Emerald Finance Partnership, Oriana Power Order And JTL Industries Fund Raise

Emerald Finance

Recent filing: (PARTNERSHIP) Emerald Finance has partnered with Cadchem Laboratories, to offer its Early-Wage-Access program to the employees of the Company. Cadchem Laboratories is into the field of developing and manufacturing niche Active Pharmaceutical Ingredients (API) and its intermediates.

SUMMARY: 6y Operating Profit uptrend | 4q Operating Profit uptrend | PE 42x (Sector PE range 20-40) | Excellent Jun-24 results | Strategic Partnerships | Fund Raise | Institutional entry | NBFC

FUTURE OUTLOOK: Company anticipates its book size to grow by 8 to 10 times over the next three years.

• MCap of INR 209 Crore (share price = INR 69.4 / share) (as on 25th Jul ‘24)
• TTM PE 42x (as on 25th Jul ‘24) Retail float = 6.6% (Mar-24)

FOOD FOR THOUGHT: MSME loan default risk.

Q1. What are the Products and Services offered by 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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Oriana Power Ltd.

Recent filing: (ORDER) Oriana Power has received new order worth INR 15 Cr from Tyre Industry for solar power plant of 4 MWp under Captive Segment, needs to be executed within 9 Months (Operation and Maintenance period – 15 Years from COD).

(AGREEMENT) Oriana Power has signed an agreement with the US-based company Splitwaters, for the implementation of providing the electrolyzer and all other equipment required for the Green Hydrogen projects. This one-stop-shop solution aims to reduce the capital expenditure (CAPEX) of green hydrogen and e-Fuel projects by up to 30%, making these sustainable energy solutions more efficient and affordable.

SUMMARY: 4y Operating Profit uptrend | 1h Operating Profit uptrend | PE 78.6x (Sector PE range 50-90) | Excellent Mar-24 results | Institution buying | Fund Raise | Ace Investor | Clean Energy

FUTURE OUTLOOK: Oriana Power has secured solar projects exceeding 250MWp from commercial, industrial, and utility sectors, to be completed by FY25. With a business pipeline of 600MWp in solar projects and a 30+ ton CBG project, the Company anticipates delivering more than 550MWp by FY26. Based on its order book and pipeline, the Company is poised to significantly outpace the solar industry's projected ~4x growth by 2030.

• Mcap of INR 4,265 Crore (share price = INR 2,408 / share) (as on 25th Jul ‘24)
• TTM PE 78.6x (as on 25th Jul ‘24) Retail float = 11.3% (Mar-24)

FOOD FOR THOUGHT: Industry's fragmentation curtails pricing flexibility and bargaining power, constraining operating margins, while tender-based operations dictate revenue and profitability based on successful bids.

Q2. What are the Products and Services offered by Oriana Power?

Oriana Power is a company that specializes in providing solar energy solutions to industrial and commercial customers. It offers low carbon energy solutions by installing on-site solar projects such as rooftop and ground-mounted systems, as well as off-site solar farms i.e. Open access. The business operations are divided into two segments: Capital Expenditure (CAPEX) and Renewable Energy Service Company (RESCO).

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JTL Industries Ltd.

Recent filing: (FUND RAISE) BoD of JTL Industries has approved the issuance of 1.4 Cr equity shares at INR 211/each, aggregating to INR 300 Cr. Subscribers include LIC Large cap Fund, Bofa Securities Europe SA, Morgan Stanley Asia (Singapore), Goldman Sachs Investments (Mauritius) and Promoter Group.

SUMMARY: 4y Operating Profit uptrend | PE 32.6x (Sector PE range 10-50) | Fund raise | Capacity expansion | Acquisition | High value-add Products addition | Promoter buying | Institutional Entry | Steel Products

FUTURE OUTLOOK: As per Q1FY25 Concall, Company targeting 30% YoY revenue growth and volume growth for FY25 and 40% VAP share.

As per Q1FY25 Investor presentation, Company aims to enhance its manufacturing capacity to 10 lakh MTPA by the end of H1FY25.

• MCap of INR 3,845 Crore (share price = INR 224 / share) (as on 25th Jul ‘24)
• TTM PE 32.6x (as on 25th Jul ‘24) Retail float = 19% (Jun-24)

FOOD FOR THOUGHT: Steel tubes and pipes industry is highly competitive and fragmented given the presence of various organized and unorganized players | Volatility in raw material prices

Q3. What are the Products and Services offered by JTL Industries ?

JTL Industries is the flagship company of the Jagan Group of Companies. It produces Black & Galvanized ERW Steel Pipes & Tubes, hollow sections and structural steel that are extensively used in major engineering and construction projects. The group caters to the domestic Indian markets as well as the overseas export markets.

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