In this article, we can see Concord Control Systems Ltd as a Potential Multibagger Stock as on November 2023.
Concord Control Systems Ltd
Concord Control Systems Limited is engaged in the business of manufacturing and supply of coach-related and electrification products for Indian Railways and other Railway Contractors. Mr. Harsh Yadav is the current chairman. Mr Harsh Sachdev is the current Independent director .
Revenue Bifurcation
Coach-related products – 80.5 % in FY22 vs 68% in FY21,Electrification products – 19.5% in FY22 vs 32% in FY21.
IPO
In FY23, company completed its IPO of 15,12,000 equity shares of FV of Rs.10/- each, at a price of Rs. 55/- per equity share. The company got listed on BSE’s SME platform in Oct,23.
Investment
In FY24, company acquired 26% stake in Progata India Pvt. Ltd.
Subsidiaries
As of FY23, the company has 2 subsidiaries.
1 Drivetrain Solutions Private Limited : 66.67% equity stake held.
2. Rangetech Systems India Private Limited: 99.98% equity stake held.
Clientele
Key clients of the company include various zones of the Indian Railways (Eastern, South Eastern, South East Central, Northern, East Coast, North Frontier, East Central, Central Organisation For Railway Electrification (CORE)), and organizations like KEC International Limited, Larsen & Toubro Limited, Kalpataru Power Transmission Ltd., Rail Vikas Nigam Limited, Fedders Lloyd Corporation Limited, Tata Projects Limited, etc.
Website
Location
The company has two manufacturing units situated in Lucknow, Uttar Pradesh. Concord Control Systems Limited is headquartered in Uttar Pradesh.
Leaders
Mr. Harsh Yadav was appointed by the Members of the Company at their Extraordinary General Meeting held on August 31, 2022, as an Independent Director of the Company for one year commencing from August 31, 2022, and holds the office of the Independent Director up to August 30, 2023, and who is eligible for being reappointed as an Independent Director. He is a Partner at HRH & Associates and a Chartered Accountant.
Mr. Harsh Sachdev was appointed by the Members of the Company at their Extraordinary General Meeting held on August 31, 2022, as an Independent Director of the Company for one year commencing from August 31, 2022, and holds the office of the Independent Director up to August 30, 2023, and who is eligible for being reappointed as an Independent Director. Former Head of Regional Services, Northern Region (Marketing Division) of Indian Oil Corporation Limited, a Fortune Global 500 company. Experience of 37+ years in the Downstream Petroleum marketing Industry across various positions.About 19+ years of experience in leadership positions, involving leading multiple teams from different disciplines.
11 Years of experience in support positions across various functions in marketing of petroleum products.
7 Years of grassroots-level experience in dealing with field assignments including Land Procurement for Retail Outlets and supply locations.
Ms. Mahima Jain is on the board of Concord Control Systems Ltd. She received an MBA from The Institute of Chartered Financial Analysts of India Univ.
Mr. Nitin Jain Gaurav Lath. he have an overall knowledge and experience of more than 15 years. Joint
Managing Director, retires by rotation at this Thirteenth AGM, and has offered himself for re appointment. He is a director of the Company since 19th January, 2011. Founder of Concord Control Systems Ltd., Nitin Jain is Joint Managing Director & Director at this company. He is also Partner at Atlantic Tradeengineers LLP and on the board of 5 other companies. He received an undergraduate degree from Visvesvaraya Technological University.
Mr. Sanjeev Mittal as Non-Executive Independent Director of the Company . Mr. Sanjeev Mittal as an Additional Director (Independent) of the Company with effect from September 02, 2023. Mr. Sanjeev Mittal is an Engineer by profession and has qualified Masters of Engineering from IIT Roorkee in the year 1983 wherein he had bagged 3 gold medals including Chancellor’s medal for best academic record inthe entire state of UP. He is superannuated as Member Infrastructure & ex- Officio Secretary to the Government of India, Ministry of Railways, New Delhi. He has vast and extensive experience in working with Indian Railways for more than 35 years.
Highlights
- The company’s turnover has reached 49.33 crores
- this year thereby recording a growth of 55.69%
- turnover of last year and net profit of
- Rs 5.44 Cr and consequent resulting in growth of 106.14%
- employee’s hard work and customer’s continued faith in our products and services we could achieve EBIDTA of Rs. 7.95 cr.
- Revenue from Operations of the Company increased to Rs. 4933.95 lakhs.
- Net Profit of Rs. 544.61 from Rs. 264.19 in FY 2021-22 thereby recording an increase of 106.16%.
- Equity shares of your Company were listed on the Bombay Stock Exchange (BSE Limited) on SME Platform on October 10, 2022. The Company got listing approval from BSE Limited (SME Platform) on October 7, 2022. The trading symbol of the Company is ‘CNCRD’. Listing fees and the custodian charges to depositories, for the FY 2022-23 have been paid to BSE, NSDL and CDSL respectively.
- Company successfully completed its Initial Public Offering (IPO) of 15,12,000 equity shares of face value of Rs.10/- each, at a price of Rs. 55/- per equity share (including a premium of Rs. 45/- per equity share) (“issue price”) aggregating Rs. 831.60 lakhs.
- the success of the IPO reflects the trust and faith reposed in the Company by the Investors, customers and business partners and your Directors thank them for their confidence.
Products & Services
- Battery Chargers
- Control panel and distribution panels
- testing machine
- Emergency light
- Fans
- coupler
- Bellows
Profit & Loss
Expansions
- All the Shares of Company are in Dematerialization mode as on 31st March, 2023. The ISIN of the Equity Shares of the Company is INE0N0J01014.
- As on March 31, 2023, the Authorized Share Capitalof the Company is Rs. 10,00,00,000/- (Rupees Ten Crores) divided into 1,00,00,000 (One Crore) Equity Shares of Rs. 10/- each. The Paid Up and Subscribed Equity Share Capital of the Company is Rs. 5,71,20,000/-.
- The Board of Directors do not recommend any dividend for the financial year ended on 31st March, 2023 in order to conserve resources for future development.
- The Board of Directors have not proposed to transfer any amount to any Reserves. Therefore, entire profits of Rs. 544.61 Lakhs earned during the financial year 2022-23 have been retained in profit and loss account for business purposes.
- future through reduction of energy footprint and for reduction in non-essential loads to conserve power by increasing the production in each run.
- The Company has not invited/ accepted any deposits from the public during the year ended March 31, There were no unclaimed or unpaid deposits as on March 31, 2023.
Positives
- The company has reduced debt.
- The company is almost debt-free.
- The company has a good return on equity (ROE) track record: 3 Years ROE 38.4%
- Debtor days have improved from 85.8 to 66.7 days.
- Earnings grew by 106.3% over the past year
Negatives
- Stock is trading at 13.3 times its book value
- Though the company is reporting repeated profits, it is not paying out dividend
- Highly volatile share price over the past three months
- High level of non-cash earnings
- Does not have a major market cap (Rs 4B)
Warren Buffett Checklist
| Factor | Value |
| Economic Moat | Moderate |
| Growth | Good |
| Valuation | Moderate |
| Debt | Good |
| Integrity | Good |
Summary
Based on above evaluation the company have low multibagger properties.
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