Emerald Finance Fund Raise, RateGain Travel Technologies Partnership And Sealmatic India And Capacity Expansion

Emerald Finance

Recent filing: (FUND RAISE) BoD of Emerald Finance has considered and approved the issuance of 10L equity shares at INR 100/each, aggregating to INR 10 Cr. Subscribers include Minerva Venture Fund.

SUMMARY: 6y Operating Profit uptrend | 5q Operating Profit uptrend | PE 56.3x (Sector PE range 20-40) | Excellent Sep-24 results | Strategic Partnerships | Fund Raise | Institutional entry | NBFC

FUTURE OUTLOOK: As per Q2FY24 Concall, Company anticipates its PAT to grow by 8 to 10 times over the next three years.

• MCap of INR 343 Crore (share price = INR 105 / share) (as on 26th Nov ‘24)
• TTM PE 56.3x (as on 26th Nov ‘24) Retail float = 9.7% (Sep-24)

FOOD FOR THOUGHT: MSME loan default risk.

Question 1: Who are the promoters of Emerald Finance?

Incorporated in 1983, Company’s business model is centered around granting of loans & advances. As an NBFC, it provides loans to customers. Company is also engaged in providing ultra short-term loans (tenor up to 15 days) with a ticket size ranging from INR 1,000 to INR 20,000 targeting youth salaried individuals.

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RateGain Travel Technologies Ltd.

Recent filing: (PARTNERSHIP) RateGain Travel Technologies announced a strategic partnership with Kamat Hotels, a renowned hospitality chain with a strong presence in India. This collaboration will empower Kamat Hotels (India) Limited to significantly increase returns from direct bookings, improve brand visibility, and enhance the overall guest acquisition across 18 of its five-star luxurious Ecotels, Heritage Hotels and Leisure resorts.

SUMMARY: 5y Operating Profit uptrend | 1q Operating Profit uptrend | PE 43.2x (Sector PE range 50-100) | Fund Raise | Partnerships | Institutional Entry | Tech Platform

FUTURE OUTLOOK: As per FY25 AGM Update, Company's goal is to double its revenue from FY24 within the next three years, by FY27 | As per Q1FY25 Concall, Company management reiterated a revenue growth target of 20% for FY25, and expected margin improvement of 150 to 200 basis points YoY.

As per Q2FY25 Investor Presentation, Company has healthy pipeline of INR 469 Cr with traction across segments.

• MCap of INR 8,125 Crore (share price = INR 689 / share) (as on 26th Nov '24)
• TTM PE of 43.2x (as on 26th Nov '24) Retail float = 10.9% (Sep-24)

FOOD FOR THOUGHT: Megha Chopra (Promoter) reduced her stake from 12.1% in Mar -24 to 9.5% in Jun-24. Some of this were picked up by funds.

Question 1: Who are the promoters of RateGain Travel Technologies?

Founded in 2004, RateGain Travel is a global provider of SaaS solutions for travel and hospitality that works with 2800+ customers and 700+ partners in 100+ countries, helping them accelerate revenue generation through acquisition, retention, and wallet share expansion.

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Sealmatic India Ltd.

Recent filing: (CAPACITY EXPANSION) Sealmatic India inaugurated a new 25,000 sq. ft. manufacturing facility in Kaman-Vasai, enhancing production capacity by 65% over the Mira Road facility. The new plant, operational from November 26, 2024, can produce 1,050 units of mechanical seals and API vessels monthly. The project involved a INR 6.8 Cr investment, aimed at supporting the company's growth and expanding capabilities.

SUMMARY: PE 51.9x (Sector PE range 30-60) | Excellent Sep-23 results | Capacity expansion | Partnerships | Ace Investor | Certifications | Capital Goods-Non-Electrical Equipment

FUTURE OUTLOOK: Company has provided guidance indicating a 60% growth in revenues, and expecting EBITDA to be in the range of 24% to 26% for FY25.

• MCap of INR 504 Crore (share price = INR 557 / share) (as on 26th Nov ‘24)
• TTM PE of 51.9x (as on 26th Nov ‘24) Retail float = 23.3% (Sep-24)

FOOD FOR THOUGHT: Negative operating cash flow for FY24

Question 1: Who are the promoters of Sealmatic India?

Incorporated in 2009, Sealmatic India Limited is engaged in the designing and manufacturing of mechanical seals and associated products. Mechanical seals prevents the leak of high pressure fluid into a low pressure liquid. It manufactures a variety of seals like Pusher Seals, Standard Cartridge Seals, Split Seals, etc.

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