AVG Logistics Acquisition, Kilburn Engineering Promoter Buying And Aurionpro Solutions Order

AVG Logistics Ltd.

Recent filing: (ACQUISITION) AVG Logistics is set to acquire a major stake in Kaizen Logistics, a trusted provider of road and multimodal transportation, warehousing, and logistics services to leading companies like Vedanta, Aditya Birla, and RIL. This acquisition will enhance operational synergies, expand Company's footprint in sectors like FMCG, beverages, and chemicals, and strengthen its service offerings. The acquisition is expected to be completed by Q4 FY 2024-25, aligning with Company's strategic growth plans.

SUMMARY: 4y Operating Profit uptrend | 2q Operating Profit uptrend | PE 20.5x (Sector PE range 10-40) | Fund raise | Fleet expansion | Institutional entry | Promoter buying | Strategic JV | Logistics

FUTURE OUTLOOK: As per Q1FY25 Concall, Company is targeting a revenue of INR 700 Cr for FY25 | Company is anticipating 15-20% organic growth while exploring additional business opportunities in new sectors | Company expecting EBITDA margin guidance for FY25 to be in the range of 18-19%.

• MCap of INR 548 Crore (share price = INR 369 / share) (as on 31st Dec ‘24)
• TTM PE 20.5x (as on 31st Dec ‘24) Retail float = 14.7% (14th Nov-24)

FOOD FOR THOUGHT: The Indian logistics sector is highly fragmented, with both large established companies and numerous small to medium-sized unorganized firms. Global competition further intensifies the market, limiting bargaining power and impacting profit margins.

Question 1: Who are the promoters of AVG Logistics?

Incorporated in 2010, AVG Logistics is a third-party logistics service operator. It offers Full Truck Load and hub-and-spoke transportation model and warehousing services to select clients with the pan-India distribution network and automated technology systems. It offers its customers services in three key areas Transportation, Warehousing and Value-added Services. The Company specializes in two of the most important functions of logistics, Transportation and Warehousing, with over 50 fully computerized branches all over India. Some of the renowned brands are its clients, like Nestle, ITC, Mondelez, GSK, Amara Raja, Airtel, MRF, Mother Dairy, UltraTech Cement, Coca Cola, IGNOU, Patanjali, etc.

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Kilburn Engineering Ltd.

Recent filing: (PROMOTER BUYING) Kilburn Engineering Promoter bought 20k shares at INR 473/share, aggregating to INR 95L.

SUMMARY: 4y Operating Profit uptrend | 1q Operating Profit uptrend | PE 35.8x (Sector PE range 30-60) | Fund raise | Acquisition | Promoter buying | Institutional entry | Orderbook of INR 354 Cr (Sep-24) | Capital Goods – Non-Electrical Equipment

FUTURE OUTLOOK: As per Q2FY25 Concall, projected a revenue of INR 500 Cr for FY25. By Q2FY25, the revenue growth outlook for FY25 remained unchanged (52% Growth), and the company further provided guidance of INR 700-750 Cr (45% Growth) in revenue for FY26 | Company is optimistic about achieving a consolidated EBITDA margin of 20%+ in the coming years | Company has INR 2,000 Cr worth of Orders in the inquiry pipeline.

• MCap of INR 2,150 Crore (share price = INR 475 / share) (as on 31st Dec ‘24)
• TTM PE of 35.8x (as on 31st Dec ‘24) Retail float = 14.4% (Sep-24)

FOOD FOR THOUGHT: Working capital extensive business.

Question 1: Who are the promoters of Kilburn Engineering?

Company offers comprehensive range of dryers for solid, liquid and gas to cover wide range of industries: chemical, petrochemical, oil & gas, refineries power, steel, cement, fertilizer, mining, sewage treatment, food etc. It also manufactures specially designed packages for onshore and offshore applications.

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Aurionpro Solutions

Recent filing: (ORDER) Aurionpro Solutions has secured a major order from Delhi Metro Rail Corporation (DMRC) to deliver Automated Fare Collection (AFC) technology, including gates, validators, and card readers, for DMRC's Phase I, II, and III networks. The AFC gates will be manufactured in India at Company's Ghaziabad facility under the "Make in India" initiative.

SUMMARY: 4y Operating Profit uptrend | 7q Operating Profit uptrend | PE 56.8x (Sector PE range 30-50) | Excellent Sep-24 results | Fund raise | Institutional entry | Acquisition | Partnership | Large order | Orderbook of INR 1,150 Cr+ (Sep-24) (1x of TTM revenue) | New-age IT

FUTURE OUTLOOK: As per the Q2FY25 Concall, Company is optimistic about achieving its guided growth of over 30%+ for FY25, while ensuring that earnings margins stay within the projected range.

• MCap of INR 9,342 Crore (share price = INR 1,692 / share) (as on 31st Dec ‘24)
• TTM PE of 56.8x (as on 31st Dec ‘24) Retail float = 8.6% (Sep-24)

FOOD FOR THOUGHT: PE is above sector range

Question 1: Who are the promoters of Aurionpro Solutions?

Aurionpro is the convergence of advanced technology solutions that help enterprises accelerate Digital Innovation - securely and efficiently. It is 'One Platform', guiding businesses to ADAPT to a new paradigm in Digital Transformation across Banking Transportation, Logistics, and Government sectors.

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