#CASH #FLOWS

In FY24, the cash from operations increased to ₹562 cr due to improved working capital days and efficient use of current assets. Purchase of property plant and equipment of ₹247.6 cr and movement in other bank balances of ₹156 cr led to cash outflow from investing activities of ₹490 cr. The company reported cash outflow from financing activities of ₹42 cr. This was on account of net proceeds from short term borrowings, interest, lease and dividend payment partly offset by proceeds from issue of share capital.

#SECTOR #POTENTIAL

• The essentials solvents business under the Acetyl Intermediates (AI) category are slated to grow at ~5-6% CAGR from 2022-2028. • Global market for Diketene derivatives segment is around $1.7 billion and is expected to grow at ~5-6% CAGR in the next 5 years. There are multiple tailwinds driving demand for Diketene derivatives with consumer segments showing strong growth globally. Global crop protection chemicals market clocked ~$79 billion in 2022 having grown at a 9.9% over 2021. The market is expected to witness a similar growth in the next 5 years. Whereas the other important Diketene derivatives application in the pharma sector is also expected to witness a high growth of ~ 9% CAGR from $1.5 trillion in 2021 on a year-on-year basis. • Global fluorochemicals market is growing at an attractive CAGR of 5-6% and is expected to touch $30 billion by 2025. Indian market itself for fluorochemicals is growing at a strong pace of 12% CAGR and given the increasing demand from pharmaceuticals, agrochemicals, EV and renewables applications, this growth rate could accelerate to higher levels of 12-14% over next few years. • Indian market size is currently around $450 million and expected to reach $1 billion by FY26. There has been a tremendous surge in demand for fluorine based chemical products in the field of agrochemicals in tandem with the rise of use in pharmaceuticals. Fluorine has a special place in the toolkit of the agrochemical and pharmaceutical chemist. It has a significant impact on the biological activity of agrochemicals like fungicides, insecticides, herbicides, acaricides, and nematicides. Fluorine containing pesticides account for ~67% of the overall pesticides and over 53% of the pesticides introduced in the previous 2 decades. On the other hand, fluorine containing drugs account for ~2% of the drugs approved by FDA in the last 5 years.

#FUTURE #OUTLOOK

• The company maintained its capital expenditure guidance of ~₹1,100 cr during FY24-FY28, both in the essentials and specialties segment. It includes ₹800 cr at Dahej site & n-Butyl Acetate plant, ₹50 cr in fluoro intermediates business, ₹90 cr in Ethyl Acetate capacity addition at Lote and the rest capital expenditure at existing sites. With this capital expenditure plan, it expects to double its revenue and triple its EBITDA by FY28. • In the essentials segments, the company would incur capital expenditure of ~₹550 cr at Dahej. It received relevant approvals for the same and construction has started. It expects revenue from Dahej to start flowing from FY26 and the peak revenue is expected by FY28. The company expects the asset turnover of ~3x-5x and EBITDA margins of ~8%-12%. • In the specialties segment, it expects to incur a capital expenditure of ~₹550 cr. The asset turnover would be ~1x-2x and EBITDA margin of ~20%-25%. • In the essentials segment, the company would increase its capacity by 1.75x from the current capacity of 240 KT (kilo tonne). In the specialty intermediates segment, the company is doubling the capacity of ketene & diketene derivatives. • In n-Butyl Acetate plant at Dehej, Gujarat, the company propose capacity of 70 KTA (kilo tonnes per annum). The project will entail an investment of ₹91.4 cr. It will be funded through a mix of internal accruals and debt. It is expected to be completed by Q4 FY26. • In Ethyl Acetate at Lote, Maharashtra, the company propose capacity addition of 70 KTA. The project will entail an investment of ₹90.5 cr. It will be funded through a mix of internal accruals and debt. Currently, the company has existing capacity of 200 KTA with capacity utilization of more than 90%. It is expected to be completed by Q4 FY26.

Laxmi Organic Industries 120-170
Expected level 230
Support 100

3358💥💥💥💥

Good morning

Here’s a breakdown of common red flags that were visible before these companies collapsed:

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### 1. Kingfisher Airlines
- Red Flags:
- High debt-to-equity ratio
- Continuous losses
- Promoter pledged shares
- Lavish branding and PR vs. weak financials
- Failed business model in a low-margin industry (aviation)

---

### 2. Sintex Industries
- Red Flags:
- Aggressive expansion with too much debt
- Poor corporate governance
- Delays in results and poor disclosures
- Financials deteriorating long before NCLT admission

---

### 3. Suzlon Energy
- Red Flags:
- Debt pile-up due to global acquisitions (like REpower)
- Inconsistent profitability
- Management overpromised, underdelivered
- Repeated dilution of equity

---

### 4. PC Jeweller
- Red Flags:
- Related-party transactions (with Vakrangee, another suspicious stock)
- Promoter selling shares
- Accounting quality issues
- Weak internal controls

---

### 5. Yes Bank
- Red Flags:
- Aggressive lending, especially to risky borrowers
- Evergreening of loans
- RBI red-flagged practices, removed CEO
- High gross NPA in disguise

---

### 6. Manpasand Beverages
- Red Flags:
- Auditor resignations
- Lack of big distributors despite strong "sales" figures
- Dubious capex, questionable numbers
- Sudden stock crashes with no clear news (classic operator sign)

---

### 7. DHFL (Dewan Housing Finance Ltd)
- Red Flags:
- Promoter funding through shell companies (Cobrapost expose)
- Credit rating agencies slow to react
- High share of promoter-pledged shares
- Delays in repayments and poor liquidity management

---

### 8. Gensol Engineering
- Red Flags:
- Low float, highly operator-driven
- Skyrocketing prices without matching fundamentals
- Sudden inclusion in retail momentum portfolios
- No long-term earnings visibility or scalability

---

### Common Red Flags Across All:
1. High Debt
2. Corporate Governance Issues
3. Auditor Resignation / Reshuffling
4. Promoter Share Pledging / Selling
5. Inconsistent Cash Flows vs. PAT
6. Overambitious Announcements Without Execution
7. Unnatural Stock Price Movements
8. **Unclear Business Models or Dubious Subsidiaries

Good morning

Info Edge (India) company details report

Info Edge (India) incorporated in 1995, has two specific arms – an operational business and an investment business. The core business verticals includes recruitment solutions, real estate services, matrimonial services and an education services through its various web portals and mobile applications. The core activities are supported by a series of strategic investments in the operating business. These investments are primarily made into services & products, that complement and form an integral part of the developmental roadmap of the four core business platforms. The investment business also includes a series of fund infusions into diversified entities, that have significant value creation potential over a period. Business portfolio: • Recruitment: Online recruitment classifieds, www .naukri.com, a clear market leader in the Indian e-recruitment space, www .naukrigulf.com, a job site focused in the Middle East market, offline executive search (www .quadranglesearch.com) and a fresher hiring site (www .firstnaukri.com). Additionally, Info Edge provides jobseekers value added services (Naukri Fast Forward) such as resume writing. • Matrimony: Online matrimony classifieds (www .jeevansathi.com) is in the top three of India’s online matrimonial space and has offline Jeevansathi Match Points and franchisees. • Real Estate: Online real estate classifieds (www .99acres.com) is India’s largest property marketplace covering almost all the major cities and many agents and developers. • Education: Online education classifieds (www.shiksha.com) is the smartest gateway for students to achieve their higher education goals.

Investment Vertical: Info Edge started investing in year 2007 when the Indian start-up ecosystem was at a nascent stage and there were a handful of earlystage institutional investors active in the country. So far, Info Edge has an investment of ~₹555 cr in 21 companies in the unlisted space and ₹514 cr as a strategic investment in 8 companies as on 31st March 2024. Owing to the strong cash generation in the core business along with prudent cash reserves, Info Edge has invested into businesses in the online space with the objective of getting returns from long-term value creation. The company has a direct investments in two public companies – Zomato and Policybazaar–evolved as strong growth-oriented entities. There is another group of companies in the direct investment portfolio where Info Edge has done early-stage investments, and they are being developed for future value creation. To further streamline this high value creating business investment portfolio, the company in the last couple of years has worked on creating a structured investments vehicle through specific investment funds. In FY20, Info Edge had set up an ‘Alternative Investment Fund (AIF)’ named Info Edge Venture Fund (IEVF) to invest in technology and technology-enabled entities. They have launched three such funds, with a total commitment of approximately $450 mn.

#SALES #GROWTH

In FY24, the revenue stood at ₹2,536 cr, a growth of 8% YoY and overall billings stood at ₹2,496 cr. The revenue growth was on led by 7% YoY growth in recruitment business and 23% YoY growth in the real estate segment. In 9M FY25, revenue increased by 12% YoY and stood at ₹2,100 cr. The recruitment segment reported a revenue growth of ~9% YoY, 99acres segment reported a growth of ~18%, Shiksha segment reported a growth of ~11% YoY and Jeevansathi segment, revenue increased by ~34% YoY. Strong momentum in the recruitment vertical, vibrant real estate market, increase in the number of private universities in India & monetization of matrimony segment indicate an increase in top line growth, going forward.

#SALES #GROWTH

In FY24, the revenue stood at ₹2,536 cr, a growth of 8% YoY and overall billings stood at ₹2,496 cr. The revenue growth was on led by 7% YoY growth in recruitment business and 23% YoY growth in the real estate segment. In 9M FY25, revenue increased by 12% YoY and stood at ₹2,100 cr. The recruitment segment reported a revenue growth of ~9% YoY, 99acres segment reported a growth of ~18%, Shiksha segment reported a growth of ~11% YoY and Jeevansathi segment, revenue increased by ~34% YoY. Strong momentum in the recruitment vertical, vibrant real estate market, increase in the number of private universities in India & monetization of matrimony segment indicate an increase in top line growth, going forward.

#EBITDA #GROWTH

In FY24, the EBITDA stood at ₹829 cr, an increase of ~18.3% YoY. This was a combination of increase in revenue and decrease in A&P expenses specifically in the Jeevansathi business. In 9M FY25, EBITDA stood at ₹737 cr, an increase of ~21% YoY. The growth was subdued on account of increased spending towards advertising and promotion (A&P) towards the growth of the recruitment business. However, they have reduced the spending towards other business vertical. Going forward, the company expects to continue spending on A&P costs, and subsequently expects an increase in revenue. They are further going to expand their branches in small towns.

#PAT #GROWTH

In FY24, PAT stood at ~₹726 cr. It was impacted by an impairment expense of ₹111 cr. Adjusting for the share of profit from JV and associates consolidated PAT stood at ₹595 cr. For 9M FY25, PAT grew by 19% to ~₹739 cr, on account of increase in other income. Adjusting for the share of profit from JV and associates consolidated PAT stood at ₹632 cr.

#EBITDA #MARGIN

EBITDA margin has been in the range of 25%-28% for the past 5 years. In FY24, EBITDA margin expanded to 32.7%. This was on account of reduction in A&P and other expenses. EBITDA margin for 9M FY25 was 35.1%, an improvement by 260 bps YoY.

#PAT #MARGIN

It is to be noted that from FY18, majority of the profits (an average of 50% of PBT) has been aided by exceptional gains. This has contributed to higher PAT margins lately. In FY24, the PAT margin stood at 28.6%. PAT margin of the company has been volatile in the past several years. During 9M FY25, PAT margin improved by 210 bps and stood at 35.2%.

#ROCE

In FY24, ROCE improved to 4%. The company continues to explore investment and acquisition opportunities in areas of strategic interest and adjacencies. These investments would be continued to be made through the balance sheet or the Info Edge venture fund. Given the nature of the business (i.e., various investments in associates/JVs) the ROCE is likely to be volatile on a year-to-year basis.

#ROE

ROE in FY24 was 2.75%. The ROE has also been volatile over the years. Strategic acquisitions & investment in various growth levers of the business along with debt free status has helped the company post significantly high ROEs over the past 5 years. We believe that the company would continue to post higher ROEs due to the high growth prospects of the business.

#COMPANY #POTENTIAL

• India’s consumer digital economy is expected to be a USD800 billion by 2030, clocking in a growth on 10x from 2020. As per Google, the classifieds segment is expected to report a CAGR of 18%, with jobs, real estate and matrimony constituting 2/3rd of the market. • The Government of India's (GOI) focus on the ‘Digital India’ initiative along with cheaper smartphones, declining data tariffs, increasing digital literacy is helping the sector boost its growth. • There has been a 124% growth in the number of internet users in the past 5 years driving the digital sector majorly. • Low internet penetration in India at ~43% presents an opportunity for the company, where the internet penetration is above 80% at developed nations while ~60% penetration at South American and South-East Asian nations. now accessing the internet daily to meet the needs. • The single most important driver of rapid internet penetration across India is the widespread adoption of mobile internet in India. India recorded the highest-ever smartphone shipments in year 2021. • With this kind of penetration of internet in India, the digital space is transforming the way consumers and marketers interact with each other. Increase in the internet usage by the rural India has also grown at record with almost two-thirds of active internet users • Thus, the growing digital economy coupled with rising per capita income and favorable demographics presents a huge market potential for internet-based technology led disruptions.