Sovrenn Daily News - 2nd Dec 2024

Tembo Global Industries Ltd

Recent filing: (ORDER) Tembo Global has bagged an order worth INR 43.9 Cr from Domestic Organisation, for Water Irrigation, needs to be executed within 12 months.

SUMMARY: 5y Operating Profit uptrend | PE 28.5x (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 772 Crore (share price = INR 695 / share) (as on 2nd Dec ‘24)
• TTM PE 28.5x (as on 2nd Dec ‘24) 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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H. G. Infra Engineering Ltd.

Recent filing: (ORDER) H.G. Infra has been declared as a qualified bidder by the Gujarat Urja Vikas Nigam Ltd for 250 MW/500 MWH out of the project for setting up of 500 MW/1000 MWh Standalone Battery Energy Storage Systems in Gujarat under Tariff-Based Global Competitive Bidding (Phase-IV) with Viability Gap Funding Support, needs to be executed within 18 months.

SUMMARY: 6y Operating Profit uptrend | PE 17.5x (Sector PE range 10-50) | Institutional entry | Infrastructure

FUTURE OUTLOOK: As per Q1FY25 Investor Presentation, Company has a total Order book of INR 15,642 Cr as of June 2024 | As per Q1FY25 Concall, Company committed for an order inflow of INR 11,000 Cr to INR 12,000 Cr in FY25, with a revenue growth of 17% to 18% and a margin of 15% to 16%.

• MCap of INR 9,147 Crore (share price = INR 1,404 / share) (as on 2nd Dec ‘24)
• TTM PE of 17.5x (as on 2nd Dec ‘24) Retail float = 10.5%% (Sep-24)

FOOD FOR THOUGHT: Client concentration risk: Road projects from NHAI and ARTL contribute to 87% of orderbook as of Dec-23.

Company Description: With a resilient two-decade journey, HGIEL has emerged as one of India's fastest-growing construction companies. Its dedication to quality and timely execution has been pivotal in establishing it as a trusted leader in the infrastructure industry. It is engaged in the business of EPC and Maintenance of roads, bridges, flyovers, etc.

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KPI Green Energy Ltd.

Recent filing: (ORDER) KPI Green Energy has received a Letter of Award (LOA) worth INR 1300.1 Cr from Coal India Limited (CIL) for the development of a 300 MWAC grid-connected ground-mounted solar PV plant at GIPCL’s Solar Park in Khavda, Gujarat. The project also includes operation and maintenance (O&M) services for a period of 5 years. This order marks a significant milestone for the company, being the first major order from a central government entity. It aligns closely with the company’s strategic vision and ambitious goal of achieving 10 GW of capacity by 2030.

SUMMARY: 6y Operating Profit uptrend | 2q Operating Profit uptrend | PE 44.2x (Sector PE range 50-90) | Excellent Sep-24 results | Fund raise | Large Order | Geographical Expansion | Institutional entry | Promoter buying | Solar | Clean Energy

FUTURE OUTLOOK: As per Q2FY25 Investor Presentation, Company has 2.41+ GW of Orders in hand as on Sep 30, 2024 and 1.1+ GW of hybrid Orders in hand as on Sep 30, 2024, also a Zero Net-Debt IPP Company | KP Group has an Ambitious target of 10+ GW by 2030.

• MCap of INR 10,230 Crore (share price = INR 779 / share) (as on 2nd Dec ‘24)
• TTM PE 44.2x (as on 2nd Dec ‘24) Retail float = 22.6% (Sep-24)

FOOF FOR THOUGHT: Negative operating cash flow for FY24.

Company Description: Incorporated in 2002, KPI Green develops, builds, owns, operates, and maintains solar power plants through Independent Power Producer (IPP) and as service provider to Captive Power Producer (CPP) under the brand name of 'Solarism'.