#01 Highlights: India’s first tech-enabled listed B2B marketplace for construction materials, Aiming for 50,000 crore in revenue with 1,500 crore in EBITDA 💼
Shankara buildings is also one of the peers. Here there is one more opportunity that company is planning for demerger. Previously APL Apollo was also one of the major investor which recently sold all its share in Shankara.
Great write up, I discovered this company through this article, so thank you for this. I have few questions please if you can help to answer.
1. The management has recently reduced the guidance, your views on it ?
2. Can you explain the history of stock split or bonus in the last 2 years in simple terms (if it is relevant to understand this
3. The promoter has some history where SEBI took some regulatory action in 2020 wherein the promoters where barred to buy/sell securities for 2 years due to alleged violations, does this impact our investment thesis ?
Hii Sanket , Glad that you liked the newsletter. Coming back to your questions
1. Management basically said this "The guidance is based on sales volume, not on value due to the recent fall of steel prices."
- Q4 Revenue Guidance: The revenue for Q4 is expected to be between 1,500 to 1,700 crores, with potential for 1,800 crores if the construction industry picks up.
- The sales volume target of 1.2 to 1.5 million tons for FY25 will be achieved, but the revenue will depend on steel prices.
Means if steel prices go up, The guidance will be intact for FY25, If not still they will be reaching guidance in terms of volume
2. SG Mart Ltd. was previously known as Kintech Renewables Ltd. The name change from Kintech Renewables Ltd. to SG Mart Ltd. occurred on November 2, 2023
SG Mart was taken over by Meenakshi and Dhruv Gupta, relatives of Sanjay Gupta of the APL Apollo group, through an open offer at Rs 450 per share.
3. Promoter regulatory action - You got your answer if you are talking about the previous promoters. else you can google it.
At last , Requesting you to connect with me on X (Handle Name - 'The Investor lens') where I posted Detailed summary notes in my post.
Share newsletter with your family , friends if find it valuable.
Not really, 3rd point is for Sanjay gupta (new owner) but I guess it’s not a big deal. 2nd point is also related to the new management wherein they split their shares twice. But I am not sure what all things happened there, seems very complex
Shankara buildings is also one of the peers. Here there is one more opportunity that company is planning for demerger. Previously APL Apollo was also one of the major investor which recently sold all its share in Shankara.
Will give it a Read. Drop your investment thesis if you have done your analysis.
Revenue data is wrong.
Q1FY25 Qtrly revenue has degrown from 1277m to 1144m(Q4FY24).
Revenue for FY24 was 2683cr and not 3600cr.
Hii Chirag,
Thank you so much for your comment.
updated it with correct details
Great write up, I discovered this company through this article, so thank you for this. I have few questions please if you can help to answer.
1. The management has recently reduced the guidance, your views on it ?
2. Can you explain the history of stock split or bonus in the last 2 years in simple terms (if it is relevant to understand this
3. The promoter has some history where SEBI took some regulatory action in 2020 wherein the promoters where barred to buy/sell securities for 2 years due to alleged violations, does this impact our investment thesis ?
Hii Sanket , Glad that you liked the newsletter. Coming back to your questions
1. Management basically said this "The guidance is based on sales volume, not on value due to the recent fall of steel prices."
- Q4 Revenue Guidance: The revenue for Q4 is expected to be between 1,500 to 1,700 crores, with potential for 1,800 crores if the construction industry picks up.
- The sales volume target of 1.2 to 1.5 million tons for FY25 will be achieved, but the revenue will depend on steel prices.
Means if steel prices go up, The guidance will be intact for FY25, If not still they will be reaching guidance in terms of volume
2. SG Mart Ltd. was previously known as Kintech Renewables Ltd. The name change from Kintech Renewables Ltd. to SG Mart Ltd. occurred on November 2, 2023
SG Mart was taken over by Meenakshi and Dhruv Gupta, relatives of Sanjay Gupta of the APL Apollo group, through an open offer at Rs 450 per share.
3. Promoter regulatory action - You got your answer if you are talking about the previous promoters. else you can google it.
At last , Requesting you to connect with me on X (Handle Name - 'The Investor lens') where I posted Detailed summary notes in my post.
Share newsletter with your family , friends if find it valuable.
Not really, 3rd point is for Sanjay gupta (new owner) but I guess it’s not a big deal. 2nd point is also related to the new management wherein they split their shares twice. But I am not sure what all things happened there, seems very complex
Yeah, management issue needs to be addressed. Can you share some more details / sources
https://www.bseindia.com/xml-data/corpfiling/AttachHis/bf945bae-b750-4c7a-a240-29dd212f3933.pdf
Thank you once again, I have already followed you on X.