(Kolkata’s Arun Mukherjee, a college dropout by choice, and Soumya Malani, a London School of Economics passout, have come to be known as smallcap aficionados in India’s investor community. They would show up at most AGMs, visit the remotest factories of a company and go chasing end-users to understand their experiences with a product in their passionate hunt for good smallcaps. Soumya and Arun would be sharing their experiences with companies and from the ground in this space every now and then. Keep watching…)

1. FY18 was a turnaround year for the company, with which management was overall very satisfied. It expects FY19 to be even better.

2. Some receivables from FY18 were pending from the government orders, but those have since been resolved. FY19 order book is Rs 60 crore, with Rs 20 crore more orders in the pipeline.

3. FY19 shall have more focus on export orders, which are showing very good traction and the management is in talks to scale that business.

4. Lead Acid battery: Efforts are on to break even in this segment by FY19. The management is in talks for various private label options and also for UPS & E-rickshaw batteries. But it shall be careful due to past bad experience in terms of receivables.

5. Some 3-4 defence prototype batteries are under the testing phase for the Brahmos missile, and the same can be of good potential going ahead. But it may take 2-3 years.

6. Q1 FY19 was weak due to extra time taken by the defence for testing the batteries before they take deliveries. The same shall be taken care of by Q2 and the rest of the year.

Our Take: The note comes from ShareBazaar app user Parthiv Shah, who himself is a well-known smallcap investor. In high energy batteries, this company always had a lot of potential, but it never quite delivered in the past. With its order book full and the sector itself looking up, let us see how it performs going forward. With absolutely nil floating stock available, it can put more fuel in the fire.