Sumitji picked his second SME stock today, Virtuoso OptoElectronics. Here is a quick review of the company which seem to have impressed @niftygranmaster #VOEPL #VOEPL #Multibagger #Virtuoso
2. The company has reported impressive growth in annual and quarterly revenues. Itβs a contract manufacturer for leading brands like VOLTAS, PANASONIC (ANCHOR), RACOLD, RELIANCE, FORTUNE ART etc
3. Company manufactures ACs, Geysers, LED Lamps, Emergency Lamps and various Electronic Parts for supply to OEMs, as an Electronics Manufacturing Service. It has 2 manufacturing units in Nashik. It had exported LED lamps to US in FY 2021.
4. Manufacturing Capacity:
Acs - 6Lakh per year (42% Utilization)
EMS / Geysers - 10L per year (Geysers must be a small part of this) - 60% Utilization
Considering the current utilization level, there is good extra capacity available to accommodate immediate growth.
Acs - 6Lakh per year (42% Utilization)
EMS / Geysers - 10L per year (Geysers must be a small part of this) - 60% Utilization
Considering the current utilization level, there is good extra capacity available to accommodate immediate growth.
5. Virtuoso OptoElectronics has PLI approval for 50Crore (10 CR per year spread over 5 years) and this should help the company to build new capacity.
6. The company is in a field where it can grow very well like Amber and Dixon by diversifying into different products, as a white label manufacturer. It's just a matter of grabbing contracts with large OEMs.
7. Promoters seem to be capable of this, since they have managed to seal contracts with marquee customers. There is a group company with very old IT demand. According to the MD (On YouTube) Virtuoso has no relation or liability arising out of this case. This appears to be correct
8. We need to give time for market forces to play out and the company to enter into more contracts & diversify into more products over the next few years. It is a longterm multibagger bet of Sri #SumitBansal, @niftygranmaster. #VirtuosoOptoElectronics #VOEPL, #VOEL #Virtuoso
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