28 Comments
Jan 28, 2023Liked by Tar

A good detailed write up on the company

There’s a company by the name of Pracheen Chemicals based out of Gujarat who make the same products as Sigachi, namely MCC and CCS and nearly 70-75% of their revenue comes from Sigachi

So the question is raised here is does Sigachi actually make MCC at their Gujarat plants??

Because they always refuse for plant visits whenever requested

Also if you see their cash conversion is very poor, hardly any of the EBITDA is converted to OCF

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Nice explanation sir.

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Wonderful report. Expect more such reports. Good work done.

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Great analysis

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Jan 29, 2023Liked by Tar

Thanks for the detailed blog

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Thanks for valuable information

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Jan 28, 2023Liked by Tar

U missed 315 crores fund raise part for a 1000 cr company . Might be another earnings trigger?

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Very nice and easy to understand. I applied volume profile to sigachi’s chart and it shows the POC at 342 and anchored VWAP at 352. Safe to go long once stock can close above those levels. Thanks for providing a detailed business analysis of the company.

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Great work bro, 1 question isn't your discount rate of 8% and 10yr terminal multiple low.

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Jan 28, 2023·edited Jan 28, 2023Liked by Tar

Incisive and well-researched. Thanks. I liked your conclusion that it would be better to be a trader than an investor here.

Also I read that the company is in the process of issuing convertible warrants to promoters, their relatives, KMP etc and certain non promoters. The convertible warrants are to be issued at an issue price of Rs 285.30. The details are available at https://www.bseindia.com/xml-data/corpfiling/AttachHis/9f265fae-4eda-4275-b1d8-aac79e9d8169.pdf.

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It's a great and detailed summary on Sighachi. I loved specially the red flags mentioned in it. One should know the risks before thinking for investment. Thank you for sharing this analysis.

Best

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Thank you for your quality content.

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Really good write up Sir. I was following the company from last quarter. I had completely missed the rental expenses part during my studies.

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Anything multiplied by 0 is 0. Clearly the management's behavior is unethical (just like Rolex Ring promoters). Bad management produces negative surprises.

Great post Tariq. Thank you for sharing this.

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