Levered

[Levered @Levered007]

Blockbuster 🔥

#borana
#boranaweaves

[Levered @Levered007]

Expect blockbuster results today.

#boranaweaves

[Levered @Levered007]

Expect blockbuster results today.

#boranaweaves

[Levered @Levered007]

Business insights on borana weaves

#boranaweaves

[Levered @Levered007]

@SureshKBN Yes, you could see margin expansion of 1-2% in many textile companies going forward as raw material will get cheaper.

[Levered @Levered007]

@VakhariaBhumil @nid_rockz Cashflow is negative due to temporary ipo adjustments, otherwise it is high cashflow business (Max 60-75 days credit to customers) . To double capacity they will need around 150-200 Crores so they might take some debt but most of the project should be funded by internal accruals.

[Levered @Levered007]

@VakhariaBhumil @nid_rockz Studied the DRHP and then talked to some friends and family from same industry.

[Levered @Levered007]

Business insights on borana weaves

#boranaweaves

[Levered @Levered007]

@VakhariaBhumil @nid_rockz The weaving machines have faster payback like max 2-3 years if you run efficiently and your product has continuous price and demand support.
The fabric they sell is universal and have good demand as of now.

[Levered @Levered007]

@VakhariaBhumil @nid_rockz Yes, there’s no special moat in the business but the scale they have achieved makes them first choice for buyers because they know they can get any quantity and consistent quality, because of this they get some premium as well despite being in commodity business.

[Levered @Levered007]

@VakhariaBhumil @nid_rockz Many are doing it and much more capacity is being added but most of them operate at very small scale, so for them backward integration is not possible and without backward integration your operating margin goes from 20% to 10% and efficiency also drops.

[Levered @Levered007]

@VakhariaBhumil @nid_rockz The thing is life of machines is max 15 years, so there is replacement capex after 15 years, so depreciation is somewhat real expense for them.

[Levered @Levered007]

@VakhariaBhumil @nid_rockz The weaving machines have faster payback like max 2-3 years if you run efficiently and your product has continuous price and demand support.
The fabric they sell is universal and have good demand as of now.

[Levered @Levered007]

Should do well in coming years as well if they execute well.

#Boranaweaves

Disc- Invested from lower levels

[Levered @Levered007]

@SureshKBN Borana weaves trading at less than 10x PE

[Levered @Levered007]

@SureshKBN Borana weaves trading at less than 10x PE

[Levered @Levered007]

@WeekendInvestng #politicians

[Levered @Levered007]

@WeekendInvestng Why fix the system when it hides your loot?

[Levered @Levered007]

@SureshKBN Can you state the conditions?

[Levered @Levered007]

@SureshKBN @ItsVinay01 Any views on polycab result?

[Levered @Levered007]

@SureshKBN Elecon - supplies gearbox ,MHE to steel & cement plants
RHIM,Vesuvius,ifgl - refactories
Thermax - boilers etc
Triveni turbines

[Levered @Levered007]

@SureshKBN Any view on elecon result
Result was good but market some how didn’t appreciate it.
Concall was also good indicating strong domestic demand

[Levered @Levered007]

@Atulsingh_asan Average/Bad results actually.
FY 24 sales - 26 crores
FY 25 Sales - 21 Crores
Sales degrowth
Profit degrowth aswell
FY 24 - 2.5 crores
FY 25 - 86 lakhs
Operating cashflows has also deteriorated.

[Levered @Levered007]

Sharp recovery in Japanese market.

Think BOJ has intervened again.