Salzer Electronics Good to Excellent Results, PG Electroplast Promoter Buying And Nuvama Wealth Management Geographic Expansion

Salzer Electronics Ltd.

Recent filing: (GOOD TO EXCELLENT RESULTS) For the quarter ending Jun-24 for Salzer Electronics, Sales up 24% YoY from INR 289 Cr in Jun-23 to INR 357 Cr in Jun-24. Similarly, Net Profit up 50% from INR 10 Cr to INR 15 Cr. On a QoQ basis, Sales up 9% and Net Profit up 15%.

SUMMARY: 4y Operating Profit uptrend | 6q Operating Profit uptrend | PE 33x (Sector PE range 30-60) | Excellent Jun-24 results | New product line | Fund raise | Capacity expansion | Ace Investor | Promoter buying | Capital goods (Electrical Equipment) | Railways

FUTURE OUTLOOK: As per Q4FY24 Concall, Company is expecting revenue growth of 18% to 23%, and is targeting EBITDA margin improvement by 100 basis points to 10.5% to 11% for FY25. Company is expecting revenue of INR 1,000 Cr, from Smart Meters at full capacity utilization.

• MCap of INR 1,555 Crore (share price = INR 880 / share) (as on 7th Aug ’24)
• TTM PE 33x (as on 7th Aug ’24) Retail float = 36.8% (Jun-24)

FOOD FOR THOUGHT:  FIIs have reduced stake from 6.1% in Sep-23 to 2.8% in Jun-24.

Q1. What are the Products and Services offered by Salzer Electronics?

Established in 1985 with German collaboration for Cam operated Rotary switches, Salzer Electronics is the largest Rotary switch manufacturers and suppliers in India having more than 40% market share and serving to all segments in India. The Company has complete range of Cam Operated Rotary switches from 6 Amps to 400 Amps and Rotary switch suppliers to Indian Railways.

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PG Electroplast Ltd.

Recent filing: (PROMOTER BUYING) Promoter’s Immediate Relative of PG Electroplast bought 63k shares at INR 442/share, aggregating to INR 2.8 Cr.

SUMMARY: 4y Operating Profit uptrend | 3q Operating Profit uptrend | PE 61.2x (Sector PE range: 50-100) | Excellent Jun-24 results | Acquisition | Capacity expansion | Fund raise | Institutional Entry | Promoter Buying | EMS

FUTURE OUTLOOK: As per Q1FY25 Investor Presentation, Management has provided revenue guidance of at least INR 3,650 Cr in FY25, which is a 32.9% growth over FY24 | Company has given a net profit guidance of INR 216 Cr, which is a growth of 57.7% over FY24.

• MCap of INR 11,299 Crore (share price = INR 434 / share) (as on 7th Aug ’24)
• TTM PE 61.2x (as on 7th Aug ’24) Retail float = 14.4% (Jul-24)

FOOD FOR THOUGHT: Working capital intensive business.

Q1. What are the Products and Services offered by PG Electroplast?

PG Electroplast is an end-to-end solutions provider for product design and final product assemblies for products like Air Conditioners, Washing Machines, LED Televisions, Air Coolers, and much more. The company currently caters to both ODM and OEM demand, with a continuous focus on delivering the highest standards of quality.

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Nuvama Wealth Management Ltd.

Recent filing: (GEOGRAPHICAL EXPANSION) Nuvama Private, the Private Banking arm of Nuvama Group - one of India’s largest, listed Institutionally backed Wealth Management firm, announced the launch of its operations to serve the Middle East through its office in the Dubai International Financial Centre (DIFC). With a CAT III C licence, Nuvama Private is one of few Indian private banks that is authorised to provide advice and to distribute investment products.

SUMMARY: 4y Operating Profit uptrend | 7q Operating Profit uptrend | PE 29.1x (Sector PE range 20-50) | Excellent Jun-24 results | Geographical Expansion | Ace Investor | Institutional entry | Financial Services

• MCap of INR 21,008 Crore (share price = INR 5,934 / share) (as on 7th Aug ’24)
• TTM PE 29.1x (as on 7th Aug ’24) Retail float = 7.3% (Jun-24)

FOOD FOR THOUGHT: The wealth management sector faces volatility due to market fluctuations and regulatory risks. Changes in regulations, like banning upfront commissions, can erode margins of a company.

Q1. What are the Products and Services offered by Nuvama Group?

Nuvama Group, formerly known as Edelweiss Wealth Management, boasts a reputable presence in the Indian market with a rich history spanning over 25 years. The firm has established itself as a key player in the financial services industry like Wealth Management, Asset Management, Capital Markets.

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