Balu Forge Industries Fund Raise, H. G. Infra Engineering Lease Granted And Meson Valves India Acquisition

Balu Forge Industries Ltd.

Recent filing: (FUND RAISE) Board meeting of Balu Forge to be held on 16th July ’24 to consider and approve raising of funds.

SUMMARY: 3y Operating Profit uptrend | 7q Operating Profit uptrend | PE 44.6x (Sector PE range 30-50) | Excellent Mar-24 results | Capacity expansion | Fund raise | Promoter Buying | Ace Investor | Institutional Entry | Auto Ancillary

FUTURE OUTLOOK: As per FY24 concall, Company expecting Revenue to conservatively grow in the range of 40%-45% in FY25 and EBITDA margins are expected to be in the corridor of 23%-24% in the upcoming quarter.

• MCap of INR 4,174 Crore (share price = INR 407 / share) (as on 12th Jul ‘24)
• TTM PE 44.6x (as on 12th Jul ‘24) Retail float = 9.7% (Jun-24)

FOOD FOR THOUGHT: Large working capital cycle | Volatility in raw material cost

What are the products and services of Balu Forge Industries?

Company is engaged in the manufacturing of fully finished and semi-finished crankshafts and forged components. It has the capability to manufacture components conforming to both New Emission Regulations & the New Energy Vehicles.

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H. G. Infra Engineering Ltd.

Recent filing: (LEASE GRANTED) HG Infra Engineering has been granted lease worth INR 14.6 Cr for Commercial Development on Railway Land at Abu Road, Rajasthan Measuring 8034 sqm for a period of 60 years.

SUMMARY: 6y Operating Profit uptrend | 2q Operating Profit uptrend | Excellent Mar-24 results | PE 21.0x (Sector PE range 8-25) | Infrastructure

FUTURE OUTLOOK: As per FY24 Con-call, Management has guided for a 15-20% growth in topline | Orderbook INR 12,434 Cr (Mar-24), 2.3x of TTM Revenue

• MCap of INR 11,079 Crore (share price = INR 1,700 / share) (as on 12th Jul ‘24)
• TTM PE of 21x (as on 12th Jul ‘24) Retail float = 9.0% (Mar-24)

FOOD FOR THOUGHT: Client concentration risk: Road projects from NHAI and ARTL contribute to 87% of orderbook as of Dec-23.

What are the products and services of H. G. Infra Engineering?

With a resilient two-decade journey, HGIEL has emerged as one of India's fastest-growing construction companies. Its dedication to quality and timely execution has been pivotal in establishing it as a trusted leader in the infrastructure industry. It is engaged in the business of EPC and Maintenance of roads, bridges, flyovers, etc.

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Meson Valves India Ltd.

Recent filing: (ACQUISITION) Meson Valves has entered into Share Purchase Agreement with Milindpra Castings Private Limited for the acquisition of 7,033 shares. Target Company is in the business of metal casting and foundry. This strategic acquisition aligns with Company’s India growth strategy and is expected to strengthen its position in the metal casting industry. The move will allow Company to expand its capabilities and market presence in the foundry sector.

FUTURE OUTLOOK: As per FY24 concall, Company anticipates a 50% CAGR with strong growth and profitability, doubling its topline. Company targeting a 10-15% EBITDA margin increase. Company has an Order book of INR 40+ Cr.

SUMMARY: 3y Operating Profit uptrend | 1h Operating Profit uptrend | PE 151x (Sector PE range 50-100) | Excellent Mar-24 results | Acquisitions | Partnership | Institutional Entry | Defence

• MCap of INR 1,365 Crore (share price = INR 1,344 / share) (as on 12th Jul ‘24)
• TTM PE of 151x (as on 12th Jul ‘24) Retail float = 23.1% (Mar-24)

FOOD FOR THOUGHT: PE is above sector range

What are the products and services of Meson Valves India?

Meson Valves India Limited is in the business of assembling, buying, selling, distributing, importing, exporting or otherwise dealing in products like valves, actuators, remote control system, control cabinets, tanks, visualization system, piping, pumps, fittings, gaskets, flanges and and services that control and manage all such products. Company got listed on 21st Sep ‘23.

Also Read: RMC Switchgears, Abhishek Integrations And H. G. Infra Engineering Order