Correspondens

Ancora imparo. Small cap investor.

[Correspondens @correspondens]

3B BlackBio is a cash flow machine. Very very good management in a niche business. Potential to explode this year with low valuation, low institutional ownership and war chest for M&A 👇🏼

[kumar saurabh @suru27]

Some businesses suffer from lack of operating cash flow, forget free cash flow and keep diluting for high growth and market willing to give 50-100x on high accounting PAT growth (no complaints, m also biased on few of them till song is on)

Then, there are some companies who generate so much of free cash flow that they need to have a M&A team to deploy cash else 5 years of free cash flow would be equivalent to 25% of market cap.

Also, they can grow at a healthy 15-20% rate.

However, market is not willing to give them even 20x "free cash flow" ex cash.

However, time fills all the gaps sooner or later.

In between, will come questions like - why this quarter sales growth is 3% down. Why other expenses are 5% up? why qoq growth missing? Why yoy EBITDA numbers slightly lesser?

Such investing would require years of waiting in patience but with continuous tracking of business not quarterly numbers to ensure structurally it is not a broken business, till market understands it and appreciates it.

Disc: Biased from last 2-3 years and added more in last 6 months. Not a buy or sell recommendation

#3BBLACKBIO

[Correspondens @correspondens]

Sigma Advanced continues to win large defense orders. 208 cr export order won from North American customer -

[Second Order Equity @2orderequity]

Anyone wondering why BMW Industries is the talk of the town?
👇 Do read this short article that breaks down BMWIL's current business model and why the Bokaro expansion could be a potential inflection point. #BMW #BMWIndustries

[Correspondens @correspondens]

BMW Industries at 52wk high

[Correspondens @correspondens]

BMW Industries

Kolkata based steel products manufacturer guiding for 75% sales CAGR till FY28 and tailwinds from East India infra push.

Company has been throwing free cash flows for the last 10 years, and is on the cusp of commissioning a ~800 cr expansion project.

[Correspondens @correspondens]

A real life hero 🙏

[Press Trust of India @PTI_News]

VIDEO | Delhi Malviya Nagar fire: A shop owner laid out around 20-22 mattresses from his shop so that people could safely jump on them to escape fire.

Shop owner Armaan says, "I have my shop here, I got information about the fire, there was a massive fire, nobody could get inside or come out. Then 7-8 persons somehow entered. Then I put around 20-22 mattresses from my shop and laid them outside, people jumped on it... Most of them were safe."

#MalviyaNagarFire #DelhiFire

[Shreenidhi P @nid_rockz]

Airfloa Rail Technology
#Airfloa

Unexecuted orderbook at 469cr

1200cr active bid pipeline with win ratio of 20-25%

FY27 guidance:
500cr revenue with 12-13% NPM

[Correspondens @correspondens]

@phreakv6 why do you think someone like RIL has not jumped on this opportunity? Seems right in their wheelhouse and they have the balance sheet to fund it

[bharani manoharan @phreakv6]

we must invest in serious dc capacity or we will end up importing most of our tokens from abroad and cause ourselves a big current account deficit. best if we regulate/incentivise so investments come in from hyperscalers (since we will import 70% of bom of dc capex)

[Correspondens @correspondens]

Epack Prefab 165 cr order received. Stock on fire today

[Correspondens @correspondens]

EPack Prefab 👍🏻

50% PAT growth - stark contrast with Interarch in PEB segment

[Correspondens @correspondens]

Almost 40% of free float exchanged hands today in Jeena Sikho. Crazy volumes

[रिमी @amurfalcon1]

Yesterday: endless tweets on why Jeena Sikho was being avoided by them
When it was at -20% LC.
Today: +20% 😀😀
Funny how narratives change faster than prices.

[Correspondens @correspondens]

GSM foils revenue of 34.5 cr in May, up 96% YoY. This is with minimal contribution from new Ahmedabad plant.

Guidance is to exit the year at 60-70 cr revenue per month, so it will double again during the year.

Trading at 8x FY27e pe

[Nilesh Kurhade @nileshkurhade]

📌 GSM Foils Limited informed the exchange about sales volumes of ₹345,953,935/- for the month of May, 2026. The company recorded a YoY growth of 96.41% in Net Sales for May, 2026 compared to May, 2025. #SME #GSMFOILS 📈📊

[Correspondens @correspondens]

3B BlackBio concall key highlights -

Mgmt is guiding for ~175-180 cr consol revenue vs 142 cr in FY26 (+23% YoY).

Core 3B + TRUPCR Europe should grow 15-20%.

Coris should do ~€5m / ~55 cr revenue in FY27. Mgmt said Coris will be loss-making in Q1/Q2, then HAT orders in Q3/Q4 should help it end the year around EBITDA breakeven / slightly positive.

My read is that full year EBITDA margins should normalize closer to 33%-36%, higher than Q4's 24% and lower than 40% margins pre acqusition. Growth in core business + exports + other income from the huge treasury will make up for lower Coris margins in FY27.

Few other important takeaways:

1. M&A commentary was very concrete this time
Mgmt said there are advanced discussions, 3-4 consultants are working across France/UK/US, and the company intends to deploy upto 140 cr on out of 250 cr surplus. They are looking at assets upto ~€10m / ~110 cr revenue also and fighting hard to be disciplined on valuation. I think another acquisition in FY27 looks extremely likely now, likely in the diagnostics / molecular / genetics adjacencies

2. Coris roadmap is becoming clearer.
FY27 target is ~€5m revenue, breakeven EBITDA. FY28 target is 5-10% EBITDA margin. US FDA registration is on track for FY28

3. Core business remains strong.
India business has ~15% market share and should grow around 15%, exports faster at 20-25%, and TRUPCR Europe continues to scale even faster

4. Sample-to-answer system will launch by H2
They are taking OEM route, validation is positive, and installations may start by Q3/Q4. This is imp because sample-to-answer and POC are large parts of the global molecular dx market where 3B has had limited participation so far.

Overall, FY27 looks like the first full year of 3B as a proper global diagnostics platform.

Expected revenue: 175-180 cr
Large treasury: ~250 cr liquid assets
Valuation: 16x pe FY27e, 12x pe ex-cash

Q1/Q2 may look optically weak on margins but most of it is priced in already

#3bblackbio #diagnostics #sme

[Correspondens @correspondens]

3B BlackBio FY26 result is a strong one.

FY26 Revenue up 47% to 142 cr
FY26 PAT up 26% to 60 cr
Q4 revenue up 58% YoY and PAT up 22% YoY

Coris contributed 36 cr revenue and 8.8 cr profit in part year consolidation. Ex-Coris too, the MDx business grew double digit despite last year’s flu/dengue spike base.

TRUPCR Europe grew 36% YoY and continues to become an important global distribution leg for the company.

Exports were very strong, up 25% YoY to 21.4 cr. Presence now across 70+ countries and 200+ export customers.

Balance sheet is the best part-

Cash + bank: 101 cr
Investments: 158 cr
Debt: just 3 cr
So ~255 cr net liquid assets on the books
Important point:net liquid assets increased by ~30 cr YoY despite acquiring Coris during the year. That tells you how cash generative the underlying business still is.

Cash flows remain best-in-class for a microcap.

CFO was 52.5 cr vs PAT of 59.9 cr, ~88% conversion. Unlike many microcaps that only report accounting profits, they keep throwing out real cash year after year.

Negatives - Q4 had margin compression as Coris got fully integrated (big jump in employee cost and other expenses), and FY26 had some one-offs including the profitable quarter consolidation benefit at Coris. So I would not blindly annualize Q4 or assume FY26 margins are the steady state.

But zooming out, this is a profitable, cash-rich, R&D-led molecular diagnostics company with India + UK + Europe footprint, growing exports, 120+ assays, AMR optionality through Coris, and M&A + IVDR + USFDA related triggers ahead.

At ~1050 cr market cap, the stock is still only ~17-18x FY26 earnings and ~13-14x ex-cash earnings...

[Correspondens @correspondens]

@Game_of_nationX @drprashantmish6 I posted a comparison between the two recently -

https://t.co/11owoQWSsy

[Correspondens @correspondens]

3B BlackBio vs Q-Line Biotech - which is the better picks and shovels play in diagnostics?

#qline #3bblackbio #sme #ipo

[Correspondens @correspondens]

Roads are still better than India ☠️

[Open Source Intel @Osint613]

New video out of Tehran after internet was restored shows the city during the U.S. and Israeli strikes in March.

@afshin_ismaeli

[Correspondens @correspondens]

@myAlerts_in @Nithin0dha @Tijori1 Great value! 👍🏻

[Correspondens @correspondens]

@2orderequity Keep up the great work 😀

[Correspondens @correspondens]

This handle is doing great work by uploading summaries super fast after con calls @2orderequity - recommended follow!

[Correspondens @correspondens]

Chandan Healthcare guiding for 30%+ growth in FY27 and margins to double in the next 2 years. Aggressively expanding out of UP to become a multi state lab chain.

Available at 16x FY27e pe assuming no margin expansion.

[Second Order Equity @2orderequity]

Chandan Healthcare 📞 Q4 & FY26 Concall Summary #CHANDAK

🟡 MANAGEMENT PROJECTION :
For FY27, the company anticipates topline growth of 30-35%, aiming for EBITDA margins of 30-35% after the current aggressive expansion phase. They plan to operationalize 20 labs and 5 comprehensive centers this year, with a target of 1,000 franchises within 24 months. The vision is to reach ~40% EBITDA margins post-expansion, within 2 years, and they are preparing to add three more states this quarter.

🔴 Red Alert :
The consolidated EBITDA margin stands at 20.25%, dragged down by the pharmacy business with a 5% margin, while pathology alone achieves over 40%. Expansion costs are causing a slight quarter-on-quarter decline in EBITDA margins. Receivables have increased due to government payments, with collection periods ranging from 3-4 months, potentially extending to 6 months, though bad debt risk is minimal.

🟢 Green Alert :
For Q4 FY26, Chandan Healthcare reported revenue of 77.41 crores, up 18.96% YoY, with EBITDA at 14.25 crores (up 12.65% YoY) and PAT at 6.92 crores (up 14.88% YoY). Full-year FY26 revenue reached 280.67 crores, a 20.43% YoY growth, and EBITDA was 56.84 crores (up 31.02% YoY), with an EBITDA margin of 20.25%. Total test counts increased by 20.69% to 8.8 million.

🔵 Blue Alert :
The company is aggressively expanding its pan-India network, now present in 13 states. They are establishing two new Genome Labs and are rolling out the "One District One Lab" initiative. A significant focus is on the franchise model, aiming for 1,000 operational franchises, and they have secured five 10-year PPP projects valued at 800 crores. The business model is transforming with the addition of online and franchise segments.

🧠 Deep Insight :
Chandan Healthcare is undergoing a significant transformation, shifting from a North India focus to a pan-India presence. The core strategy revolves around building comprehensive centers, supported by labs and a growing franchise network, driving a projected 30-35% topline growth. Key growth drivers are the expansion into 13+ states, the "One District One Lab" initiative, and 800 crore worth of PPP projects, which are expected to significantly boost revenue and profitability over the next 2-3 years.

[Correspondens @correspondens]

@harshmadhusudan