In this detailed🧵 I'll analyse Bharat Seats Ltd 💺 - Potential 2X Bagger 🪄
I'll look to analyse the fundamental aspects, product mix, current valuations, future growth plans, technical aspects, management commentary etc ✨
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#BharatSeats
I'll look to analyse the fundamental aspects, product mix, current valuations, future growth plans, technical aspects, management commentary etc ✨
Like, Retweet & Boomark the Tweet 🔖
#BharatSeats
🎖️About the Company
✅Incorporated in 1986, Bharat Seats Limited (BSL) is a joint-venture (JV) between the Indian promoters Relan Group (25.9%), Maruti Suzuki India Limited (14.81%) and Suzuki Motors Corporation (14.81%) involved in manufacturing of cars seats floor carpets for
✅Incorporated in 1986, Bharat Seats Limited (BSL) is a joint-venture (JV) between the Indian promoters Relan Group (25.9%), Maruti Suzuki India Limited (14.81%) and Suzuki Motors Corporation (14.81%) involved in manufacturing of cars seats floor carpets for
MSIL and two-wheeler seats for Suzuki Motorcycle India Private Limited (SMIPL).
✅BSL is promoted by Mr. Rohit Relan and his family. BSL is the sole supplier for seat sets for several key models of MSIL.
✅BSL is promoted by Mr. Rohit Relan and his family. BSL is the sole supplier for seat sets for several key models of MSIL.
🎖️ Products
✅Car Seats Assemblies : 85%
✅Motorcycle seats : 6%
✅The rest from other divisions such as carpet sets, extrusion components for vehicle roofs, and frame components.
✅Car Seats Assemblies : 85%
✅Motorcycle seats : 6%
✅The rest from other divisions such as carpet sets, extrusion components for vehicle roofs, and frame components.
🎖️Revenue Mix
✅Seating system : 91% in FY22
✅Carpets & Extrusions : 3% in FY22
✅Others : 6% in FY22 & FY21
✅The revenue from operations and other income shows an increase of 50%.
✅Seating system : 91% in FY22
✅Carpets & Extrusions : 3% in FY22
✅Others : 6% in FY22 & FY21
✅The revenue from operations and other income shows an increase of 50%.
Expansion of Manufacturing Facilities 🎖️
✅The Company’s manufacturing facilities are located at Gurgaon, Manesar and Borakalan in Haryana, and at Surendra Nagar in Gujarat.
✅It plans to set up a new plant in SMGs vendor park with a capex outlay of ~Rs. 50 crore over
✅The Company’s manufacturing facilities are located at Gurgaon, Manesar and Borakalan in Haryana, and at Surendra Nagar in Gujarat.
✅It plans to set up a new plant in SMGs vendor park with a capex outlay of ~Rs. 50 crore over
FY2023-FY2024. the new facility will lead to enhancement in the company's production capacity in line with the OEM’s requirements.
Manufacturing Capabilities 🎖️
✅Frame
- Robotic Mig Welding Machine
- Electropneumatic Pipe Bending Machine
- Pipe Squeezing SPM
- Stamping Shop (65-400 Tons)
- Robotic Spot Welding Machine
✅Frame
- Robotic Mig Welding Machine
- Electropneumatic Pipe Bending Machine
- Pipe Squeezing SPM
- Stamping Shop (65-400 Tons)
- Robotic Spot Welding Machine
✅PU Shop
- Automatic Pouring 2W Seat Cushion
- Multi Layer Over Head PU Handling Conveyor
- Robotic Pouring 4W Seat Cushion Dual Hardness
- Automatic Pouring 2W Seat Cushion
- Multi Layer Over Head PU Handling Conveyor
- Robotic Pouring 4W Seat Cushion Dual Hardness
✅Trims
- Stitching Machine
- CNC Scanning and Cutting Machine
- CNC Cutting Machine
✅ Body Sealing
- Moulding Wind Shield
- Roof Moulding with Online Integrated Cutting
- Stitching Machine
- CNC Scanning and Cutting Machine
- CNC Cutting Machine
✅ Body Sealing
- Moulding Wind Shield
- Roof Moulding with Online Integrated Cutting
✅Seat Assembly
- Testing of Seat Belt Reminder System
- Assembly Line Equipped with SCADA System
✅ Moulded Carpet
- Automatic Moulded Carpet Machine
- Automatic Lamination Carpet Machine
- Testing of Seat Belt Reminder System
- Assembly Line Equipped with SCADA System
✅ Moulded Carpet
- Automatic Moulded Carpet Machine
- Automatic Lamination Carpet Machine
Client Concentration Risk 🎖️
✅MSIL and SMG together accounted for more than 85% of BSL’s revenue in FY2022. This exposes the company to high customer concentration risk with its revenue prospects primarily remaining linked to MSIL’s volumes.
✅MSIL and SMG together accounted for more than 85% of BSL’s revenue in FY2022. This exposes the company to high customer concentration risk with its revenue prospects primarily remaining linked to MSIL’s volumes.
R&D 🎖️
✅R&D work is carried out by the company in developing Seating Systems for Hatch-Backs, Sedans and SUV segment vehicles, Moulded floor carpets for 4-wheelers, Extrusion components for vehicle roof and windshield installation for Maruti Suzuki India Limited.
✅R&D work is carried out by the company in developing Seating Systems for Hatch-Backs, Sedans and SUV segment vehicles, Moulded floor carpets for 4-wheelers, Extrusion components for vehicle roof and windshield installation for Maruti Suzuki India Limited.
Focus 🎖️
✅It is planning to adopt new technologies and features for all verticals Seating System, NVH, Body Sealing Parts and 2W Seats, also it wants to build local capabilities in key areas Also the focus is on developing the capability for Trim testing in-house and plans to
✅It is planning to adopt new technologies and features for all verticals Seating System, NVH, Body Sealing Parts and 2W Seats, also it wants to build local capabilities in key areas Also the focus is on developing the capability for Trim testing in-house and plans to
establish and co-relate CAE test results for all Homologation tests.
Recent Advancements 🎖️
✅Approved Capital Expenditure of 99.18Cr
✅Approved Capital Expenditure of 99.18Cr
Current Valuations 🎖️
✅Market Cap - 438Cr
✅Sales - 1051Cr
✅Market Cap to Sales - 0.42
This makes it a Very Undervalued Gem 💎
✅Market Cap - 438Cr
✅Sales - 1051Cr
✅Market Cap to Sales - 0.42
This makes it a Very Undervalued Gem 💎
Fundamental Aspects 🎖️
✅Stock PE - 18.6
✅5 Years PE - 15.8
✅10 Years PE - 16.1
✅Industry PE - 31.8
✅Dividend Yield - 1%
✅ROCE - 17.6%
✅ROE - 15.8%
✅EPS - 7.51
✅Debt to Equity - 0.66
✅Return over 3 Months - 12.9%
✅Return over 6 Months - 41.8%
✅OPM 5 Year - 4.9%
✅Stock PE - 18.6
✅5 Years PE - 15.8
✅10 Years PE - 16.1
✅Industry PE - 31.8
✅Dividend Yield - 1%
✅ROCE - 17.6%
✅ROE - 15.8%
✅EPS - 7.51
✅Debt to Equity - 0.66
✅Return over 3 Months - 12.9%
✅Return over 6 Months - 41.8%
✅OPM 5 Year - 4.9%
Excellent FY24Q2 Results 🎖️
✅Net Profit Comparison
Q2FY23 Net Profit at 6.79
vs
Q1FY23 Net Profit at 4.67
vs
Q2FY22 Net Profit at 5.87
✅EPS Comparison
Q2FY23 EPS at 2.16
vs
Q1FY23 EPS at 1.49
vs
Q2FY22 EPS at 1.87
✅ Promoter Holding - 74.59%
✅Net Profit Comparison
Q2FY23 Net Profit at 6.79
vs
Q1FY23 Net Profit at 4.67
vs
Q2FY22 Net Profit at 5.87
✅EPS Comparison
Q2FY23 EPS at 2.16
vs
Q1FY23 EPS at 1.49
vs
Q2FY22 EPS at 1.87
✅ Promoter Holding - 74.59%
Technical Aspects 🎖️
The stock is currently facing strong resistance at 145 levels on the weekly chart.
Once the stock closes above it, it will be unstoppable.
The ATH high for the stock is at 274 and the company has the potential to achieve the same level again ⚡
The stock is currently facing strong resistance at 145 levels on the weekly chart.
Once the stock closes above it, it will be unstoppable.
The ATH high for the stock is at 274 and the company has the potential to achieve the same level again ⚡
ESM Rule and Its Effects 🎖️
What is ESM?
✅The regulator puts Companies below a Market Cap of 500Cr into 2 Categories ESM-1 and ESM-2.
✅A Stock has to Spent 90 Days in both these Categories.
✅Bharat Seats will come out of ESM after 2 Weeks
What is ESM?
✅The regulator puts Companies below a Market Cap of 500Cr into 2 Categories ESM-1 and ESM-2.
✅A Stock has to Spent 90 Days in both these Categories.
✅Bharat Seats will come out of ESM after 2 Weeks
Imagine the Potential of this Company when it's Market Cap Moves above 500Cr 💎
Its Filter will Change to 20% and We May See it Finally Achieving its True Potential 🤗
That's the End of 🧵
Like, Retweet & Bookmark the 1st Tweet of the Thread 🤗🔖✅
#BharatSeats #StockMarket
Its Filter will Change to 20% and We May See it Finally Achieving its True Potential 🤗
That's the End of 🧵
Like, Retweet & Bookmark the 1st Tweet of the Thread 🤗🔖✅
#BharatSeats #StockMarket
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