Bharat Wire Ropes Poor to Weak Result, HPL Electric & Power Good to Excellent Results And Madhu Sudan Masala Fund Raise

Bharat Wire Ropes Ltd.

Recent filing: (POOR TO WEAK RESULTS) For the quarter ending Jun-24 for Bharat Wire Ropes, Sales down 16% YoY from INR 158 Cr in Jun-23 to INR 133 Cr in Jun-24. Similarly, Net Profit down 25% from INR 24 Cr to INR 18.1 Cr. On a QoQ basis, Sales down 10% and Net Profit down 18%.

SUMMARY: PE 19.4x (Sector PE range 10-50) | Fund raise | Fund entry | Promoter Buying | Steel Products

FUTURE OUTLOOK: As per Q4FY24 Concall, 10-11% growth expected for FY25.

• MCap of INR 1,765 Crore (share price = INR 258 / share) (as on 2nd Aug ‘24)
• TTM PE of 19.4x (as on 2nd Aug ‘24) Retail float = 11.5% (Jun-24)

FOOD FOR THOUGHT: Working-capital intensive nature of business | Volatile raw material prices, profitability depends on ability to pass on price fluctuations to customers

Q1. What are the Products and Services offered by Bharat Wire Ropes?

Bharat Wire Ropes Ltd. is a manufacturer of Steel Wire rope. It caters to the functional needs of a vast array of industrial applications. It comprehensively caters to the needs of the Oil & Gas industry, for oil exploration and drilling operations, exploration rigs, derrick cranes, offshore winches. It also caters to General Purpose Engineering, Defence Applications, Aviation, Maritime Operations, etc.

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HPL Electric & Power Ltd.

Recent filing: (GOOD TO EXCELLENT RESULTS) For the quarter ending Jun-24 for HPL Electric & Power, Sales up 22% YoY from INR 321 Cr in Jun-23 to INR 393 Cr in Jun-24. Similarly, Net Profit up 2.4x from INR 7 Cr to INR 17 Cr. On a QoQ basis, Sales down 7% and Net Profit up 21%.

SUMMARY: 4y Operating Profit uptrend | 4q Operating Profit uptrend | PE 77.8x (Sector PE range 30-70) | Excellent Jun-24 results | New Products | Partnerships | Electrification | Smart Meter

FUTURE OUTLOOK: As per Q4FY24 Concall, Company anticipates 20-25% Revenue growth in next 3-4 years and expect revenue to reach INR 1800 Cr or higher in FY25 | Company has a strong Order book of INR 3,700+ Cr as on 30th July 2024.

• MCap of INR 4,012 Crore (share price = INR 624 / share) (as on 2nd Aug ‘24)
• TTM PE 77.8x (as on 2nd Aug ‘24) Retail float = 20.6% (Jun-24)

FOOD FOR THOUGHT: Sales depends on Company’s ability to win tenders from PSUs. Intense competition leads to aggressive bidding, which could compromise margins. | PE is above sector range.

Q3. What are the Products and Services offered by HPL Electric & Power?

HPL is an established electric equipment manufacturing company in India, manufacturing a diverse portfolio of electric equipment, including metering solutions, switchgear, lighting equipment and wires and cables, catering to consumer and institutional customers in the electrical equipment industry. HPL had the largest market share in India's electricity energy meters market, with one of the most comprehensive portfolios of meters in India.

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Madhu Sudan Masala Ltd.

Recent filing: (FUND RAISE) BoD of Madhusudan Masala has approved the issuance of 14.9 lakh equity shares and 16.5 lakh fully convertible equity warrants at INR 166 each, aggregating to INR 52.1 crore, on a private placement basis to both Promoters, and Non promoter group.

SUMMARY: 2y Operating Profit uptrend | PE 25.8x (Sector PE range 30-100) | Excellent Mar-24 results | Acquisition | Fund raise | Consumption

FUTURE OUTLOOK: As per Q4FY24 Concall, Company expecting a 30% revenue increase in FY25 and targeting the PAT margin improvement in the range of 6-6.5% | Company strategy is to expand reach by adding new products to the portfolio. | Company is planning to enter new markets in Maharashtra, Telangana, and other states. | Company is also focusing on competing in the unorganized market segment.

• MCap of INR 237 Crore (share price = INR 184 / share) (as on 2nd Aug ‘24)
• TTM PE 25.8x (as on 2nd Aug ‘24) Retail float = 15.9% (Mar-24)

FOOD FOR THOUGHT: Negative Operating cashflow in FY24.

Q1. What are the Products and Services offered by Madhu Sudan Masala?

Company manufactures more than 32 types of spices and other food products like Papad, Tea and Soya products under brand names “DOUBLE HATHI” & “MAHARAJA” in different types of packing sizes of more than 276 SKUs.

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