Deepawali Greetings

Dear Blog Members,

May the festival of lights bring  peace,  prosperity and endless joy to your life.

Wishing  you and your family a very Happy Diwali !

Nikhil Adhesives Limited

CMP = 102

 

Nikhil Adhesives Ltd is a multi-product manufacturing company and incorporated in 1986. The company manufactures speciality adhesives and emulsion through its five manufacturing facilities in Dahanu (Maharashtra), Silvassa (Dadra Nagar Haveli), Dahej (Gujarat), Tumkur (Karnataka) and at Mehatpur (Himachal Pradesh).  while its registered office is based in Mumbai. The company sell its products under the brand name of Mahacol, Formisol, Mahaquick, Embro, Mahafix, Emditex, Emdilith, Emdibind, Emdicryl and others. The company also trades in various types of polymer emulsions, chemicals which are used in emulsions and adhesives industry. 

Nikhil Adhesives Limited Corporate Film 

https://youtu.be/8jkxuLo7nOk

The company's products include Adhesives, Sealants, Art Materials, and Construction and Paint Chemicals. These products are used by carpenters, painters, masons, plumbers, mechanics, households, student, offices etc. The company has a good marketing network about 300 industrial customers, 2000 dealers and distributors  all over India. The company is presently exporting its products to countries in Asia, Africa and the Middle East. Nikhil Adhesives is suppling its products to major customers like Asian Paints, Berger, Akzo Nobel, JK Cement, Indigo, DOW, BASF, JSW etc. 

Nikhil Adhesives Ltd is an ISO 9001:2015, ISO 45001:2018 and ISO 14001:2015  certified company and its products find use in the Paints, Packaging, Furniture, Textiles, Construction and many other industries.  The company has a well-equipped laboratory to develop products for various applications and is committed to manufacture quality products at affordable prices for its customers. The company believes in constantly upgrading its products and introducing new products to meet the ever growing demands of the various industries.

Mahacol Brand Story 

Hoechst-Fedco Dyes & Chemicals Pvt Ltd was incorporated in 1958 for marketing and distribution of a wide range of dyestuffs, intermediates, organic and inorganic chemicals manufactured by Hoechst AG West Germany. Later name of this company was changed to Hoechst Dyes & Chemicals Pvt Ltd in 1961. The company was pioneer of adhesives business in India. The Mahacol brand products were launched by Hoechst Dyes & Chemicals Ltd  in 1971. Later in 1984 name of this company was changed again to Mafatlal Dyes & Chemicals Ltd. 

In the year 2003, Nikhil Adhesives Ltd had acquired the emulsion business of M/s. Mafatlal Dyes & Chemicals Ltd along with brands, Hoechst German Technology and related machineries. Thus Nikhil Adhesives Ltd become the sole owner of well-known Mahacol brand along with other brands like Emditex, Emdilith, Emdibind and Emdicryl  which have been also well accepted by the respective industry. In last 20 years company has shown exponential growth in sales, it increased from Rs. 8 crores in 2003 to Rs. 520 crores in 2024. 

Product Profile

Consumer Adhesives (MAHACOL/ EMDILITH) 

Branded consumer & contract manufacturing adhesives products contributed 20% of the total volume sales of the company. Consumer products include Wood adhesives, Packaging and Lamination Adhesives, Sticker Adhesives and Art and Craft Adhesives, Rubber & PU Adhesives and Tape Adhesives.

Industrial Adhesives

Industrial Adhesives contributes 9% of the total volume sales of the company.

Construction Chemicals (MAHAFIX)

Construction Chemicals contribute 23% of total  sales volume of the Company.

Paint Emulsions (EMDILITH, EMDICRYL)

Majority of the paint emulsions sales is supplied to large corporate paint manufacturers & the balance through distribution channels. Out of the total sales volume of the company, paint emulsions contribute 35%.

Textile  Emulsions (EMDITEX, EMDIBIND)

The Company has PAN India network for textile emulsions and binders through distributors, textile emulsions contribute 13% of the company's total sales volume

Investment Rationale

Nikhil Adhesives is focused on sustainable, innovation-driven growth over  years, emphasising on capacity expansion, operational efficiency, market diversification, and R&D investments. The company has a total manufacturing capacity of 135,000 MTPA across five plants and no major capax required in near future.

The company is shifting from low-margin trading to high-value manufacturing, resulting in steady revenue growth. The consumer products businesses is providing customers with a complete range of consumer adhesives mainly woodworking, packaging adhesives, rubber adhesives, construction based adhesives.

Nikhil Adhesives has long-term business tie-up with major customer like Asian Paints, Berger, Akzo Nobel, JK Cement, Indigo, DOW, BASF, JSW etc. With a nationwide network,  brands like 'MAHACOL' 'FORMISOL' and 'EMDILITH' enjoy a very respectable position and popularity in the adhesive market. 

Nikhil Adhesives besides manufacturing polymer emulsion is also in the business of  marketing of bulk raw materials. The company is also diversifying and expanding its activities in other areas, but all under the umbrella of Nikhil Adhesives Ltd, which would also aid to consolidate the company’s business objectives.

Growth in Mahacol RDP (Re-dispersible Polymer) (100% import substitute, largest Indian producer) and Mahafix will boost its share in sub-segments like construction chemicals.

Mahacol products serve both consumer and industrial markets, offering wide range of wood adhesives, construction chemicals, and other specialised adhesives under brands like Mahacol N3, Mahacol Jalveer, and Mahacol Heatfit. 

Major Expansion in FY 2024 -25

With commissioning and stabilising of RDP capacity at Dahej,  expecting construction recovery and RDP scaling will be seen as a game-changer for construction segment. The Navi Mumbai R&D centre enables faster customisation, positioning the Nikhil Adhesive as a 'one-stop solution' for construction chemicals. These innovations support import substitution, sustainability and scalability.

The company is  improving the efficiency and productivity through various initiatives like automation and digitalisation across Tumkur and Dahej plants,  R&D centre at Navi Mumbai upgraded with application testing facilities for construction chemical and wood adhesives products, expanding its sales network into new export markets. 

Mahacol RDP Line: 4+ products as 100% import substitute for mortars (bonding, plastering, flooring). Improves compressive strength/flexural toughness; India's largest producer at 12,000 MTPA. Initially 2-3 % sales contribution.

Mahafix Portfolio: 36 new products, including sealants, grouts, waterproofing solutions, admixtures, tile adhesives and water repellents. 

R&D pipeline: 10 products in development along with new centre for wood adhesives planned in near future.

The major thrust continues to be the expansion of consumer products and value-added import substitutes, strengthening Nikhil’s position as a trusted solutions provider. The industry trends are also very encouraging as Consumer Sector in India is expected to become the third-largest consumer market globally by 2027. 

The adhesives / construction chemicals market  is expected to grow at 7–10% CAGR. Rising housing and infra projects to benefit adhesive & polymer demand, growth driven by woodworking, packaging, automotive and consumer repair segments.

Nikhil Adhesives will further deepen its consumer business Wood Adhesives (Mahacol) and Construction Chemical (Mahafix)) footprint through brand-building, retail expansion and influencer engagement. Strong focus on cost-effective RDP for Putty and Tile Adhesive products. Cost efficiencies from automation and higher capacity utilisation to support margins.

Nikhil Adhesives promoters are having over four decades of industry experience, the company continues to be among the leading players in Specialty Chemicals, Industrial Emulsions, Adhesives (Mahacol), and Construction Chemicals (Mahafix). With a strong domestic presence across PAN India supported by a robust distribution network, the Company leverages its state-of-the-art R&D, modern manufacturing infrastructure, and committed team to deliver customer-centric solutions. 

Conclusion

The company is delivering value products and services by employing state of the art technology and absolute focus to its customers. The synergy of commitment, technology and prompt deliverables will makes the Nikhil Adhesives the right choices for the consumer and related industry.

The company has well diversified product portfolio across industrial and consumer adhesives, strong nationwide distribution with 5 plants and 22 warehouses and R & D centre with ongoing research for import substitution and new products. The company is expanding its PAN India distribution network and expecting exponential growth in the coming years. 

Nikhil Adhesives stock at  cmp Rs 102 is giving excellent investment opportunity for both short term and long term. It can be bought within 20% from cmp with 10 %  allocation. 

Ajanta Soya Limited - Repeat

 

CMP = 32

Ajanta Soya Ltd (ASL) is incorporated in 1992 and primarily engaged in the business of manufacturing and refining of edible oils, vanaspati and bakery products such as biscuits, puffs, pastries and other applications. The company markets its products through brands such as Dhruv, Anchal, Parv, Nuti 1992, ASL Pure & Fine Fingers with a legacy spanning over three decades. 

Specialising in the manufacturing of Vanaspati and a diverse range of cooking oils, including shortening products tailored for Specialty Fats such as biscuits, puffs, and pastries, ASL has emerged as an industry leader.  ASL has proudly introduced over 300 SKUs to the market, delivering an impressive 22.3 Lac tonnes of Edible Oil.

The manufacturing facility is located at Bhiwadi (Rajasthan) with a total installed capacity of 1,65,000 mtph. Since inception, the company is focused on continuous expansion, across all business verticals to consolidate its industry leadership. The company has been listed on the Bombay Stock Exchange Ltd since 1993.

The company has a strong portfolio of brands viz. Dhruv, Anchal, Parv, Nutri ,  Pure & Fine Fingers. The brands have a reputable market share particularly in northern Indian market i.e. Rajasthan, Delhi, Haryana, UP, MP Bihar, Gujarat, Bengal, Assam etc

Vanaspati & refined cooking oils accounted for ~98% of revenue and other by-products and bakery applications accounted for the rest ~2% revenue. ASL makes a special type of edible fat made by a process called hydrogenation. Specialty fats & bakery shortenings used in baked goods to keep them soft after baking.

Contract Manufacturing

The company also manufactures refined oils for third party / contract manufacturing for various renowned brands. In total, it caters to over 100 different packing sizes for more than 10 brands. However, around 50% of revenue is generated from sales under own brands. 

The company has long association with reputed clients such as Britannia Industries, Parsons, Surya Food & Agro Ltd, Godrej, Bikano, Anmol, United Biscuits, Sungold, Harvest Gold, Parle, PriyaGold, PepsiCo, ITC, Haldirams, Cremica etc.

Manufacturing 

Since inception ASL has never let go of an opportunity to expand and modernise to keep up with the changing technologies & market trends. ASL has the state-of-the-art manufacturing plant with latest technology. The plant has the facility to manufacture Vanaspati, cooking oil & bakery shortening for puffs, biscuits, pastries and table margarines. The plant is strategically located 100 kms from Delhi in industrial town of Bhiwadi - Rajasthan. 

ASL takes pride in its boastful market share in northern India. The brands of ASL are backed by an extensive distribution network as the company operates though its strategically located dense populated area in north India. ASL has penetrated deeply in the market with its emphasis on providing value goods to consumers through its CnF agents and dealers  who are operative in major cities and rural areas of India.

Quality

ASL is an ISO 22000:2018 certified company. The unit follows quality standard and testing based on BIS.  Superior procurement and trading skills, continuous innovation, an endeavour to meet consumer needs and stringent quality control standards have enabled ASL to emerge as a highly-respected and admired edible oil company. ASL witnessed significant progress in terms of market penetration and brand recognition in the past years. 

Its commitment to quality and continuous improvement has helped it to gain customer trust and loyalty. Looking ahead, company aim to expand its distribution network, explore new product categories, and invest in technology to enhance productivity and sustainability.

Investment Rationale 

At present, India is the world’s largest importer and consumer of edible oil. Over the past six decades, the per capita consumption of edible oils in India has substantially increased. It now stands at approximately 20 kg per year. Factors such as rising disposable incomes, urbanisation, evolving dietary preferences and the expansion of the food processing sector have led to a heightened demand for edible oils in India. To meet this burgeoning domestic demand, India imports approximately 16 million metric tonnes of edible oils every year and around 50 - 60% of domestic consumption demand is met through imports.

The outlook for the edible oil manufacturing industry in India appears promising. Factors such as population growth, rising disposable incomes, and changing dietary patterns all contribute to the increasing demand for edible oils. Moreover, the government's emphasis on self-sufficiency in edible oil production through initiatives like the "Make in India" campaign further supports the growth prospects of the sector.

Since last one year edible oil prices are stable. Edible oil consumption will also pick-up in coming festive season and winter, it will bring the growth back on track.  Edible oil consumption is expected to grow at 6-7 % and is likely to continue this trend in future as well.

In consumer packs, ASL leads the Rajasthan market with an established credibility in other states. The most popular brand of Vanaspati / cooking oil are 'Dhruv' and 'Anchal' & they enjoy a reputed market share particularly in northern India market i.e. Rajasthan, Delhi, Haryana, U.P, Bihar and some parts of eastern India like Guwahati. ASL also offers its quality products as food ingredients to serve food manufacturers and food service industry. The bakery products are preferred by all range of customers and are popular till the region of J&K

By way of periodical expansion, ASL has increased its production capacity from time & again to cater to changing business environment & varied customer needs. The company’s turnover has increased manifold over the decades and is expected to maintain its growth in coming  years. ASL also focuses on in-house research and innovation to be a low cost manufacturer with high-quality products and innovative customer offerings.

The company is now focusing on increasing the capacity utilisation by market expansion for its different products and their variants for growing market demands.

ASL is catering to third party/contract manufacturing for various renowned brands exemplifying the units capability to produce all kind of varieties.  ASL is catering with over 100 different packing sizes for more than 10 brands.

The company is promoted by well established group having and proven track record in the fields of cooking oils. The three-decade long experience of the promoters in the edible oil industry, their understanding of local market dynamics and healthy relationships with suppliers and customers is very positive for ASL future business growth.

ASL also extends its expertise as a trusted food ingredient supplier to food manufacturers and the food service industry. Its corporate customers boast names of the biggest manufacturers in food industry with the most stringent norms for products, including biscuits, cookies, Indian snacks/ namkeen, bakery items & other customers with different applications of  products.

ASL is driven by a vision of continuous expansion and innovation, it has consistently enhanced its production capacity to adapt to evolving market dynamics and meet the diverse needs of its clientele. Bolstered by a seasoned group of promoters with a proven track record in the cooking oil domain, ASL has successfully served over 2108 customers across 8 states, with an impressive 83.5% rate of repeat orders.

With an unwavering commitment to quality and customer satisfaction, ASL has carved a niche for itself as a low-cost manufacturer offering premium-quality products and innovative solutions. Boasting a robust production capacity of 600 MTPD and an annual turnover exceeding 162.62 million USD, ASL takes pride in its strong portfolio of brands and its esteemed market reputation.

Conclusion

Ajanta Soya is a leading manufacturer with well established market position in edible oil industry. Promoters has extensive experience of  three decades in the edible oil industry it has enabled the promoters to gain a strong understanding of local market dynamics and build healthy relationships with suppliers and customers.  The company has focused on continuous expansion, across business verticals to consolidate, and its industry leadership over the years. 

Indian edible oil industry has numerous potential as deficit between production and consumption of edible oils is increasing rapidly. India will continue to import edible oils to bridge the gap between demand / supply. There is good opportunity for the Ajanta Soya to address the growing the demand and supply gap imbalance. ASL revenue has grown by 30% year-on-year to Rs 1,300 crore in fiscal 2025. Going forward, addition of dealers and value-added products, and bidding for more government orders should drive volumetric growth. 

Ajanta Soya stock was earlier posted on September 18, 2023 and given 100% return in Jan 2025. The stock corrected more than 50% since Jan 2025. Ajanta Soya has well established business, no debt and strong balance sheet.  Ajanta Soya stock at  cmp Rs 32 is giving excellent investment opportunity for both short term and long term. It can be bought within 10% from cmp with 10 %  allocation. 

Note :

If someone already hold Ajanta Soya than need to keep the same with maximum allocation 10% only.

Today stock gone up 9.5% so need to buy within 10% from cmp.

Happy Independence Day

 

Dear Blog Members,

Wishing you peace, prosperity, and patriotism on this Independence Day

Kalyani Forge Ltd.

 

CMP = 548

Kalyani Forge Ltd is Kalyani group company and  incorporated in 1978. It specialised in niche precision forgings, fully-machined and sub-assembled products for domestic and global customers. Kalyani Forge is a leader in manufacturing close-tolerance, precision forgings at its five plants located in the automotive hub of Pune, Maharashtra.

Corporate video

https://youtu.be/7o4TkHt3Cyk

Kalyani Forge is an ISO TS 16949, ISO 14000 & OHSAS – 18001 certified engineering company with an expertise in metal forming built over deep experience of five decades. Kalyani Forge is trusted supplier of forged, machined and assembled products for a variety of customers in industries like automotive, construction, power generation, marine, railway, and general industrial goods. Its forging capabilities include hot, warm and cold forging & in-house heat treatment as well as machining. The company also provides services like product and process design, development, warehousing, door-to-door delivery, and validation support to its customers.

 

Kalyani Forge is a reliable partner to automotive OEMs and full system suppliers, it offers expertise for products in engines, chassis, transmission, driveline, steering and suspension units in two wheelers, passenger cars and commercial vehicles.

Kalyani Forge has expertise in manufacturing engine components for highway, off-highway and stationary engine applications. The company provide a wide range of products like connecting rod, crank shaft, cam shaft, retainer valve, cross head valve, injector clamp, rocker arm, balance weight, cam lobe, automatic and manual transmission parts, tulips, inner race, tripod, spider, outer race, yoke shafts and many more. Kalyani Forge is the first to introduce fracture split connecting rod in the Indian automotive market, which is known for its superior strength, toughness and economy.

Kalyani Forge is a worldwide provider of forged and machined components for construction & mining equipments , electrical generators and power generation systems used for standby power, distributed power generation and auxiliary power in mobile applications to meet the needs of a diversified customer base.

The company provide ready-to-assemble components for all types of medium-speed and high-speed commercial marine engines.

Kalyani Forge design, develop and manufacture the critical parts for transmission and braking systems for all types of rail vehicles. 

In the agricultural sector, the company is leading component manufacturers for the global agricultural and industrial engine market.

The company provide various cold and hot forged parts for industrial applications like power tools, conveyors, compressors and many more.

Kalyani Forge is trusted supplier to many of the global leaders in automotive and industrial segments - Daimler, MAN, JCB, TATA, Mahindra, Musashi, Honda, Honeywell, Cummins, Turbocam, Kirloskar etc.

Investment Rationale

Kalyani Forge as an engineering company with extensive experience, it delivers the solutions - quickly, economically and efficiently - right from drawing through to full-scale production. 

Kalyani Forge provides “first-time-right” products with Near Net Shape (NNS) technology, Lean Product Development approach, progressive and innovative engineering team, which is ready for challenges in new product development, aiming at highest quality, lowest cost and shortest development lead-time.

Kalyani Forge can produce complex, critical profile forgings of high accuracy due to greater quality control with in-house die designing processes. This enables the company to manufacture dyes and tooling to high levels of accuracy.

The thermal refining of the products is achieved with in house continuous heat treatment lines, equipped with facilities for oil/polymer/water quenching and tempering. For thermal treatment of ‘Near Net Shape’ products is achieved with controlled atmosphere furnaces. A state of the art phosphating and bonderising facility, takes care of special processes that need to be executed before cold forging operations.

In-house machining facility equipped with high end CNCs, VMCs and SPMs dedicated machining lines. The company has started developing the components for electromotive vehicles such as hybrid electric vehicles, plug-in hybrid electric vehicles and fuel cell electric vehicles to make its presence in high growth & high margin segment i.e. driveline components (xEV), axle components (xEV).

The company is strategically located in the manufacturing hub of Pune, it is ideal for raw material source as well as for export through the Mumbai sea port.

Capex for Forging and Machining Capacity Expansion

Kalyani Forge has already made several high return investments on capacity management and modernisation program  to enhance the profitability and efficiency.

All machining units shifted to one site and re-layouts done for 6 old lines based on lean manufacturing principles, 50% of existing shop floor space freed up for new expansion.

The company has commissioned several capex projects till Q3 FY25. Machining expansion phase 1 complete, phase 2 underway, new forging press installed, rooftop solar project commissioned etc.

Capex - Digital Shop Floor

Digitisation projects underway in collaboration with Group technology partner Kalyani Studio for enabling automation and predictive maintenance of machines, data driven insights analysis  and quality data traceability and rapid problem solving.

Business Development

Kalyani Forge enjoys entrenched position with multi-decade relationship with OEMs.  The company is participating in the development programs of EVs with leading car OEMs in India. Kalyani Forge with focused strategy on core products and segments, its new business development is on track with multi-year order book of 384 Cr won in H1 FY25 and new MNC customers acquired in xEV product group.

Promoters

Kalyani Forge promoters have around five decades of long experience in the domestic forging and machining industry. Their strong understanding of market dynamics and healthy relationship with reputed original equipment manufacturers will continue to support the business for future growth. In FY 2024 new generation promoter Mr. Viraj Kalyani appointed as managing director to take the company to next level.

For further details you can also refer below given  Q2 and Q3 transcript of the Analyst/Investor conference call . It contains good information about past and future prospectus of the company.

https://www.kalyaniforge.com/wp-content/uploads/2024/11/Video-Recording-for-November-13-2024-1.mp4

https://www.kalyaniforge.com/wp-content/uploads/2024/11/Transcript-of-call-held-on-November-13-2024.pdf

https://drive.google.com/file/d/1VLmxlB3iLkghssjetNdutM5Te3PF1_Gs/view?usp=sharing

https://kalyaniforge.com/wp-content/uploads/2025/02/Transcript-of-the-call-held-on-February-13-2025-1-3.pdf

Conclusion

Kalyani Forge is 50 year old company with good asset and consolidating its revenue and profitability for last two decades.  Now company is looking to move forward with expansion and modernisation with aim to double its production capacity and sales.  Kalyani Forge is micro-cap company with lot of growth potential. 

The stock has also seen good correction since last three months.  Kalyani Forge stock at  cmp Rs 548 is giving excellent investment opportunity for both short term and long term. It can be bought within 20% from cmp with 10 %  allocation.

Holi Greetings

 

Dear Blog Members,

May this festival of colours bring peace, joy, success and prosperity for you

Wishing a very Happy Holi to you and your family

New Year Greetings

Dear Blog Members,