Rounaq Bakshi notes

  Chocolates and Confectionery industry: expected to grow to over INR 50,000 Crore (CAGR of 10%) over the next 5 years The Chocolates and Confectionery industry is estimated to be over ~INR 34,000 Crore in size (consumer spends) with Chocolates accounting for around 58% of the industry and Confectionery accounting for 42%.  The industry is expected to grow to over INR 50,000 Crore (CAGR of 10%) over the next 5 years.  Chocolates category is dominated by international players (Mondelez, Nestle, Ferrero, Mars account for 85% share) with Indian companies starting to make headway in recent time, Amul being the largest player.  Confectionery, on the contrary, is more fragmented in nature with Top 12 companies accounting for 80% share and largest player having 25% share.  The category has large number of regional players having significant share in their respective strongholds. The chocolates category has seen significant premiumization in last few years, which has cr...

  Skipper: H1 Fy’26 Reported PAT growth of 24% H1’ Highlights   Highest ever first half Revenue at ₹25,156 million, up 14% YoY, Export revenue grew 27% YoY to ₹ 5,234 million.   Achieved Strong Profitability and Margin growth Stand Alone EBITDA margin improved to 10.3% vs 9.9% YoY driven by operating leverage and execution of higher quality T&D contracts.   PBT (Before Exceptional) registered a growth of 39% YoY to ₹1,220 million  With PBT margins to sales improving to 4.8 against 4.0% in previous year period.   PAT before exceptional jumps 37% YoY to ₹895 mn, PAT margin to sales improved to 3.6% against 3.0%. Order Book & Bidding   Highest ever Closing Order Book (September -25) – ₹88,204 million, constitutes 89% domestic & 11% export.   Q2 Fy’26 order inflow ₹12,430 mn majorly for engineering products supplies & EPC works, during the quarter secured significant large size domestic EPC contracts from PGCIL and Internati...

  Godrej Industries’ Chemicals Business to Invest over INR 750 CR for Capacity Expansion Godrej Industries Limited’s Chemical Business today announced significant capacity expansions in sync with the company’s growth plan to become a USD 1 Billion global business before 2030.  With a total capital outlay for expansions to exceed INR 750 Crore over the next few years, the company has already kicked off several projects.  The company announced doubling of its Fatty Alcohol and Euric Acid capacities with an addition of 35,000 tons per annum and 20,000 tons per annum respectively.  It has tripled its specialities capacity with an addition of 21,000 tons per annum while the glycerine capacity will be doubled with an addition of 24,000 tons per annum.  The fermentation capacity will also see a threefold increase with an addition of 1,500 tons per annum.  It plans to increase the Primary Surfactants capacity with an addition of 30,000 ton per annum.  Addition...

  J. Kumar Infraprojects:  Total Order book as on September 30, 2025 stood at ₹ 20,160 crores.  Net Debt as on September 30, 2025 stood at negative ₹ 124 crores (Cash Positive).  J. Kumar Infraprojects Limited (JKIL), a pure play EPC company having a niche in construction of Urban Infra Projects including Metros, Elevated Corridors / Flyovers, Roads & Road Tunnels etc Working capital days for H1 FY26 stood at 123 days.  Total Order book as on September 30, 2025 stood at ₹ 20,160 crores.  The order book inter alia includes Metro projects (elevated and underground) contributing ~13%, Elevated Corridors / Flyovers, contributing to ~53%, Roads & Road Tunnels projects contributes ~17% and others contributing ~17%. Consolidated Performance highlights for H1 FY26  Revenue from Operations for H1 FY26 grew by 10% to ₹ 2,826 crores as compared to ₹ 2,574 crores in H1 FY25.  EBITDA for H1 FY26 grew by 10% to ₹ 411 crores as compared to ₹ 373 crores i...

  Quess Corp, India’s largest and a global leader in staffing and workforce solutions Quess is expected to maintain a steady growth over the next two quarters, supported by rising staffing demand across manufacturing, retail, and logistics, following the recent GST reforms.  The company is also likely to deliver a consistent double-digit operating EBITDA margin in its Professional Staffing business, driven by high-margin digital skills and GCC wallet expansion.  These factors are set to contribute to a sustained revenue growth and stable margins. General Staffing: • Net headcount addition of 21,000 associates, totalling up to 4,70,338 associates Middle East delivers highest EBITDA margin and headcount at 12.8% and 2,100, respectively H1FY26 Highlights  ➢ Revenue of ₹7,483 cr, up by 3% YoY  ➢ EBITDA at ₹146 cr, up by 11% YoY with increase in margin by 14bps on a YoY basis  ➢ PAT at ₹103 cr, up by 3% YoY Commenting on the results, ED & Group CEO, Mr. Guru...

  IHC to invest USD 1 billion in Sammaan Capital Limited International Holding Company (“IHC”), a leading Abu-Dhabi based global investment company (ADX: IHC; market cap. ~US$240 billion, ~INR 21.3 lakh crore), has entered into definitive agreements to acquire controlling stake in Sammaan Capital through its affiliate, Avenir Investment RSC LTD IHC will invest INR 8,850Cr to acquire a 41.2% stake on a fully diluted basis via preferential allotment of equity shares & warrants Transaction will trigger a mandatory open offer for purchase of additional 26.0% of the Company at a price of INR 139.0 per share IHC will be classified as the Promoter of Sammaan Capital post the investment IHC will have the right to appoint the majority of the Board of Directors for Sammaan Capital Transaction is subject to customary closing conditions and receipt of necessary approvals from relevant authorities Syed Basar Shueb, CEO of IHC, commented: “India represents a core strategic market for us, and...

  Focus on BBTC as Britannia’s Consolidated Sales for Q2 grew 4% while Net profit grew 23%  Britannia’s Consolidated Sales for the Quarter ended 30th September 2025 stands at Rs 4,752 Crores, growing 4.1% and Net Profit stands at Rs 655 Crores, growing 23% on a year-on-year basis.  Commenting on the performance, Mr. Varun Berry, Executive Vice-Chairman, Managing Director & Chief Executive Officer, said: “Our Revenue during the quarter registered a reasonable growth of 4.1% with the profits growing by 23.2%, driven by relatively stable commodity prices and sustained efforts to optimise costs across the value chain. The recent GST rate rationalization announced by the Government is a welcome step towards stimulating consumer demand and uplifting the overall economic sentiment in the country. However, transitional challenges arising from the GST-related changes in Supply Chain, Trade and Channels had a short-term impact on business during the latter part of the quarter, ...

  Finolex Industries H1 FY26  Strong liquidity with free cash (net) of ~ ₹ 2359 Cr Weaknesses: Susceptibility to volatility in raw material prices :  Being a commoditised product, the prices of PVC pipes are easily impacted by movement in the prices of PVC resins.  The company’s operating performance was adversely impacted in fiscal 2023 and during the second quarter of fiscal 2025 due to significant fluctuations in PVC resin prices.  Profitability remains volatile to movement s  in international prices of PVC and its raw materials: ethylene dichloride (EDC), ethylene and vinyl chloride monomer (VCM). Furt hermore, as most of the raw material required for manufacturing PVC resin is imported, inventory   risk is also high.   Exposure to intense competition  in the PVC pipes industry :  The pipes and fittings industry are highly competitive, especially in the commoditi s ed products segment ,  which has low differentiation. Strengths:...

  POCL Enterprises: Smallcap in metals POCL Enterprises Limited operates with a separate management team and has created it's own brand value with a registered trade name of POEL.  POEL was established in 1988 and currently has 3 major divisions:  이 Metallic Oxides Division - Lead Oxides & Zinc Oxide • PVC Stabilisers Division - Lead Stabilisers and Calcium-Zinc Stabilisers  о Metals Division – Lead Smelting, Refining & Alloying POEL currently has 5 factories as follows:  • Unit 1 at Puducherry - Zinc Oxide, Litharge, Grey Oxide, Barton Pot Oxide & Red Lead  • Unit 2 at Puducherry - PVC Stabilisers  •Unit 4 at Maraimalai Nagar - Lead Smelting, Refining & Alloying  이 Unit 5 at Thiruvallur - Zinc Refining & Zinc Oxide  • Unit 6 at Maraimalai Nagar - Lead Smelting, Refining & Alloying  POEL is a proud ISO 9001:2015, 14001:2015 and 45001:2018 сcertified Company.  POEL is also listed on the Bombay Stock Exchange (...

Embassy Developments to Launch Six Residential Projects Valued at ~₹10,300 Crore in North Bengaluru Embassy Developments Ltd. (NSE: EMBDL / BSE: 532832) will launch six new residential projects valued at ~₹10,300 crore in North Bengaluru, reinforcing its strong growth trajectory for FY26.  Among the upcoming launches are two premium RERA-approved residential developments, Embassy Greenshore and Embassy Verde Phase II, within the landmark integrated township of Embassy Springs.  Embassy Greenshore will offer a differentiated collection of 800+ apartments across 2, 3, and 4 BHK configurations, featuring larger layouts, superior specifications, and elevated finishes. Building on the exceptional response to the fully booked Phase I, Embassy Verde Phase II will give homebuyers another opportunity to unlock value and be part of the North Bengaluru growth story.  Another key launch planned for FY26 is a new residential development in Hebbal. Located adjacent to the iconic, sold-...

Epack Durable: YES Securities sees 50% upside in this 'undervalued' stock   and arrives at a target price of ₹545 Epack Durable stock , OEM/ODM manufacturer of living appliances, serving major consumer brands, with a 'Buy' rating, citing its commendable value prop including strategic partnerships with key players, robust manufacturing capabilities and prudent capacity expansion, focusing on components manufacturing resulting in backward integration, customer addition, and new product launches and improving margin trajectory.   "We stay bullish on the RAC and the Kitchen space as in the medium term, led by factors like strong realty-infused demand, recent GST rate cuts, growing share of organised sector, and Govt impetus towards manufacturing and export boost will drive growth. The company’s enviable value prop should help it outperform the industry in good time," the brokerage said. Manufacturing expansion and product diversification:  Epack is scaling up its ...