Sovrenn Daily News - 14th Jan 2025

Anand Rathi Wealth Ltd

Recent filing: (GOOD RESULTS) For the quarter ending Dec-24 for Anand Rathi, Sales up 30% YoY from INR 182 Cr in Dec-23 to INR 237 Cr in Dec-24. Similarly, Net Profit up 33% from INR 58 Cr to INR 77 Cr. On a QoQ basis, Sales down 2% and Net Profit up 1%.

SUMMARY: 4y Operating Profit uptrend | 3q Operating Profit uptrend | PE 58.5x (Sector PE range 30-50) | Financial Services

FUTURE OUTLOOK: As per Q2FY25 Concall, Company has revised its revenue guidance to INR 980 crores from INR 910 crores, and PAT guidance from INR 280 crores to INR 295 crores. Management remains focused on a long-term growth trajectory, targeting an annual growth rate of 20-25% over the next decade.

• MCap of INR 16,558 Crore (share price = INR 3,954/ share) (as on 14th Jan ‘25)
• TTM PE 58.5x (as on 14th Jan ‘25) Retail float = 16.8% (Sep-24)

FOOD FOR THOUGHT: PE is above sector range.

Company Description: Company provides a wide range of Investment Services across asset classes, as well as Private Wealth, Institutional Equities, Investment Banking, Insurance Broking, and NBFC.

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Tembo Global Industries Ltd

Recent filing: (MoU) Tembo Global will participate in the World Economic Forum in Davos, where it will sign an MoU with the Government of Maharashtra to establish a defence manufacturing facility under the "Make in India" initiative. This collaboration aims to boost India's defence manufacturing, enhance indigenous capabilities, and strengthen national defence.

SUMMARY: 5y Operating Profit uptrend | 1q Operating Profit uptrend | PE 30.1x (Sector PE range 30-60) | Excellent Sep-24 results | Large Order | Fund raise | Institutional Entry | Promoter Buying | Capacity Expansion | Order Book of INR 1,200+ Cr and Order book of Textile is INR 180 Cr (Sep-24) (3x times of FY24 Revenue) | Capital Goods – Non Electrical equipment.

FUTURE OUTLOOK: As per Q1FY25 Investor Presentation, Company current capacity is pegged at 15,000 tons per annum. The ongoing green field expansion at Vasai will bolster company overall capacity by 6x times, reaching 105,000 MTPA by FY25.

• MCap of INR 815 Crore (share price = INR 734 / share) (as on 14th Jan ‘25)
• TTM PE 30.1x (as on 14th Jan ‘25) Retail float = 23.4% (Sep-24)

FOOD FOR THOUGHT: Negative Cash flow from operations for FY24

Company Description: Tembo is a prominent engineering company, manufacturing high-quality specialised metal products for a wide array of applications, including Pipe Support Systems, Fasteners, Anchors, and HVAC, catering to industries like Automotive, Real Estate, Infrastructure and Oil & Gas. Additionally, the Company process and supplies fibres and yarn (Textiles Division) and is poised to enter the Defence sector by FY26.

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Dhruv Consultancy Services Ltd.

Recent filing: (ORDER) Dhruv Consultancy has secured an INR 7.8 Cr consultancy order from NHAI as Authority’s Engineer for the development of two 6-lane greenfield highway packages around Kanpur, Uttar Pradesh, spanning a total of 27.875 km. The project includes a 30-month construction period and a 60-month defect liability period.

SUMMARY: 5y Operating profit uptrend | PE 34.2x (Sector PE range 30-50) | Fund Raise | Institutional Entry | Consulting Services

FUTURE OUTLOOK: As per Q4 FY24, Concall Company expecting revenue and profit growth in the range of 10% to 20% for FY25 and FY26 | Q2 FY25, Concall Company current domestic order book is valued at INR 347 Cr, to be executed over the next 2-3 years and plans to submit bids worth INR 1,500 Cr with an anticipated financial order book of INR 800-1,000 Cr, including international projects.

• MCap of INR 202 Crore (share price = INR 106 / share) (as on 14th Jan ‘25)
• TTM PE 34.2x (as on 14th Jan ‘25) Retail float = 20.1% (Sep-24)

FOOD FOR THOUGHT: Negative operating cash flows for FY24 | Promoter sold INR 2.7 Cr worth of shares in Feb and Mar ’24.

Company Description: Founded in 2003, Dhruv Consultancy Services has emerged as one of India's most rapidly expanding project management company in the infrastructure sector. The company mainly works in infrastructural solutions, including roads, highways, bridges, architecture, waste management, and ports.