UBS keeps 'buy' on Zomato, target Rs 250 in Long term

#1 Company confirmed discussions to acquire Paytm’s ticketing business
#2 Acquisition of Paytm’s ticketing business fits in well with company’s ‘going-out’ offering
#3 Back-of-the-envelope calculation suggests reasonable valuations

Listed Indian Defence Companies and their Specialisation

1 - Hindustan Aeronautics - Military aircraft, helicopters, aerospace structures, and engines
2 - Bharat Electronics- Radars, communication systems, electronics warfare systems, weapon systems, and naval electronics
3 - Bharat Forge- artillery guns, ammunitions, tank components, armour plates, ballistic protection systems, aerospace components
4 - Solar Industries- Explosives, propellant, ammunition, and pyros
5 - Bharat Dynamics- Guided missiles, launchers, underground water weapons
6 - Mazagon Dock- Destroyer, frigates, submarines (conventional and nuclear-powered), merchant ships
7 - Cochin Shipyard- Aircraft carrier platforms, anti-submarine warfare, FPV, offshore rigs, tankers, cargo ships
8 - Data Pattern- defense communication products, EWS, avionics, command and control systems
9 - BEML Ltd- Tank transporter for defense applications
10 - GRSE- Frigates, corvettes, fast patrol vessels
11 - Zen Tech -defense electronics or electro-mechanical systems based on area of expertise
23 - Midhani- Titanium, and special steel for aerospace, defence
24 - Astra Microwave- microwave components, waveguides, micro-wave sub-systems
25 - MTAR Tech - metal components or precision engineering
26 - DCX Systems- defence communication
27 - Apollo Micro System - embedded computing systems, tactical communication products
28 - Ideaforge Tech- UAVs
29 - Paras Defence- Defence electronics, communication equipment, and optoelectronics systems
30 - Rossell India- night vision devices, thermal imagers, and optronics
31 - Taneja Aerospace- aerospace components and assemblies
32 - Krishna Defence- body armor, ballistic helmets, and other personal protective equipment

Unlisted ones -

33 - Munitions India- ammunitions
34 - Armoured Vehicles Nigam- design, and development of armored vehicles
35 - Advanced Weapons and Equipment- Advanced weaponry and equipment
36 - Troop Comforts- Needs of troops by manufacturing clothes, tents, footwear, and related items
37 - Yantra India- production of shells, and other parts of ammunition
38 - India Optel- optronics
39 - Gliders India- Design, development, and manufacturing of gliders
40 - Hindustan Shipyard- Cargo ships, tankers, offshore support vessel
41 - Goa Shipyard- OPVS, LCUs, High-speed interceptor vessels, and pollution control vessels

Business Houses -

42 - Tata Group- Aircraft, missile and weapon systems, land vehicles, naval platforms, and electronic warfare
43 -Mahindra Group - Land systems, aerospace components, naval systems, and information systems
44 - Adani Group- Ammunitions and missiles
45 - RPG Group- Armour-grade steel used in defense vehicles
46 - Godrej Group- critical aerospace parts and subassemblies

Good morning

✅Tata Group stocks with High FII Holding

1⃣ Trent
CMP: ₹5026
FII Holding: 26.80%

2⃣ Tata Consumer Products
CMP: ₹1112
FII Holding: 25.46%

3⃣ Indian Hotels Company
CMP: ₹588
FII Holding: 24.47%

4⃣ Tata Steel
CMP: ₹182
FII Holding: 19.61%

5⃣ Tata Motors
CMP: ₹986
FII Holding: 19.20%

6⃣ Titan Company
CMP: ₹3420
FII Holding: 19.01%

Case Study

🏍TVS Motor Company


TVS Motor Company is the one of the leading two-wheeler manufacturer in India. The company has four state of t manufacturing facilities in Hosur, Mysuru and Nalgarh in India and Karawang in Indonesia. Company has a retail finance a 2 Credit Services (TVS Motor holds ~81% stake post investment by Premji Invest). It is a non-banking finance company cate financing of retail focused products such as two-wheelers, used cars, used and new tractors, used commercial vehicles, consu durables, digital finance products and personal loans. In this, TVS vehicle business is ~20%-25% and the rest are other lines of activities. TVS CS primarily caters to self-employed, new to credit borrowers in the semi-urban and rural areas in the country. TVS Motor has footprints globally, including geographies like Middle East, Africa, Southeast Asia, Indian subcontinent, Latin & Central America. Presently, it exports to over 80 countries globally.

Its product portfolio has motorcycles, scooters, moped and three-wheelers. In the motorcycle portfolio it has Apache RTR 310, Apache RR 310, TVS Ronin, TVS Apache RTR series, Apache RTR 165 RP, TVS Raider, TVS Radeon, TVS Star City+ and TVS Sport; scooters comprise of TVS Jupiter 125, TVS Ntorq, TVS Zest 110, moped has TVS XL100 comprising different variants and three wheelers has TVS King in its portfolio. It has an annual production capacity of ~49.5 lakh units for two wheelers and ^2.4 lakh units for three-wheelers. rhe company operates in the international destinations through various subsidiaries and associates It has a robust supplier base and extensive sales & service network.

#SALES GROWTH 5 Year CAGR: 14.2%


In FY24, the net sales was ₹39,145 cr and increased by 22. 4% YoY, of this, sales from exports was ₹7,585 cr and declined by 0.8% YoY. The growth was led by motorcycles (domestic) segment which grew by 15% YoY and scooters which expanded by 18% YoY. TVS Credit Services (its financial services arm) also contributed to strong growth (~39% increase on a YoY basis). It posted sales of 19.9 lakh motorcycles, 15.7 lakh scooters (incl EV sale of 1.94 lakh units), 4.9 lakh mopeds, and 1.6 lakh three-wheelers.
Of the overall sales of the company, rural market constitutes 45%-50% of domestic sales. This is expected to observe further momentum in the coming quarters.

#EBITDA GROWTH 5 Year CAGR: 20.7%

In FY24, the EBITDA was ₹5,543 cr and expanded by 36.2% YoY. This increase can be attributed to softening of raw material cost, operating leverage benefits, better product mix and cost control measures.

#PAT GROWTH 5 Year CAGR: 20.7%


In FY24, the net profit stood at ₹1,822 cr and grew by 35% YoY. The increase in net profit is mostly on account of expansion of operating profit

#EBITDA MARGIN

In FY24, the EBITDA margin was 14.2% v/s 12.7% in FY23. The expansion in margin for two wheelers is owing to softening of raw material cost, better product mix and cost control measures. EBIT margin from auto & auto component business was 6.7% v/s 5.8% in FY23 and towards financial services the EBIT margin was 13.1% in FY24 v/s 13.7% in FY23.

#PAT MARGIN

In FY24, the PAT margin was 4.7% v/s 4.2% in FY23

#DEBT TO EQUITY

The consolidated debt to equity ratio decreased on a YoY basis despite rise in debt as the net worth increased on a higher pace. The non-current borrowings was ₹12,629 cr and current borrowings was ₹12,657 cr. On a standalone basis, the non-current borrowings and current borrowings was ₹987 cr and ₹527crs

In TVS Credit Services, it had loan book (assets under management) of ~₹25,900 cr as on 31st March 2024 and grew by 26% YoY.

Company Future Outlook

During April 2024, the company has been awarded PLI (production linked incentive) scheme for current two-wheelers (EV portfolio). Some of the new EV products are in pipeline and shall be launched in the upcoming quarters some African regions demonstrated a strong recovery in sales, although certain areas still remain affected. Africa is expected to demonstrate muted growth in H1 FY24 and recovery from H2 FY25 onwards. Positive momentum is expected from LATAM and South East Asian markets. The electric three-wheelers would be launched in domestic & international markets in FY25. ltis expanding in international regions steadily.

TVS Motor 2200-2400
Expected level 2800
Support1899

Good morning

5 high-growth stocks

Growth upside potential 40-50%

1. Zaggle
- Double revenue in the next 2 years, >40 % CAGR.
- Looking for inorganic acquisitions.
- Long-term margin guidance: 15-16%.

2. Ganesha Eco
- Management guidance FY25:
- Revenue growth: 50-60%.
- EBITDA margins: 15-16%.
- Higher PAT growth due to operating leverage.
- Long-term guidance: 25-30% CAGR.
- FY25 revenue contribution:
- New business: 50%.
- Legacy business: 50%.

3. Sky Gold
- Expected 3x revenue in the next 2 years.
- FY24 revenue: ₹1745 Cr.
- Targeting ₹5000 Cr by FY26.
- Export contribution to increase to 30% from current 12%.
- Recently acquired 2 B2B companies which will start contributing.

4. TRIL
- Revenue guidance:
- FY24: ₹1291 Cr.
- FY25: ₹2000 Cr.
- FY27: ₹5000 Cr (4x growth).
- EBITDA margins: 14-15%.
- QIP: ₹500 Cr raised at ₹665 per share.
- Capex (₹360-400 Cr), debt reduction, working capital, and inorganic opportunities.
- Unexecuted order book stands at ₹2582 Cr.
- Order inflows of ₹2050 Cr as of March 2024.
- Goal to increase export share from 11% to 20-25% by FY27.

5. ZEN Tech
- FY24 revenue: ₹440 Cr.
- FY25 revenue: ₹900 Cr (2x growth).
- FY27 revenue target: ₹2000 Cr.
- Strong demand momentum, focus on expanding product line.

Good morning

Order Book Water Infrastructure Companies

1. Thermax Ltd
M Cap: ₹61,187 Cr.
Order Book: ₹9,355 cr

2. Ion Exchange (India) Ltd:
M Cap: ₹8,250 Cr.
Order Book: ₹3,546 cr approx

3. Triveni Engineering and Industries Ltd:
M Cap: ₹8,868 Cr.
Order Book: ₹1223.4cr

4. EMS Ltd:
M Cap: ₹ 3,584 Cr.
Order Book: ₹2,572.68+ cr approx

5. Jash Engineering Ltd:
M Cap: ₹ 2,818 Cr.
Order Book: ₹816 cr

6.Vishnu Prakash R Punglia Ltd:
M Cap: ₹ 2,563 Cr.
Order Book: ₹4,717 cr

7. NCC Ltd:
M Cap: ₹ 20,396 Cr.
Order Book: ₹s 57,536 cr

8. Welspun Enterprises Ltd:
M Cap: ₹ 6,294 Cr.
Order Book: ₹12,200cr

9. Kirloskar Brothers Ltd:
M Cap: ₹ 17,580 Cr.
Order Book: ₹2,999cr

10. Welspun Corp Ltd:
M Cap: ₹ 14,380 Cr.
Order Book: ₹9056cr

11. Shakti Pumps (India) Ltd:
M Cap: ₹ 6,872 Cr.
Order Book: ₹2400+cr approx

12. Praj Industries Ltd:
M Cap: ₹ 12,455 Cr.
Order Book: ₹38,550cr

13. Om Infra Ltd:
M Cap: ₹ 1,599 Cr.
Order Book: ₹2,235cr

14. ITD Cementation India Ltd:
M Cap: ₹ 8,972 Cr.
Order Book: ₹20,000cr

15. WPIL Ltd:
M Cap: ₹ 4,127 Cr.
Order Book: ₹4580 Mn approx.