Alicon Castalloy - Working On A Multi-Pronged Strategy: Prabhudas Lilladher

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Prabhudas Lilladher Report.We visited Alicon Castalloy Ltd.’s plants in Chinchwad, Pune. The company highlighted clear strategy for reducing mix of highly competitive and lower margin two-wheeler business by- increasing share of four-wheelers,increasing presence in electric vehicles,scaling up revenue from global markets, andfocusing on technology products and solutions. Alicon aims to ramp-up new business segments for strong revenue growth, while its existing business is expected to decline over the medium term. The company has received big orders from JLR for e-axle, cylinder heads from Toyota, PSA, Maruti Suzuki India Ltd., Daimler, etc. which will increase four-wheelers mix. Also, substantial jump in content per vehicle from ICE to EVs can provide much higher revenue potential. The company expects two-wheeler volume to grow at low single digit, with higher growth in two-wheeler EV and premium segment and thus is reducing focus on the segment. We believe ramp-up of new businesses and change in mix will help expand revenue and margins for medium term. Alicon aims to reach revenue of Rs 16 billion in FY24 and Rs 22 billion in FY25 with Ebitda margin of 14% over next three-four years. A strong and expanding order book gives confidence in the company’s ability to achieve its targets of revenue and mix. The stock trades at 20.2 times price-to-earning FY24 Bloomberg consensus..Click on the attachment to read the full report:.Praj Industries - Compressed Bio Gas, SAF To Drive Bio-Fuel Theme Post EBP-20: Prabhudas Lilladher.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Alicon Castalloy - Working On A Multi-Pronged Strategy: Prabhudas Lilladher

Strong order book of Rs 140 billion to be executed over next seven years.

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Alicon Castalloy - Working On A Multi-Pronged Strategy: Prabhudas Lilladher

Strong order book of Rs 140 billion to be executed over next seven years.

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