Gensol Engineering Business Update, Refex Industries Fund Raise And H. G. Infra Engineering Infra

Gensol Engineering

Recent filing: (BUSINESS UPDATE) Gensol Engineering achieved revenue of INR 314 Crores in Q2 FY25, reflecting a 58% YoY growth compared to INR 199 Crores in Q2 FY24. Company maintains its INR 2,000 Cr topline guidance for FY25, with the bulk of revenue expected in H2.

SUMMARY: 5y Operating Profit uptrend | 6q Operating Profit uptrend | PE 54.3x (Sector PE range 50-90) | Fund raise | Institutional entry | Geographical Expansion | Large Orders | Orderbook of INR 5,025 Cr (Jun-24) (4.5x of TTM revenue) | Acquisitions | Promoter Buying | Solar + EV

FUTURE OUTLOOK: As per Q1FY25 Concall, Company had projected revenue guidance of INR 2,000 crore for FY25, a 2.1x increase from the FY24 revenue of INR 963 Cr | Consolidated EBITDA guidance for FY25 set at worth of INR 400 Cr.

• MCap of INR 3,162 Crore (share price = INR 835 / share) (as on 4th Oct ‘24)
• TTM PE of 54.3x (as on 4th Oct ‘24) Retail float = 20.1% (Jun-24)

FOOD FOR THOUGHT: Leveraged capital structure attributed to debt funded acquisition of EVs for leasing to Blu-Smart

Q1. What are the Products and Services offered by Gensol Engineering?

Gensol is involved in the business of solar consulting & EPC. It provides concept to commissioning solar advisory, execution and operation services for solar projects in India and abroad. Expanding its operations, Gensol has also established an EV manufacturing facility in Pune, India, for the development and production of electric three wheelers and four wheelers. Alongside, Gensol offers comprehensive EV leasing solutions and is serving leading ride-hailing players with its buy-and-lease package of EV cars.

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Refex Industries Ltd.

Recent filing: (FUND RAISE) BoD of Refex Industries approved the issuance of 87 L shares to non-promoters and 1.1 Cr warrants to promoter and non-promoter at INR 468 each, aggregating to INR 928 Cr.

SUMMARY: 1y Operating Profit uptrend | 3q Operating Profit uptrend | PE 65.1x (Sector PE range NA) | Business expansion (EV Leasing) | Acquisition | Fund raise | Promoter buying | EV Leasing

FUTURE OUTLOOK: As per Q1FY25 Investor Presentation, Company is entering into MOUs and alliances with industry associations and environmental organizations for collaborative sustainability initiatives | Company is investing in R&D efforts to explore innovative technologies and processes for ash recycling and utilization, aiming for a revenue growth of 2X through these strategic initiatives | Company will focus on increasing its fleet size to 5,000 EVs by end of FY27 | Company aims to diversify its contract portfolio by engaging in short-term and medium-term agreements with both power generators and buyers nationwide.

• Mcap of INR 6,577 Crore (share price = INR 545 / share) (as on 4th Oct ’24)
• TTM PE 65.1x (as on 4th Oct ’24) Retail float = 27.6% (Jul-24)

FOOD FOR THOUGHT: Intensive working capital cycle | Presence of high counterparty risk in the revenue profile

Q1. What are the Products and Services offered by Refex Industries?

Refex Industries is the first mover in the Refrigerant Gas Vertical. It has an expertise in manufacturing & refilling of refrigerant gases replacing chloro-fluoro-carbons. It recently incorporated a wholly owned subsidiary in the name of ‘Refex Green Mobility’. ‘Refex eVeelz’ is the brand under which the subsidiary operates. Refex eVeelz is one of India’s all-electric 4-wheeler fleet, providing an eco-friendly and environmentally conscious transport solution to corporate employees and other commuters. 

It offers 100% EV fleet, drivers, infrastructure, and technology. Company is also into the space offering services to power plant like handling and disposal of Fly Ash, Round the clock services for coal yard management, crushing of uncrushed coal and Coal trading to power plants.

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H. G. Infra Engineering Ltd.

Recent filing: (ORDER) H.G. Infra has secured a project valued at INR 862 crore for the construction of an access-controlled highway. This includes a 4-lane highway with paved shoulders from the TN/AP border (Design Chainage km 61+51) to Puttur (Design Chainage km 81+450) on NH-716, as well as a 6-lane highway with paved shoulders from Mallavaram (Design Chainage km 97+100) to Renigunta (Design Chainage km 114+500) on NH-71, both in Andhra Pradesh. The project, awarded under Hybrid Annuity Mode as part of NH (O) (Chennai-Tirupati Package-II), is expected to be completed over a period of two years.

SUMMARY: 6y Operating Profit uptrend | PE 18x (Sector PE range 10-50) | Institutional entry | Infrastructure

FUTURE OUTLOOK: As per Q1FY25 Investor Presentation, Company has a total Order book of INR 15,642 Cr as of June 2024 | As per Q1FY25 Concall, Company committed for an order inflow of INR 11,000 Cr to INR 12,000 Cr in FY25, with a revenue growth of 17% to 18% and a margin of 15% to 16%.

• MCap of INR 9,678 Crore (share price = INR 1,485 / share) (as on 4th Oct ‘24)
• TTM PE of 18x (as on 4th Oct ‘24) Retail float = 9.0% (Jun-24)

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

Q1. What are the Products and Services offered by 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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