Unlisted Shares

Revenue Growth: 

• Revenue surged by 24% year-on-year in FY23, setting a new record of ₹ 550+ Cr, driven by a robust sales performance. Revenue from CPC and ECP segments grew by 23% and 51% year-on-year, respectively, despite their combined contribution to consolidated revenue totaling only 6.1%.
• ​The company's PAT (profit after tax) experienced a substantial decline of 71% year-over-year in FY23 due to a combination of factors, including escalating raw material costs and rising finance costs. PAT has grown at 11 year CAGR of 16%
  

Profitability: 

• Intense competition in FY23 led to a decline in profitability.
• A sharp increase in raw material prices due to crude oil volatility impacted margins.
• Severe logistic issues, including higher freight costs, further exacerbated profitability issues.
• IOC Ltd's Pay and Carry Policy for Indian RPC resulted in a significant increase in inventory carrying costs.
• The cumulative effect of these factors led to a steep decline in ROE, ROCE, and ROA.

Investment Thesis: 

• CPC market growth is fueled by rising demand from diverse industries, including aluminum and steel, lithium-ion battery manufacturing, graphite and electrode production, cement, and power generation.
• India's "aluminum revolution" is driving demand, spurred by national projects like Vande Bharat trains, Urban Metro Rail expansion, renewable energy initiatives, and electrification efforts.
• Despite challenging market conditions, the company has successfully expanded its market share. With crude oil prices stabilizing, profitability is expected to surge significantly.
• The company currently boasts an appealing P/E ratio of 11 and a P/B ratio of 0.6, which stand out favorably against the industry's average of 12. Although the stock has faced recent challenges due to ongoing profitability issues in FY24, long-term investors may find it beneficial to hold or accumulate, anticipating potential profits upon a return to its historical highs of ₹1380. Conversely, short-term holders facing liquidity concerns are advised to book profits.
  
  

Key StakeHolder: ​Oxbow Calcining LLC, USA the largest and most diversified producer and marketer of calcined petroleum coke globally, with calcining plants in North and South America has a 30.66% holding in the company.