What this means for KIL

Q1 FY27 should remain strong on an easy ₹296 Cr base and continued high selling prices. Q2 should also hold up, but the timing benefit will start fading.

The real test comes in Q3-Q4 FY27, when the price-raw benefit is largely gone and Q4 faces the tough ₹478 Cr / 27% margin comparison.

So the key question is not whether KIL can sustain 27% margins. It is whether it can retain the higher revenue base and market share gained during the tungsten shortage after margins normalise.

END

CHALET HOTELS, SHWETANK SINGH

Shouldn't Expect Too Much Change In Occupancy Or ARR

We Have Always Been Strong On International Travellers

Should Be Able To Double Our Current Performance In 2-3 Years

Have 9 Lk Sqft Of Leasable Space In Commercial Setup

Always On The Prowl For Acquisition Opportunities

Have >2000 Keys Under Various Stages Of Development

INNOVA CAPTAB | GROWTH & EARNINGS INFLECTION

Q1 FY27 Performance
- Revenue: ~₹471 Cr, up 34% YoY.
- EBITDA: ~₹75 Cr, up 33% YoY.
- EBITDA margin: ~16%.
- PAT: ~₹44 Cr, up 42% YoY.
- CDMO revenue: ~₹329 Cr, up 32%.
- Branded-generics revenue: ~₹142 Cr, up 39%.
- Volume growth: ~22%.

Jammu Facility | Key Growth Driver
- Q1 revenue: ~₹107 Cr.
- Current utilisation: ~25–30%.
- Mature utilisation potential: ~65–70%.
- Revenue potential at maturity: ~₹1,400 Cr.
- Facility is nearing EBITDA breakeven.
- Rising utilisation can create strong operating leverage.

Baddi Expansion
- New facility investment: ~₹150–170 Cr.
- Potential revenue: ~₹450–500 Cr.
- Provides another medium-term growth leg.
- Expansion adds capacity beyond Jammu.

CDMO & Branded Generics
- FY26 revenue: ~₹1,630 Cr.
- CDMO contribution: ~₹1,133 Cr.
- Branded-generics contribution: ~₹497 Cr.
- FY26 branded-generics growth: ~51%.
- Q1 FY27 branded-generics growth: ~39%.
- Both segments continue to grow strongly.

Sharon Bio | Turnaround Optionality
- FY26 revenue contribution: ~₹240 Cr.
- Focus on regulated markets.
- Canada, UK, Europe and Australia remain key markets.
- Sustained improvement could add earnings upside.

Margin & API Risk
- API/raw-material price changes have pass-through mechanism.
- Q1 gross-margin movement mainly reflected business mix.
- No structural pricing issue indicated.
- Margin improvement depends on product mix and utilisation.

Cash Flow & Balance Sheet
- FY26 operating cash flow: ~₹117 Cr.
- Working capital needs to be monitored.
- Jammu ramp-up will increase funding requirements.
- New capacity will also require capital.
- Normalised working-capital cycle targeted around 90 days.

Earnings Potential
- Revenue scenario: ₹2,400–2,600 Cr.
- EBITDA margin assumption: 16–17%.
- PAT scenario: ₹220–260 Cr.
- EPS scenario: ₹39–46.
- 30–35x multiple implies ₹1,170–1,610 framework.
- This is an illustrative valuation framework, not a price target.

Q2–Q3 FY27 Scorecard
- Jammu revenue moving above ₹120–130 Cr/quarter.
- Meaningful improvement in Jammu EBITDA.
- Volume growth around or above 20%.
- Continued double-digit CDMO growth.
- Sustained branded-generics growth.
- Working capital remains controlled.
- Continued improvement at Sharon Bio.
- Progress on Baddi expansion.

VALUATION
- CMP mentioned: ₹1,040.
- Trailing valuation around 40x FY26 earnings.
- Not deeply undervalued at current levels.
- Valuation becomes more reasonable if earnings compound strongly.
- Investment thesis depends on execution of the growth pipeline.

KEY THESIS
- Jammu is the primary earnings inflection point.
- Low current utilisation leaves significant operating leverage.
- Baddi provides an additional capacity-led growth opportunity.
- CDMO provides the core revenue base.
- Branded generics adds a faster-growing business.
- Sharon Bio offers turnaround optionality.
- Strong execution and cash-flow discipline remain critical.

MV Electrosystems Ltd : IP Ownership & Proprietary Depth Analysis

What Is Truly Proprietary vs. What Is Bought?

For any technology business, one of the most important questions is simple: Does the company actually own the technology, or is it simply assembling technology developed by someone else?

In MV Electrosystems’ case, the DRHP points to a strong answer.

The company owns 100% of its IP, with zero royalty and zero technology fee obligations.

it means, MV is not just an assembler using someone else's design. The underlying technology and intellectual property sit with the company.

This gives the business greater control over its products, technology roadmap and economics, while also creating a stronger foundation for a potential technology moat. (land and expand model)

The snapshot below shows what MV truly owns and what it doesn't have to pay anyone else to use.

CHEMICAL INDUSTRY | FROM CHINA+1 TO QUALITY+MOAT

Pre-2010 | Commodity Era
- Focused largely on bulk chemicals.
- Key products included caustic soda and soda ash.
- Competition driven mainly by scale and cost.
- Low differentiation across producers.

2010–2020 | China+1 Boom
- China's environmental crackdown disrupted global supply.
- Global customers searched for reliable alternatives.
- India emerged as a major beneficiary.
- Indian chemical companies gained new customers.
- Volumes and margins improved significantly.
- Chemical stocks received strong valuation premiums.

2020–2022 | Pandemic Supply Panic
- COVID disrupted global supply chains.
- China's Zero-COVID policy intensified supply concerns.
- Global customers built unusually high inventories.
- Agrochemical inventories reportedly rose from ~2 to ~4 months.
- Strong demand partly reflected inventory stocking.

2022–2025 | Destocking Downturn
- China reopened and manufacturers cut prices aggressively.
- Higher interest rates increased inventory carrying costs.
- Customers shifted back towards lean inventories.
- Destocking hit volumes and realizations.
- Chemical margins compressed sharply.
- Several segments experienced significant price deflation.

2026 Onwards | Quality + Moat Cycle
- Major destocking cycle appears to be moving towards normalization.
- Being classified as a specialty chemical company may no longer be enough.
- Companies with genuine competitive moats could emerge stronger.
- Sticky customers can provide better demand visibility.
- High switching costs can protect market position.
- Regulatory barriers can limit competition.
- Technology advantages can support superior margins.
- Cost advantages can strengthen competitiveness.
- Long-term contracts can improve earnings visibility.

THE BIG SHIFT
- First chemical boom: China +1
- Next potential cycle: Quality + Moat
- Focus shifts from sector label to business quality.
- Competitive advantage may matter more than capacity alone.
- Companies with durable moats could capture the next upcycle.

Let the trees remind you that growth takes time.

HDFC BANK says

Co Intends To Vigorously Defend Itself

Bank Believes The Lawsuit Is Without Merit

Many US Listed Cos Routinely Defend Such Lawsuits

JoshiEien to NDTVProfit

Pricing Power Can't Sustain On Inconsistent Demand

Expect Growth In Bromine Margins During Q2 & Q3

Bromine Prices Will Continue To Remain Firm

Cos Only Betting On Amines To See Premium Pricing

Expect More Shutdown In China On Stringent Norms

CDMO Cos Are Likely To See Structural Growth

Expect Suprise Orders For Navin Fluroine From US

Uptick In Commodity Chem May Not Be Sustainable

Q2 Will Be A Litmus Test For Commodity Chem Cos

NOMURA, ROBERT SUBBARAMAN SAYS

Don't Expect Fresh News From The Jackson Hole Symposium

Starting To See Private Sector Investors Holding A Greater Share Of Treasury Bonds

Not Surprising To See Interest Rates Move Higher

Countries In Europe And Southeast Asia Are Struggling Due To Al Boom

RBI's Fiscal Policy Has Been Quite Prudent

Fundamentals In India Are Much Better Than Some Peers

SUMAN MISHRA OF MAHINDRA LAST MOBILE MOBILITY SAYS

L5 Category Has Crossed More Than 40% Electrification

Expect Electrification In L5 Category To Reach To Levels Of 75-80% In 3 Yrs

Capacity, Growth & Industry Size Expected To Double Over 3-4 Years

Expect Electrification In 3W Cargo To Reach At Least 50% By 2030

In 4W Cargo Category, Electrification Is 13-14% & Been A Little Slow

See A Huge Opportunity For Expansion For Us In 4W Cargo

GARG FURNACE-UP 20%

118cr Mkt Cap Co-Big Recent Announcement

2024 Highs-375-380
CMP-174

Big Trigger Is:
ARM COMMISSIONS ITS ALLOY STEEL FORGEABLE BILLETS FACILITY

Astute Investors-In Shareholding Pattern

THE TRUE MEASURE OF SUCCESS IS A CALM NERVOUS SYSTEM.

FORTIS HEALTHCARE IN FOCUS

IHH Says Stake in Fortis Healthcare to be raised to 51% over the next 3-5 years

IHH planning to do this through fresh capital injection or creeping acquisition

Believes any increase would have to be ROE accretive by atleast year three

PITTI ENGINEERING | GROWTH & BUSINESS OVERVIEW

Business Model
- India's largest manufacturer of electrical steel laminations and motor cores.
- Manufactures sub-assemblies and specialised machined components.
- Converts electrical steel into precision-engineered components.
- Products are critical for motors, generators and alternators.
- Operates as an integrated precision-engineering partner.

Marquee Customer Base
- Supplies leading global and domestic OEMs.
- Key customers include Siemens, ABB and GE.
- Also serves Wabtec, Alstom and BHEL.
- Caterpillar and Cummins are also key customers.
- Long customer relationships create strong qualification barriers.

Structural Demand
- Railway electrification drives locomotive demand.
- Data centres require backup generators.
- Renewable energy drives wind and solar alternator demand.
- EV infrastructure adds further motor-related demand.
- India’s broader capex cycle supports multi-year demand.

Competitive Moat
- High-end lamination manufacturing is highly consolidated.
- Significant customised tooling and capital investment required.
- Strict OEM quality certifications create entry barriers.
- OEM-specific co-development creates high switching costs.
- Substitution risk is considered very low.
- Integrated manufacturing provides a differentiated position.

Integrated Manufacturing
- One-stop capability from raw casting to final assembly.
- Strategic foundry acquisitions strengthen vertical integration.
- Increasing focus on integrated assemblies.
- Makes customer supply chains harder to decouple.
- Higher-value assemblies support stronger product economics.

FY27 | Volume-Led Growth
- Rolling order book stands above ₹1,200 Cr.
- Volume growth is the primary near-term catalyst.
- Capacity utilisation expected to scale further.
- Upgraded full-year capacity guidance: 82,000 tonnes.
- Consolidated revenue potentially run-rates above ₹2,200 Cr.

FY27 | Margin & Earnings
- High-value assemblies support price and mix.
- Helps offset volatile steel pass-through costs.
- Adjusted EBITDA margin around 16.8%.
- ₹3 Cr forex headwind creates some near-term friction.
- Operating leverage expected to build with higher volumes.

Merger Benefits
- NCLT-approved merger of Pitti Industries and Dakshin Foundry.
- Removes overlapping corporate structures.
- Supports procurement and operating efficiencies.
- Consolidation can improve overall cost structure.
- Provides additional support to FY27 EPS growth.

Capacity Expansion | Next 2–3 Years
- Greenfield and brownfield expansions planned.
- Installed capacity expected to cross 100,000+ MTPA.
- Revenue potential estimated at ₹3,500–3,800 Cr.
- Reinvestment into capacity supports long-term scale.
- Data centre and railway demand provide volume visibility.

Operating Leverage
- Higher capacity utilisation can drive margin expansion.
- Centralised procurement creates economies of scale.
- Automated in-house toolrooms can reduce manufacturing costs.
- Asset-turn target: 1.0x–1.2x.
- Profit growth could outpace revenue growth.

KEY TAKEAWAY
- Railway, data centre and renewable capex are major demand drivers.
- ₹1,200+ Cr order book provides near-term visibility.
- Capacity expansion creates a much larger revenue opportunity.
- Integrated manufacturing and customer qualification create entry barriers.
- Shift towards assemblies can improve mix and profitability.
- The key long-term trigger is operating leverage as capacity utilisation rises.

All Brokerage Reports
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Aye Finance has valuation comfort, but the large trade overhang was a key concern.

Management’s FY27 guidance
• AUM growth: 25–30%
• Credit cost: ~3.75%
• NIMs: ~14.5%

With the overhang now clearing, will the stock rerate?

GOKALDAS EXPORTS, SIVARAMAKRISHNAN GANAPATHI SAYS

US Section 301 Tariffs Of 10% Gives Us A Level Playing Field & Zero Tariffs w.r.t Kenya Is Great

In Talks With New UK Customer Amid The India-UK FTA

Eagerly Waiting For The EU Deal To Go Through

Retail Demand In US & Europe Has Been Good, Orderbook Is Full Till Q3

Too Early To Predict Demand For CY27

Expect H2 Margin To Be Better Than H1, Expect H2 Margin At 12%

RANA GUPTA, MANULIFE INVST MGMT SAYS

Large Cap Earnings Growth Is Lower Than Nifty Junior And Midcap Indices

Nifty Earnings CAGR Unlikely To Exceed 10-12%

HDFC Bank CEO Appointment Remains An Overhang

Avoiding Large Cap IT Stocks

Like Base Metals, Gold & Gold-linked Companies

Like Electronics Mfg Space Selectively, EMS Moving Towards Aerospace, Defence & Semicons

CHOLA INVST & FIN, ARUL SELVAN SAYS

Had 119 Branches & ₹1,800 Cr For Gold Loans

Already Launched 120 Exclusive Gold Loan Branches This Year

Gold Business Will Take 2-3 Years To Break Even

Gold Loans Per Branch Will Be In-line With Industry Levels

Hiring From Existing Gold Loan Players While Also Training New Talent

No Concern As Gold Is Held As Collateral And Remains An Appreciating Asset