Rounaq Bakshi notes

  Siemens  spins off energy business, shareholders to get one share for every share held Post the demerger,  Siemens  Ltd will continue to focus on technology-focused development in infrastructure and industry segments, while the power generation segments, including renewable energy, will come under  Siemens  Energy India. The demerger will enable both companies to pursue their specific strategies and make decisions on capital allocation Plans for the demerger come at a time when India  expects  its power generation to grow at its fastest pace since at least 2011-2012 in fiscal 2025.  Siemens  AG has been  eyeing  future investments in the country that is seeing higher grid upgrades and electrification programmes. The demerger of the energy business is part of a global strategy set in motion in 2020 when  Siemens  AG had demerged its energy business globally. The energy business of the Indian entity is engaged in prov...

  Bharat Bijlee:  India’s top 10 electric motors manufacturers  Bharat Bijlee Limited is a pioneer in the electrical engineering industry in India having been incorporated in 1946.  A multi-product, multi-divisional organisation, its main products are transformers, electric motors, magnet technology machines and drives & automation system. The Company also undertakes turnkey projects (switchyards). Investments: 1000 cr, Mkt cap: 2500 cr Siemens  India Ltd. : Value of 800 cr and HDFC: 135 cr  Company has also been adjudged as one of India’s top 10 electric motors manufacturers in 2022 by Industry Outlook magazine. Bharat Bijlee as a reputed manufacturer of 220KV class transformers upto 200 MVA range. BBL is one of the leading manufacturers of transformers in the segment of 220-KVclass transformers upto the range of 200MVA in India. The company has two primary business segments:PowerSystems (46%of revenues inFY23) that compriseTransformers and Projects di...

  Hero MotoCorp to invest Rs 10,000 crore in technology, electric vehicles, manufacturing (2020) Hero MotoCorp to invest Rs 10,000 crore by 2027 in R&D Hero MotoCorp has lined up an investment of Rs 10,000 crore in the next five-seven years towards product development, new manufacturing facilities and network expansion, as part of efforts to hold on to its market leadership position while strengthening its presence overseas. For H1FY25, the consolidated numbers for Revenue and PAT were Rs. 20,694 Crore and Rs. 2,099 Crore, respectively. Volume – 30.55 lakh units of motorcycles and scooters sold in H1 FY’25 (Vs 27.69 lakh units Q2 FY’24)  H1FY25 basis, the EBITDA margin expanded over the previous year by 50 bps and stood at 14.4%  Entered Southeast Asian geography by commencing operations in the Philippines    Munjal also stressed on the company's ambition to become a force to reckon with in global landscape and said the company is now exporting to over 40 co...

U.S. companies filed for bankruptcy at the highest rate in 15 years, with 188 filings recorded in CY Q1 2025 S&P Global wrote that as a large amount of debt matures, companies now need to refinance at higher interest rates than when they issued the debt, posing ongoing challenges for many firms, especially those with weaker balance sheets. The report pointed out that for companies with non-investment-grade ratings, financial metrics based on Market Intelligence data indicate that they are grappling with rising debt pressures, and their ability to pay interest with available cash has also become slightly insufficient. In Q1 of this year, the industrial sector saw the highest number of bankruptcies at 32, followed by non-essential consumer goods companies with 24. These industries together accounted for nearly 30% of the total bankruptcies in Q1. However, as the unpopular tariff policies of the Trump administration continue to cause turmoil in financial markets, some industry insider...

How to get a 3 year benefit of Zero Tax under section 80IAC? The Government has just approved over 180 companies to get a 3 year benefit of Zero Tax under section 80IAC, and this is how your company can get it too... This section offers companies a consecutive 3 year tax free window in any of the first 10 years of their operations... Earlier, the way the startups were evaluated for this tax break was vague, but now the government has clarified the method of evaluation, and this is the process to follow: 1/ Business has to be a private limited or an LLP registered on the Startup India website and less than 10 years old, and have a turnover less than Rs 100 crores 2/ You have to show that your business is using innovation, technology to create new products or processes, and has the potential to generate huge scale employability in the nation, and create wealth for all stakeholders 3/ To apply, go to startupindia <dot> gov <dot> in/content/sih/en/form80iac <dot> html and...

Mallcom India Ltd was founded in 1983 by Mr. Ajay Mall as a small leather gloves manufacturer headquartered out of Kolkata, India.  Today it has grown to become one of the largest manufacturers and distributors of Personal Protective Equipment (PPE) products in India, with over 90% of orders coming from repeat customers.  An ISO certified and government registered trading house, Mallcom provides a one stop solution for manufacturing one of the widest range of head-to-toe PPE products from helmets, eyewear, ear protection, face masks, safety garments, gloves, to shoes, and many more.  The company is also one of the largest exporters of PPE products from India exporting to 55+ countries across 6 continents.  It has an expansive manufacturing footprint with 13 production facilities spread across India and captive test labs that ensure quality standards.  Over the year the company has focused on backward integration wherever possible resulting into significant cost ...

  IRB  Infrastructure Developers Aims to Expand Asset Base By Rs 200,000 Crore By 2032 IRB  Infrastructure Developers Ltd. aims to expand its asset base more than threefold by 2032, supported by opportunities arising from the government’s push to build national highways.  The company’s Director of Investor Relations, Anil Yadav, said that he expects  IRB  Infrastructure Developers’ existing Rs 80,000 crore asset base to reach Rs 280,000 crore in the next eight years.  IRB  Infrastructure Developers ( IRB ) is India’s first Integrated Multi-National Transport Infrastructure Developer in Roads and Highways segment.  The Indian government has plans to increase the length of national highways to over 2 lakh kilometres to cut down logistical costs as it gears to make India a developed nation by 2047. “In terms of long-term opportunities, the government has set a target to increase the national highways to 2 lakh kilometres over six to eight years....

  IRB  Public InvIT Overview IRB  InvIT Fund Gross Toll Revenue Toll Collection increase ~ 13% on Y-o-Y basis   According to a report,   Over 85 per cent of India's passenger traffic and about 65 per cent of its freight are transported on roads   , this gives us an idea of its importance Listed in May-2017 with initial portfolio of six operational assets; seventh asset was transferred in Sep-2017  Two assets were successfully completed and handed back to the authority. One HAM asset acquired in Oct-2022     IRB  InvIT has recently acquired VK1 HAM Asset from  IRB  Infra for an enterprise value of INR 12.97 bn including INR 3.42 bn as Equity payment     BOT-Toll assets with proven traffic history and spread across different states incl. Maharashtra, Rajasthan, Karnataka, Punjab & Tamil Nadu  Presence across key highway stretches in India; four assets part of Golden Quadrilateral corridor with on...

  Andhra Paper : Expansion Plans - Tissue Paper Production Line Tap into a rapidly growing segment with a projected robust CAGR of 11-12% (FY23-25).  Reduce dependency on other paper segments, spreading risk across various product lines  Meet rising consumer demand for hygiene products, boosted by increased awareness and health standards  Tissue paper products often command higher profit margins due to premium pricing for quality and convenience Differentiate the company in the market by offering a comprehensive range of paper products, enhancing brand loyalty Benefit from favorable regulations, such as bans on single-use plastics, driving consumers towards sustainable alternatives like tissue paper. Leverage existing manufacturing capabilities and R&D to efficiently produce tissue paper, optimizing costs and resources Tap into international markets with high demand for quality tissue paper products, expanding the company’s global footprint Cater to the growing n...

  Andhra Paper: Expansion Expansion: The Board approved installing a modern Tissue Paper Machine at the Kadiyam facility, with a capacity of 35,000 TPA for various tissue paper grades namely facial tissues, toilet tissues, napkins and towel grade tissues. Production is expected to start in about 15 months. Greenfield Expansion: In Jan-2023, the Board approved a pre-feasibility report for expanding into the Paper Board Segment with a new Greenfield Project at Unit: Kadiyam. The project aims to add 2,21,000 TPA (Pulp) and 1,56,000 TPA (Paper Board) in capacity Upgradation of its Facilities: The company plans to upgrade its Pulp and Recovery facility from 550 TPD to 630 TPD, investing approximately Rs 520 crore. Both Rajahmundry and Kadiyam units can increase paper production from 2.55 lakh MTPA to 2.40 lakh MTPA with addition of tissue paper manufacturing it will increase to 2.90 Lakhs MTPA.  Wide range of uncoated free sheet, copier products, diverse office documentation, and m...

  Transrail Lighting: power transmission and distribution segment contributed over 80% of  revenue At the upper price band, the OFS is valued at Rs 439 crore, taking the total issue size to approximately Rs 839 crore and giving the company a market capitalization of around Rs 5,800 crore. Transrail Lighting is one of the leading Indian Engineering, Procurement and Construction (EPC) companies with a primary focus on the power transmission and distribution business and integrated manufacturing facilities for lattice structures, conductors, and monopoles. It has a footprint in more than 58 countries. The company maintained a stable debt-to-equity ratio of 0.56, indicating consistent and conservative leverage. Transrail has demonstrated robust financial performance, with net profit more than doubling to Rs 233.2 crore in FY24 from Rs 107.6 crore in the previous year.  Revenue grew 29.3% to Rs 4,076.5 crore, up from Rs 3,152.2 crore in FY23.  As of June 2024, Transrail’s...

  Protean eGov In Focus - Big negative Disclosed that it is no longer in contention for Government of India’s PAN 2.0 project It has been eliminated from the RFP race Government had plans to overhaul PAN/TAN services under PAN 2.0 with a Rs 1440 cr budget Despite earlier confidence, PROTEAN is now completely out of the running Equirus Says, This is a material negative, as PAN services contribute ~50% of the company’s revenue FY26 impact may be muted, expect a 75-100% collapse in this revenue stream over the next 2-3 years 35% decline in FY27 overall revenue Segment has historically generated free cash that funded new initiatives — now under threat Additional headwinds include an impending NPS pricing revision in FY27 and stagnant ONDC retail volumes Downgrade to Sell from Add; Cut TP to Rs 900 from Rs 1730

  NLC  India to triple power capacity by 2030 with ₹50,000 crore investment  NLC  India Ltd (NLCIL) has announced plans to invest ₹50,000 crore in expanding its renewable energy capacity from 1.43 GW to 10.11 GW by 2030.  This ambitious project is part of India’s broader commitment to achieving net-zero emissions by 2070. NLCIL envisages increasing the share of renewable energy from 50 percent by 2030 to 77 percent by 2047 in its energy generation portfolio, enabling the company to achieve net zero by 2070. NIGEL aims to expand its portfolio by participating in competitive bidding and exploring emerging opportunities in the green energy sector. Currently, 2 GW of renewable energy assets are under implementation. NLCIL aims to achieve a renewable energy (RE) portfolio mix of 50 percent of its total planned capacity, increasing its RE capacity from 1.43 GW to 10.11 GW As the energy landscape evolves, NLCIL recognises the importance of innovation in reducing emissi...

  D-Link  India: Smallcap story D -Link (India) Limited is a part of  D-Link  Corporation and one of the largest networking companies in India D-Link  India today has 13 branch offices with State of-the-art service support infrastructure present PAN India.  D-Link , is a well-established player in the Indian networking market, known for its range of networking products that includes Home & Business Wireless, Network Switches Surveillance, Network Racks, and Structured Cabling D-Link  India enjoys a substantial market share in the consumer wireless and switching sectors. Its unmanaged and smart managed switches are among the most popular products among small and medium-sized businesses (SMBs) D-Link ’s enterprise-grade switches are designed for high-performance networking in business environments. The range includes smart managed, managed, data centre, and industrial switches, offering features like 10 to 100 Gigabit connectivity, robust security, a...

BALMER LAWRIE & CO. Visakhapatnam Port Trust is set to invest to the tune of ₹700 crore in various infrastructure projects Balmer Lawrie has 60% PM Modi Launches Infra Projects Worth Rs.15,233 Cr in AP · Outlining the advantages of Gati Shakti initiative, he said that the stage was being set for taking the Indian economy to $5 trillion economy by 2025. · The focus is on developing the seven sectors or the engines of growth such as road, rail, airport, logistics, seaport, mass transport and motor ways and the basic idea is coordination and cooperation between the sectors. · To give a permanent solution to pollution issues, VPT will be investing around ₹210 crore for building covered sheds over 25 acres of land, he said. · He said the electrification work on 23 ETKM Port Railway lines have been completed in the 1st phase and second phase of 38 TKM of Electrification Port Railway Lines will begin shortly. · VPT is also developing a truck parking terminal on an extent of 20 acres a...

  Balmer  Lawrie eyes Rs 6K cr revenue by 2030, to hire consultant for growth Diversified PSU  Balmer  Lawrie & Company is aiming at a revenue of Rs 6,000 crore by 2030 and is in the process of engaging a consultant to prepare a comprehensive growth plan "We are targeting a revenue of Rs 6,000 crore by 2030 and looking to appoint a consultant to guide us,"  Balmer  Lawrie CMD Adhip Nath Palchaudhuri said. He also said the key focus areas for growth are travel and vacation, grease and lubricants, logistics, and industrial packaging. The company, which operates across several business verticals, including grease and lubricants, industrial packaging, logistics and travel and vacations (T&V), has a current revenue of Rs 2,400 crore. Palchaudhuri noted that the T&V vertical has substantial growth potential. "Around 80 per cent of the business lies outside government departments, predominantly in the private sector. We are actively promoting our servi...

  Balmer  Lawrie & Co. Ltd. forays into Rail Logistics Balmer  Lawrie & Co. Ltd., a diversified Miniratna I PSE under Ministry of Petroleum and Natural Gas, GOI signed an agreement with M/s GATX India Pvt. Ltd., the largest private railcar lessor in India, for leasing 3 nos. of rakes of BFNS 22.9t wagons for transportation of finished steel products of Steel Authority of India Ltd. (SAIL), Rourkela Steel Plant (RSP) over distances exceeding 1000 kms.  Balmer  Lawrie forayed into transportation of cargo by rail with the signing of the agreement with SAIL Balmer  Lawrie aspires to cater to the growing market of rail logistics by serving the customer segments in the list of commodities allowed under the Liberalized Special Freight Train Operator (LSFTO) Scheme of Indian Railways.  The Company was looking to lease the 3 rakes and has now awarded the contract to GATX through a public tender.  This event furthers  Balmer  Lawrie’s sign...

  Den Networks : Hidden smallcap Total Assets 4,065 cr   Healthy Cash balances of Rs. 3,050 crores Market cap 2000 cr Zero Gross Debt DEN’s Cable operations covers over 450+ cities/towns across 13 key states  Currently enabled Fixed Broadband services across 41 Cities/Towns in India   (Delhi ,Uttar Pradesh, Karnataka, Maharashtra, Gujarat, Rajasthan, Haryana, Kerala, West Bengal, Jharkhand, Bihar, Madhya Pradesh and Uttarakhand) in India.    

  AdaniConneX, a 50:50 JV between  Adani  Enterprises and EdgeConneX, was founded with a vision to redefine the data center landscape in India.  AdaniConneX envisions to build an environmentally and socially conscious 1GW data center infrastructure platform by leveraging the complementary capacity of the  Adani  Group, India’s largest infrastructure player, and EdgeConneX, one of the largest private data center operators.  In a land of innovators, data center solutions need to be ahead to accelerate ambition and AdaniConneX mirrors this vision of Digital India.  As one of India’s fastest growing players, AdaniConneX is building a 1 GW data center platform powered by renewable energy in key locations, including Hyderabad, Chennai, Noida and Pune.  In the age of artificial intelligence, the strategic deployment of a comprehensive network of data centers will accelerate the adoption of modern technologies, fuelling India’s digital ambitions....

  Adani  Ports to more than double the capacity of Mundra port at an investment of Rs 45,000 crore Adani  Ports & Special Economic Zone (APSEZ) has bagged a key environmental and coastal regulation zone approval to more than double the capacity of Mundra port at an investment of Rs 45,000 crore Mundrs Ports plays a crucial roles in APSEZ's expansion plans in India. In FY24, APSEZ had handled roughly 27% of India's total cargo and 44% of container cargo. Mundra already handles the highest-ever volume by any port in India and  Adani  Group has lined up major investments for upcoming and ongoing projects "APSEZ is well poised to achieve 500 MMT of cargo volumes in 2025, aided by recently acquired Gopalpur Port, and the scheduled commissioning of Vizhinjam Port in the current year and WCT next year," Ashwani Gupta, the whole-time Director & CEO of APSEZ said earlier.

  ADANI  ENTERPRISES:  Adani  Water Limited Adani  Water Limited (AWL) had secured three projects with order value of more than ` 3,900 crore in the states of Uttar Pradesh, Bihar, and Madhya Pradesh. Adani  Water having signed a Hybrid Annuity Model concession agreement for Bhagalpur, Bihar STP, under the ‘Namami Gange’ project This business has been set up to address India’s growing need for water infrastructure capacity augmentation in the backdrop of the limited freshwater resource availability. It is involved in development and rehabilitation of sewage treatment plants and its associated infrastructure, through projects in waste water treatment, recycling and reuse.  Out of its portfolio of 3 projects, 2 projects are under HAM model under the aegis of the National Mission for Clean Ganga to develop a wastewater treatment project at Prayagraj in Uttar Pradesh which is already commissioned & at Bhagalpur in Bihar and 1 EPC project of 95,000 hect...

  Zomato/ Eternal: No promoter in company Cash balance increased to INR 19,235 crore as at the end of the quarter, largely on account of the net proceeds of INR 8,446 crore from QIP The quick commerce business is increasingly finding product-market fit in India.  Strong customer adoption is giving us the confidence to bring forward store expansion plans, and acquire customers faster for existing and new stores   The losses in quick commerce business this quarter are largely on account of pulling forward the growth investments in the business that would have otherwise made in a staggered manner over the next few quarters.  As of now, it seems like will get to target of 2,000 stores by Dec 2025, much earlier than previous guidance of Dec 2026     customers, who comprise 1/3rd of the platform GOV for Dec-24, paid an average delivery charge of ~INR 20 per order in Q3FY25 even when there were other players offering very low (or no) delivery charges...

  CESC : Renewable Energy Initiatives India’s first fully integrated electrical utility company (since 1899) with business interest in generation & distribution of power & Headquartered in Kolkata.   Planned Investments in Renewable energy generation of 3.2 GW Hybrid Renewable over next 3 years under Purvah Green Power Private Ltd.    Target to fully commission 3,200 MW by Mar -2029 Planned Renewable Capacity of 3.2 GW by FY29 in Phase-1 and overall capacity of 10 GW in Phase-2 under Purvah Green Power Private Limited ("Purvah")  Connectivity of 5.8 GW applied/secured across high wind and solar states : Gujarat, Madhya Pradesh, Rajasthan, Andhra Pradesh and Karnataka During 9MFY25, consolidated revenue increased by 10.4% to Rs 13,345 crs, while consolidated PAT increased to Rs. 1,043 crs in 9MFY25 as against Rs. 1,032 crs in 9MFY24  78% of Generation capacity is tied up with own distribution license - Kolkata & Noida  Received “Letter ...