Daily Brief Industrials: Virgin Australia Holdings, Nava, Shriram Pistons & Rings Ltd, Kilburn Engineering, Venus Pipes & Tubes, Arcadis NV, Braemar Shipping Services PLC and more

• Bain Capital is looking to raise around US$440m via selling some of its stake in Virgin Australia Holdings (VAH AU).
• Virgin Australia is the second largest airline group operating in the Australian aviation market, with an average 32% domestic RPT capacity market share in CY24.
• In this note, we look at the company’s past performance and provide our thoughts on valuations.

• NAVA’s net profit doubled from ₹536 Cr in FY23 to ₹1,091 Cr in FY25, driven by strong power and mining earnings.
• Maamba Phase II will double Zambian power capacity to 600 MW by FY27 with $400M investment. Zambia agri projects in avocado and sugar aim for diversified, steady revenue from FY27.
• NAVA has become debt-free, strengthening its balance sheet. Improved credit ratings reflect steady profits, healthy cash flows, and low debt risk.

• The company is expanding into EV motors, precision plastics, and exports to over 45 countries worldwide
• SPRL reported  Rs 36,612 million total income in FY25, with 15.3% YoY growth and a 22.8% EBITDA margin
• SPRL balances legacy ICE products with new EV, plastics, and non-auto segments for resilient growth

• Kilburn Engineering (KEL IN) achieved highest-ever standalone/consolidated revenue and EBITDA, completed two strategic acquisitions (ME Energy, Monga Strayfield), and secured record orders, particularly entering the Nuclear sector.
• The performance validates the company’s strategy of diversification and inorganic growth, providing strong visibility for future revenue with 50% growth target for FY26 .
• The strong execution, robust order book, and confident management guidance reinforce a positive outlook, suggesting significant growth potential building on recent strategic moves.

• Venus Pipes is a growing stainless-steel pipes and tubes manufacturer and exporter in India having over nine years of experience in manufacturing of stainless-steel tubular products. 
• With respect to forensics, we highlight several takeaways including steep increase in inventory days funded by creditors, expensive capex compared to peers, etc. 
• Weak governance practices are identified with respect to warrant issuance and non-disclosure of information on several fronts.

• In this edition: • dsm-firmenich | completes sale of its stake in Feed Enzymes Alliance • Arcadis | awarded digital asset management contract with the City of Calgary • Fugro | awarded major order to perform a site characterisation programme for a deepwater gas field development in Southeast Asia • Dutch CPI | consumer prices increased by 3.3% YoY in May, down from 4.1% in April • Dutch politics | coalition government may fall later today

Braemar has successfully grown underlying group revenue by c 10% per year since 2013 and the new growth strategy outlines initiatives and targets that are designed to continue top-line growth and improve the margin, such that operating profit is expected to almost double by 2030. This strategy is likely to see investment in new hires and/or M&A, which may be funded by short-term debt. Despite the growth targets, the company has guided to lower profits in FY26e due to external issues, but the fundamentals remain in place, and we expect a return to growth in FY27e. Accordingly, our short-term profit estimates are reduced, as is our valuation, from 535p to 462p, but this still offers c 100% upside.