Dear ,

Agarwal Industrial Corporation up 35% from recommended price. Target revised to 1750.

About 

Agarwal Industrial Corporation Ltd is primarily engaged in the business activities of manufacturing and trading of Petrochemicals (Bitumen and Bituminous Products), logistics of bitumen and liquefied Petroleum Gas and energy generation through Wind Mills.

Key Points

Business Overview

Company primarily belongs to Ancillary Infra Industry and is engaged in the business of (i) manufacturing and trading of Bitumen and Allied products used heavily in infrastructure projects (ii) providing Logistics for Bulk Bitumen and LPG through its own Specialized Tankers and (iii) also generates power through Wind Mills.

Business Segment

Manufacturing and Storage of Bitumen- Company has its manufacturing and storage units in Karnataka, Telangana, Maharashtra, West Bengal, Rajasthan and Gujarat with storage capacity of 30500 MT. These storage units facilitate import of Bitumen.

Transportation of Bitumen and LPG - It is a pioneer of logistics in Bitumen, which is predominantly used in road construction business. The bulk bitumen is transported via specially designed tankers and its tankers are under contract with major oil companies in India like HPCL, BPCL and IOCL. It is amongst the leading transporters of LPG in India. Most of the LPG tankers are under contract with major oil companies like HPCL, BPCL and IOCL.

India’s Largest player in Transporting Bitumen

Company has 10 large bitumen logistic vessels having total capacity of 1,02,949 MT including one additional vessel MT Gauri with capacity 47,999MT (Under dry dock) has been added to the fleet during Q3 FY24. Between FY20 to FY24 it has added 9 ships increasing capacity from only 4,750 Tons in FY20. It has fleet size of 650+ vessels consisting of 350+ Bitumen Tankers & 300+ LPG Tankers.

Authorized Service Center for Ashok Leyland

It owns a large fleet of tankers which necessarily calls for regular periodic checks and maintenance also its entire fleet of tankers comes from Ashok Leyland. So the company has decided to set up an authorized service center, for Ashok Leyland vehicles, within the company.

**Revenue Breakup **

Bitumen & Allied products - 79% in 9M FY24 vs 84% in FY22

Ship Operating & Chartering - 13% in 9M FY24 vs 8% in FY22

Petroleum Products - 4% in 9M FY24 vs 4% in FY22

Logistics - 4% in 9M FY24 vs 4% in FY22

Entry into New Market

Company is planning to enter into the Bitumen market in the North region of India, to increase its customer base and revenue.

Supply Order

In Jan 2024, the company bagged a tender to supply Bulk Bitumen from BPCL aggregating to 45300 MT valued at 233 Cr and from HPCL aggregating to 150000 MT valued at 500 Cr.

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We have restructured our pricing to yearly Rs. 5000/-

We are closing our Lifetime membership deal of Rs. 12,000/- one time fee in 2024. Lifetime members will remain Lifetime members.

If you are not our member yet and interested to gain access to yearly membership or lifetime membership, share your name and number in reply to this email.

Best regards,

Vinoth Kanna

Admin, Gale.in