Vintage Coffee & Beverages Geographic Expansion, Gensol Engineering Order And Zen Technologies Good to Excellent Results

Vintage Coffee & Beverages Ltd.

Recent filing: (GEOGRAPHICAL EXPANSION) Vintage Coffee announced commercial production of the fully automated packaging line from October 31t 2024, ahead of planned timeline of January 2025 at its 100% Subsidiary namely Vintage Coffee Private Limited, an instant coffee manufacturing unit located near Hyderabad. With this packaging unit, the company will be able to increase consumer pack exports by   another 25% which has higher realisation over bulk instant coffee exports. With this packaging line, the company will be able to cater to value added products in the export markets of Middle East, Europe, Russia, and West Africa.

SUMMARY: 3y Operating Profit uptrend | 7q Operating Profit uptrend | PE 79.5x (Sector PE range 30-70) | Excellent Sep-24 results | Fund Raise | Promoter Buying | Institutional Entry | Capacity Expansion | Geographical Expansion | Consumption

FUTURE OUTLOOK: As per Investor Presentation published in Mar-2024, Company anticipates 150% increase in revenue by FY25. Company has made the strategic decision to enhance the production capacity by an additional 2000 MT, aiming for an annual capacity of 6500 MT. The process of installing this additional capacity will commence in the upcoming months and is expected to be completed by the end of the Q4FY25. Company also aims to ramp up utilisation of current 4500 MTPA capacities by end of Q2FY25 to 100% from 52% in Q3FY24.

  • MCap of INR 1,586 Crore (share price = INR 129 / share) (as on 4th Nov ‘24)
  • TTM PE 79.5x (as on 4th Nov ‘24) Retail float = 9.1% (Sep-24)

FOOD FOR THOUGHT: Negative Operating cash flow for FY24 | PE is above sector range

Question 1: Who are the promoters of Vintage Coffee & Beverages?

Incorporated in 2015 in Hyderabad, Vintage Coffee offers high quality spray and agglomerated instant coffee products in good packaging to both, bulk as well as private firms at competitive price. It is run by professionals with a combined experience of over 100 years in the Instant Coffee Industry with expertise in the areas of Technology, Production, High Quality Standards, Consistency, Export Commercials, Sales and Customer Service.

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Gensol Engineering

Recent filing: (ORDER) Gensol Engineering has secured a large turnkey EPC order worth INR 780 Cr, from a leading public sector utility in Maharashtra. The project involves the development of a 150 MWac ground-mounted solar PV power plant. Additionally, the contract includes three years of operation and maintenance (O&M) services for the project, inclusive of maintenance of the plant's switchyard and its extensive transmission infrastructure, needs to be executed over a 15-month period.

(PROMOTER BUYING) On 31st Oct 24, Anmol Singh Jaggi (Promoter) bought 26.5k shares at INR 762/share, aggregating to INR 2 Cr.

SUMMARY: 5y Operating Profit uptrend | 7q Operating Profit uptrend | PE 38.8x (Sector PE range 50-90) | Fund raise | Institutional entry | Geographical Expansion | Large Orders | Orderbook of INR 9,055 Cr (Sep-24) (6.8x 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 3,159 Crore (share price = INR 834 / share) (as on 4th Nov ‘24)
  • TTM PE of 38.8x (as on 4th Nov ‘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

Question 1: Who are the promoters of Gensol Engineering?

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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Zen Technologies Ltd.

Recent filing: (GOOD TO EXCELLENT RESULTS) For the quarter ending Sep-24 for Zen Technologies, Sales up 3.7x YoY from INR 66 Cr in Sep-23 to INR 242 Cr in Sep-24. Similarly, Net Profit up 4.5x from INR 14 Cr to INR 63 Cr. On a QoQ basis, Sales down 5% and Net Profit down 20%.

SUMMARY: 3y Operating Profit uptrend | PE 83.8x (Sector PE range 50-100) | Excellent Sep-24 results | Capacity expansion | Patent | New Products | Institutional entry | Fund raise | Orderbook INR 957 Cr as of (Sep-24) (1.2x of TTM Revenue) | Defence

FUTURE OUTLOOK: As per Q1FY25 Management guidance, Company targeting to exceed turnover of INR 900 Cr in FY25, 100% increase from FY24 | As per Q1FY25 Concall, Management assured that 35% EBITDA and 25% PAT to achieve in FY25.

  • MCap of INR 16,990 Crore (share price = INR 1,882 / share) (as on 4th Nov ‘24)
  • TTM PE 83.8x (as on 4th Nov ‘24) Retail float = 28% (Sep-24)

FOOD FOR THOUGHT: Company is exposed to risks in tender-based operations.

Question 1: Who are the promoters of Zen Technologies?

Incorporated in 1996, Zen Technologies designs, develops and manufactures combat training solutions for the training of defense and security forces. It is actively involved in the indigenization of technologies, which are beneficial to Indian armed forces, state police forces, and paramilitary forces.

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