing around ` 300 Crores into new products based on environmentally friendly technologies for agrochemical and pharmaceutical intermediates. 
  5. We are also in the process of building a world-class Technology Centre at Vadodara which will further strengthen our R&D and piloting capabilities. 
  6. In terms of our technology platforms, we have further developed our competency in nitration, reduction and diazotization – and also added new platforms like fluorination and photochlorination.

Deepak Nitrite Concall Snippets (Q1FY22)-:

  1. New capex of 300Cr in Deepak Nitrite for Lifescience Chemicals with end-use in pharma and agrochemicals.
  2. New capex of 700cr in Deepak phenolics will be downstream and having applications in paints and coatings.
  3. Both import substitutes.
  4. Demands growing at very high rates in both the products they will be developing. 
  5. They will domestically be #1 in those segments.
  6. Also adding platforms of Fluorination and photochlorination to their existing platforms. These will work in synergies with current platforms.
  7. Process intensification and Product development are the key pillars for continuous margin improvement and gaining relevance globally.
  8. A lot of opportunities are coming but will invest only in those projects where we have a high degree of certainty in succeeding and synergies.
  9. Fine and Specialty business margins were affected due to high freight costs as a lot of exports from that division and in some contracts freight is on their end.
  10. DASDA prices have started to normalize.
  11. Asset turns of minimum 2x in our every project.
  12. We are in discussions with couple of global innovators  for long term contract opportunities. Will inform when something finalizes.
  13. There will be fungibility in all our new projects.We will be able to make several products and they will be decided according to mkt scenario.
  14. *Our goal is to use 35% of our phenol capacity captively. There is also scope of debottlenecking for phenol.
  15. *Brownfield projects not included in current capex guidance.
  16. *IPA capex will contribute from Q3.
  17. *Will get in only those products where they can be among top 3 globally

Best monopoly stocks in India | Listed monopoly companies in India

Best monopoly stocks in India

1. IRCTC 100% Market share in Rail Network.

2. IEX >90% market share in power trading.

3. Zydus wellness >90% market share in sugar free product.

4. Eicher motors >85% market share in 250cc bikes category.

6. Coal India >80% market share in coal production in India.

7. ITC >75% market share in cigarettes.

8. Honda Siel >75% in portable power generators.

9. Hindustan Zinc >75% market share in primary zinc industry.

10. Asahi India Glass >70% market share in automotive glass.

11. NRB Bearings >70% market share in needle roller bearings.

14. Time Technoplast >65% market share in polymer based industrial packaging.

15. Concor >65% market share in domestic container cargo transport.

16. Exide >60% market share in lead batteries.

17. Naukri >60% market share in the Indian job market space.

18. Praj >60% market share in ethanol plant installing.

19. Indiamart Intermesh >55% market share in the online B2B Classified space.

20. Borosil Renewables >55% market share in Lab glass.

21. Vst Tillers >50% market share in Power tillers.

23. Vinati Organics >50% market share in IBB.

25. LMW >50% market share in textile machinery.

26. Bajaj consumer >50% market share in almond hair oil.

27. Asian paints >50% market share in decorative paints.

30. PGHH >50% market share female care & vaporub.

31. La Opala Rg >50% market share in opalware.

32. HLE Glasscoat >50% market share in filtration & drying equipment.

33. Maruti suzuki >50% market share in passenger cars.

34. APL Apollo >50% market share in structural & pre galvanized tubes.

35. GMM pfaudler >50% market share in glass lined equipment.

36. Marico >40% market share in hair oil (coconut) & edible oil.

37. HUL >40% market share in soaps, household products.

38. Nestle >40% market share in Instant noodles. >95% in infant nutrition.

39. Blue dart >40% market share in air express courier service.

40. VIP >40% market share in luggage.

41. USL >40% market share in spirits/whisky.

42. UBL >40% market share in beer.

43. Sundram fasteners >40% market share in fasteners.

44. Nocil >40% market share in rubber chemicals.

45. Gillette >40% market share in razors & blades.

46. Alkyl Amines >40% market share in DMAHCL.

47. TTK Prestige >40% market share in pressure cookers.

48. Hero Motocorp >35% market share in 2 wheelers.

49. Reliance >35% market share in telecom.

50. Britannia >35% market share in biscuits

Why HDFC AMC is going Down? | HDFC AMC Share Target | HDFC AMC Share Latest News |

Why HDFC AMC is going Down?

There are reasons for that
  1. Algorithm-based trading platforms are coming to market. and they don’t need AMC companies.
  2. Passive investing based platforms like index funds, ETFs are coming to market by discount brokers like Zerodha
  3. More companies are entering the market so huge competition will be there.
  4. In the future, there will be huge pressure on margins so the market is not liking and not confident.
  5. Most of the equity funds from HDFC AMC are not doing well and management seems unconcerned. Unitholders are quitting as fund managers lack the skills to outperform the index.
  6. At 3100 prices its PE is 50 (to be noted it's not small-cap , it's Large-cap), which is mostly given to high growth (top line) + high profit margin (bottom line) stocks. now market doesn't have confidence in the high margin in future. so it's getting discounted

Which IT stocks will be good for 3 years from 2021?


TCS (Technology services)

  • Company is almost debt-free.
  • Company has a good return on equity (ROE) track record: 3 Years ROE 37.41%.
  • Company has been maintaining a healthy dividend payout of 54.58%.

INFOSYS (Technology Services)

  • Company is almost debt-free.
  • Company has a good return on equity (ROE) track record: 3 Years ROE 25.39%.
  • Company has been maintaining a healthy dividend payout of 54.63%.

WIPRO (Technology Services)

  • Rising Net Cash Flow and Cash from Operating activity.
  • Company with high TTM EPS Growth.
  • High Piotroski Score with High Return on Equity (ROE) and EPS Growth.

HCL (Technology Services)

  • Company is almost debt-free.
  • Company has been maintaining a healthy dividend payout of 21.50%.
  • Company's median sales growth is 19.49% in last 10 years.

Larsen and Toubro (Industrial Services)

  • Company has been maintaining a healthy dividend payout of 32.82%.
  • Stock is trading at 2.76 times its book value.

MPHASIS (Technology Services)

  • Company has been maintaining a healthy dividend payout of 67.29%.
  • Promoter holding has decreased over the last 3 years: -4.35%.

Don't Worry these stocks will perform well in the upcoming Years.