Indian Accounting Research Analyst, Trudence Capital Advisors

Nitin Mangal

Indian Accounting Research 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

Equity Capital Markets

Waaree Energies Limited manufactures solar equipment. The Company provides PV modules, inverters, KW rooftop solutions, utility grids, water pumps, and portable kits. Waaree Energies serves customers worldwide.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/waaree-energies-limited-6098abe5-9b91-4859-8170-b98fda2cf7ab" target="_blank" data-smartkarma-citation="entities:44031:1" rel="noopener">Waaree Energies (0656504D IN)</a> awaited IPO is about to open on October 21. The IPO comprises of fresh issue worth INR 36 bn and OFS worth INR 7.2 bn. </li>
<li>This insight is an update to the previous note on the company <a href="https://www.smartkarma.com/insights/waaree-energies-ipo-forensic-analysis" target="_blank" data-smartkarma-citation="insights:127677" rel="noopener">Waaree Energies IPO- Forensic Analysis</a> , on the forensics front. </li>
<li>The company still faces some of the forensic setbacks we found in the DRHP. These include capital purchases from related parties, heated receivables, bizarre lease accounting, unpaid dues, etc.</li>
</ul>



Waaree Energies (0656504D IN) awaited IPO is about to open on October 21. The IPO comprises of fresh issue worth INR 36 bn and OFS worth INR 7.2 bn. 
This insight is an update to the previous note on the company Waaree Energies IPO- Forensic Analysis , on the forensics front. 
The company still faces some of the forensic setbacks we found in the DRHP. These include capital purchases from related parties, heated receivables, bizarre lease accounting, unpaid dues, etc.


Waaree Energies IPO Update- Forensic Analysis

Forensic Accounting

Shriram Pistons & Rings Ltd / Forensic Accounting

Shriram Pistons and Rigs Limited develops, manufactures, and sells industrial machinery parts. The Company offers diesel and gasoline pistons, pins, rings, and engine valves. Shriram Pistons & Rings markets its products worldwide.

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<li>
<a href="https://www.smartkarma.com/entities/shriram-pistons-rings-ltd" target="_blank" data-smartkarma-citation="entities:44009:1" rel="noopener">Shriram Pistons &amp; Rings Ltd (SPRL IN)</a> is into the business of manufacturing auto components including pistons, piston pins and rings, engine valves, electric motors etc. </li>
<li>On an overall scheme of things, balance sheet and forensics look good and healthy. </li>
<li>However, one must pay attention to goodwill and related assumptions; one of the recent acquisitions has turned loss making.</li>
</ul>



Shriram Pistons &amp; Rings Ltd (SPRL IN) is into the business of manufacturing auto components including pistons, piston pins and rings, engine valves, electric motors etc. 
On an overall scheme of things, balance sheet and forensics look good and healthy. 
However, one must pay attention to goodwill and related assumptions; one of the recent acquisitions has turned loss making.


Shriram Pistons and Rings Ltd- Forensic Analysis

Sanathan Textiles / Equity Capital Markets

Sanathan Textiles Private Limited manufactures textile products. The Company supplies partially oriented, cotton, fully drawn, draw and air textured, polyester, fibers, and effect yarns to fabric weaving and knitting companies. Sanathan Textiles serves customers worldwide.

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<li>
<a href="https://www.smartkarma.com/entities/sanathan-textiles-private-limited" target="_blank" data-smartkarma-citation="entities:43995:1" rel="noopener">Sanathan Textiles (0907479D IN)</a> plans to re-appear for its IPO. The company is into yarn manufacturing and has a presence in all three, Polyester, Cotton and Technical Textiles segments. </li>
<li>Revenue growth did light up in FY22, however topline growth has pretty much been stale since then. Moreover, margins have also been on a sliding trajectory.</li>
<li>Key forensic takeaways include capitalising of expenses on the back of falling margins, acquisition of a non-operating subsidiary from promoters, secondary income sources driving profits, etc.</li>
</ul>



Sanathan Textiles (0907479D IN) plans to re-appear for its IPO. The company is into yarn manufacturing and has a presence in all three, Polyester, Cotton and Technical Textiles segments. 
Revenue growth did light up in FY22, however topline growth has pretty much been stale since then. Moreover, margins have also been on a sliding trajectory.
Key forensic takeaways include capitalising of expenses on the back of falling margins, acquisition of a non-operating subsidiary from promoters, secondary income sources driving profits, etc.


CE Info Systems (MapmyIndia) / Forensic Accounting

CE Info Systems is India’s leading provider of advanced digital maps, geospatial software and location-based IoT Technologies, as per Frost & Sullivan (F&S).

CE Info Systems (MapmyIndia) (1052633Z IN)

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<li>
<a href="https://www.smartkarma.com/entities/ce-info-systems-mapmyindia" target="_blank" data-smartkarma-citation="entities:34215:1" rel="noopener">CE Info Systems (MapmyIndia) (1052633Z IN)</a> is one of the leading Indian players engaged in advanced digital maps, geospatial software and location-based IoT technologies. It launched its IPO in 2021</li>
<li>Since its IPO, MAPPLS has embarked on a growth journey since then. It also boasts high margins &amp; ROCE due to its asset light model.</li>
<li>While the balance sheet looks good, one might have to check on the speedy receivables and trend of commission expenses.</li>
</ul>



CE Info Systems (MapmyIndia) (1052633Z IN) is one of the leading Indian players engaged in advanced digital maps, geospatial software and location-based IoT technologies. It launched its IPO in 2021
Since its IPO, MAPPLS has embarked on a growth journey since then. It also boasts high margins &amp; ROCE due to its asset light model.
While the balance sheet looks good, one might have to check on the speedy receivables and trend of commission expenses.


C.E. Info Systems (Mapmyindia)- Forensic Analysis

Esds Software Solution / Forensic Accounting

Esds Software Solution Limited provides cloud solutions. The Company offers enlight cloud hosting, database management, digital baking, application support, and security services. Esds Software Solution serves customers worldwide.

<ul>
<li>In this insight, we briefly study forensics of <a href="https://www.smartkarma.com/entities/esds-software-solution-ltd" target="_blank" data-smartkarma-citation="entities:43957:1" rel="noopener">Esds Software Solution (1603279D IN)</a> , currently unlisted, had tried to float an IPO back in 2021 but it was later withdrawn.</li>
<li>The company offers managed cloud service and end to end multi-cloud requirements provider. Revenue growth has been moderate while margin erosion has been a concerning issue for the company.</li>
<li>Key forensic takeaways include nature of contingent liabilities, inability to generate cash and liquidity woes, quality of receivables, etc. </li>
</ul>


In this insight, we briefly study forensics of Esds Software Solution (1603279D IN) , currently unlisted, had tried to float an IPO back in 2021 but it was later withdrawn.
The company offers managed cloud service and end to end multi-cloud requirements provider. Revenue growth has been moderate while margin erosion has been a concerning issue for the company.
Key forensic takeaways include nature of contingent liabilities, inability to generate cash and liquidity woes, quality of receivables, etc. 


ESDS Software Solution- Forensic Analysis

Nitin Mangal is a Research Analyst with more than 15 years of experience in Indian equities. He is Pioneer of Corporate Governance and Accounting Research in Indian Market and has successfully developed product for Institutional Investors named as "Analysis Beyond Consensus" during his association with Edelweiss Securities Ltd, Mumbai. Later during the career, he has worked with Veritas Investment Research Corporation, Canada as Asia Consultant covering Indian and US equities. He has been profiled by leading financial newspapers such as Wall Street Journal, Business Standard etc

Nitin Mangal
Indian Accounting Research Analyst
• Trudence Capital Advisors

Waaree Energies IPO Update- Forensic Analysis

Waaree Energies IPO comes in with fresh issue worth INR 36 bn and OFS worth INR 7.2 bn. Forensic analysis reveals ongoing concerns including...

Nitin Mangal

Shriram Pistons and Rings Ltd- Forensic Analysis

Shriram Pistons & Rings Ltd manufactures auto components and has a healthy balance sheet, but caution is advised for goodwill and related assumptions

Nitin Mangal

Sanathan Textiles IPO- Forensic Analysis

Forensic takeaways include expense capitalization when margins are down, subsidiary acquisition, secondary income sources driving profits, etc.

Nitin Mangal

C.E. Info Systems (Mapmyindia)- Forensic Analysis

MAPPLS is a leading Indian player in digital maps and location-based IoT technologies, with a strong post-IPO growth trajectory and high margins....

Nitin Mangal

ESDS Software Solution- Forensic Analysis

Insight into the forensics of ESDS reveals concerns over revenue growth, margin erosion, contingent liabilities, cash generation, and receivables...

Nitin Mangal

Waaree Energies IPO Update- Forensic Analysis

​Waaree Energies IPO comes in with fresh issue worth INR 36 bn and OFS worth INR 7.2 bn. Forensic analysis reveals ongoing concerns including...

Nitin Mangal

Shriram Pistons and Rings Ltd- Forensic Analysis

​Shriram Pistons & Rings Ltd manufactures auto components and has a healthy balance sheet, but caution is advised for goodwill and related assumptions

Nitin Mangal

Sanathan Textiles IPO- Forensic Analysis

​Forensic takeaways include expense capitalization when margins are down, subsidiary acquisition, secondary income sources driving profits, etc.

Nitin Mangal

C.E. Info Systems (Mapmyindia)- Forensic Analysis

MAPPLS is a leading Indian player in digital maps and location-based IoT technologies, with a strong post-IPO growth trajectory and high margins....

Nitin Mangal

ESDS Software Solution- Forensic Analysis

​Insight into the forensics of ESDS reveals concerns over revenue growth, margin erosion, contingent liabilities, cash generation, and receivables...

Nitin Mangal

Waaree Energies IPO comes in with fresh issue worth INR 36 bn and OFS worth INR 7.2 bn. Forensic analysis reveals ongoing concerns including...

Shriram Pistons & Rings Ltd manufactures auto components and has a healthy balance sheet, but caution is advised for goodwill and related assumptions

Forensic takeaways include expense capitalization when margins are down, subsidiary acquisition, secondary income sources driving profits, etc.

Insight into the forensics of ESDS reveals concerns over revenue growth, margin erosion, contingent liabilities, cash generation, and receivables...