#Company #Outlook

• It signed an asset purchase agreement with Klaus Waren Fixtures Private Limited, for the acquisition and assignment of identified assets for ₹55 cr (in two tranches) for the brand as well as the manufacturing facility in Bhuj. Another ₹7-₹10 cr of capex would be required for maintenance and de-bottlenecking and with that it shall be able to unlock production capacity of ₹100-₹120 cr. • The Bihar facility will be an integrated hub for the company, addressing the burgeoning demand in East India. Construction of the factory structure and utilities is currently in progress. The proposed capex for this facility has been increased to ₹220 cr, with the capacity now expanded to 48,000 MTPA (shall be complete by Q4 FY25). The Bihar facility in Begusarai will get commenced in January 2025. The facility will be commencing in the phased manner and it will take 6 months to operate in full utilization. • The agile execution of the Aquel by Prince brand was showcased at Plumbex India 2024. The company continues to penetrate key tier-2 and tier-3 markets in West and Northern India, with plans to expand into East and South markets in H1 FY25. The integration of Aquel’s distribution network and the appointment of sales staff are already in progress, pending regulatory approval. Products from Aquel by the company received enthusiastic feedback at the event. • The proposed capacity for water tank is estimated at 60 lakh litres per month at Bihar facility which shall go onstream in Q4 FY25. • The company has launched a new product named Greenfit PPR which has wide applications in hotels, commercial spaces, malls, hospitals and industry. • The company has guided 15% volume growth with the margin to be in the range of 12%-13% for FY25. • There are currently no plans for O-PVC (Oriented polyvinyl chloride pipes), with the focus shifting towards distribution-driven products and those catering to private projects. OPVC pipes represent a new generation of piping systems designed for highCASE STUDY pressure water conveyance. They are generally of superior quality compared to other piping solutions.

PRINCE PIPES & FITTINGS LIMITED 150-275
Expected level 350
Support 150

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Eicher Motors Limited Company Details

Eicher Motors Limited has presence in motorcycle and commercial vehicle manufacturing. Royal Enfield is a leader (~89% market share) in the middleweight motorcycles segment (250 cc - 750 cc) with international presence. Royal Enfield’s share in greater than 125 cc motorcycle (domestic) stood at 29.7% in FY24. Its global retail network (outside of India) spans over 1,085 touchpoints with 235 exclusive stores and 851 multi-brand outlets (MBOs). It has 2,003 retail outlets in India (1,102 large stores and 901 studio stores). Its manufacturing capacity stands at 12,00,000 units per annum (Oragadam -6,00,000 units per annum and Vallam – 6,00,000 units per annum). Company’s product portfolio includes Bullet 350 (Iconic); Classic 350 (Timeless); Meteor 350 & Super Meteor 650 (Cruiser); Hunter 350 & Interceptor 650 (Roadster); Himalayan 450 & Scram 411 (Adventure); Continental GT 650 (Café Racer). It recently launched Shotgun 650 and New Himalayan. In December 2022, Royal Enfield announced its EV plans and as part of its strategy, the company acquired 10.35% stake in Stark Future, Spain for a consideration of €50 million. Royal Enfield became the first two-wheeler brand to launch an omnichannel pre-owned motorcycle program under 'REOWN' on 5th Dec 2023. It launched Rentals, a partnership with over 40 motorcycle rental operators across 25 cities in India. With this, travelers and motorcyclists can easily and instantly have access to over 300 Royal Enfield motorcycles across these cities to rent, ride and explore. Eicher brand of trucks and buses came to existence in 1985. Eicher progressed in the Indian commercial vehicle market which was further strengthened when Volvo came in as an equity partner in 2008. VE Commercial Vehicles Limited (VECV) is a joint venture between EML (~54.4%) and Sweden’s AB Volvo. VECV manufactures a complete range of premium trucks across 4.9-55 tonnes and buses with a seating capacity of 12-72 across light, medium and heavy-duty applications. Apart from manufacturing Eicher and Volvo trucks and buses, VECV is engaged in exclusive distribution of Volvo trucks in India, engine manufacturing and exports for Volvo group, non-automotive engines and Eicher engineering component business. It has expanded its retail network and now has more than 930 touchpoints across the country. The company has advanced projects in small commercial vehicles, Hydrogen internal combustion CASE STUDY engine, fuel cells, batteries, LNG, and bio-blends.

#SALES #GROWTH 5 Year CAGR 11.0%

In FY24, the net sales was ₹16,534 cr (including international market revenue of ₹1,845 cr in FY24 v/s ₹2,080 cr in FY23) and increased by 14.5% YoY backed by sales volume expansion of 12% YoY which stood at ~9.1 lakh units (domestic at 8.4 lakh units and international at 77,209 units). Growth was majorly backed by strong volume in domestic market; while there was a decline of 13.5% in international volumes. Revenue from spares was ₹2,439 cr. In 9M FY25, the company posted net sales of ₹13,629 cr v/s ₹12,280 cr showcasing an increase of 11% YoY. It sold 7,22,092 units in 9M FY25 (domestic at 6,52,856 units and exports at 69,236 units) v/s 6,84,078 units in 9M FY24 (domestic at 6,30,085 units and exports at 53,993 units). It saw strong retail sales for the period during the festive period in India. In Q3 FY25, it unveiled five models that included: Bear 650, New Classic 650, Bullet Battalion Black, Goan Classic 350, and Scram 440.

#PAT #GROWTH 5 Year CAGR 12.6%

In FY24, the net profit saw a substantial increase of 37% YoY to ₹4,001 cr (including share of profit of JV). This can be attributed to increase in other income from ₹595 cr in FY23 to ₹1,076 cr in FY24 coupled with an expansion to ₹448 cr contribution from share of profit of joint venture (VE Commercial Vehicles Limited) v/s ₹315 cr in FY23. In 9M FY25, the net profit (including share of profit of JV) was ₹3,372 cr v/s and ₹2,930 cr and increased by 15% YoY. The share of profit from its JV was ₹452 cr for 9M FY25 as compared to ₹316 cr in 9M FY24. the increase was led by higher other income, operating profit and share of profit from JV.

#EBITDA #GROWTH 5 Year CAGR 8.3%

In FY24, the EBITDA stood at ₹4,327 cr and grew by 25.7% YoY. This increase can be attributed to softening of raw material prices and favorable product mix. Gross profits expanded by 21% YoY. In 9M FY25, the EBITDA was ₹3,454 cr v/s ₹3,198 cr in 9M FY24 an increase of 8% YoY. This was led by stable raw material prices and better product mix. However, the company saw an increase in expenses for the period as it had various new launches, and it launched EV in the recently held Auto Expo coupled with marketing spends towards the same.

#EBITDA #MARGIN

In FY24, the EBITDA margin expanded to 26.2% from 23.8% in FY23 and this can be attributed to better product mix and softening of commodity prices. In 9M FY25, the EBITDA margin remained at 25.3% v/s 26% in 9M FY24. The decline in margin can be attributed to investments towards EV launch and new launches coupled with advertisement & promotional spends.

#PAT #MARGIN

In FY24, the expansion in PAT margin to 21.5% was driven by rise in other income. Including the share of profit from associate/JV the margin was 24.2%. In 9M FY25, the PAT margin (including share of profit/associate) increased to 24.7% v/s 23.9% in 9M FY24.

#ROCE

Company’s ROCE during FY24 increased to 31% on account of rise in PBIT. Increase in capital employed was on account of rise in other investments and other financial assets and this majorly constituted bank deposits.

#CASH #FLOWS

In FY24, cash flow from operations stood at ₹3,724 cr. The increase is on account of working capital adjustments and rise in profit before tax and after share of profit of Joint venture. Cash outflow from investing activities stood at ₹2,852 cr that majorly included purchase of debt mutual funds (net) ₹134 cr and investments (net) in fixed deposits of ₹2,220 cr. Cash outflow from financing activities was ₹844 cr and this outflow majorly constituted dividend payment.

#MANAGEMENT

The company announced key leadership changes on 10th February 2025, with Siddhartha Lal appointed as Executive Chairman of the Board following the retirement of Chairman S. Sandilya. Vinod Aggarwal has been named Vice Chairman (Non-Executive) while continuing as MD and CEO of VE Commercial Vehicles, EML’s joint venture with Volvo Group. B. Govindarajan has been appointed as Managing Director of EML and will also retain his role as CEO of Royal Enfield. Additionally, the board has welcomed Ira Gupta and Arun Vasu as Independent Directors, with Ira assuming her role from 10th February 2025, and all other appointments taking effect from 13th February 2025. Meanwhile, Independent Director Manvi Sinha will retire on 12th February 2025, upon completing her tenure.

#COMPANY #POTENTIAL

• In FY24, the two wheelers sales volume for FY24 was ~1.8 cr units in domestic markets and 34.6 lakh units in export markets as compared to ~1.6 cr units in domestic market and 36.5 lakh units in export market in FY23. (Source: Siam) • In 9M FY25, the two wheelers industry sales was 1,50,39,570 units v/s 1,34,70,570 units in 9M FY24 showcasing an increase of 11.6% YoY. In CY24 (Jan-Dec 2024) the two wheeler industry (domestic) reported sales of 1.95 cr units of which, of which scooters sales was 66.8 lakh units, motorcycles at 1.2 cr units and mopeds at 5.2 lakh units v/s 1.71 cr units in CY23, of which scooters constituted 55.7 lakh units, motorcycles 1.1 cr units and mopeds at 4.7 lakh units. In Q3 FY25, the two wheeler industry sales was 48.8 lakh units v/s 47.3 lakh units in Q3 FY24, a rise of 3.2% YoY.
The industry retail on VAHAN for EV reached 9.3 lakh units in FY24, up from 7.1 lakh units in FY23. The penetration of EV twowheelers for the year FY24 stood at ~5%. The sales during 9M FY25 was ~7.8 lakh units v/s ~6.4 lakh units in 9M FY24. (Source: • The PST (Defined as Power, Style & Technology; Engine size >125cc) segment motorcycles grew by 21.6% to 28.1 lakh units and now contributes to 24.1% of the overall motorcycles (22.6% in FY23). The >250cc segment expanded by 19.2% in FY24 to 9.4 lakh • The commercial vehicles sales (domestic) in FY24 was 9,67,878 units as compared to 9,62,468 units in FY23 exhibiting a rise of 1% YoY. Sales in 9M FY25 were 6,83,471 units v/s 6,99,507 units in 9M FY24 and it was 2,38,050 units in Q3 FY25 v/s 2,35,167 units in CASE STUDY

#COMPANY #OUTLOOK

• The company shall be launching its EV model (Flying Flea) during Q1 FY26. This is being manufactured at its Vallam plant, wherein it has an initial manufacturing capacity of 1.5 lakh units per annum. • Royal Enfield has commenced operations in Bangladesh, opening a flagship showroom in Dhaka and launching the Hunter 350, Meteor 350, Classic 350, and Bullet 350, with bookings started from 22nd October onwards. A new manufacturing facility in Cumilla District, with an annual capacity of 30,000 units, has also been established to meet growing demand for premium middleweight motorcycles. global CKD unit, following plants in Argentina, Colombia, Brazil, Bangladesh, and Nepal. enhancing the customer experience. • Further strengthening its presence in the international markets, Royal Enfield launched its first CKD assembly facility outside India in Bangkok, Thailand. The 57,000 sq. ft. plant has a production capacity of 30,000 units annually and marks Royal Enfield's sixth • Royal Enfield also expanded its pre-owned motorcycle platform, REOWN, to 236 cities across India. Launched in 2023, REOWN now operates through 475 dealerships across 24 states, offering a trusted platform for buying, selling and exchanging pre-owned Royal Enfield motorcycles. Additionally, the brand introduced its first-ever loyalty program with exchange benefits further • In Q3 FY25, the VECV segment reported revenue of ₹5,801 cr, reflecting a 5.8% YoY growth. EBITDA stood at ₹509 cr, with a 700 bps YoY expansion in EBITDA margin, driven by improved cost management and price discipline. The company sold 21,012 trucks during the quarter, up from 20,706 units in Q3 FY24. VECV maintained a strong presence in the LMD truck market with a ~36% share, while its HD truck market share stood at ~9%. Additionally, the company held a ~21% market share in the bus segment.

Eicher Motors Limited 4900-5100
Expected level 6000
Support 4700

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Dr. Lal Pathlabs Company details Report

Dr. Lal Pathlabs is India’s leading & trusted diagnostics company with 70+ years of experience in the field of diagnostics. It has an integrated nationwide network, where patients and healthcare providers are offered a broad range of diagnostic and related healthcare tests and services for use in: core testing, patient diagnosis and the prevention, monitoring and treatment of disease and other health conditions. The services of Dr. Lal Pathlabs are aimed at individual patients, hospitals and other healthcare providers and corporates. The catalogue of services includes 343 test panels, 3,075 pathology tests and 1,439 radiology and cardiology tests as on 31st March 2024. The company has 280 clinical labs (including National Reference Lab at Delhi & Regional Reference Lab at Kolkata, Bangalore & Mumbai), 5,762 Patient Service Centers (PSCs) and 11,619 Pick-up Points (PUPs). It includes 40 labs, 207 PSC’s and 1,008 PUP’s of Suburban Diagnostics. The company is constantly looking to bringing new tests to the market especially in varied fields like Neurology, Oncology post organ transplant monitoring to help clinicians provide an accurate diagnosis to their patients.

#SALES #GROWTH 5 Year CAGR 13.1%

In FY24, the net sales grew by 10.4% YoY to ₹2,227 cr primarily driven by increased patient volumes and realization. Patients tested grew by 2.6% YoY to 2.76 cr. It collected 7.82 cr samples in FY24, i.e., a growth of 8.2% YoY. The revenue realization per patient grew by 7.5% YoY to ₹807 (v/s ₹750 in FY23). The sales contribution from tier 3+ was 35% of the total sales. Suburban Diagnostics reported sales of ₹164 cr in FY24 (v/s ₹150 cr in FY23). In 9M FY25, the sales grew by 10.6% YoY to ₹1,859 cr driven by patient volume. Patients tested increased by 4.3% YoY to 2.20 cr. The company tested 6.47 cr samples, i.e., a growth of 9.6% YoY. The average revenue realization per patient stood at ₹845 (v/s ₹797 in 9M FY24) mainly led by test mix.

#EBITDA #GROWTH 5 Year CAGR 15.7%

In FY24, the EBITDA grew by 24.4% YoY to ₹609 cr. The growth was led by increased in scale of operation and cost efficiencies. In FY24, sample per patient increased by 5.4% YoY to 2.83x (v/s 2.69x in FY23). The company’s cost of raw material constitutes ~28% of the total expenses followed by other expenses ~26%, employee benefit expenses ~26% and fee to collection centres /channel partners ~19%. In 9M FY25, the EBITDA grew by 13.3% YoY to ₹527 cr (v/s ₹465 cr in 9M FY24). The growth was led by improvement in gross margin due to decline in raw material cost. Sample per patient for 9M FY25 was 2.95x, i.e., a growth of 5.2% YoY.

#PAT #GROWTH 5 Year CAGR 12.5%

In FY24, the PAT increased by 50.3% YoY to ₹362 cr. The higher growth was on account of increase in EBITDA and higher other income. Other income increased to ₹69 cr in FY24 (v/s ₹41.7 cr in FY23). The finance cost declined by 22% YoY to ₹29 cr because of repayment of some borrowings. Additions of new labs further drive the growth of the company. In 9M FY25, the PAT grew by 21.8% YoY to ₹337 cr (v/s ₹277 cr in 9M FY24). The profit growth was led by operating leverage and strategic initiatives to optimize costs by leveraging technological advancements. The other income increased to ₹67.6 cr (v/s ₹50.8 cr in 9M FY24).

#EBITDA #MARGIN

In FY24, the EBITDA margin of the company expanded by 307 bps YoY to 27.4% led by scale of operation and operational efficiencies. During the year, Suburban Diagnostics Private Limited EBITDA margin stood at 13% (v/s 12% in FY23). It has sustained its operating margin above 25% over the years. Brand and economies of scale have helped the company in maintaining the margin. In 9M FY25, the EBITDA margin expanded by 69 bps YoY to 28.3% (v/s 27.6% in 9M FY24). The margin expansion was led by decline in raw material cost and other expenses as a percentage of sales. Suburban Diagnostics Private Limited EBITDA margin stood at 12% in Q3 FY25 (v/s 20% in Q2 FY25). The company had not taken any price hike in 9M FY25. Currently, these are no plan of any price hike as of now.