India focused: IPO, special situations, Stylus Holdings

Himanshu Dugar

India focused: IPO, special situations

Stylus Holdings

Stylus Holdings is a buy-side equity research firm. We offer bottom-up investment ideas as well as provide on demand equity research and portfolio tracking. 
At Stylus, our focus is to identify market dislocations that can generate 20+% IRR with a reasonable margin of safety. As part of our research process, we do a deep dive into the fundamentals of the company, evaluate their competitive positioning and assess their valuation.
Our investment team is led by Himanshu Dugar. Himanshu is a Chartered Accountant and a CFA charter holder. He has 10+ years of active experience in the stock market with stints at CRISIL Research, a S&P Global copmany and Miras Investments, a single family office based in Dubai.

Equity Research Firm

Equity Capital Markets

Trualt Bioenergy Ltd / Equity Capital Markets

<ul>
<li>TBL boasts of the largest ethanol distillery capacity (3.6% market share). With capex for input fungibility done, the company has set its sights on becoming the largest producer soon.</li>
<li>The expansion in Compressed Bio-gas compounds the growth levers, but will require material working capital investments. Sustainable aviation fuel opportunity also seems compelling in light of the recent government push.</li>
<li>IPO seems priced to perfection with deal multiples of 12x FY26 EBITDA, visibly at the higher end of 6-14x multiple for peers. Faster deleveraging may add to market cap upside.</li>
</ul>


TBL boasts of the largest ethanol distillery capacity (3.6% market share). With capex for input fungibility done, the company has set its sights on becoming the largest producer soon.
The expansion in Compressed Bio-gas compounds the growth levers, but will require material working capital investments. Sustainable aviation fuel opportunity also seems compelling in light of the recent government push.
IPO seems priced to perfection with deal multiples of 12x FY26 EBITDA, visibly at the higher end of 6-14x multiple for peers. Faster deleveraging may add to market cap upside.


IPO Review: India's Youngest and Largest Player for Ethanol, Worth a Bet?

Market & Forensics Analyst, Beat the Street

Nimish Maheshwari

Market & Forensics Analyst

Beat the Street

Beat The Street was founded by Nimish Maheshwari and Sudarshan Bhandari, both of whom are Chartered Accountants by Profession, known for their expert analysis in the fields of Business, Sectoral analysis, and Corporate governance.

With a strong social media presence of 45,000+ Subscribers across various platforms, they are considered trusted voices in the industry. Their insights and analysis have been featured in some of India’s most prominent publications, including the Economic Times, Dalal Street Investment Journal, The Morning Context, and The Ken.

Their analysis on Bankrupt & Insolvent companies has been instrumental in saving investors from significant losses. They have a keen eye for identifying red flags and has identified exclusive redflags earlier in Vedanta, Nykaa, Dhani Services, Adani and many more.

Read Business Not Stock Prices

Thematic (Sector/Industry)

<ul>
<li>India's sugar industry is experiencing an unexpected rally driven by pricing power due to an 18% production drop, leading to rising sugar prices.</li>
<li>This shift is boosting sugar mills' profitability, as evidenced by improved quarterly results, despite unchanged ethanol margins and rising cane costs.</li>
<li>The sector is now a compelling "margin-driven" recovery story, moving beyond its traditionally dull, regulation-heavy image.</li>
</ul>


India's sugar industry is experiencing an unexpected rally driven by pricing power due to an 18% production drop, leading to rising sugar prices.
This shift is boosting sugar mills' profitability, as evidenced by improved quarterly results, despite unchanged ethanol margins and rising cane costs.
The sector is now a compelling "margin-driven" recovery story, moving beyond its traditionally dull, regulation-heavy image.


The Sugar Sector Reversal: How Sugar Companies Are Finally Tasting Profits?

<ul>
<li>The government has advanced its target for 20% ethanol blending in petrol from 2025 to 2030 , considering recent achievements and public support.</li>
<li>In current season the OMCs have floated tenders for 8.37 bn litres, against 9.7 bn litres required to achieve 20% blending target.</li>
<li>The sector could see margin improvements if options for sugar price hikes or export permissions are introduced, creating a potential upside.</li>
</ul>


The government has advanced its target for 20% ethanol blending in petrol from 2025 to 2030 , considering recent achievements and public support.
In current season the OMCs have floated tenders for 8.37 bn litres, against 9.7 bn litres required to achieve 20% blending target.
The sector could see margin improvements if options for sugar price hikes or export permissions are introduced, creating a potential upside.


Ethanol Industry: Crushing Of Stock Prices Near The End?

India Equity Analyst - Fundamental & Thematic, Beat the Street

Sudarshan Bhandari

India Equity Analyst - Fundamental & Thematic

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/dhampur-bio-organics-limited" target="_blank" data-smartkarma-citation="entities:43978:1" rel="noopener">Dhampur Bio Organics (DBOL IN)</a>: Integrated sugar manufacturer listed in 2022 post demerger from <a href="https://www.smartkarma.com/entities/dhampur-sugar-mills-ltd" target="_blank" data-smartkarma-citation="entities:10655:1" rel="noopener">Dhampur Sugar Mills (DSM IN)</a> </li>
<li>With change in Ethanol policy from Sep-24, Company will be significantly benefitted with its grain-based ethanol plant and higher sugar production with good monsoon. </li>
<li>Company is reducing its debt significantly to deleverage its balance sheet.</li>
</ul>



Dhampur Bio Organics (DBOL IN): Integrated sugar manufacturer listed in 2022 post demerger from Dhampur Sugar Mills (DSM IN) 
With change in Ethanol policy from Sep-24, Company will be significantly benefitted with its grain-based ethanol plant and higher sugar production with good monsoon. 
Company is reducing its debt significantly to deleverage its balance sheet.


The Beat Ideas: Dhampur Bio Organics Ltd.- Ethanol, Value Added Products & Deleveraging

Forensic Analyst, Trudence Capital Advisors

Nitin Mangal

Forensic Analyst

Trudence Capital Advisors

Trudence Capital Advisors Private Limited is a SEBI-registered Research Analyst, holding SEBI registration number INH000015747. Our firm is dedicated to providing independent and unbiased research on Indian mid to large-cap companies. Trudence Capital is known for its counter-consensus views, with a focus on forensic research and on-ground primary investigations. Our research approach is thorough, involving detailed analysis of accounting practices and governance, alongside extensive channel checks.

Independent & Unbiased Research

Forensic Accounting

Balrampur Chini Mills / Forensic Accounting

<ul>
<li>
<a href="https://www.smartkarma.com/entities/balrampur-chini-mills-ltd" target="_blank" data-smartkarma-citation="entities:15000:1" rel="noopener">Balrampur Chini Mills (BRCM IN)</a> is one of the major integrated sugar manufacturing companies in India. Besides sugar, the company also engages in the business of ethanol and power generation.</li>
<li>Balrampur has managed to turnaround its free cash flows and earnings quality. Additionally, it has also stabilized working capital on the back of declining debt. </li>
<li>While there are not many red flags, care must be given to inventory reconciliation with bank statement.</li>
</ul>



Balrampur Chini Mills (BRCM IN) is one of the major integrated sugar manufacturing companies in India. Besides sugar, the company also engages in the business of ethanol and power generation.
Balrampur has managed to turnaround its free cash flows and earnings quality. Additionally, it has also stabilized working capital on the back of declining debt. 
While there are not many red flags, care must be given to inventory reconciliation with bank statement.


Balrampur Chini Mills Ltd- Forensic Analysis

India

Balrampur Chini Mills Ltd. manufactures and markets ethyl alcohol and ethanol, and organic manure.

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Balrampur Chini Mills (BRCM IN)

IPO Review: India's Youngest and Largest Player for Ethanol, Worth a Bet?

TBL is the largest ethanol producer today. Growth potential in Compressed Bio-gas and sustainable aviation fuel (2G ethanol) to drive strong near...

Himanshu Dugar

The Sugar Sector Reversal: How Sugar Companies Are Finally Tasting Profits?

India's sugar industry sees unexpected rally with rising prices and improved profitability despite production drop and rising costs, shifting...

Nimish Maheshwari

Ethanol Industry: Crushing Of Stock Prices Near The End?

Government delays 20% ethanol blending target to 2030, OMCs fall short on required litres, potential margin improvements with sugar price hikes or...

Nimish Maheshwari

The Beat Ideas: Dhampur Bio Organics Ltd.- Ethanol, Value Added Products & Deleveraging

Dhampur Bio Organics, a sugar manufacturer, set to benefit from new ethanol policy and debt reduction and huge capex in FY24.

Sudarshan Bhandari

Balrampur Chini Mills Ltd- Forensic Analysis

There is a turnaround its free cash flows and earnings quality. It has also stabilized working capital on the back of declining debt. On the other...

Nitin Mangal

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

IPO Review: India's Youngest and Largest Player for Ethanol, Worth a Bet?

​TBL is the largest ethanol producer today. Growth potential in Compressed Bio-gas and sustainable aviation fuel (2G ethanol) to drive strong near...

Himanshu Dugar

The Sugar Sector Reversal: How Sugar Companies Are Finally Tasting Profits?

​India's sugar industry sees unexpected rally with rising prices and improved profitability despite production drop and rising costs, shifting...

Nimish Maheshwari

Ethanol Industry: Crushing Of Stock Prices Near The End?

​Government delays 20% ethanol blending target to 2030, OMCs fall short on required litres, potential margin improvements with sugar price hikes or...

Nimish Maheshwari

The Beat Ideas: Dhampur Bio Organics Ltd.- Ethanol, Value Added Products & Deleveraging

​Dhampur Bio Organics, a sugar manufacturer, set to benefit from new ethanol policy and debt reduction and huge capex in FY24.

Sudarshan Bhandari

Balrampur Chini Mills Ltd- Forensic Analysis

There is a turnaround its free cash flows and earnings quality. It has also stabilized working capital on the back of declining debt. On the other...

Nitin Mangal

TBL is the largest ethanol producer today. Growth potential in Compressed Bio-gas and sustainable aviation fuel (2G ethanol) to drive strong near...

India's sugar industry sees unexpected rally with rising prices and improved profitability despite production drop and rising costs, shifting...

Government delays 20% ethanol blending target to 2030, OMCs fall short on required litres, potential margin improvements with sugar price hikes or...

Dhampur Bio Organics, a sugar manufacturer, set to benefit from new ethanol policy and debt reduction and huge capex in FY24.