Raghav Wadhwa
Raghav Wadhwa

@raghavwadhwa

24 Tweets 9 reads Nov 03, 2023
🫕 Food Industry Proxy Play: Axtel Industries Ltd
⚡️Great set of Q2FY24 results
⚡️QoQ⬆️
⚡️YoY⬆️
🤑104% surge in last 6 months
⚡️Detailed Company Analysis📚👇
⚡️Axtel Industries Ltd.:
🔹Incorporated in 1991, is a specialist in engineering process systems for the food industry.
🔹Engaged in the business of Manufacturing of food processing plant & machinery.
🔹It is recognized for expertise in Turnkey Systems, Product Development and Customer Service.
🔹Offering diverse process solutions throughout the food processing value chain, from raw ingredient handling to the final processing stages.
🔶Key Metrics:
🔹M Cap: ₹ 1,023 Cr
🔹Current Price: ₹633
🔹P/E Ratio: 33.5
🔹ROCE: 26.2%
🔹3 Years Sales Growth: 21.8%
🔶Solutions Offer:
⚡️Solutions for Chocolates & Confectionery:
🔹Co offers diverse solutions for chocolates & confectionery production, from paste mixers to molding lines & cooling tunnels.
🔹Provides solutions like Powder Handling & Batter Making Systems, Chocolate Storage Tanks
⚡️Ingredients Management Systems:
🔹Co automates the handling of diverse ingredients, from bulk to micro quantities, starting from the receipt of raw materials.
🔹Granular & powdered ingredients are pneumatically conveyed & stored in silos, while liquids are pumped into tanks.
⚡️Size Reduction Systems:
🔹Co provides diverse grinding solutions for various size reduction needs, considering the unique structure of each food ingredient.
🔹Customize grinding methods for the desired particle size, using either shearing or impact force.
⚡️Sieving Systems:
🔹Sieving systems are used for varied applications including classifying, grading, de-lumping, segregating agglomerates and foreign particles.
🔹To prevent the contamination of powdered food ingredients during further processing.
⚡️Mixing Systems:
🔹Co offers various mixers which are used for multiple powder mixing applications like gentle homogenizing, intensive deagglomeration, dispersion, flavor distribution & coating.
🔹Applications: Spice blends, Seasonings, Bakery pre-mixes, Instant, Tea blends etc.
⚡️Spices Processing Systems:
🔹Co's advanced spice processing systems are a technological wonder, ensuring a clean and dust-free processing of whole spices, cleaning to grinding and mixing.
🔹Offers Hammer Mills, Big bag handling stations, Rotary Sifter etc.
⚡️Steam Sterilization Systems:
🔹Company's steam sterilization systems are used for reducing microbiological pathogens present in whole spices.
🔹 It is a cyclic process comprising of pre-vacuum, steam injection, drying and cooling.
⚡️Customized Processing Solutions
🔶Manufacturing Facilities:
🔹The company's manufacturing facility is in Halol, covering 40,000 sq. mts., including 15,000 sq. mts. of manufacturing space.
🔹This facility is planned to manage multiple projects and achieve large production volume.
🔹The manufacturing capabilities include a state-of-the-art Laser Cutting Centre, Water Jet Cutting, Inverter based TIG Welding Machines, CNC Forming Machines, Grit Blasting, Painting and Polishing facilities.
🔶Industries Served:
🔹Confectionery
🔹Snack Foods
🔹Nutraceuticals
🔹Bakery & Biscuits
🔹Instant Mixers
🔹Beverages
🔹Extruded Foods
🔹Dairy Products
🔹Malted Drinks
🔹Species, Condiments & Seasoning
🔹Aqua Feed
🔹Ready to Eat Foods
🔶Geographical Split (FY23):
🔹India: 88.62%
🔹Rest of the World: 11.38%
🔶Wenger USA:
🔹The Co has a long-term association with Wenger Inc., USA for food/feed extrusion systems and Anu Tec GmbH, Switzerland for powder handling systems.
🔶Clients:
🔹Advani Wilwar
🔹Everest
🔹Bikaji
🔹Britannia
🔹Jubilant Food Works
🔹Marico
🔹Priya Gold
🔹Tata Coffee
🔹Nestle etc.
🔶Key Highlights:
🔹Co has over 25 years of experience providing custom solutions for the Food Processing Industry.
🔹Net cash flow became positive at ₹5 Cr due to a record-high operating profit of ₹30 Cr.
🔹Company is almost debt free.
🔹Promoter Share Holding stayed at 49.95%.
🔹Over the last 5 years, market share increased from 0.14% to 0.17%.
🔶Q2FY24 Financial Highlights:
🔹Revenue from Operation at ₹69 Cr⬆️44% QOQ and 64% YOY.
🔹Operating Profit at ₹17 Cr⬆️143% QOQ and 183% YOY.
🔹PAT at ₹12 Cr⬆️140% QOQ and 140% YOY.
🔹EPS at ₹7.38⬆️124% QOQ and 155% YOY.
🔶Industry Overview:
🔹The Indian food and beverage market has experienced substantial growth in recent years.
🔹Indian consumers allocate a significant portion of their disposable income to food and essential commodities.
🔹Packaged and ready-to-eat foods thrive in urban areas due to time-saving convenience and health-conscious preferences.
🔹Economic growth in developing nations is expected to propel the market demand for food processing machinery & equipment.
🔶Vision:
🔹To establish as the leading supplier of process engineering equipment to the food, pharmaceutical and chemical industries.
⚡️Disclaimer: The above data should not be considered as a Buy or Sell recommendation.
The analysis has been done for educational and learning purpose only.
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