Looks great! There is a generally a positive movement by switching from NELP to DSF regime which allows new players for exploration of smaller fields. It has attracted quite a few new players. The challenge has remained around actual execution at these fields. Some of these fields that were auctioned off in the last block got delayed (by few years) due to environmental concerns (case in point Selan's acquisition of Elao field acquired from Poddar family office). I would keep tracking how the management execute operationally and allocating the cash on Selan's BS ( I presume post merger it will go to develop existing Antelopus fields).
Saw this note after q4 results. They failed to achieve their target of 550 boepd due to stoppage of production. Oil exploration and production is difficult business due to realisation and production uncertainties…. Yet this is an interesting stock … disclosure: invested post q4 results
I am an investor in Markolines Pavement Technologies and noticed a recent filing of the company that stated a meet with 'Compound 26 Capital'. Would that be your team? Just curious! :-)
I like the entrepreneur (so consider me biased :) ) and his journey of building the business through the years. His capital and operational allocation skills (acquiring Madhya Bharat facility etc) and turning them around I find interesting. Balance sheet is strong and can weather some challenges and given the valuation I think downside is limited.
I don't have particularly a lot of unique insights other than the textile space has been going through headwinds but there seem be signs of recovery in the end user industry. I am generally long on some other integrated players and spinners in the space.
Fertilizer industry is a tricky one (i am new to the space so still grappling around around it) on one hand given the moving parts around fertilizer subsidy and adoption of SSP in the markets to replace traditional fertilizers. Older folks are scarred from investing in the fertilizer space because of legacy issues such as government not paying on time etc. My reasoning is that on one hand you bet on Modi's new India vision and on the other hand you think these businesses will suffer due to lack of subsidy :).
It's a mid size allocation for me so I am just monitoring the progress as we go along.
Yep it was one of the members from the team. Still figuring out the space and it’s competitors. Looks quite interesting from future prospects.
Thank you for the info Pawan!
How does this look to you ;-)
https://www.moneycontrol.com/news/india/govt-taking-strenuous-steps-to-scale-up-oil-exploration-production-oil-minister-puri-10031351.html
Looks great! There is a generally a positive movement by switching from NELP to DSF regime which allows new players for exploration of smaller fields. It has attracted quite a few new players. The challenge has remained around actual execution at these fields. Some of these fields that were auctioned off in the last block got delayed (by few years) due to environmental concerns (case in point Selan's acquisition of Elao field acquired from Poddar family office). I would keep tracking how the management execute operationally and allocating the cash on Selan's BS ( I presume post merger it will go to develop existing Antelopus fields).
Saw this note after q4 results. They failed to achieve their target of 550 boepd due to stoppage of production. Oil exploration and production is difficult business due to realisation and production uncertainties…. Yet this is an interesting stock … disclosure: invested post q4 results
Hi Pawan.
I am an investor in Markolines Pavement Technologies and noticed a recent filing of the company that stated a meet with 'Compound 26 Capital'. Would that be your team? Just curious! :-)
Hi Pawan, thank you for the update and regular blog posts. pleasure to read.
I heard you on the Shree Pushkar concall, wanted to know your views on the company and the dyes and fertilizers space in general. thank you :)
thanks for the kind words!
I like the entrepreneur (so consider me biased :) ) and his journey of building the business through the years. His capital and operational allocation skills (acquiring Madhya Bharat facility etc) and turning them around I find interesting. Balance sheet is strong and can weather some challenges and given the valuation I think downside is limited.
I don't have particularly a lot of unique insights other than the textile space has been going through headwinds but there seem be signs of recovery in the end user industry. I am generally long on some other integrated players and spinners in the space.
Fertilizer industry is a tricky one (i am new to the space so still grappling around around it) on one hand given the moving parts around fertilizer subsidy and adoption of SSP in the markets to replace traditional fertilizers. Older folks are scarred from investing in the fertilizer space because of legacy issues such as government not paying on time etc. My reasoning is that on one hand you bet on Modi's new India vision and on the other hand you think these businesses will suffer due to lack of subsidy :).
It's a mid size allocation for me so I am just monitoring the progress as we go along.
Hope that helps!