Kilburn Engineering Fund Raise, Gensol Engineering Order And Avantel Confirmation of Provisional Purchase Order

Kilburn Engineering Ltd.

Recent filing: (FUND RAISE) Board Meeting of Killburn Engineering will be held on 26th August, 2024, to consider Fund Raise.

(ACQUISITION) Kilburn announced the proposed acquisition of Monga Strayfield Pvt. Ltd., a global leader in radio frequency drying and heating solutions, for a total consideration up to INR 123 Cr. Target Company brings over five decades of expertise in radio frequency drying and heating solutions, alongside a strong presence in the sheet metal fabrication industry, catering to both the USA and European markets. In FY24, the company reported a total revenue of INR 72.9 Cr, a PAT of INR 15.4 Cr.

SUMMARY: 4y Operating Profit uptrend | PE 36.5x (Sector PE range 30-60) | Fund raise | Acquisition | Promoter buying | Capital Goods – Non Electrical Equipment

FUTURE OUTLOOK: As per Q1FY25 Concall, Company has projected revenue guidance of INR 500 Cr for FY25, and guiding for 20%+ EBITDA margin | Company has INR 370 Cr worth of Orders in hand and INR 2,000 Cr worth of Orders in the inquiry pipeline.

• MCap of INR 2,008 Crore (share price = INR 480 / share) (as on 22nd Aug ‘24)
• TTM PE of 36.5x (as on 22nd Aug ‘24) Retail float = 14.7% (Jul-24)

FOOD FOR THOUGHT: Working capital extensive business.

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

Company offers comprehensive range of dryers for solid, liquid and gas to cover wide range of industries: chemical, petrochemical, oil & gas, refineries power, steel, cement, fertilizer, mining, sewage treatment, food etc. It also manufactures specially designed packages for onshore and offshore applications.

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Gensol Engineering

Recent filing: (ORDER) Gensol Engineering has received the Letter of Award (LOA) for execution of 16 MWp turnkey EPC rooftop solar project worth Rs. 40 Crore under commercial and industrial (C&I) segment from a leading textile company. This is a repeat order for Gensol, which will be installed in Madhya Pradesh and Gensol will commission the project in six months.

SUMMARY: 5y Operating Profit uptrend | 6q Operating Profit uptrend | PE 60.9x (Sector PE range 50-90) | Fund raise | Institutional entry | Large Orders | Acquisitions | Promoter Buying | Solar + EV

FUTURE OUTLOOK: As per Q1FY25 Investor Presentation, Company has total orderbook of INR 5,025 Cr. 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 crore. Additionally, the company expects to maintain consolidated EBITDA margins at 25%-26%.

• MCap of INR 3,547 Crore (share price = INR 937 / share) (as on 22nd Aug ‘24)
• TTM PE of 60.9x (as on 22nd Aug ‘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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Avantel Ltd.

Recent filing: (CONFIRMATION OF PROVISIONAL PURCHASE ORDER) In Dec ‘2023, Avantel announced that it had received a Provisional Purchase Order worth INR 67.9 Cr from NewSpace India Limited. NewSpace India Limited has now accepted the prototype terminals (Xponders), issued the bulk production clearance, and the provisional purchase order has now been converted into a final purchase order. Delivery needs to be executed by April ‘25.

SUMMARY: 4y Operating Profit uptrend | PE 89.4x (Sector PE range 50-100) | Capacity expansion | Ace Investor | Defence

• Mcap of INR 4,644 Crore (share price = INR 191 / share) (as on 22nd Aug ‘24)
• TTM PE 89.4x (as on 22nd Aug ‘24) Retail float = 30.3% (Jun-24)

FOOD FOR THOUGHT: Revenue concentration (63% from top 3 clients in defence sector and SATCOM industry) | Promoter selling (INR 90L in Feb-24)

Q1. What are the Products and Services offered by Avantel?

Established in 1990, Avantel specializes in RF/microwave subsystems, digital radios, and satellite communication systems, and offers related software solutions and services. It supplies mainly to defence establishments and allied departments in the public and private sectors.

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