Daily Brief India: Jubilant Ingrevia, Lalithaa Jewellery, Ather Energy, Tinna Rubber and Infrastructure and more

• The semiconductor pipeline has expanded to 15+ products and 10+ customers; Jubilant has also agreed to acquire 40% of Zettaone for INR 189.2 crore.
• Electronic chemicals can offer higher purity-led value addition, stickier qualifications and lower exposure to commodity chemical cycles.
• The semiconductor optionality is more tangible, but remains too early to underwrite as a major earnings driver without disclosed revenue or commercial volumes.

• Market Position and High-Throughput Value Model: Lalithaa Jewellery Mart Limited (LALITHAA IN) is a prominent South Indian jewellery retailer operating 61 large-format showrooms across 51 cities. Its disruptive, ultra-low value-addition pricing strategy (making/wastage charges starting at 1-2%) drives an industry-leading store throughput of INR 410.23 Cr per showroom, propelling FY26 revenue to INR 250,239.27M (+48.1% YoY) and net income to INR 10,098.17M (+177.4% YoY).
• Working Capital Intensity and Cash Flow Dynamics: Despite strong top-line scaling and elevated FY26 return metrics (ROE of ~34.5% and ROCE of ~48.2%), the business model remains highly working capital intensive due to substantial gold inventory requirements (~INR 40-50 Cr per large-format store). Rapid network expansion resulted in negative operating cash flow of -INR 5,247.76M and free cash flow (FCFE) of -INR 5,923.44M in FY26.
• Valuation and Institutional Risk-Reward: At the current price of INR 265.24, Lalithaa trades at a P/E multiple of 12.2x and a P/B of 4.2x, presenting an attractive relative discount to regional peers such as P N Gadgil Jewellers (18.1x P/E). This valuation discount reflects thin core operating margins (4.04% net margin), high geographic concentration in South India, high promoter ownership (>80%), and ongoing tax/GST litigation contingencies.

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• Ather launched Konarc on the new EL platform at INR 99,999, with up to 200 km IDC range, quicker home charging and a 10-year battery warranty.
• Konarc takes Ather below Rizta’s mass-premium positioning and gives its fast-expanded retail network a product aimed at India’s broad commuter market.
• The growth runway improves, but the stock already prices in strong execution. Investors now need evidence on mix, contribution margin and delivery scale.

• Market Leadership in Tire Circularity: Tinna Rubber and Infrastructure Limited (TNR) is India’s leading end-of-life tire (ELT) recycler, commanding over 60% market share in the domestic crumb rubber modified bitumen (CRMB) sector, backed by a pan-India manufacturing footprint of 6 plants and an expanding overseas presence in Oman.
• Strong Multi-Year Compounding: TNR delivered robust financial growth with 3-year revenue and net income CAGRs of 22.70% and 34.34% respectively, reaching FY2026 revenue of INR 5,458.07m and net income of INR 528.47m, while recent quarterly gross margins expanded toward 39.81% on an improving high-margin product mix.
• Capital-Intensive Growth Transition: Free cash flow remains in negative territory (-INR 621.95m in FY2026) due to multi-year capex programs expanding crushing capacity from 185,000 MT toward 250,000 MT and scaling high-value adjacencies including reclaimed carbon black (RCB), masterbatches, and polymer composites.

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