Sovrenn Daily News - 20th Jan 2025

Ksolves India Ltd.

Recent filing: (GOOD RESULTS) For the quarter ending Dec-24 for Ksolves India, Sales up 33% YoY from INR 28.42 Cr in Dec-23 to INR 37.7 Cr in Dec-24. Similarly, Net Profit up 15% from INR 8.94 Cr to INR 10.31 Cr. On a QoQ basis, Sales up 8% and Net Profit up 12%.

Summary: 5y Operating Profit uptrend | 3q Operating Profit uptrend | PE 32.4x (Sector PE range 30-50) | Excellent Jun-24 results | IT

FUTURE OUTLOOK: As per Q2FY25 Concall, Company management is optimistic about maintaining a sustainable margin of around 35% in the long term while targeting sales growth of 30% (±2%) for the next 3 years.

• MCap of INR 1,184 Crore (share price = INR 999 / share) (as on 20th Jan ‘25)
• TTM PE of 32.4x (as on 20th Jan ‘25) Retail float = 28.1% (Sep-24)

FOOD FOR THOUGHT: Scalability is limited due to intense competition.

Company Description: Founded in 2014, Ksolves is a software services and product company. Company is engaged in software development, enterprise solutions and consulting, providing IT solutions to companies across sectors such as Real Estate, E-commerce, Finance, Telecom and Healthcare etc.

Discover Stocks for free in Sovrenn Discovery - Large Order Bucket

Advait Infratech Ltd.

Recent filing: (ORDER) Advait Energy has received a Letter of Award (LOA) from Solar Energy Corporation of India Limited (SECI) under the SIGHT Scheme (Tranche-II) for Product Linked Incentive (PLI) to set up 200 MW manufacturing capacities for Alkaline Electrolysers in India. The project has a completion period of 5 years.

(ORDER) Company has received an order from Karnataka Renewable Energy Development Limited for the design, development, deployment, and maintenance of a web-based portal and mobile application for implementing 40,000 standalone solar pumps under the PM KUSUM Component 'B' scheme in Karnataka. The project includes cloud services, integration with payment and SMS gateways, configuration of RMS devices, integration with the SEDM portal, and operations and maintenance for 5 years. Deployment is expected within 30 days, with project execution lasting 1 year.

SUMMARY: 6y Operating Profit uptrend | PE 66.1x (Sector PE range 50-90) | Fund raise | Large Order | MoUs | Ace Investor | Promoter Buying | Institutional Entry | Green Energy | Power and Telecom Infra

FUTURE OUTLOOK: As per Dec FY25 Investor presentation, By 2027, Company plans to establish a 300 MW electrolyser manufacturing facility (Current capacity 50 MW/year) and expand to 1 GW by 2030. It also plans to start fuel cell assembly and manufacturing operations by 2028.| Company is targeting 1 GW of BESS Projects over the period of next 5 years.

• MCap of INR 1,607 Crore (share price = INR 1488/share) (as on 20th Jan ‘25)
• TTM PE 66.1x (as on 20th Jan ‘25) Retail float = 16.9% (Sep-24)

FOOD FOR THOUGHT: Intensely competitive EPC industry given low barriers to entry | Dependence on tenders floated by government

Company Description: Since its establishment in 2009, the Company has been at the forefront of delivering robust products and solutions tailored for power transmission, substation, and telecommunication infrastructure. In 2023, it has diversified into green energy, through its entrance into the supply of electrolysers and fuel cells. The Company has also extended its impact into climate services, focusing on sustainability consultancy, decarbonization consultancy, and comprehensive carbon consultancy services.

Now get chance to learn investing for free at Sovrenn Education

Avantel Ltd.

Recent filing: (GOOD RESULTS) For the quarter ending Dec-24 for Avantel, Sales up 20% YoY from INR 59 Cr in Dec-23 to INR 71 Cr in Dec-24. Similarly, Net Profit up 25% from INR 16 Cr to INR 20 Cr. On a QoQ basis, Sales down 8% and Net Profit down 13%.

SUMMARY: 4y Operating Profit uptrend | PE 54x (Sector PE range 50-100) | Capacity expansion | Ace Investor | Defence

• Mcap of INR 3,377 Crore (share price = INR 138 / share) (as on 20th Jan ‘25)
• TTM PE 54x (as on 20th Jan ‘25) Retail float = 32.5% (Sep-24)

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

Company Description: 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.