In today’s briefing:
- Belrise Industries IPO – RHP Updates & Thoughts on Peer Comp and Valuation
- PROTEAN EGov Technologies – Impact of PAN 2.0 Setback
- The Beat Ideas: Welspun Living- Home Textile Giant Weaving Growth
- Adani Ports: Anchored on Scale, Navigating Towards 1BT Ambition by FY30
- Apcotex Industries Q4 FY25 Update: Strong Volume Growth and Margin Recovery
- Archean Chemical Industries Q4 & FY25 Update: Strong Volume Growth & Strategic Expansions
- Vinati Organics Q4 FY25 Update: Strong Growth with Robust Performance Across Key Segments
- Innova Captab Q4FY25 Update: Jammu Plant, R&D, and Market Penetration
Belrise Industries IPO – RHP Updates & Thoughts on Peer Comp and Valuation
- Belrise Industries (9156339Z IN) is looking to raise about US$255m in its upcoming India IPO.
- Belrise Industries is an automotive component manufacturing company based in India offering a diverse range of safety critical systems and other engineering solutions for two-wheelers, three-wheelers, four-wheelers, commercial and agri-vehicles.
- We have looked at the company’s past performance in our previous notes. In this note, we will talk about the IPO valuations.
PROTEAN EGov Technologies – Impact of PAN 2.0 Setback
- PROTEAN eGov Technologies LTD (PROTEAN) has experienced a significant setback by not being shortlisted for the Indian government’s PAN 2.0 project worth INR 1,440 crore, a material negative.
- This exclusion, despite earlier confidence, is expected to lead to a substantial decline in this revenue stream over the next 2-3 years, potentially collapsing by 75-100%.
- The PAN business has historically been a key driver of profitability and free cash flow, funding new initiatives now under threat.
The Beat Ideas: Welspun Living- Home Textile Giant Weaving Growth
- Welspun Living targets INR 15,000 crore revenue by FY27, focusing on debt reduction and expanding its non-core businesses, diversifying its growth and financial resilience.
- The company’s emphasis on sustainability and innovation, including renewable energy initiatives, positions it as a leader in eco-friendly home textiles, responding to market shifts.
- Despite fierce competition, Welspun Living’s strong brand portfolio and global presence reaffirm its leadership in the home textiles market, making it well-positioned for long-term growth.
Adani Ports: Anchored on Scale, Navigating Towards 1BT Ambition by FY30
- Targeting 1 billion tonnes of cargo by 2030 with ~2,000 MMT capacity. Gangavaram Port timely expansion is crucial.
- FY26 guidance implies strong revenue growth (₹36,000–38,000 Cr) and rising cargo volumes, but the PAT outlook appears conservative.
- Trades at 17x EV/EBITDA FY27 which is in-line with historic multiples. High margin business with strong cash conversion provides visibility to achieve FY30 targets.
Apcotex Industries Q4 FY25 Update: Strong Volume Growth and Margin Recovery
- Apcotex Industries (APCO IN) reported a robust 12.5% YoY revenue growth in Q4 FY25, driven by strong volume and export growth.
- Despite external challenges like crude price volatility and global overcapacity in latex, the company showcased strong operational performance.
- The recovery in margins, driven by improved capacity utilization and higher exports, supports optimism for FY26 despite market uncertainties.
Archean Chemical Industries Q4 & FY25 Update: Strong Volume Growth & Strategic Expansions
- Archean Chemical Industries (ACI IN) posted strong operational performance, driven by robust export growth and stable demand across key segments.
- Despite external market challenges, Archean’s diversified product portfolio and strategic acquisitions provide a solid foundation for future growth.
- Archean is well-positioned to continue expanding, with significant upside in bromine derivatives and energy storage, supporting its long-term growth trajectory.
Vinati Organics Q4 FY25 Update: Strong Growth with Robust Performance Across Key Segments
- Vinati Organics reported a 24% QoQ increase in net income, driven by strong growth in ATBS and antioxidants.
- The company’s focus on capacity expansion and product diversification positions it for sustainable growth in FY26.
- Continued leadership in specialty chemicals and a clear Capex roadmap reinforce confidence in future growth.
Innova Captab Q4FY25 Update: Jammu Plant, R&D, and Market Penetration
- Innova Captab (1605221D IN) achieved strong Q4 FY25 revenue growth of nearly 20%, though profitability felt impact from new Jammu plant’s depreciation and finance costs.
- The new manufacturing facility in Jammu was commercialized in Q4 FY25, contributing INR 36 crores revenue and expanding production capabilities.
- The company expects strong FY26 growth, with Jammu plant adding INR 400 crores, projecting a 25% revenue CAGR long-term and improving margins.
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