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ASKAUTO strengthening Financias as well as Price Action NSE:ASKAUTOLTD ........................ KEY Performance ........................ Robust growth in both top line & bottom line Highest ever Revenue & PAT in any quarter in past Revenue growth outperformed Industry growth Revenue up +31%, EBITDA up + 59%, PAT up +63% EBITDA Margins at 11.9%, up 210 bps YoY EBITDA margin improvement resulting from: Higher Volume driven economies of scale Benefit from ramp up of Karoli facility Focus on cost optimization initiatives EPS at Rs. 2.88, up +63% YoY CRISIL revised outlook to Positive from Stable CRISIL reaffirmed Credit Rating to AA- for Long Term and A1+ for Short Term Construction work of new Bengaluru Plant progressing well as per plan ...................... Powertrain Agnostic product offerings in both EV and Non-EV. 4 World Class Technical Collaborations and 2 World Class Joint Ventures. Robust financial performance with 17% Revenue growth, 26% EBITDA growth, 41% PAT growth and RoACE of 23.64% in FY24. High entry barriers due to proprietary material formulations, in-house Engg, Designing & Tool room. Long standing relationship with customers & established Aftermarket focused on Quality, Cost & Delivery.
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GNA Axles Limited Going Towards Its All TIME HIGH's NSE:GNA GNA Axles is engaged in the Business of manufactures auto components for the four-wheeler industry, primary product being Rear Axles, Shafts, Spindles & other Automobiles Components for sale in domestic and foreign market. .................................................................................................................. .................................................................................................................. .................................................................................................................. Key strengths Extensive experience of promoters/management and long track record of operations GNA was promoted by Late Rachhpall Singh and his brother Gursaran Singh, the latter being the company’s current managing director with around five decades of industry experience. His son, Ranbir Singh, and other family members are also involved in the company’s day-to-day business activities. The company directors are assisted by a team of professionals who are highly experienced in their respective domains. Being established in 1946, the GNA group, which also includes GNA Gears Limited, has a long track record of operations. ............................................................................... Diversified revenue stream across product segments and geographies The company supplies its products to varied segments of the automotive industry, including commercial vehicles (CV or the onhighway segment), tractors, farm equipment, and earth moving equipment (all three being part of the off-road segment). The company derives significant income from export of its products to the US, Europe, Asia Pacific (Japan and China among others), Mexico, Brazil, and so forth, with exports constituting around 53% of its total operating income (TOI) in FY23 (refers to April 1 to March 31) . The company is a Tier-1 vendor for its supplies in domestic off-road segment, while in the exports markets, it supplies axles and spindles to larger and more established Tier-1 vendors. ................................................................................ Long and established relationship with customers The GNA group has been operating in the auto component industry since 1946, thus having built time-tested relationship with customers – with some ever since the commencement of its operations. Besides, it has been supplying to some of its export customers since 2000. GNA markets its products through the common group marketing network catering a whole range of products, including axles, gears, and shafts under one roof. The long and established relationship with customers provides revenue stability to the company, subject to overall industry demand scenario. .................................................................................... Reputed, though concentrated customer base While GNA faces customer concentration with its top-5 and top-10 customers accounting for around 64% and around 80% of its total gross sales in FY23, the risk is largely mitigated as the top revenue contributors are well-established players and enjoy strong position in the industry. GNA is the main supplier of axle shafts to most of the original equipment manufacturers (OEMs) that it supplies to, and by virtue of its long-standing relationships with the customers, the company has a strong market position. For some of its export customers, the supplies are made by GNA for their plants in various countries, thereby mitigating the risk arising from slowdown in one geographical location. ......................................................................... Comfortable scale of operations with largely steady margins In FY24, the company achieved TOI of ₹1,508.67 crore compared to a TOI of ₹1,582.93 crore in FY23 driven by moderation in price realisations owing to weak tractor sales in the domestic market. The profit before interest, lease rentals, depreciation and taxation (PBILDT) margin marginally declined to 13.24% in FY24 (PY: 14.70%). The profit after tax (PAT) margins declined to 6.63% in FY24 from 8.22% in FY23. ....................................................................................... Comfortable financial risk profile The company’s capital structure remained comfortable with long-term debt-to equity and overall gearing ratios of 0.04x and 0.24x, as on March 31, 2024, respectively (PY: 0.07x and 0.28x, respectively). The same improved mainly due to reduction in debt and accretion of profits to the net worth. The company has low reliance on working capital borrowings as it only avails the pre-shipment credit for exports and substantial portion of its inherently high working capital requirements are funded by internal accruals. The interest coverage ratio remained healthy at 17.3x in FY24 (PY: 21.22x) due to healthy profitability and low interest costs on foreign currency borrowings. The company’s total debt to PBILDT stood comfortable at 0.95 as on March 21, 2024 (PY: 0.87x).
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ALPHAGEO Strong Fundamental Turn-Around Story NSE:ALPHAGEO ...................................................................................................................... ...................................................................................................................... Incorporated in 1987, Alphageo Ltd provides Geophysical Seismic Data Acquisition, Processing and Interpretation Services for exploration of hydrocarbons and minerals ...................................................................................................................... ...................................................................................................................... Company is almost debt free. Stock is trading at 1.03 times its book value. Company is expected to give good quarter. Company has been maintaining a healthy dividend payout of 473%. ...................................................................................................................... ...................................................................................................................... Due to effect of monsoon in several parts of India, only 4 seismic crews worked in the month of October 2019, with an addition of another 5 crews in the month of November 2019. The NSP Project on Sedimentary Basins of of Ganga-Punjab Area with Oil and Natural Gas Corporation Ltd. has been completed in the first week of January 2020. • The field acquisition stage of the Project of Geophysical Mapping Survey for mineral exploration with Geological Survey of India has been completed. The processing, interpretation and submission of deliverables is in progress. • The Project for MECL is completed during the quarter ended 31st December, 2019 • No new orders were received during the quarter under review. • Order on hand as on 31st December, 2019: INR 160 Cr (inclusive of taxes)
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ITDCEM Going 2 Break All Time High With Huge Positive NumbersNSE:ITDCEM Over 90 years of rich industry experience ...................................................................................... ...................................................................................... Company is expected to give good quarter, Company has delivered good profit growth of 26.4% CAGR over last 5 years ...................................................................................... ...................................................................................... Amongst the leading infrastructure & construction company in Thailand for over 60 years. ...................................................................................... ...................................................................................... Received ‘The Royal Seal of Garuda’ in 1985 - Highest and most honorable achievement for civilian companies in Thailand Global presence in India, Bangladesh, Lao PDR, the Philippines, Vietnam, Africa etc. Access to the latest technology and know-how, international design and engineering as well as skilled personnel to augment our local strength. ...................................................................................... ...................................................................................... MULTI YEAR REVENUE VISIBILITY ORDERBOOK OF RS 18,536 CRORE. • Secured orders worth over Rs 1,053 crore in Q1 FY25. • Clientele comprises of Government (48%), PSU (17%) and Private Sector (35%). • Established presence in India with 13 states / 1 union territory and is currently executing project in Sri Lanka and Bangladesh ...................................................................................... ...................................................................................... Major Projects under execution worth of Rs 6,401 crore. Marine project in Bangladesh. West Container Terminal in the Port of Colombo, Sri Lanka. Balance Outer Harbour Works in Andhra Pradesh. Piers, Landside Tunnels & Building in Karwar, Karnataka. Udangudi project in Tamil Nadu. Wharf and Approach trestle works at JNPT in Maharashtra. Captive Oil Jetty at Kamarajar Port in Tamil Nadu. Third Berth (Jetty) at Dahej LNG Terminal in Gujarat ...................................................................................... ...................................................................................... Major Projects under execution worth of Rs 3,936 crore. Underground tunneling and stations for metros in Chennai, Bengaluru, Mumbai and Kolkata. Elevated metro stations and buildings in Kolkata Depot metro building in Surat Modification & Refurbishment of terminal buildings in Ahmedabad airport ...................................................................................... ...................................................................................... Major Projects under execution worth of Rs 2,717 crore Six laning road project in Uttar Pradesh ...................................................................................... ...................................................................................... Major Projects under execution worth of Rs 2,341 crore Redevelopment of Residential colony at Kasturba Nagar in New Delhi. Circuit bench of Calcutta High Court at Jalpaiguri in West Bengal. Thal Sena Bhawan in Delhi. Aerospace museum at AF station in Palam, Delhi. Piling and Civil work for Coke Oven Project at Hazira plant in Gujarat. Construction of buildings for Sikkim University ...................................................................................... ...................................................................................... Major Projects under execution worth of Rs 2,120 crore Railway tunnels in West Bengal and Sikkim. Civil & Hydro-Mechanical Works of 500 MW Hydel Power, Pumped Storage Project in Andhra Pradesh. Water conveyor system of lined gravity canal/tunnels in Telangana
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PARAS DEFENCE Getting Support @ Previous ALL Time HighNSE:PARAS Positive factors – The outlook will be revised to Stable if the company demonstrates a material improvement in its working capital cycle and liquidity position, along with improvement in earnings and scale of operations. Healthy order book provides medium-term revenue visibility – The company’s fresh order inflows over the past four fiscals remained adequate, with orders worth ~Rs. 621 crore added in the last 21 months ending December 31, 2023. The pending order book of Rs. 526.3 crore as on December 31, 2023 (OB/OI ratio of 2.4 times of the OI in FY2023) provides medium-term revenue visibility. Comfortable capital structure and healthy coverage indicators – The company’s capital structure remains comfortable with TOL/TNW of 0.3 times as on September 30, 2023, supported by equity infusion of Rs. 162.3 crore during FY2021-FY2022 and low debt levels. The interest coverage stood at 12.2 times in 9M FY2024 due to the limited dependence on external borrowings to fund its working capital. Going forward, ICRA expects the coverage indicators to remain comfortable, benefitting from the scale-up in operations, given the strong order pipeline. Extensive experience of management team – PDSTL’s promoters have more than three decades of experience in designing, developing and manufacturing a wide range of engineering products and solutions for the defense and space sector in the domain of optics, heavy engineering and electronics. Its long presence in the defence and space sector has helped to establish strong relationships with its customers as well as suppliers. It has developed a strong management and execution team comprising several ex-employees of BEL and DRDO, among others. High working capital intensity due to elongated receivables cycle – The business is working capital intensive with NWC/OI of 88.3% and 114.8% in FY2023 and H1 FY2024, respectively, owing to the high inventory holding period and long receivables cycle. The inventory levels are high because of additional stocking of critical raw materials to avoid any disruption in the delivery schedules and high work-in-progress due to elongated manufacturing cycle. PDSTL has been partly managing its working capital cycle by stretching its trade payables by more than three months as it has a longstanding relationship with most of its suppliers and availing mobilisation advance for part orders. Going forward, the company’s ability to alleviate its working capital intensity while scaling up its revenues and improving its operating margins will be the key rating monitorable. Moderate scale of operations – Though the company reported a robust YoY revenue growth of 21% and 10% in FY2023 and 9M FY2024, respectively, supported by healthy order book and the timely execution of orders, the scale of operations still remains moderate. Given the Government’s thrust on ‘Make in India’ in the defence sector, PDSTL has been mainly catering to domestic demand (~84% of OI contributed by domestic orders in FY2023). Driven by the healthy order book status, ICRA expects the company to sustain its revenue growth in FY2024 and FY2025. High customer concentration risk, though largely mitigated by reputed customer base and repeat orders – The company faces client concentration risk with top three clients contributing 46% to the total order book as on December 31, 2023 and top five clients accounting for 51% of the revenue in FY2023. The client profile mostly comprises government organisations with repeat orders received over the years, largely mitigating the counterparty credit risk. A major part of PDSTL’s clientele included reputed government organisations, namely Laboratory for Electro-Optics Systems (a unit of ISRO), BEL, Instruments Research and Development Establishment (a unit of DRDO) and private companies like RRP S4E Innovation Private Limited and Unifab Engineering Project Private Limited. The company has long standing relationships with most of its clientele. PDSTL also exports to companies based in Israel, Singapore and USA.
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KNRCON Have Broken All Time High Giving Target of Around 25%NSE:KNRCON BUSSINESS OVERVIEW One of the leading companies providing Engineering, Procurement and Construction (EPC) services. Major Projects in Roads & Highways – one of the fast-growing sectors Established presence in Irrigation and Urban Water Infrastructure Management 25+ years of experience of project execution Successfully executed more than ~8,700 lane km Road Projects Projects executed across 12 states in India Portfolio of BOT/HAM Projects 668 lane Kms Projects in the state of Telangana, Karnataka & Bihar 2 Annuity based Projects, 1 Toll based project and 8 HAM based projects 8 HAM based projects with total Bid Project cost of Rs. 96,188 million Strong EPC Order Book Total Orderbook as on 31st March 2024 53,048 cr. ₹ 31,980 Mn Roads Sector ₹ 21,068 Mn Irrigation and Pipeline Sector Recently Won Projects Construction of Access Controlled four laning with paved shoulder from Mysore to Kushalnagara Section of NH-275 on Hybrid Annuity Mode under NH(O) in the State of Karnataka (Package IV) worth of 5750 CR. Construction of Access Controlled four laning with paved shoulder from Mysore to Kushalnagara Section of NH-275 under NH(O) in the State of Karnataka (Package V) worth of 6250 CR. 1. Project Execution Capabilities 19 SIGNIFICANT EXPERIENCE AND STRONG TRACK RECORD IN TIMELY EXECUTION OF PROJECTS Top management’s active involvement at all stages of Project execution Selection of Major Raw Material Selection of construction Camp location Faster Decision making to ensure project completion on schedule Received Bonus for completion of construction ahead of schedule
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ELECTCAST 3rd Time Knocking its All Time High with Weekly HammerNSE:ELECTCAST The company was incorporated in November 1955, as Dalmia Iron & Steel Ltd and re-incorporated under the name of ECL in May 1965. ECL manufactures DI pipes with combined installed capacity of 7,45,000 MTPA. Combined production capacity for DI fittings and cast iron pipes is 21,000 MTPA and 90,000 MTPA, respectively. Through backward integration, the company also operates a blast furnace, coke oven and waste heat recovery-based power plant. Plants are in Khardah and Haldia in West Bengal, Elavur in Tamil Nadu, and Srikalahasthi in Andhra Pradesh. Strengths: Established position in the pipes industry with significant backward integration: The three-decade-long experience of the promoters in the ductile iron (DI) pipes industry has helped them establish significant market presence, expand production capacities, and undertake backward integration over the years. The facility is already utilised by over 90% and ECL plans to further add capacity of more than 2.5 lakh metric tonne per annum (MTPA) over the next two fiscals. This will enable the company to retain its leadership position in the DI pipe market. The company maintains strong trade relationships with reputed overseas customers and all major players in the domestic market. Limited competition, owing to large capital requirement and necessity to have critical accreditations and customer approvals, bolster the business risk profile. Performance is further supported by improving global and domestic demand, as reflected in a strong order book providing healthy revenue visibility. Healthy financial risk profile: Networth and gearing have improved to Rs 5,111 crore and 0.44 time, respectively, as on March 31, 2024 (Rs 4,376 crore and 0.6 time, respectively, a year earlier), backed by better profitability and hence, steady accretion to reserves. Lower dependence on external debt and better working capital management should also aid the financial risk profile. Debt protection metrics remain comfortable with interest coverage and net cash accrual to adjusted debt ratios at 5.7 times and 0.34 time, respectively, in fiscal 2024. Order Book 6 lakh tonnes let say, so about nine to 10 months of Healthy Order Book. worth of Around Rs. 4,500 crores approximately. Financial Highlights Revenues at INR 7,580 Crores, Highest ever yearly EBITDA and PAT at INR 1,281 Crores and INR 740 Crores, respectively in FY24 ➢ EBITDA margin and PAT margin at 16.9% and 9.8%, respectively in FY24 ➢ Adjusted FY24 ROCE at 19.0% (FY23 - 13.0%) and ROE at 19.3% (FY23 - 11.2%) ➢ Strong Order Book visibility of 10 months Other Financial Metrics EBITDA grew by 50.9% YoY to INR 346 Crores in Q4FY24, the EBITDA margin expanded by 495 bps YoY to 17.0%. • Highest ever PAT of INR 227 Crores, up by 153.8% YoY in Q4FY24, PAT margin expanded by 645 bps YoY to 11.1%. • Decline in interest cost by 33.3% during the quarter. Effective Positive Policies Jal Jeevan Mission (JJM): Driving Water Infra Demand ➢ The Government’s flagship scheme - Outlay of INR 3.60 lakh crores ➢ Providing water supply by to every crore rural household at a capacity of at least 55 litres per capita, per day (lpcd) by 2024 ➢ Providing Functional Household Tap Connections (FHTCs) to 19.4 crore rural households and village institutions ➢ Prioritising quality-affected villages (drought prone & desert areas Additional Government Schemes Driving Water Infra Spending AMRUT 2.0: INR 2,99,000 Crores (Launched by Hon’ble PM on 1st Oct 2021) ➢ Aims to provide 2.68 Crore water taps connections in 4,800 statutory towns ➢ New 2.64 Crore Sewerage/Septage services in 500 AMRUT cities
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20 Microns LTD have Broken All Time High With Very Good VolumeKey Activities • 20 Microns invests in research & development to develop innovative products & processes that can be used in various industries Key Products. White Pigment Opacifier Synthetic Aluminium Silicate High Performance Opacifier Flash Calcined Clay Matting Agent Polyethylene Wax Organo Clays Calcium Carbonate • Natural Baryte • Natural Talc • Natural Mica • Natural Silica • Calcined Kaolin • The company works with close proximity with its customers to provide customized solutions based on their specific requirements Key Resources • Mines • Technology & R&D prowess • Human Resources • Trusted Brand Image Cost Structure • Raw material cost is ~50% of the revenue • Other major costs are power & fuel, freight & logistics accounts Revenue Generation • Revenue is generated from sale of industrial minerals, specialty chemicals and branded products. • The company also generates revenue from sale of its products outside India. • The company has formed strategic alliances and joint ventures with global players, which help to expand its business and generate revenue from new markets. Revenue from Operations - ₹ 921.40 mn EBITDA - ₹ 106.10 mn EBITDA Margins – 11.52% PAT - ₹ 32.40 mn PAT Margins – 3.52% Financial Performance Comparison FY24 v/s FY23: Consolidated revenue from operations increased by 10.80% and stood at ₹7,774.93 Mn in FY24 from ₹7,016.87 Mn in FY23. This growth was led by addition of new customer and through enhancing our core offerings through several strategies, such as expanding distribution channels and launching new products. EBIDTA increased by 22.63% from ₹857.36 Mn in FY23 to ₹1,051.34 Mn in FY24 margins improved from 13.52% in FY24 to 12.22% in FY23. PAT during the year stood at ₹561.60 Mn in FY24 compared to ₹419.62 Mn in FY23 with margins improving to 7.22% from 5.98%.
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MPSLTD indicating Increase in Strength by Breaking Trend LineCompany has reduced debt. Company is almost debt free. Company has a good return on equity (ROE) track record: 3 Years ROE 26.0%. Company has been maintaining a healthy dividend payout of 39.7%. Company's working capital requirements have reduced from 34.3 days to 10.4 days. Reported Revenue 545.3 Cr Reported Revenue YoY +++ 8.83 % EBITDA +++ 169.9 CR EBITDA Margin +++ 31.15 % EPS Growth YoY +++ 9.61% Tremendous Growth Opportunities • Maximize cross-sell and upsell with captive customer base of 750+ customers. • Scale central growth and marketing engine to acquire new customers and expand geographic footprint. • Consistent investment and deployment of new capabilities across lines of business. • Enter adjacent markets by re-configuring products/services. • Play the role of a Consolidator in a highly fragmented market. MPS is a B2B learning and platform solutions company powering education, and research for corporates. MPS has unlocked a new growth trajectory due to the combined effect of lower attention spans, rapid growth in digital consumption, and the recent advances in AI/ML.
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GRINFRA is Sustaining @ 2 Years High Zone With Positive AttitudeOrder book as on 31st March 2024 is Rs 1,67,806 Mn During the year, Company has transferred 7 operational HAM assets to Bharat Highways InvIT Subsequent to March 31, 2024, PCOD/ COD has been received for below two projects • Transmission system in Rajgarh - COD • Galgalia-Bahadurganj (HAM) – PCOD As on date Company has total 5 projects which are operational. P ositive factors • Significant growth in the scale of operations on a sustained basis with substantial segmental diversification in the revenue stream while maintaining low leverage. Key strengths Transfer of assets to BHIT thereby enhancing its financial flexibility GRIL has transferred 100% stake in seven operational NHAI assets to BHIT and received units worth ₹1,929 crore during Q4FY24 thus enhancing its financial flexibility. Following the transfer of operational assets to BHIT, GRIL retains four operational assets in its portfolio, including one NHAI annuity project, one state HAM project, and the balance two NHAI HAM projects (one project received PCOD during Q4FY24). As indicated by the management, the InvIT units will have a lock-in period of one year from the date of the allotment. GRIL has also entered into a right of first offer (ROFO) agreement with the InvIT, pursuant to which, GRIL will grant a ROFO to InvIT, thus allowing the company to unlock its equity. Additionally, dividend income is also expected from the InvIT. Healthy outstanding order book position of the company GRIL had a healthy outstanding order book position of ₹₹18,680 crore as on December 31, 2023, as against ₹19,529 crore as on March 31, 2023, indicating revenue visibility of 2.29x of the FY23 TOI. The majority of these orders are with a price variation clause, thereby shielding GRIL’s profitability from adverse movements in the prices to an extent. The order book is also geographically diversified with presence in more than 11 states, with no state contributing to more than 25% of the order book. Furthermore, GRIL has segmentally diversified its portfolio by venturing into new segments of ropeway, multi-modal logistics park, hydro power project, transmission which is expected to reduce its dependence on the road sector. The order inflow during current year i.e. FY24 has been slow due to lower awarding in road sector. Nevertheless, healthy order book position provides revenue visibility over medium term. Expected range-bound scale of operations in FY24 with stable profitability GRIL’s scale of operations have shown a healthy growth over the last five years, despite COVID-19 related disruptions. The TOI grew at a healthy CAGR of 13% over the last five years ended FY23 from ₹4,952 crore during FY19 to ₹8,149 crore during FY23, led by strong execution capabilities. During FY23, the TOI remained stagnant over FY22 due to a low order intake and the pending receipt of the appointed date of eight HAM projects. The TOI is expected to remain almost stagnant in FY24; however, it is expected to witness minor de-growth in FY25 on Y-o-Y basis due to pending receipt of the appointed date in projects. secured in FY23. The surge in commodity prices and intense competition in the road sector led to minor moderations in the margins of GRIL, in line with other industry players, during the last five years ended March 31, 2023. Nevertheless, the margins continued to remain healthy at 16.12% for FY23. However, the margins declined to 13.32% during 9MFY24 on account of lesser execution in Q2FY24 due to monsoon and pending receipt of appointed date in HAM projects. Correspondingly, during 9MFY24, GRIL reported TOI of ₹5,532 crore as against ₹6,153 crore during 9MFY23.
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TRIL Showing Again Bullish Mood at All Time High ZoneCompany has reduced debt. Company has delivered good profit growth of 57.2% CAGR over last 5 years Most preferred Indian Brand, known for manufacturing High Voltage Transformers viz. 220 kV 400 kV, 765 kV, 1200 kV indigenously ❑ Expertise in designing and manufacturing transformers from 5kV up to 1,200kV voltage class transformers and from 0.5MVA to 500MVA capacity; thereby having presence across the value chain ❑ Manufactures entire range of transformers viz. Power, Distribution, Furnace, Rectifier Transformers & Shunt Reactors, creating a unique positioning for itself in the transformer industry ❑ Supported by backward integrated manufacturing facilities housed in Gujarat ❑ International presence in 25+ countries New Order Received during the year ₹ 2,050 crore Order from Solar Power Plants: ❑ Received order for Solar Power Plants for 4 nos. 250 MVA 2x33 kV/400 kV from a reputed EPC Company ❑ Received order for 8 nos. 315 MVA 2x33/400 kV from a Maharatna PSU Order from Private Sector Industry: ❑ Received maiden order for 400 kV Single Phase Generator transformers of 6 nos. 210 MVA from a steel plant Order from Metro Projects/ Railways: ❑ Received order for Delhi Metro (DMRC) and Chennai Metro Projects Order from Central Power Utility: ❑ Received order for 72 nos. Transformers & Reactors from a leading Central Power Utility in India ❑ Received order for 2 nos. 250 MVA ICT from one of the PPP model Company ❑ Received order of 4 nos. 60 MVA Traction Power Transformer (Scott Connected) ❑ Received an order of 220 MVA EAF transformer for Exports to be used in steel melting application, it is second biggest rating in the world. Unit to be export in Q1FY25. Other Achievements: ❑ Successfully tested the most stringent Dynamic Short Circuit test on multiple transformers of various voltage ratings. With this company has crossed a commendable milestone of successful Dynamic short circuit test on a record 150 plus transformers in last two decades. ❑ Technology for 765 kV class shunt reactors has been fully absorbed Q4FY24 revenue ₹ 500 crore; FY24 revenue ₹ 1,273 crore ❑ Q4FY24 EBIDTA ₹ 65 crore; FY24 EBIDTA ₹ 129 crore ❑ Q4FY24 EBIDTA margin 12.9%; FY24 EBIDTA margin 10.0% ❑ Revenue improvement due to faster execution of major orders, better production planning, improved receivables, internal control systems, etc. ❑ Export Contribution as a % of Revenue 11% ❑ Average monthly collection from customers during H2FY24 was Rs.144 crore which indicates stringent internal controls systems in place. ❑ Tailwind to continue & company expects much higher profit margins in years to come. “
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TECHNOE is Hammering and Trapped At All Time HighTEECL, headquartered in Kolkata, is promoted by Mr P P Gupta, who is assisted by a team of professionals. It undertakes turnkey engineering, procurement and construction (EPC) projects, predominantly in the power sector, across generation, transmission, and distribution segments. In fiscal 2015, the company received the Best Safety Award from Power Grid. TEECL entered the renewable power generation space in 2009 with 45 megawatt (MW) of wind energy assets by acquiring Super Wind. It acquired Simran Wind Project Ltd (Simran) in 2009, which had installed capacity of 50.45 MW that was subsequently scaled up to 162.35 MW. The company divested 44.45 MW and 33 MW of capacity of Simran in May 2015 and January 2017, respectively. TEECL got its current name post its merger with Simran. For the nine months through December 2023 profit after tax (PAT) was Rs 200 crore over total income of Rs 1198 crore compared with Rs 126 crore and Rs 516 crore, respectively, in the corresponding period the previous year. Current Order Book is Rs 1600 Crores Techno is targeting for Rs 2000 - 2500 crores every year in its segment Techno envisages to develop 250 MW of Data Centers with a capex of over USD 1.3 billion in the next 5-6 years As per, Gazette notification (GOI) all Thermal Power Plants need to limit their sulphur emission. Total Target is for 211.52 GW (67.25 GW by Central Govt., 67.74 GW by State Govt. and 76.528 GW by private players) by 2026. Of these, around 10.6 GW is already installed, and bids for 102.96 GW are already awarded. Bids for 23.67 GW has been opened Around 71.42 GW are around various stages before being awarded. They have received the contract for 500 MW from DVC for Rs 3190 million (already commissioned) and an order worth Rs 14550 million from Rajasthan Rajya Vidyut Nigam Ltd. They have tenders worth Rs 1000 crores under bidding in the pipeline Govt. of India plans to grow from 1 mn smart meters to 250 mn smart meters Till now total smart meters sanctioned for installation is 229.8 mn Out of the above, around 8.64 mn meters have been installed till now, and rest are under various stages of implementation. Currently, most of the orders getting bided are on the RDSS Scheme (87.71% of the sanctioned meters) Techno has received orders for 3.77 lakh meters at Jammu & Kashmir Techno has also got an order worth Rs 633.23 crores for 5.53 lakh smart meters at Indore and J&K for 7.25 lakh meters worth 1041 crores under the DBFOOT model. Techno is bidding for various projects for 40 Lakh meter projects worth Rs 4500 crores.
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EID PARRY INDIA Freshly Broken 83 Weeks HighCompany has delivered good profit growth of 41.5% CAGR over last 5 years Company has been maintaining a healthy dividend payout of 19.7% Expected diversion for Ethanol in SY 2023-24 is ~ 20LMT of Sugar (against 38LMT diverted in SY 2022-23). Overall blending is 12% as of March’24. E20 petrol is available at 12,000 fuel retail outlets and the government targets a pan-India rollout by 2025. Syrup/B Hy diversion to Ethanol restricted from 7 th Dec 2023 and subsequently on 15th Dec 2023, allowed 17 LMT of Sugar diversion (as B Hy) across the country. Additional 10LMT has been allowed in April’24 for supply in Q3 of FY’25. Maximize and grow the Refined / Pharma Sugar Business • Health and wellness segment has been identified to focus on specialty sweetener business • Focusing on Brown sugar and Jaggery as alternate sweetener • To become a sweetening solutions provider for B2B Customers 1. Packaged staples has a large Total Addressable Market (TAM) of ~ INR 9 L Cr • Highly unorganised with only a few pan-India players 2. Overall branded penetration is less than 20%. • Significant growth expected with consumers preferences shifting towards branded products • Coincides with India’s overall growth and expansion of the consumption class 3. Parry’s brand presence and the strong foundation laid through the sweeteners to be leveraged • To further build on the capability to ‘brand the unbranded’ 4. Aspiration to capture >10% of the kitchen shelf in every household in South India The Company made a pioneering leap towards community water resource management projects through its flagship Project NANNEER • Under the first phase, seven lakes and ponds in Oonaiyur area (Pudukkottai and Sivagangai district in TN) were desilted across 250 acres (depth of 1-3 meter) • Under the second phase, twelve lakes and ponds (in the Cuddalore, Tiruppur, Villupuram and Erode districts in TN) were desilted across 127 • The excess desilted soil was utilized to create islands in each of the water bodies. Close to 1100 Million Liters were conserved in Phase 1 and 2. • Currently third phase being planned in TN, KN and AP. • The Company aims to achieve Ten Billion liters of water holding capacity through Project NANNEER by the end of 2026. Increase in Cash Fixed Cost in FY’24 majorly due to: • Manpower capability building for project expansion and new business • CPG infrastructure building • Special repairs undertaken in major plants Lower cane volume by 1.7 LMT over last year further contributed to the increase in CFC/MT Increase in cane cost, drop in recovery & yield due to climatic conditions, restriction in sugar diversion for ethanol has led to drop in EBITDA. The benefits on expansion of distillery capacities are expected to flow in FY’25
NSE:EIDPARRYLong
by iism-ExpertTrading
PARAS DEFENCE Broken & Sustained Above 133 Weeks HighPositive factors – The outlook will be revised to Stable if the company demonstrates a material improvement in its working capital cycle and liquidity position, along with improvement in earnings and scale of operations. Healthy order book provides medium-term revenue visibility – The company’s fresh order inflows over the past four fiscals remained adequate, with orders worth ~Rs. 621 crore added in the last 21 months ending December 31, 2023. The pending order book of Rs. 526.3 crore as on December 31, 2023 (OB/OI ratio of 2.4 times of the OI in FY2023) provides medium-term revenue visibility. Comfortable capital structure and healthy coverage indicators – The company’s capital structure remains comfortable with TOL/TNW of 0.3 times as on September 30, 2023, supported by equity infusion of Rs. 162.3 crore during FY2021-FY2022 and low debt levels. The interest coverage stood at 12.2 times in 9M FY2024 due to the limited dependence on external borrowings to fund its working capital. Going forward, ICRA expects the coverage indicators to remain comfortable, benefitting from the scale-up in operations, given the strong order pipeline. Extensive experience of management team – PDSTL’s promoters have more than three decades of experience in designing, developing and manufacturing a wide range of engineering products and solutions for the defence and space sector in the domain of optics, heavy engineering and electronics. Its long presence in the defence and space sector has helped to establish strong relationships with its customers as well as suppliers. It has developed a strong management and execution team comprising several ex-employees of BEL and DRDO, among others. High working capital intensity due to elongated receivables cycle – The business is working capital intensive with NWC/OI of 88.3% and 114.8% in FY2023 and H1 FY2024, respectively, owing to the high inventory holding period and long receivables cycle. The inventory levels are high because of additional stocking of critical raw materials to avoid any disruption in the delivery schedules and high work-in-progress due to elongated manufacturing cycle. PDSTL has been partly managing its working capital cycle by stretching its trade payables by more than three months as it has a longstanding relationship with most of its suppliers and availing mobilisation advance for part orders. Going forward, the company’s ability to alleviate its working capital intensity while scaling up its revenues and improving its operating margins will be the key rating monitorable. Moderate scale of operations – Though the company reported a robust YoY revenue growth of 21% and 10% in FY2023 and 9M FY2024, respectively, supported by healthy order book and the timely execution of orders, the scale of operations still remains moderate. Given the Government’s thrust on ‘Make in India’ in the defence sector, PDSTL has been mainly catering to domestic demand (~84% of OI contributed by domestic orders in FY2023). Driven by the healthy order book status, ICRA expects the company to sustain its revenue growth in FY2024 and FY2025. High customer concentration risk, though largely mitigated by reputed customer base and repeat orders – The company faces client concentration risk with top three clients contributing 46% to the total order book as on December 31, 2023 and top five clients accounting for 51% of the revenue in FY2023. The client profile mostly comprises government organisations with repeat orders received over the years, largely mitigating the counterparty credit risk. A major part of PDSTL’s clientele included reputed government organisations, namely Laboratory for Electro-Optics Systems (a unit of ISRO), BEL, Instruments Research and Development Establishment (a unit of DRDO) and private companies like RRP S4E Innovation Private Limited and Unifab Engineering Project Private Limited. The company has long standing relationships with most of its clientele. PDSTL also exports to companies based in Israel, Singapore and USA.
NSE:PARASLong
by iism-ExpertTrading
2
Pacific Industries Ltd Looking Good After Long CorrectionLooking Good For Long-Term Holding . Good Fundamentals and Business Model Stock is trading at 0.34 times its book value CMP @ 215.30 AND BOOK VALUE @ 629 Quarterly Results Out as..... Item YOY Mar 2024 Sales ⇡ 47% 59.6 EBIDT ⇡ 309% 5.34 Net profit ⇡ 186% 4.72 EPS ⇡ 187% ₹ 6.85 Positive factors • Sustained Improvement in scale of operations marked by total operating income (TOI) above Rs.350 crore along with PBILDT margin above 13% on sustained basis. • Improvement in working capital cycle below 100 days. Key strengths Experienced and qualified management with strong group presence Mr. Jagdish Prasad Agarwal, Chairman and Managing Director of PIL, has more than three decades of experience and looks after overall affairs of the company. He is assisted by Mr. Kapil Agarwal, Executive Director, who has around 13 years of experience in the industry. Further, the promoters are supported with the experienced second-tier management. The company belongs to Udaipur based Geetanjali Group and group concerns include Ojaswi Marbles and Granites Private Limited, Geetanjali Marble, Krishna Marble, Pacific Exports, Pacific Leasing and Research Limited, Yash Processors Private Limited, Pacific Iron manufacturing Limited, Chaitanya international Mineral LLP and Geetanjali University. As per the clarification submitted by PIL to stock exchange on February 21, 2023, Income Tax department has conducted inquiry under section 132 and 133 of Income Tax Act, 1961 from February 16, 2023, to February 21, 2023. As conveyed by PIL’s management to CARE Ratings, there have been no material findings from the inquiry conducted so far. As per disclosure made to stock exchange, PIL will update stock exchange on material information of event, if any. CARE Ratings shall however continue to monitor the developments of the case and its impact, if any on the credit profile of PIL. Established track record of operations and diversified product portfolio PIL was incorporated in the year 1989 and has a track record of more than three decades in the industry having established relationship with its customers and suppliers. The company majorly exports its products to USA, Europe, Indonesia, Vietnam as well as Middle East countries. Over the years, PIL has received various awards and certification, such as “Star Export House” certification from the Ministry of Commerce and Industry, certificate of life member of All India Granite and Stone Association. It also has membership of Centre for Development of Stones and Confederation of Export Unit. Further, the company offers diversified products which includes variety of North Indian and South Indian granites in different styles, color, size and pattern etc. Further, it has flexibility to manufacture different varieties of quartz slabs by blending resins with quartz and other key materials to get slabs with desired colour, hardness and durability. Location advantage with ease of availability of raw material and labour PIL’s processing facility of granites is situated in Rajasthan and Karnataka which has the largest reserve of marbles & granites in India with estimated reserves of 2075.64 crore cubic metres accounting of more than 91% of the total marble reserves of the country. There are many units located in the cities of Rajasthan, Karnataka and Andhra Pradesh which are engaged in the business of mining and processing of marbles and granites. Further, skilled labour is also easily available by virtue of it being situated in the marble & granite belt of India. Moderate profitability albeit moderation in scale of operations PIL’s Total operating income (TOI) declined by 35% y-o-y to Rs. 184.11 crores as against Rs.285.40 crore in FY22. The decline was on account of decrease in quartz sales due to levying of anti-dumping duty in July 2022 by U.S. Department of Commerce and no sales from trading of iron ore in FY23. The anti-dumping duty was subsequently reversed in January 2023. In 9MFY24, PIL achieved sales of Rs. 134.93 crores. PBILDT margin of PIL moderated by 322 bps to 7.55% in FY23 as against 10.46% in FY22 on account of higher raw material cost as well as lower absorption of overhead costs. However, in 9MFY24, PBILDT margin improved to 13.94% on the back of lower manufacturing expenses. Comfortable capital structure albeit moderate debt coverage indicators The capital structure of PIL improved with overall gearing of 0.43x as on FY23 end (1.25x in FY22). Improvement in overall gearing was on account of successful completion of rights issue of Rs.47.53 crore in February 2023 which resulted in augmentation of networth base as well as reduction in o/s debt with repayment of USL from directors/ subsidiaries and repayment of working capital borrowings. The debt coverage indicators however continued to remain moderate in FY23 due to lower profitability with PBILDT interest coverage of 1.72x (4.50x in FY22) and total debt/ GCA of 5.53x (6.20x in FY22)
BSE:PACIFICILong
by iism-ExpertTrading
1
#GODREJAGRO Company has been maintaining a healthy dividend payout of 51.6% Debtor days have improved from 37.4 to 22.4 days. Company's working capital requirements have reduced from 58.6 days to 46.1 days Strengths: Diversified business presence: The company’s focus on diversification into newer segments such as palm oil, crop protection, dairy and poultry over the past 7-8 fiscals in order to lower its concentration in the animal feed business (revenue contribution down to around 49% for the first nine months of fiscal 2024 from 80% in fiscal 2012) supports its overall business risk profile and provides cushion against slowdown in any business segment. In the first nine months of fiscal 2024, overall revenue saw modest growth of 2% year-on-year, largely on account of healthy volume growth in most of the business segments, apart from the business under the subsidiary, Astec Lifesciences, which faced competitive pressures for its key enterprise products. The volume growth was offset by negative or modest expansion in realisations, especially in the palm oil, poultry and animal feed segments, leading to a muted revenue growth. Operating margin, however, improved on a year-on-year basis, to 7.7% for the first nine months of fiscal 2024, as against 5.7% for fiscal 2023, backed by lower input prices in dairy and poultry segments and higher operating levels in the animal feed and crop protection segments. The improvement in operating margin was the highest in crop protection segment, supported by strong volumes and realisations in the in-licensed product portfolio, apart from the dairy segment where operating margin improved substantially, on the back of lower milk procurement prices and operating efficiency, from operating losses seen last year. On the other hand, operating margin declined in the Astec Lifesciences segment, as it faced continued price erosion and subdued demand for its key enterprise product, despite robust performance by its contract manufacturing segment. Dominant position in the domestic animal feed and palm oil segments: GAL enjoys a dominant position in the domestic organised animal feed industry with presence across various sub-categories such as cattle, broiler, layer, fish, shrimp and other feeds. The company's efforts are driven by research and development to achieve cost leadership and competitiveness, which have supported its volume growth. The segment continued to see traction across sub-segments, especially in cattle feed and aqua feed, during the first nine months of fiscal 2024. Being the second largest consumer of palm oil in the world, India’s demand for domestic palm oil is expected to remain robust. The segment registered compounded annual growth rate of 16% over the eight fiscals through 2023, with healthy operating margin of above 19% over the period. Strong volume growth expected over the medium term, along with the longer shelf-life volumes coming from company’s newly set up oil refinery, would help keep operating margins healthy. Strong financial risk profile: Financial risk profile remains strong as reflected in gearing of 0.48 time as on December 31, 2023 and interest coverage of 7.55 times in the first nine months of fiscal 2023, versus 0.44 times and 5.62 times, respectively, as on December 31, 2022. Debt levels declined slightly to Rs 1,203 crore as on December 31, 2023 from Rs 1,321 crore as on March 31, 2023. Debt levels are expected to remain range-bound over the medium term on the back of strong cash accruals from the business, despite the capital expenditure (capex) plan and working capital requirements, because of which the overall financial risk profile would remain comfortable. Strong financial flexibility from being part of the Godrej group: GAL enjoys strong financial flexibility being part of the Godrej group and has the ability to raise debt at competitive rates and on short notice. It is able to directly derive implicit benefits being part of the Godrej group and without a formal arrangement of support with the parent, group companies or promoters.
NSE:GODREJAGROLong
by iism-ExpertTrading
The time to wake up the stock of giant Sinopharm is nearSinopharm Group is a profitable Chinese state company with 2 covid-19 vaccines (the first is approved in China) with very strong fundamentals (except debt). Sinopharms stock seems to be near the end of a many years correction, ready to reverse its declining trend. Next follows the stocks mid-term trend chart. Disclaimer The writer of this text is not an investment advisor. The preceding content is intended to be used for informational and educational purposes only. It is not an advice or inducement for the purchase or sale of the products mentioned. Before making any investment based on your own personal circumstances, it is very important to do your own research and analysis and also take independent financial advice from a professional to verify any information provided here.
FWB:X2SLong
by Gnothisafton