Sovrenn Daily News - 27th Dec 2024

Gensol Engineering

Recent filing: (ORDER) Gensol Engineering has secured a significant EPC contract worth INR 897.5 Cr from NTPC Renewable Energy Limited (NTPC REL). This contract entails the Development of 225MW-AC (Equivalent To 276 MWDC) Grid Connected Solar PV Projects at GSECL Solar Park (Stage-III), Khavda located in the Rann of Kutch, Gujarat, including operations and maintenance (O&M) for a duration of three years.

SUMMARY: 5y Operating Profit uptrend | 7q Operating Profit uptrend | PE 35.2x (Sector PE range 50-90) | Fund raise | Institutional entry | Geographical Expansion | Large Orders | Orderbook of INR 10,382 Cr (Sep-24) (7.8x of TTM revenue) | Acquisitions | Promoter Buying | Solar + EV

FUTURE OUTLOOK: 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 Cr | Consolidated EBITDA guidance for FY25 set at worth of INR 400 Cr.

• MCap of INR 2,872 Crore (share price = INR 758 / share) (as on 27th Dec ‘24)
• TTM PE of 35.2x (as on 27th Dec ‘24) Retail float = 22.3% (Sep-24)

FOOD FOR THOUGHT: Leveraged capital structure attributed to debt funded acquisition of EVs for leasing to Blu-Smart

Company Description: 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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Choice International Ltd.

Recent filing: (SEBI APPROVAL) Choice International has received an In-Principle approval from Securities and Exchange Board of India (SEBI)for sponsoring/setting up of Mutual Fund.

SUMMARY: 6y Operating Profit uptrend | 1q Operating Profit uptrend | PE 71.6x (Sector PE range 30-50) | Excellent Sep-24 results | Fund Raise | Promoter buying | Institutional Entry | Geographical expansion | Strategic collaborations | Large Order | Acquisition | Entry into Solar via Subsidiary | Diversified Commercial Services

• Mcap of INR 10,983 Crore (share price = INR 551 / share) (as on 27th Dec '24)
• TTM PE 71.6x (as on 27th Dec '24) Retail float = 3.4% (Sep-24)

FOOD FOR THOUGHT: PE is above sector range

Company Description: Incorporated in 1992, Choice group provides tech-led financial services. It finds its legacy in resolving financial problems and bridging gaps for individuals, institutions, and governments. It is an integrated and diversified financial services group.

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Power Mech Projects Ltd.

Recent filing: (ORDER) Power Mech Projects has secured order worth INR 186 Cr (excluding GST) from Jaiprakash Power Ventures Limited (JPVL). This order entails providing Field Operation and Maintenance services for the 2 x 660MW Jaypee Nigrie Super Thermal Power Plant located in Nigrie, Madhya Pradesh, over a five-year period starting from January 1, 2025, to December 31, 2029. The contract value/ month for the first year would be INR 3.1 Cr per month and thereafter, a monthly price escalation, based on the Wholesale Price Index (WPI), shall be applicable for the remaining period of 48 months from January 1, 2026, to December 31, 2029.

SUMMARY: 4y Operating Profit uptrend | PE 29.6x (Sector PE range 30-70) | Fund raise | Institutional Entry | Orderbook INR 58,067 Cr (31st Sep- 2024), 13.04x of TTM Sales | Electrification | Capital Goods - Electrical equipments

FUTURE OUTLOOK: As per Q2FY25 Concall, Company is optimistic about achieving revenue growth of 25%-30% for FY25 | Company projects current PAT margins for mining operations at 6%-7% until peak rated capacity is achieved, with potential to improve to 12%-13%

• MCap of INR 8,087 Crore (share price = INR 2,558 / share) (as on 27th Dec ‘24)
• TTM PE 29.6.x (as on 27th Dec ‘24) Retail float = 10.5% (9th Oct -24)

FOOD FOR THOUGHT: Promoters sold INR 126 Cr worth of shares since Mar ’24.

Company Description: Established in 1999, Power Mech Project is one of the leading infrastructure-construction companies based in Hyderabad with global presence, providing spectrum of services in power and infrastructure sectors. Strategic foray into Railways, Water Projects, Roads, Coal Mining, Cross Country Pipelines, Material Handling & Manufacturing leading to widening focus from Power to Non-Power sectors.