Apex frozen  –

Apex have 15000 MTPA capacity , where they have taken 6000 MTPA capacity on Lease from Royal Marine.

They are coming up with capacity of 20000 MTPA at end fy 18.

They paid 100 million as processing charges to Royal marine in fy 17.

5000 MTPA in the new capacity is for high value cooked products.

Due to saving on processing charges of 100million and addition of high value products the margin will expand. 

Capacity utilization of 48% in fy 19 and 71 % in fy 20 is expected.

One can feel if a company has taken 63% capacity on lease, then it is surely expecting a lot more growth and have ample orders in hand .

With EPS estimate of 16 in fy 18 and 22 in fy 19 there is room for ample growth .

The business model is different than of Avanti feeds as  in avanti major part of revenues comes from feed where as in APEX shrimp processing is major revenue source.

Only risk in shrimp sector is natural calamities in terms of cyclone and spread of disease so these factors have to be taken into stride.  

CENTRUMCAPITAL – AGM NOTE .

CENTRUMCAPITAL – AGM NOTE .

I attended the AGM yesterday, sharing my observations –

MFI -

Company will receive MFI license in a months’ time  and are planning to take over a MFI company.

As after demonetization valuation of MFI companies have come down by 1/3^Rd so it best suited for the company to buy a MFI business.

Company want to enter MFI as it will felicitate the social engagement , which in turn will make them eligible for various licenses they will apply in future, (here the hint is that 3-4 years down the line company may apply for banking license). UJJVAN and EQUITAS got banking license as they had strong presence in MFI sector.

HFC –

12 branches are operational in M.P and Gujurat and now entered Maharashtra by end Fy 18 they will have 20 branches in HFC division .

In cities like ANAND , BHARUCH , UJJAIN ,NAGDA no financial instutition is lending to NON salaried class which is huge market.

Motilal oswals HFC arms Aspire lends to NON salaried aggressively in pune and other cities that is one of the reason that they have grown very fast .

In my view in next 1 year per branch can easily disburse 80-100 crore which can take the HFC loan book to 1500 -1800 crore.

Forex -

Company is  very bullish on forex business and will continue expanding that.

Presently 23 million people are travelling and are expected to go upto 100 million in next 10 years.

SME Lending –

Huge part of MSME segment is still not financed by the banks and NBFCs, company is bullish on SME sector too .

Mr bindra said that when economy is growing by 6-7 % then the leding sector grows by 3x i.e 18-21 %

So the opportunity is huge and they plan to expand keeping risk and NPA’ in control.

Presently company have staff size of 2000 people and growing .

Mr bindra said that company is very well placed for capex for next 5 years.

PROMOTER HAVE PLANS TO HIKE STAKE IN THE COMPANY

I feel there are much better days ahead for the company and shareholders.

YASH PAPERS : Have all traits of a multibagger

YASH PAPERS –

Company came out of CDR and have invested 54 crores in the new plant

They have launched a moulded paper product segment where they are making various sizes Plates,Bowl,Containers,Lids & Trays under Brand name is Chuck.

Its made from bagasse a by product after sugarcane crushing in sugar plants.

Company’s plant is in UP and they get ample baggase at almost free.

Company already supply paper carry bags and paper trays to MacDonald’s, Kfc , pizza hut ,Waco and yum.

They have big order in hand from us market for Paper tray products and have started supplying to the US markets .

CHUCK is a high margin product which will improve overall margin of the company.

Fy 18 they are expected to do 225 crores sales and 14 -17 crore pat.

So We are getting the company at 5 PE of fy 18 Earnings.

Promoter have allotted 29.3 lakhs warrants in July 2017 Which is 9% of equity So the promoter shareholding will go substantially up .

Recently there is institutional interest in the company and some share placement may be done soon.