#CFF
~Cmp - 352 Rs.
~Mkt Cap - 685 Cr
~Sector - Defence ( Moat)
1. A Pure play Defence Co. Manufactures Critical Component Systems and Test Facilities for Submarines and Surface Ships for Indian Navy. Experts in Naval Vessels Equipment, specially Submarines (Only player)
π§΅
~Cmp - 352 Rs.
~Mkt Cap - 685 Cr
~Sector - Defence ( Moat)
1. A Pure play Defence Co. Manufactures Critical Component Systems and Test Facilities for Submarines and Surface Ships for Indian Navy. Experts in Naval Vessels Equipment, specially Submarines (Only player)
π§΅
2. The Company's facilities are situated at Khopoli and spread over 6,000 sq. mtrs., with state-of-the-art Machinery and Testing facilities.
3. Co. Came with 86cr IPO and post issue Promoter Holding is 73.3%
3. Co. Came with 86cr IPO and post issue Promoter Holding is 73.3%
4. CFF has done a Revenue of 71Cr for FY23 . As per DRHP Projected Revenue can be 140 Cr for FY24.(27%OPM).
5. All other Pure Defence Companies like Data Patterns ( 40% OPM , MCap 20x Revenue) , MTAR ( 22% OPM , Mcap 13x Revenue) whereas CFF has 26% OPM but Trades at 5x of the
5. All other Pure Defence Companies like Data Patterns ( 40% OPM , MCap 20x Revenue) , MTAR ( 22% OPM , Mcap 13x Revenue) whereas CFF has 26% OPM but Trades at 5x of the
valuation in terms of Mcap/Sales for FY24
6. Co. has completed 186cr orders till now and sitting on 150 cr order book , hence giving visibility to FY24
7 Post IPO Co.aims to use IPO money of 86Cr to build Infrastructure to execute orders upto 500Cr.
6. Co. has completed 186cr orders till now and sitting on 150 cr order book , hence giving visibility to FY24
7 Post IPO Co.aims to use IPO money of 86Cr to build Infrastructure to execute orders upto 500Cr.
8. Co is Planning to expand into Nuclear sector, Missiles , Aerospace and Drones.
9.Last 3 yrs CAGR is 94% EBIDTA is 57% and PAT is 142%. Clear case of operating leverage playing out.
9.Last 3 yrs CAGR is 94% EBIDTA is 57% and PAT is 142%. Clear case of operating leverage playing out.
10. Very high Entery barriers and No Competitor in the India.The facility is Indian Navy, MDL & Naval Group (France) approved and has ISO 9001:2015 Certification for Quality Management Systems.
11. Nereides - A French Company, engaged in manufacturing of Towed Wire Antenna. Co. has an agreement for technology transfer, process development manufacture of Towed Wire Antennae for the Indian Navy, and also exports to foreign countries.
12. Co has strong R&D Culture. They have developed a Titanium Air Bottle used to steer the Akash missile. They also developed a Turbocharger for T92 tanks.
13. Minerva Issartel is in the business of design and manufacture of complex parts for energy, transport, and defense industries and co. works jointly to support Minerva Issartel products and services in the Indian market, including the Nuclear industry and the P75 Project.
14. Other Products being developed are Infrared Suppression Systems ( Reduces Digital Signature of Ships ) , Magazine Fire Fighting Systems ( to extinguish fire in explosive compartments), Steering Gear , Fuel Cell manufacturing for Submarine.
15. They are Authorised and Single Source Vendor both on Procurement as well as Servicing for the period of exclusivity is 30 years for Scorpene Submarines.
16. Scorpene maintenance is a continuous Cash Cow. These submarines are Repaired every 3 months ,
16. Scorpene maintenance is a continuous Cash Cow. These submarines are Repaired every 3 months ,
with major refits happening every 18/36 months.
17. India has 6 Scorpene Class Submarines ( 6th under process ) and orders for 3 more Expected soon.
17. India has 6 Scorpene Class Submarines ( 6th under process ) and orders for 3 more Expected soon.
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