Sovrenn Daily News - 29th Nov 2024

Sigachi Industries Ltd.

Recent filing: (FILING) Sigachi Industries announced that Trimax Biosciences Pvt Ltd, part of the Sigachi Group, has received communication from the EDQM on its CEP filing for Propafenone Hydrochloride. This certification will enable exports to Europe and other CEP-accepting regions. Propafenone Hydrochloride, used to treat cardiac arrhythmias, has a global market size of \$1.2 billion, projected to grow to \$2.1 billion by 2032 at a CAGR of 7%, driven by rising cardiovascular cases and increased adoption of generics. The company emphasizes high-quality standards and compliance for regulated markets.

SUMMARY: 4y Operating Profit uptrend | PE 28.3x (Sector PE range 30-50) | Excellent Sep-24 results | Specialty Chemicals

FUTURE OUTLOOK: As per Q4FY24 Concall, Company aspiring to reach INR 600 Cr in revenue by FY25 | Company aim is to maintain a growth rate higher than 33% CAGR, focusing on expansion and market share | Company expecting gradual rise in utilization of the new capacity, aiming for 50% by Q4 of FY25 and 80% by FY26.

  • MCap of INR 1,837 Crore (share price = INR 55.1 / share) (as on 29th Nov ‘24)
  • TTM PE 28.3x (as on 29th Nov ‘24) Retail float = 28.0% (Sep-24)

FOOD FOR THOUGHT: Highly competitive sector.

Company Description: Incorporated in 1989, Sigachi Industries is into manufacturing of microcrystalline cellulose (MCC). MCC is produced from refined wood pulp which is imported by the company. It is widely used in pharmaceutical, food, beverage, cosmetic and paint industry. Also, its most common uses are in vitamin supplements and tablets. It also acts as a bulking agent in food production.

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Bikaji Foods International Ltd

Recent filing: (GOOD RESULTS) For the quarter ending Sep-24 for Bikaji Foods International, Sales up 18% YoY from INR 609 Cr in Sep-23 to INR 721 Cr in Sep-24. Similarly, Net Profit up 15% from INR 60 Cr to INR 69 Cr. On a QoQ basis, Sales up 26% and Net Profit up 19%.

SUMMARY: 5y Operating Profit uptrend | PE 67.1x (Sector PE range 30-70) | Acquisitions | Consumption

FUTURE OUTLOOK: Company is focusing on expanding its distribution network, aiming to increase its direct reach from 278,000 outlets to 350,000 outlets by the end of FY26.

  • MCap of INR 19,977 Crore (share price = INR 798 / share) (as on 29th Nov ‘24)
  • TTM PE 67.1x (as on 29th Nov ‘24) Retail float = 3.7% (Sep-24)

FOOD FOR THOUGHT: Highly competitive sector.

Company Description: Bikaji Foods International Limited, one of India's leading FMCG brands, offers a diverse product range across six categories: bhujia, namkeen, sweets, papad, western snacks, and other items like gift packs, frozen food, mathri, and cookies.

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Computer Age Management Services Ltd

Recent filing: (GOOD TO EXCELLENT RESULTS) For the quarter ending Sep-24 for Computer Age Management Services, Sales up 33% YoY from INR 275 Cr in Sep-23 to INR 365 Cr in Sep-24. Similarly, Net Profit up 44% from INR 84 Cr to INR 121 Cr. On a QoQ basis, Sales up 10% and Net Profit up 13%.

SUMMARY: 6y Operating Profit uptrend | 7q Operating Profit uptrend | Excellent Sep-24 results | PE 60.8x (Sector PE range 20-50) | Institutional Entry | Financial Services

  • MCap of INR 24,267 Crore (share price = INR 4,924 / share) (as on 29th Nov ‘24)
  • TTM PE 60.8x (as on 29th Nov ‘24) Retail float = 17.7% (Sep-24)

FOOD FOR THOUGHT: PE is above sector range.

Company Description: Company is a technology-driven provider of financial infrastructure and services to mutual funds (MFs) and other financial institutions. It is India's largest registrar and transfer agent (RTA) for MFs, holding a market share of approximately 68%. Company serves 10 of the 15 largest MFs, with over 21 years of average relationship with its top clients. Its services include dividend processing, transaction origination, payment execution, intermediary empanelment, report generation, investor interface, settlement, compliance, and brokerage computation.