Hello Sir,

Hope you are doing well.

Recently, I was going through the details of Visaka Industries.

Like Sahyadri Industries, this too is in the business cement roofing sheets which are largely used in rural areas and currently facing the issue of high raw material prices.

What’s interesting is that in the overall turnover, the share of cement roofing sheets is going down and the contribution of new age products like Vnext or Atum is increasing.

ATUM is basically Solar Cells embedded into Fibre Cement Boards making it a composite Solar Roof.

Below, we have shared interesting insights from the Q1 FY 24 con-call of Visaka Industries to understand the current situation and the outlook for the company. Hope you find the details useful for your own investments or to add the stock to your watch list.


Sometime back we released our new stock recommendation for our Alpha and Alpha + Members.

It’s a sub 3,000 crore market cap, fast growing Specialty chemicals company

The company has introduced new import import substitute products, expanded aggressively over the last 4-5 years, started reducing debt and available at only ~11 times last 5 years average net profit

You can get this new recommendation along with other recommendations, by subscribing HERE


Visaka Industries – Insights from Q1 FY 24 con-call of the company

– General

  • Over the last 4 decades, the company has established itself as one of the leading building construction material providers and a dependable synthetic yarns manufacturer in India
  • In the last 2 years, Visaka has invested in new and additional manufacturing capacities of our Vnext fiber cement boards and panels and our cement roofing as well

– Performance

  • The company has achieved a revenue of Rs 447 crores for the current quarter. The building products revenue for the quarter stands at Rs 385 crores and the textile turnover is at Rs 62 crores
  • The building products revenue for Q1 FY24 stood at Rs 385 crores against Rs 391 crores in FY23 Q1 and EBIT of Rs 27 crores as compared to Rs 53 crores in Q1FY23
  • The synthetic yarn revenues for Q1 FY24 stood at Rs 62 crores against Rs 88 crores in Q1FY23 and EBIT for the quarter for yarn segment stood at Rs 8 crores as compared to Rs 12 crores in Q1FY23

– V Next

  • Vnext boards are an eco-friendly alternative product to plywood and gypsum board, wherein the product is both fire and termite resistant
  • Vnext has seen a tremendous growth in terms of volume of almost 43% over the past year
  • The capacity utilization of Vnext in Q1 FY24 has stood about 85% and is expected to increase in the coming quarters
  • We are glad to announce that the product Vnext is also part of the new parliament building as well as the Surat Diamond Bourse
  • In order to meet growing demand for our products, we have done a 72,000 metric ton of greenfield expansion at West Bengal’s Midnapore, which is expected to be operational in September 2023
  • We are seeing a very bullish outlook of almost around 25% to 30% in terms of growth rates in this space
  • We can expect 15% EBITDA margin in Vnext


  • The solar cells are embedded into the fiber cement boards making it a composite integrated solar roof
  • We have patents for ATUM, as some of you may already be knowing, in India, USA, and South Africa
  • We have done projects for Mahindra, BPCL, Piramal, and the Rainbow Hospitals and several others in the first quarter
  • In the ATUM, if we do about 30 megawatt, we would be seeing anywhere between Rs. 85 crores to Rs 90 crores in terms of revenue. And 60 would be double of that, around Rs 170 crores to Rs 180 crores

– Raw material

  • The increase in main raw material costs, i.e., the chrysotile fiber, has impacted the margins drastically compared to our previous year’s compare to this quarter
  • Asbestos pricing – In terms of fiber costs, actually the fiber costs have gone up by almost 22% to 25% in terms of last year what we have seen and we have been able to offset hardly 2% in terms of increasing our selling price for that space

– Borrowing

  • The company has gross debt of Rs 410 crores which is considered as moderate due to aggressive expansions that we had undertaken in the recent years
  • With better performance and cash flows in the coming quarters, we expect our borrowings to come down and with lesser interest costs

– Guidance

  • We are optimistic about the industry as a whole given that the building material segment is expected to grow at a pace of 8% to 12% for the next 4 to 5 years
  • The Vnext business, which we started from scratch in 2008, now would likely touch around Rs 450 crores by the end of this year 2024, and as informed, targeting a turnover of Rs 1,000 crores by the year 2030
  • We, as a company, had taken up a goal to make our legacy business to new-age business in terms of revenues to equalize, and we are very happy to share that by FY25, we should see a 50:50 ratio in terms of new businesses to the legacy business



Disclaimer: This is not a recommendation to buy/sell Visaka Industries. The securities quoted are for illustration only and are not recommendatory.


Best Regards,

Ekansh Mittal
Research Analyst
Web: https://www.katalystwealth.com/


SEBI Research Analyst Registration No. INH100001690
Research Analyst Details

Name: Ekansh Mittal     Email Id: [email protected]    Ph: +91 727 5050062

Details of Associate: Not Applicable

Analyst Certification: The Analyst certify (ies) that the views expressed herein accurately reflect his (their) personal view(s) about the subject security (ies) and issuer(s) and that no part of his (their) compensation was, is or will be directly or indirectly related to the specific recommendation(s) or views contained in this research report.

Disclaimer: http://www.katalystwealth.com (here in referred to as Katalyst Wealth) is the domain owned by Ekansh Mittal. Mr. Ekansh Mittal is the sole proprietor of Mittal Consulting and offers independent equity research services to investors on subscription basis. SEBI (Research Analyst) Regulations 2014, Registration No. INH100001690

Address – 7, Panch Ratan, 7/128, Swaroop Nagar, Kanpur – 208002, Contact No. – +91-7275050062

Compliance Officer – Mr. Ekansh Mittal, +91-9818866676, ekansh@katalystwealth.com

Grievance Redressal – Mittal Consulting, grievances@katalystwealth.com, +91-9818866676, +91-7275050062

“Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors”.

“Investment in securities market are subject to market risks. Read all the related documents carefully before investing.”

The views expressed are based solely on information available publicly and believed to be true. Investors are advised to independently evaluate the market conditions/risks involved before making any investment decision

This report is for the personal information of the authorized recipient and does not construe to be any investment, legal or taxation advice to you. Ekansh Mittal/Mittal Consulting/Katalyst Wealth is not soliciting any action based upon it. This report is not for public distribution and has been furnished to you solely for your information and should not be reproduced or redistributed to any other person in any form. This document is provided for assistance only and is not intended to be and must not alone be taken as the basis for an investment decision. Ekansh Mittal or any of its affiliates or employees shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Neither Ekansh Mittal, nor its employees, agents nor representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost revenue or lost profits that may arise from or in connection with the use of the information. Ekansh Mittal/Mittal Consulting or any of its affiliates or employees do not provide, at any time, any express or implied warranty of any kind, regarding any matter pertaining to this report, including without limitation the implied warranties of merchantability, fitness for a particular purpose, and non-infringement.

The recipients of this report should rely on their own investigations. Ekansh Mittal/Mittal Consulting and/or its affiliates and/or employees may have interests/ positions, financial or otherwise in the securities mentioned in this report. Mittal Consulting has incorporated adequate disclosures in this document. This should, however, not be treated as endorsement of the views expressed in the report.

We submit that no material disciplinary action has been taken on Ekansh Mittal by any regulatory authority impacting Equity Research Analysis.

Disclaimer: You can access it here – LINK

Whether the research analyst or research entity or his associate or his relative has any financial interest in the subject company/companies and the nature of such financial interest – No

Whether the research analyst or research entity or his associates or his relatives have actual/beneficial ownership of 1% or more securities of the subject company (at the end of the month immediately preceding the date of publication of the research report or date of the public appearance) – No

Whether the research analyst or research entity or his associate or his relative has any other material conflict of interest at the time of publication of the research report or at the time of public appearance – No

Whether it or its associates have received any compensation from the subject company in the past twelve months – No

Whether it or its associates have managed or co-managed public offering of securities for the subject company in the past 12 months – No

Whether it or its associates have received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past 12 months – No

Whether it or its associates have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past 12 months – No

Whether the subject company is or was a client during twelve months preceding the date of distribution of the research report and the types of services provided – No

Whether the research analyst has served as an officer, director or employee of the subject company – No

Whether the research analyst or research entity has been engaged in market making activity for the subject company – No