Tag: Value Picks

Premier Explosive Ltd Stock Soars: 272% Revenue Jump in Q3 FY25
Premier Explosives Ltd – Comprehensive Q3 FY2025 Results Analysis
Premier Explosives Ltd (PREMEXPLN)

Comprehensive Q3 FY2025 Analysis & Strategic Outlook
1. Company Overview

Premier Explosives Ltd (PREMEXPLN) is a leading player in India’s high-energy materials sector, specializing in industrial and defense explosives. The company’s diverse portfolio encompasses:

Industrial explosives for mining, construction, and infrastructure

Specialized defense products including solid propellants

Ammunition components and missile propellants
2. Q3 FY2025 Financial Performance

Revenue

₹165.91 Cr

272% Quarterly Growth

PAT

₹9.19 Cr

vs ₹1.67 Cr (Q3 FY2024)

EPS

₹1.71

vs ₹0.31 (Q3 FY2024)

Cost & Expense Management

Total expenses: ₹157.39 Cr

ROCE: 18%

ROE: 13.5%

Market Capitalization: ₹1,991 Cr

Reserves: ₹225 Cr

Debt: ₹95.2 Cr
3. Future Growth Plans

Capacity & Production Enhancements

PREMEXPLN is implementing comprehensive expansion strategies through:

New state-of-the-art facilities establishment

Advanced automation initiatives

Modernization of existing plants

Strategic regional market expansion

Product Diversification & R&D

The company is focusing on:

Development of next-generation high-energy materials

Advanced explosive formulations

Tailored defense application solutions

Premium segment capture in industrial and defense sectors
4. Financial Projections

Current Price

₹371

52-Week High

₹909

52-Week Low

₹263

Key Valuation Metrics

P/E Ratio: 63.2x

Book Value per Share: ₹43.8

Price-to-Book: 8.47x

Dividend Yield: 0.13%
5. Competitive Landscape and Risks

Raw Material Volatility

Price fluctuations in key inputs like ammonium nitrate can impact margins

Regulatory Environment

Highly regulated defense sector subject to policy changes

Execution Risk

Potential delays in plant setups and automation projects

Valuation Concerns

High P/E ratio of 63.2x indicates elevated market expectations
6. Investment Thesis

Growth Catalysts

Aggressive capacity expansion

Enhanced defense contract focus

Diversified product portfolio

81.3% sales growth and 32.1% profit growth in Q3

Strategic Investments

Ongoing CAPEX and R&D investments are positioned to enhance long-term profitability and operational efficiency.
Disclaimer: This report is for informational purposes only and should not be considered investment advice. Investors should conduct their own due diligence and consult with financial advisors before making investment decisions.

Sources: Analysis based on Q3 FY2025 investor presentation data and industry context.
February 13, 2025
Cantabil Retail India: Aggressive Expansion
Cantabil Retail India Ltd – Full Q3 FY2025 Stock Research Report
Cantabil Retail India Ltd

Comprehensive Q3 FY2025 Stock Research Report

1. Executive Summary

Cantabil Retail India Ltd stands as a dominant player in India’s fashion retail industry, demonstrating exceptional performance in Q3 FY2025. With a strategic presence across over 500 stores nationwide and a focused approach to premium and affordable fashion, the company exhibits robust growth potential and market positioning.
2. Q3 FY2025 Financial Performance

Revenue

₹ 696 Cr (16.7% YoY Growth)

Significant top-line expansion demonstrating strong market demand

Profit After Tax (PAT)

₹ 69.5 Cr (14.4% YoY Growth)

Consistent profitability with sustainable growth trajectory

Operating Profit Margin

27.3% (Industry-Leading)

Exceptional operational efficiency and cost management

Key Performance Indicators

Return on Equity (ROE): 22.3%

Quarterly Sales Growth: 26.8%

3-Year Profit Growth: 85.1%

Interim Dividend: ₹ 0.50 per share
3. Expansion Plans & Capital Expenditure

Strategic Growth Initiatives

Cantabil’s aggressive expansion strategy targets 20-25% annual store count growth, with primary focus on Tier 2 and Tier 3 cities.

Expansion Focus Areas

New store openings in high-footfall locations

Upgrading existing store layouts

Strengthening supply chain infrastructure

Digital transformation initiatives

Key Technological Developments

AI-driven demand forecasting

Strategic mall operator tie-ups

Enhanced e-commerce platform

Marketplace collaboration strategies
4. Competitive Landscape

Cantabil operates in a dynamic and competitive retail fashion sector, positioning itself strategically against key market players.

Prominent Competitors

Trent (Westside)

Focused on premium and fast fashion

Aditya Birla Fashion & Retail

Large conglomerate-backed presence (Pantaloons, Van Heusen, Allen Solly)

Reliance Retail

Extensive capital backing and aggressive expansion

TCNS Clothing

Specialized in women’s apparel (W, Aurelia, Wishful)

Cantabil’s unique edge stems from its sharp focus on mid-premium pricing, quality, and strategic retail expansion.

5. Risks & Challenges

Macroeconomic Risks

Potential challenges from inflation, interest rate fluctuations, and potential weakening of consumer sentiment affecting discretionary spending.

Competitive Landscape

Entry of global brands like H&M and Zara presents significant market share competition and potential margin pressures.

Operational Risks

Potential supply chain disruptions, raw material price fluctuations, and execution risks associated with rapid expansion strategy.

6. Valuation & Investment Thesis

Current Valuation Metrics

Market Cap: ₹ 2,573 Cr

Current Price: ₹ 307

Stock P/E: 37.0x

Book Value per Share: ₹ 40.7

P/BV Ratio: 7.54x

Debt Levels: ₹ 374 Cr

Investment Outlook

Bull Case

Strong revenue growth, improving margins, and strategic expansion could drive stock prices above ₹ 350-370 in the next 12 months.

Bear Case

Potential slower economic recovery and margin compression might lead to stock correction towards ₹ 260-280 range.

Recommendation: Medium to long-term investors with high-risk appetite can consider Cantabil as a growth-oriented investment.

7. Conclusion

Cantabil Retail India Ltd presents a compelling growth opportunity characterized by robust fundamentals, strategic expansion, and consistent financial performance. While the company demonstrates strong potential, investors must carefully consider competitive risks and macroeconomic uncertainties.

Disclaimer: This report is for informational purposes only and should not be construed as investment advice.

Investors are strongly advised to conduct independent research and consult with a certified financial advisor before making investment decisions.
February 11, 2025
MTAR Technologies: Precision Engineering Powerhouse
MTAR Technologies Ltd – Full Q3 FY2025 Results Financial Report
MTAR Technologies Ltd

Full Q3 FY2025 Financial Report

1. Executive Summary

MTAR Technologies Ltd, established in 1970, is a leading supplier of high-precision components and equipment across defense, aerospace, nuclear, and clean energy sectors. With a current market capitalization of approximately ₹4,673 Cr and a diversified product portfolio, the company is well-positioned to capitalize on both domestic and export opportunities. Recent Q3 FY2025 performance shows solid profitability amid strategic CAPEX plans and continued order inflows, despite challenges in margins and evolving market dynamics.
2. Q3 FY2025 Performance Highlights

Revenue & Profitability

Sales: ₹636 Cr

Net Profit: ₹44.7 Cr

Earnings Per Share (EPS): ₹5.31

Operating Margin (OPM): 16-19%

Quarterly Variation

Quarter Sales Variation: 47.6%

Operating Margin: Approximately 16.4%

Secured Orders: Approximately ₹200 Cr

Indicative of strong seasonal or order book-driven dynamics
3. Future Growth Plans & Planned Expansions

Expansion Initiatives

MTAR plans to scale its manufacturing capacity with significant CAPEX investments targeting modernization of production units and automation upgrades. This will enhance both volume output and quality, reducing per-unit costs over time.

Product Diversification & R&D

The company is extending its footprint into nuclear and clean energy sectors. Continued R&D is set to drive innovations in core products such as ball screws and electro-mechanical actuation systems, ensuring competitiveness in a technology-driven market.

Order Book & Market Penetration

With a healthy inflow of orders from government and export contracts, MTAR expects sustained double-digit revenue growth. Expansion into emerging sectors, combined with existing defense and aerospace expertise, creates multiple growth avenues.

4. Products, CAPEX & Strategic Rationale

Product Portfolio

MTAR’s range of engineered components is used in critical applications for defense, aerospace, and nuclear energy. Its ability to serve niche, high-specification segments is a key differentiator.

Capital Expenditure

Planned investments focus on increasing manufacturing capacity and upgrading technological capabilities. The rationale is to meet rising demand, improve efficiency, and capture larger orders from both government and private sector contracts.

Strategic Rationale

By reinvesting earnings into CAPEX and R&D, MTAR aims to sustain competitive advantages, support margin improvement, and ensure long-term revenue growth despite a cyclically challenging operating environment.
5. Competitive Landscape & Inherent Risks

Competitive Environment

MTAR operates in a specialized market with competitors targeting defense and aerospace sectors. Its long history, technological expertise, and established customer relationships (both domestic and international) position it well despite stiff competition.

Key Risks

Execution Risk: Potential delays or cost overruns in CAPEX projects

Order Concentration: Dependency on government and defense orders

Technological Obsolescence: Requires continuous R&D investment

Supply Chain Vulnerabilities: Raw material cost fluctuations
6. Valuation Estimate & Investment Thesis

Valuation Estimate

Based on the current trading price of around ₹1,519, a forward P/E of 104, and a robust order book, analysts expect a target price in the range of ₹1,800–₹2,000, contingent on effective CAPEX execution and margin improvement.

Investment Thesis

Strengths:

Diversified, technology-driven product portfolio with deep penetration in defense, aerospace, and clean energy segments; strong order book; disciplined CAPEX and R&D investments.

Catalysts:

Expansion into new segments

Successful CAPEX execution

Securing additional large government/export orders
7. Key Fundamental Metrics

Company Metrics

Market Cap: ₹4,673 Cr

Current Price: ₹1,519

High/Low: ₹2,200 / ₹1,470

Stock P/E: 104

Book Value: ₹228

Dividend Yield: 0.00%

Performance Metrics

ROCE: 11.4%

ROE: 8.37%

Sales: ₹636 Cr

Operating Margin: 16.4%

Sales Growth (Recent): 0.37%

Profit Growth (Recent): -45.4%

Ownership & Structure

Promoter Holding: 31.4%

Change in Promoter Holding (3-Year): -18.8%

No. of Equity Shares: 3.08 Cr

Face Value: ₹10.0

Debt: ₹184 Cr

Reserves: ₹670 Cr
8. Conclusion & Disclaimer

Conclusion

MTAR Technologies Ltd’s Q3 FY2025 results underscore a stable profitability profile supported by ongoing CAPEX and product innovation. The strategic expansion into high-growth sectors, along with a healthy order book, makes the company an attractive long-term proposition despite near-term execution risks and valuation pressures.

Disclaimer

This report is for informational purposes only and does not constitute investment advice. Investors should conduct their own research and consider their risk tolerance before making any investment decisions.

© 2025 Financial Report Analysis – MTAR Technologies Ltd
February 11, 2025
Shaily Engineering Q3 PAT Soars 191%, Plans ₹200Cr Expansion in Healthcare & EV Components |
Shaily Engineering Plastics Ltd – Q3 FY2025 Complete Report

Shaily Engineering Plastics Ltd

Q3 FY2025 Stock Research Report

NSE: SHAILY
Market Cap: ₹7,373 Cr

Current Price: ₹1,604
52W High/Low: ₹1,750 / ₹360

P/E: 87.9x
Book Value: ₹108

ROCE: 14.1%
ROE: 13.3%
Q3 FY2025 Financial Performance

Revenue

₹18,630.76L

+28.7% YoY

EBITDA

₹4,057.13L

+32.1% YoY

PAT

₹1,813.72L

+191.6% YoY

EBITDA Margin

21.1%

+0.6% YoY

Future Growth Plans & Expansion Strategy

Capacity Expansion

• Ongoing capex in precision plastics & healthcare verticals

• Expansion into high-margin custom polymer components

New Product Development

• Lightweight, high-durability plastic solutions

• Sustainable and bio-based plastics development

Strategic Partnerships

• Global FMCG, pharma, and automotive partnerships

• Expanding EU and North America footprint

R&D Advancement

• Investment in automation and AI-driven quality control

• Enhanced prototyping & mold design capabilities

Capital Expenditure & Strategic Rationale

FY2025 Capex Plan: ₹150-200 Cr

Healthcare & Pharma

High-margin packaging solutions and medical components

Consumer Goods

FMCG plastics for multinational corporations

EV Components

Precision-engineered components for electric vehicles
Competitive Landscape

Key Competitors

Mold-Tek Packaging, Supreme Industries, Time Technoplast

Competitive Advantages

Custom-engineered plastics focus

Strong MNC relationships

High-margin precision manufacturing
Risks & Challenges

Raw Material Price Volatility

Dependency on crude oil-based polymers with partial mitigation through long-term contracts

Global Economic Slowdown

40% export revenue exposure to Europe & US markets

Execution Risks

Large capex programs require efficient execution

ESG & Regulatory

Increasing regulations on plastic usage & recyclability

Investment Thesis & Valuation

High-Growth, Niche Player: Specialized high-margin components

Robust Financials: Consistent growth, improving margins

Expansion-Driven Upside: Strategic capex in growth sectors

Global Reach: 40%+ revenue from exports

Valuation Concerns: Premium P/E of 87.9x

Est. FY26 EPS

₹22-24

Target P/E

60-65x

Target Price Range

₹1,320-1,560
Final Thoughts

Shaily Engineering Plastics Ltd. is a high-growth niche player in custom plastics manufacturing, benefiting from global outsourcing trends. While premium valuations limit short-term upside, strong execution on expansion plans & margin expansion could drive future gains.

⚠ Disclaimer: This report is not investment advice. Investors should conduct their own due diligence before making any investment decisions.
February 10, 2025

Artemis Electricals & Projects Ltd Q3: Lithium Battery Plant Launch Mar’25

AEPL Q3 FY2025 Results Report

1. Financial Performance Overview

Market Cap

₹586 Cr.

Current Price

₹23.3

Stock P/E

133

Book Value

₹3.20

ROCE

6.62%

ROE

5.28%

Debt

₹11.9 Cr.

Promoter Holding

72.5%

Quarterly & Yearly Performance Trends

Metric	Q3 FY25	Q2 FY25	Q3 FY24	YoY Change	QoQ Change
Sales Revenue	₹18.45 Cr.	₹4.01 Cr.	₹13.97 Cr.	+32.1%	+360%
Profit After Tax	₹2.67 Cr.	₹0.80 Cr.	₹1.36 Cr.	-64.9%	+234%
Operating Profit Margin	19.1%	10.2%	28.0%	-8.9%	+8.9%

2. Future Growth Plans & Strategic Initiatives

Lithium-Ion Battery Manufacturing Plant

Location: Vasai (East), Thane, Maharashtra
Project Partner: Electroforce (India) Pvt. Ltd.
Commissioning Date: March 2025
CapEx: ₹30-40 Cr. (estimated)

Project-Based Revenue Model

Reducing dependency on manufacturing
Focus on contract-based electrical projects
Leveraging government & private sector infrastructure projects
Shift from traditional product-based revenue streams

3. Capital Expenditure & Strategic Rationale

Lithium-Ion Plant CapEx

₹30-40 Cr.

Current Debt

₹11.9 Cr.

Reserves

₹55.3 Cr.

4. Competitive Landscape & Industry Risks

Competitive Strengths

Strong promoter backing (72.5%)
Low-debt capital structure
Lithium-Ion battery venture potential

Challenges & Risks

Debtor Days (456 Days)
Declining Sales Growth (-46.6%)
High Stock P/E (133x)
Execution Risk in new projects

5. Valuation & Investment Thesis

Stock Price

₹23.3

Near 52-week low

Price to Book Value

7.28x

Overvalued based on fundamentals

Short-Term Outlook (6-12 months)

High-risk bet in the near term
Lithium-Ion plant commissioning as key trigger

Medium to Long-Term Outlook (2-3 years)

Potential leadership in energy storage market
Financial prudence supports sustainable growth

Key Risks

Weak sales growth trajectory
High current valuation
Project execution risks

Growth Opportunities

Lithium-ion battery business expansion
Strong financial stability
Market expansion potential

Investment Stance

Wait & Watch – High-risk, high-reward play only for aggressive investors with a long-term horizon. Monitor execution of growth plans before investing.

7. Disclaimer

This report is for informational purposes only and is NOT investment advice. Investors should conduct their own research and consult financial advisors before making any investment decisions.

February 10, 2025

LIC Q3 FY2025: Insurance Giant Unveils Aggressive Expansion Strategy

Life Insurance Corporation (LIC) – Q3 FY2025 Results Research Report

Investment Summary

Life Insurance Corporation of India (LIC) remains India’s largest life insurer, with a 57.42% market share in total premiums and 64.53% market share in policies. Despite increasing competition from private players, LIC continues to dominate the industry due to its massive distribution network, trusted brand, and large asset base of ₹54.77 lakh crore.

Q3 FY2025 Results Key Highlights

Premium growth of +5.51% YoY (₹3,40,563 Cr vs ₹3,22,776 Cr in Q3 FY24)
Profit After Tax (PAT) up +8.27% YoY (₹29,138 Cr vs ₹26,913 Cr in Q3 FY24)
Embedded Value (IEV) surged by +24% YoY to ₹8,21,716 Cr, indicating strong intrinsic value growth
Solvency ratio improved to 2.02, reflecting a solid capital position

Key Financial Metrics

Metric	Q3 FY25	Q3 FY24	YoY Change
Total Premium Income	₹3,40,563 Cr	₹3,22,776 Cr	+5.51%
Individual New Business Premium	₹1,78,975 Cr	₹1,71,040 Cr	+4.64%
Total Group Business Premium	₹1,19,147 Cr	₹1,13,057 Cr	+5.39%
Profit After Tax (PAT)	₹29,138 Cr	₹26,913 Cr	+8.27%
Assets Under Management (AUM)	₹54,77,651 Cr	₹49,66,371 Cr	+10.29%

Strategic Growth Plans

1. Expansion of Product Portfolio

LIC now offers 38 insurance products, including:

24 Individual Products
8 Group Products
5 Individual Riders & 1 Group Rider

Increased Focus on Non-Par Products:

Non-par products now contribute 27.68% of APE, up from 14.04% in Q3 FY24
ULIP segment growth: +210.79% YoY (₹732 Cr to ₹2,275 Cr)

Strategic Rationale: LIC’s shift towards higher-margin non-participating products is expected to improve profitability and long-term value creation.

2. Distribution & Digital Transformation

Largest agency force in India with 14.19 lakh agents
Bancassurance & Alternate Channels New Business Premium grew +31.06% YoY to ₹2,003.95 Cr

Tech Initiatives:

AI Chatbots for policy queries
WhatsApp-based policy servicing & digital KYC integration
Ananda App: 8.3% of policies now sold digitally

Strategic Rationale: Strengthening digital sales will counter competition from private insurers like HDFC Life & ICICI Prudential.

Competitive Landscape & Risks

Key Competitors

HDFC Life, ICICI Prudential, SBI Life, Max Life, Bajaj Allianz

Risks & Challenges

Regulatory Risks: IRDAI changes may impact LIC’s product mix & capital allocation
Market Share Erosion: Private players are aggressively expanding
Investment Risk: Large exposure to equity markets increases volatility risk
Operational Risks: Persistency ratios must further improve for long-term profitability

Valuation & Investment Thesis

Valuation Metrics

Market Cap: ₹5,16,152 Cr
Current Price: ₹816
P/E Ratio: 12.0
Book Value: ₹154
Dividend Yield: 1.23%
ROE: 63.4%
Price-to-Book Ratio (P/BV): 5.3x

Investment Thesis

✅ Strong Fundamentals: High ROE (63.4%), improving persistency, and stable cash flows
✅ Undervalued vs. Growth Potential: With Embedded Value growth of +24% YoY, LIC remains undervalued vs. global peers
✅ Digital & Product Expansion: Rising non-par product sales & bancassurance will boost VNB margins

Valuation Estimate: ₹950 – ₹1,050 (15-25% upside potential)

Conclusion

LIC remains a strong long-term investment, backed by dominant market share, high AUM, and increasing profitability. However, competition & regulatory risks remain key concerns.

Disclaimer

This report is for informational purposes only and does not constitute investment advice. Investors should conduct their own research or consult a financial advisor before making investment decisions.

February 8, 2025

Websol Energy: 600% Revenue Surge, ₹580 Cr Projected Growth, Solar Manufacturing Powerhouse in 2025
Websol Energy System Limited – Q3 FY2025 Results
Websol Energy System Limited

Q3 FY2025 Result Research Report

Value pick Multibagger stock for long term

1. Executive Summary

Websol Energy System Limited has demonstrated a strong financial recovery in Q3 FY2025, achieving substantial revenue and profitability growth. The company’s expansion initiatives, focusing on increasing solar cell and module production capacity, position it as a key domestic player in India’s renewable energy sector.

2. Financial Performance

Revenue

₹147.31 crore in Q3 FY2025

2.2% QoQ increase

Significant YoY surge from ₹0.51 crore in Q3 FY2024

EBITDA

₹67.90 crore

7.9% QoQ growth from ₹62.95 crore

Driven by supply chain efficiencies

Net Profit

₹41.56 crore in Q3 FY2025

Compared to loss of ₹(54.64) crore in Q3 FY2024

Margins: EBITDA 46.1%, Net Profit 28.2%
3. Future Growth Plans & Expansion Strategy

Phase I Expansion

Commissioned 600 MW Mono PERC Bifacial Solar Cell Line

Commissioned 550 MW Fully Automated Module Line at Falta, West Bengal facility

Phase II Expansion

Additional 600 MW Mono PERC Bifacial Solar Cell Line

Expected to commence production by July 2025

₹220 crore investment funded through internal accruals and external financing

Phase III Expansion

Greenfield project under evaluation

Board considering Joint Ventures or forming a subsidiary to scale solar business
4. Products & Market Position

Solar Cells

Entire FY2024-25 production capacity is fully booked

Strong demand expected for Phase II capacity by end of FY2025

Solar Modules

Secured orders worth ₹116 crore for exports

Export markets include US, UK, Africa, and India

Reflects strong global market penetration

Competitive Advantage

Advanced technology in Mono PERC Bifacial Cells

Improving efficiency

Reducing dependency on imports
5. Capital Expenditure & Strategic Rationale

Investment in capacity expansion aligns with Indian government’s push for domestic solar manufacturing

Accelerated depreciation of assets indicates rapid technological upgrades

Expansion positions Websol to capture higher market share in solar energy value chain
6. Competitive Landscape & Risks

Competition

Faces competition from domestic players like Tata Power Solar and Adani Solar

Competes with international manufacturers

Regulatory & Policy Risks

Potential impacts from changes in government subsidies

Import duty modifications

Shifts in renewable energy policies

Supply Chain & Input Costs

Potential fluctuations in raw material prices

Sensitivity to silicon wafer and glass price changes

Possible margin impacts

Technology Obsolescence

Rapid advancements in solar technology

Necessitates continual investment

Need to stay technologically competitive
7. Valuation & Investment Thesis

Strong order book and growing margins

Projected FY2025 Revenue: ~₹540-580 crore post Phase II commissioning

Potential P/E Multiple: 15-18x

Attractive growth investment with robust market positioning
8. Conclusion & Disclaimer

Websol Energy System Limited is on a strong growth trajectory, supported by its expansion initiatives and robust demand. However, risks related to competition, policy changes, and technological shifts should be monitored.

Disclaimer

This report is for informational purposes only and does not constitute investment advice. Investors should conduct their due diligence before making any investment decisions.
February 6, 2025

Sai Silks Q3: 44% PAT Growth, 12 New Stores Planned for FY26

Sai Silks (Kalamandir) Ltd. – Q3 FY2025 Results

Investment Highlights

Market Cap

₹2,767 Cr

Current Price

₹180

52-Week Range

₹253 / ₹144

P/E Ratio

27.5x

Book Value

₹70.0

Dividend Yield

0.55%

ROCE

15.9%

ROE

13.8%

Q3 FY2025 Financial Performance

Financial Metric	Q3 FY2025	Q3 FY2024	% Change (YoY)
Revenue from Operations	₹448.56 Cr	₹382.45 Cr	+17.3%
EBITDA	₹78.91 Cr	₹58.20 Cr	+35.6%
EBITDA Margin	17.6%	15.2%	+240 bps
PAT	₹46.02 Cr	₹31.98 Cr	+43.9%
PAT Margin	10.3%	8.4%	+190 bps

9M FY2025 Performance

                Revenue: ₹1,063.17 Cr (+4.86% YoY)
EBITDA: ₹153.20 Cr (-2.93% YoY)
PAT: ₹71.88 Cr (-0.35% YoY)

            

Growth Strategy & Store Expansion

Current Stores

66 stores across 18 cities

Total Retail Area

6.85 lakh sq. ft

Revenue per Store

₹22.9 Cr (FY24)

FY26 Target

8-12 new outlets

Omnichannel Strategy

Coverage: 25 states & 6 Union Territories
Features: Live commerce, social media shopping, influencer-led promotions
E-commerce Target: 10-12% of total revenue in next two years
Average Online Order Value: ₹4,664

Product Portfolio

Brand	Category	Target Segment	Price Range
Kalamandir	Mid-range ethnic wear	Middle-income	₹1,000 – ₹1,00,000
Mandir	Ultra-premium designer sarees	Affluent customers	₹6,000 – ₹3,50,000
Varamahalakshmi	Premium wedding & handloom sarees	Upper middle class	₹4,000 – ₹2,50,000
KLM Fashion Mall	Ethnic & value fashion	Budget-conscious buyers	₹200 – ₹75,000

Competitive Analysis

Competitor	Presence	Business Model	Competitive Advantage
Sai Silks (Kalamandir)	South India	Offline + E-commerce	Strong saree segment dominance
Nalli Silks	National	Offline-focused	Legacy premium saree brand
Reliance Trends	Pan-India	Offline + Online	Aggressive discounting
FabIndia	National	Offline + Online	Focus on handloom and organic
Manyavar	National	Offline + Online	Premium men’s ethnic wear

Key Risks & Challenges

Consumer Spending Volatility: Potential slowdown in wedding and festive demand
Raw Material Price Inflation: Fluctuations in silk, handloom fabrics, and cotton prices
Competition: Digital-first brands expanding in ethnic wear segment
Regulatory & Taxation: Potential GST rate changes impact
Debt & Expansion Risk: Debt reduced from ₹257.75 Cr to ₹159.10 Cr

Valuation & Price Target

Metric	FY25E	FY26E
Expected EPS	₹7.2	₹8.3
Target P/E Range	30-32x	30-32x
Fair Value Range	₹215-230	₹250-265

Valuation Metrics

Current P/E

27.5x

In line with sector average

ROCE

15.9%

Strong capital efficiency

ROE

13.8%

Healthy returns

Debt Reduction

₹98.65 Cr

Improved financial flexibility

Industry Growth Potential

The Indian wedding & festive wear market is expected to grow at 27.3% CAGR

Investment Thesis & Recommendation

Bullish Scenario

Stock could reach ₹250+ in the next 12-18 months, driven by:

Strong festive demand
Successful store expansion
Margin improvement
E-commerce growth

Bearish Scenario

Downside support at ₹160-170, potential risks:

Weakening consumer spending
Intense e-commerce competition
Raw material cost pressures
Execution challenges in expansion

Final Investment Call

Moderate Buy – Strong long-term growth story with valuation re-rating potential

Company Strengths

Market Leadership: 69.5% of total revenue from saree segment
Regional Dominance: Strong presence in South India, which contributes 50% of total saree market
Operational Excellence: Templatized store roll-out model ensures higher efficiency
Brand Portfolio: Well-positioned brands across price segments
Financial Health: Improving margins and reducing debt levels

Conclusion

Sai Silks (Kalamandir) is well-positioned to capitalize on India’s fast-growing organized ethnic wear market. The company demonstrates:

Strong revenue growth trajectory
Improving operational margins
Successful omnichannel expansion
Clear growth strategy with focus on premium segments
Robust brand portfolio across price points

While competition and macroeconomic risks need to be monitored, the company’s strong fundamentals and growth strategy make it an attractive investment proposition for long-term investors.

February 6, 2025

Lemon Tree Hotels Q3: 42% Profit Surge, 2500 Rooms Pipeline by FY27
Lemon Tree Hotels – Q3 FY2025 Results Analysis
Lemon Tree Hotels Ltd – Q3 FY2025 Results

Value Pick Best Stock to buy today

Stock Overview

Market Cap: ₹11,682 Cr

Current Price: ₹147

52-Week High/Low: ₹162 / ₹112

Stock P/E: 65.3

Book Value: ₹12.8

Dividend Yield: 0.00%

ROCE: 11.4%

ROE: 16.3%

Debt: ₹2,270 Cr

Reserves: ₹224 Cr

Promoter Holding: 22.8%

OPM: 48.7%

Q3 FY2025 Financial Performance

Revenue: ₹1,235 Cr (YoY growth: 24.2%)

Operating Profit (EBITDA): ₹601 Cr (YoY growth: 31.5%)

Operating Profit Margin: 48.7% (up from 46.2% in Q3 FY2024)

Net Profit (PAT): ₹179 Cr (YoY growth: 42.6%)

Quarterly Sales Growth: 22.4%

Debt-to-Equity Ratio: 1.01
Hotel Pipeline & Expansion Plans

New Openings (FY2025-FY2027)

Mumbai: Aurika, Navi Mumbai, Lemon Tree Premier

Bangalore: Lemon Tree Premier & Red Fox

Goa: Aurika Beach Resort, Candolim

Jaipur: Lemon Tree Premier

Pipeline cities: Chandigarh, Pune, Chennai, Coimbatore

Total Room Additions: ~2,500 new rooms by FY2027

International Expansion

Middle East: Dubai, Abu Dhabi, Doha (under Aurika brand)

South Asia: Nepal, Bhutan, and Sri Lanka

Focus: High-end leisure travelers
Capital Expenditure & Strategic Rationale

Planned CapEx (FY2025-FY2027): ₹1,500 Cr

Major Investment Areas:

New owned hotels in strategic locations

Property refurbishment

Technology & digital transformation

Sustainability initiatives
Competitive Landscape

Key Competitors

Indian Hotels (Taj, Vivanta, Ginger)

EIH (Oberoi, Trident)

Chalet Hotels & Marriott-managed properties

Sarovar & Radisson

Competitive Advantages

Asset-light expansion model

Strong urban presence

Cost leadership in operations

Growing brand recognition
Risks & Challenges

Valuation Risk

P/E of 65.3x above industry average

EV/EBITDA at 21x indicates stretched valuation

Debt & Financial Risk

₹2,270 Cr debt burden

Net debt/EBITDA: 3.8x

Market Risks

Cyclical nature of hotel demand

Potential corporate travel slowdown

Competitive pricing pressure
Valuation Metrics

EV/EBITDA (FY25E): 21x (vs industry avg of ~18x)

Price-to-Book Ratio: 11.5x (vs sector average of 7x)

Disclaimer: This report is for informational purposes only and does not constitute investment advice. Investors should conduct their own research before making financial decisions.
February 5, 2025

GRSE Q3 FY2025: Defense Shipbuilder Multibagger

GRSE (Garden Reach Shipbuilders) Q3 FY2025 Results

1. Company Overview

Garden Reach Shipbuilders & Engineers Ltd. (GRSE) is one of India’s premier defense public sector shipyards under the Ministry of Defence. With a legacy of over six decades, GRSE has built over 100 warships and numerous commercial vessels. The company is a key supplier to the Indian Navy, Indian Coast Guard, and foreign naval forces. GRSE also manufactures deck machinery, engineering equipment, and pre-fabricated bridges.

2. Q3 FY2025 Financial Performance

Metric	Q3 FY2025	Q3 FY2024	YoY Growth
Revenue from Operations (₹ Cr.)	1,271.00	923.09	+37.7%
Total Income (₹ Cr.)	1,343.12	1,004.61	+33.7%
EBITDA (₹ Cr.)	151.02	126.47	+19.4%
EBITDA Margin (%)	11.9%	12.6%	-70 bps
Profit Before Tax (₹ Cr.)	133.76	118.67	+12.7%
Profit After Tax (₹ Cr.)	98.18	88.25	+11.3%
EPS (₹)	8.57	7.70	+11.3%

Revenue Growth: The revenue jump is attributed to the strong execution of defense shipbuilding contracts.

Profitability: Despite a 37.7% YoY sales growth, net profit grew only 11.3%, indicating margin pressure due to increased raw material costs and subcontracting expenses.

3. Key Financial Ratios

Metric	Value	Industry Average
ROCE	27.4%	18-20%
ROE	22.2%	15-17%
Debt/Equity Ratio	0.004	0.2-0.5
Net Profit Margin	8.25%	10-12%
Current Ratio	1.16	1.3-1.5

Key Takeaway: GRSE’s high ROCE and ROE reflect its capital efficiency, but margins are under slight pressure.

4. Future Growth Plans & Expansion Strategy

1. Order Book Strength & New Contracts

GRSE’s current order book stands at ₹25,000+ Cr., providing multi-year revenue visibility.

Major Projects Include:

Frigate and Corvette projects for the Indian Navy
Survey vessels and landing craft utility ships for the Indian Coast Guard
Potential exports to friendly nations under the “Make in India” initiative

2. Expansion of Shipbuilding Capabilities

Capex Plan: ₹500-600 Cr. over the next three years to expand capacity and improve efficiency.

Strategic Objectives:

Automation of shipbuilding yards to reduce construction time
Enhanced R&D investments to develop indigenous ship designs
Green Energy Initiatives in manufacturing to improve sustainability

3. Focus on Non-Defense Business

GRSE is diversifying into commercial shipbuilding to reduce reliance on defense contracts. Targets include inland water transport vessels, tugs, and ferries for global markets.

5. Capital Expenditure & Strategic Rationale

Capex Component	Investment (₹ Cr.)	Expected Benefit
Modernization of shipyards	350	Faster shipbuilding
Automation & AI integration	150	Reduce costs
R&D & indigenous ship design	100	Competitive edge

Why It Matters: This expansion will increase shipbuilding efficiency, reduce dependency on imported components, and support future defense contracts.

6. Competitive Landscape

Company	Market Cap (₹ Cr.)	P/E	ROCE	ROE	Dividend Yield
Garden Reach Shipbuilders	17,268	43.7	27.4%	22.2%	0.62%
Cochin Shipyard	27,542	35.3	22.5%	18.7%	1.1%
Mazagon Dock Shipbuilders	59,000	28.2	34.5%	26.8%	0.5%

Takeaway:

GRSE has a strong ROCE and ROE, but trades at a premium valuation compared to peers like Cochin Shipyard
Mazagon Dock has a larger market share but GRSE is catching up with strong revenue growth

7. Risk Assessment

Execution Delays	Potential cost overruns in large projects
Raw Material Costs	Higher steel and component prices may squeeze margins
Geopolitical Risks	Dependence on government contracts makes it vulnerable to policy shifts

Mitigation: GRSE’s diversification and capex in efficiency improvements should reduce cost risks.

8. Valuation Analysis

Market Cap (₹ Cr.)	17,268
Current Price (₹)	1,508
52W High / Low (₹)	2,835 / 673
P/E Ratio	43.7
Book Value (₹)	161
ROCE	27.4%
ROE	22.2%
Debt	₹9.59 Cr.
Dividend Yield (%)	0.62%

The current P/E of 43.7x is higher than industry peers, suggesting the stock is priced for strong future growth.

If we assume a 25% earnings CAGR for the next 2 years, a fair forward P/E of 35x indicates potential for continued valuation support.

Investment Thesis

✅ Strong Order Book & Execution Capabilities

✅ Debt-Free & High ROCE/ROE Metrics

✅ Robust Capex Plan for Future Growth

🚨 Recommended: Accumulate on Market Dips

9. Conclusion

Near-Term View

The stock is trading at a high valuation, making it vulnerable to short-term corrections. Best accumulated on market dips.

Long-Term View

With a strong order book and expansion strategy, GRSE is a solid long-term play on India’s naval defense modernization.

February 3, 2025

Olectra Greentech: 107.8% PAT Growth,₹500Cr Expansion Plans
Olectra Greentech Limited – Q3 FY25 Results

Olectra Greentech Limited Q3 FY2025 Results

Value Pick Best stock to buy

NSE: OLECTRA | BSE: 532439

Sector: Electric Vehicles & Polymer Insulators
Key Financial Metrics

Market Cap

₹11,919 Cr

Book Value

₹120

ROCE

14.8%

ROE

8.77%

Debt

₹187 Cr

Reserves

₹949 Cr

Sales Growth (3Y CAGR)

60.1%

Profit Growth (3Y CAGR)

112%
Q3 FY2025 Performance Analysis

Financial Performance (Standalone)

Revenue: ₹50,683.45 Lakh (YoY growth: 52.7%)

EBITDA Margin: 14.5%

PAT: ₹4,630.57 Lakh (YoY growth: 107.8%)

EPS: ₹5.64 (vs ₹2.71 YoY)

Net Profit Margin: 9.1%
Business Segments

Electric Vehicles Division

Q3 Revenue: ₹45,977.93 Lakh (90.7% of total)

YoY Growth: 55.4%

Profit Before Tax & Interest: ₹5,926.52 Lakh

Growth Drivers

Expansion in public electric transport sector

Government-backed FAME-II tenders

Strategic partnerships with BYD and EVEY Trans

Insulator Division

Q3 Revenue: ₹4,705.52 Lakh (9.3% of total)

YoY Growth: 30.5%

Profit Before Tax & Interest: ₹1,224.35 Lakh

Growth Drivers

Growing power transmission infrastructure demand

Expansion in domestic and export markets

Steady cash flow with higher margins
Growth Plans & Expansion Strategy

Manufacturing Expansion

New EV manufacturing facility development

Battery technology localization initiatives

Capex: ₹300-500 Cr investment plan

Expansion of charging infrastructure

Product Development

Electric trucks launch planning

Battery-integrated electric vehicles

Hydrogen fuel cell technology exploration

R&D focus on indigenous technology
Financial Health & Capital Structure

Debt-to-Equity Ratio: 0.19x

Interest Coverage Ratio: Strong position with robust cash flows

Working Capital Management: Efficient inventory and receivables

Cash Reserves: Adequate for planned expansion
Competitive Analysis

Market Position

Leading player in electric bus segment

Strong R&D capabilities with BYD partnership

Established presence in state-run electric bus projects

Growing market share in insulator segment

Industry Challenges

Raw material price volatility

Global supply chain disruptions

Increased competition in EV segment

Policy implementation dependencies
Disclaimer: This research report is for informational purposes only and does not constitute financial advice. Investors should conduct their own due diligence before making investment decisions.

Date: February 2025
February 3, 2025

Anant Raj Q3FY25 Results: 54.6% PAT Growth, ₹1000Cr Expansion Plan

Anant Raj Limited – Q3 FY2025 Results

Anant Raj Limited

Value Pick Multibagger stock for long term

Q3 FY2025 Results

Stock Overview

Market Cap ₹21,834 Cr

Current Price ₹638

52-Week High/Low ₹948 / ₹281

Stock P/E 56.7x

Book Value per Share ₹112

Key Financial Metrics

Dividend Yield 0.11%

ROCE 8.56%

ROE 8.05%

Debt ₹386 Cr

Reserves ₹3,759 Cr

Q3 FY2025 Financial Results

Particulars	Q3 FY2025	Q3 FY2024	% Change YoY
Revenue from Operations	₹534.64 Cr	₹392.27 Cr	+36.3%
Total Income	₹543.97 Cr	₹401.02 Cr	+35.7%
EBITDA	₹123.50 Cr	₹93.44 Cr	+32.1%
EBITDA Margin	23.1%	23.8%	Stable
Profit Before Tax (PBT)	₹131.75 Cr	₹86.30 Cr	+52.7%
Net Profit (PAT)	₹110.37 Cr	₹71.43 Cr	+54.6%
Earnings Per Share (EPS)	₹3.23	₹2.22	+45.5%

Key Q3 FY2025 Highlights

Revenue grew by 36.3% YoY, driven by strong sales in luxury residential and commercial projects
Net Profit surged by 54.6%, reflecting operational efficiencies
Debt remains low at ₹386 Cr, ensuring a strong balance sheet
EPS growth of 45.5%, indicating rising shareholder value

Business & Expansion Strategy

Residential Segment

Launch of new luxury residential projects in Gurugram, Noida, and Manesar
Targeting HNIs with premium apartments and villas
Strengthening presence in Delhi NCR, Bangalore, and Pune

Commercial & IT Parks

Expansion of Anant Raj IT Park in Manesar
Development of Grade A office spaces
Flexible co-working infrastructure

Hospitality & Retail

Entering luxury hospitality segment
High-end serviced apartments and hotels
Expansion of retail spaces

Affordable Housing

New focus on affordable housing projects
Mid-segment housing expansion
Capturing India’s urbanization trends

Capital Expenditure & Strategic Investments

Capex Plan (FY2025-FY2027): ₹1,000 Cr+

Land Acquisitions ₹500 Cr

IT Park Expansion ₹300 Cr

Infrastructure Development ₹200 Cr

Strategic Financial Moves

NCD Repayment: ₹103.75 Cr in Q3 FY2025
Convertible Warrants: ₹99.99 Cr raised via preferential issue at ₹730/share

Competitive Landscape & Industry Outlook

Company	Market Cap (₹ Cr.)	Revenue (₹ Cr.)	P/E Ratio	ROE (%)
Anant Raj Ltd	₹21,834	₹1,962	56.7x	8.05%
DLF Ltd	₹1,63,000	₹7,800	62.3x	11.2%
Godrej Properties	₹66,500	₹4,200	55.5x	9.4%
Prestige Estates	₹41,700	₹7,150	38.8x	13.5%

Industry Overview

Real estate demand remains strong, fueled by urbanization and infrastructure growth
Luxury housing segment is booming, driven by HNI and NRI investments
Commercial real estate demand is increasing, especially in IT hubs

Competitive Analysis

Anant Raj trades at a lower P/E than DLF and Godrej Properties
ROE is lower than competitors but showing improvement potential
Revenue growth outpacing most peers

Financial Projections (FY2025-FY2027)

Metric	FY2025E	FY2026E	FY2027E
Revenue (₹ Cr)	2,150	2,700	3,200
EBITDA Margin	24.0%	25.5%	26.0%
Net Profit (₹ Cr)	430	525	630
EPS (₹)	13.5	16.4	19.8
ROE (%)	9.2%	10.8%	12.1%

Growth Drivers

Expansion into luxury residential & IT parks
Higher rental income from commercial real estate
Margin improvement from premium projects

Valuation & Investment Thesis

Current Valuation Metrics

Stock P/E 56.7x

Price-to-Book (P/B) 5.7x

Valuation Estimate (FY2026)

Projected EPS ₹16.4

Industry Avg. P/E ~50x

Target Price ₹820

Potential Upside 29%

Investment Rationale

Why Invest in Anant Raj Ltd?

High Revenue & Profit Growth – 48.5% YoY sales growth & 67.4% profit growth
Expanding Asset Base – IT parks, commercial & luxury housing
Debt Under Control – ₹386 Cr total debt, NCD repayments underway
Valuation Upside – Estimated price target of ₹820 (~29% upside)

Risk Assessment

Key Risk Factors

🚨 Market Risks: Potential slowdowns in real estate demand due to macroeconomic factors
🚨 Regulatory Risks: Land acquisition and RERA compliance could impact project timelines
🚨 Interest Rate Risks: Rising borrowing costs could pressure profit margins

February 2, 2025

Tag: Value Picks

Premier Explosive Ltd Stock Soars: 272% Revenue Jump in Q3 FY25

1. Company Overview

2. Q3 FY2025 Financial Performance

Revenue

PAT

EPS

Cost & Expense Management

3. Future Growth Plans

Capacity & Production Enhancements

Product Diversification & R&D

4. Financial Projections

Current Price

52-Week High

52-Week Low

Key Valuation Metrics

5. Competitive Landscape and Risks

Raw Material Volatility

Regulatory Environment

Execution Risk

Valuation Concerns

6. Investment Thesis

Growth Catalysts

Strategic Investments

Cantabil Retail India: Aggressive Expansion

1. Executive Summary

2. Q3 FY2025 Financial Performance

Revenue

Profit After Tax (PAT)

Operating Profit Margin

Key Performance Indicators

3. Expansion Plans & Capital Expenditure

Strategic Growth Initiatives

Expansion Focus Areas

Key Technological Developments

4. Competitive Landscape

Prominent Competitors

Trent (Westside)

Aditya Birla Fashion & Retail

Reliance Retail

TCNS Clothing

5. Risks & Challenges

Macroeconomic Risks

Competitive Landscape

Operational Risks

6. Valuation & Investment Thesis

Current Valuation Metrics

Investment Outlook

Bull Case

Bear Case

7. Conclusion

MTAR Technologies: Precision Engineering Powerhouse

1. Executive Summary

2. Q3 FY2025 Performance Highlights

Revenue & Profitability

Quarterly Variation

3. Future Growth Plans & Planned Expansions

Expansion Initiatives

Product Diversification & R&D

Order Book & Market Penetration

4. Products, CAPEX & Strategic Rationale

Product Portfolio

Capital Expenditure

Strategic Rationale

5. Competitive Landscape & Inherent Risks

Competitive Environment

Key Risks

6. Valuation Estimate & Investment Thesis

Valuation Estimate

Investment Thesis

Strengths:

Catalysts:

7. Key Fundamental Metrics

Company Metrics

Performance Metrics

Ownership & Structure

8. Conclusion & Disclaimer

Conclusion

Disclaimer

Shaily Engineering Q3 PAT Soars 191%, Plans ₹200Cr Expansion in Healthcare & EV Components |