Sovrenn Daily News - 24th Dec 2024

Power & Instrumentation (Gujarat) Ltd

Recent filing: (STAKE INCREASED) Power & Instrumentation is increasing its stake in Peaton Electricals from 15% to 60%, aligning with its vision to strengthen its position in electrical manufacturing. PECL, recently licensed by Siemens to produce SIEPAN 8PU switchboards, brings advanced capabilities. This move enhances PIGL’s manufacturing, expands its product range, and boosts market reach with Siemens-certified products.

SUMMARY: 3y Operating Profit uptrend | PE 58.3x (Sector PE range 30-70) | Excellent Sep-24 results | Orderbook = INR 350+ Cr (Sep-24) (2.7x times of TTM revenue) | Acquisition | Capital Goods – Electrical Equipment

FUTURE OUTLOOK: As per Q2FY25 Concall, Company expects strong growth with a 50% year-on-year increase and plans to maintain a similar pace for FY26 | Company current EBITDA margin is 10.8%, in line with the EPC industry average of 10%-12%, and By FY26, company aims to improve its EBITDA margin to 13%-14%.

• MCap of INR 540 Crore (share price = INR 336 / share) (as on 24th Dec ‘24)
• TTM PE 58.3x (as on 24th Dec ‘24) Retail float = 14.4% (Sep-24)

FOOD FOR THOUGHT: Low double digit operating profit margin.

Company Description: Founded in 1975, Power & Instrumentation (Gujarat) Ltd is a leading player in the electrical contracting and equipment industry, specializing in Electrical, Procurement, and Construction (EPC) solutions. The company provides a wide range of services, including electrical installations, maintenance, and energy-efficient power systems. Serving industrial, commercial, and government clients, they deliver high-quality projects.

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Zaggle Prepaid Ocean Services Ltd

Recent filing: (FUND RAISE) Board of Zaggle Prepaid has approved the issuance of 1.1 Cr equity shares at INR 523/share, aggregating to INR 595 Cr. Subscribers include Bank of India, Societe Generale, ICICI Prudential Technology, Nuvama Fund etc.

SUMMARY: 2y Operating Profit uptrend | PE 92.4x (Sector PE range 30-50) | Excellent Sep-24 results | Acquisitions | Ace Investor | Institutional entry | IT

FUTURE OUTLOOK: As per Q2FY25 Investor Presentation, Company is raising its guidance to a 50-55% increase in topline growth for FY25 and is highly confident in doubling FY24 revenues within the next two years | Company has a seasonality where 35% to 40% of business comes in the first 2 quarters and about 60% to 65% comes in H2, which is the Q3 and Q4.

• MCap of INR 6,599 Crore (share price = INR 537 / share) (as on 24th Dec ‘24)
• TTM PE 92.4x (as on 24th Dec ‘24) Retail float = 20% (Sep-24)

FOOD FOR THOUGHT: PE is above sector range.

Company Description: Incorporated in 2011, Zaggle is a uniquely positioned player in the FinTech industry, offering a diversified range of products and services. Company’s portfolio includes a variety of SaaS solutions, such as expenses, payments, and rewards management software, which cater to a wide array of touchpoints.

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Aurionpro Solutions

Recent filing: (ACQUISITION) Board of Aurionpro Solutions has approved the acquisition of a 100% stake in Fenixys SAS, a Paris-based company, through the Company’s Singapore-based subsidiary. Fenixys SAS, which reported FY24 revenue of INR 73 crore, operates in the Financial Technology Services and Consulting sector, specializing in banking and capital markets consulting across Europe and the Middle East. This acquisition will enable the Company to expand its presence in the European market. The total purchase consideration for the transaction is €10 million (INR 89 crore).

SUMMARY: 4y Operating Profit uptrend | 7q Operating Profit uptrend | PE 59.5x (Sector PE range 30-50) | Excellent Sep-24 results | Fund raise | Institutional entry | Acquisition | Partnership | Large order | Orderbook of INR 1,150 Cr+ (Sep-24) (1x of TTM revenue) | New-age IT

FUTURE OUTLOOK: As per the Q2FY25 Concall, Company is optimistic about achieving its guided growth of over 30%+ for FY25, while ensuring that earnings margins stay within the projected range.

• MCap of INR 9,782 Crore (share price = INR 1,772 / share) (as on 24th Dec ‘24)
• TTM PE of 59.5x (as on 24th Dec ‘24) Retail float = 8.6% (Sep-24)

FOOD FOR THOUGHT: PE is above sector range

Company Description: Aurionpro is the convergence of advanced technology solutions that help enterprises accelerate Digital Innovation - securely and efficiently. It is 'One Platform', guiding businesses to ADAPT to a new paradigm in Digital Transformation across Banking Transportation, Logistics, and Government sectors.