Equity Compass

Independent Indian Equity Research 📊
Deep dives into businesses, growth & valuation.
Finding tomorrow's compounders before they become consensus.

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V2 Retail : Equity Compass Case Study

“Management says 2,500 stores. Can the economics support the journey?”

To evaluate whether the economics can support scaling V2 Retail from 325 to 2,500 stores, we must stress-test the math behind capital requirements, working capital cycles, store unit economics, and execution limits.

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Coforge Ltd beats the AI overhang, makes an ATH.

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How Ather energy plans to beat every EV 2W maker in coming days.

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Ather Energy :

Path to Profitability :

1) EBITDA Inflection: Ather achieved an EBITDA breakeven run-rate in Q1 FY27 (+₹9.45 Cr vs. -₹105.97 Cr in Q1 FY26)

2) New Platform Cost Reductions

3) Capacity Step-Up : ~35,000 units/month to ~9.2 lakh units/year by Q3Fy27

4) Pricing Power & Software Mix : high-margin AtherStack Pro software pack, with non-vehicle revenues contribution.

So, Operational trajectory and earnings commentary indicate that full-year/quarterly net profitability is expected within the next 3 to 4 quarters (late FY27 to early FY28), driven by several above catalysts.

Current Valuation Multiples & Snapshot :

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Ather Energy has strongest growth trajectories among pure-play EV makers in India, and gaining market share rapidly.

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@shome_rajarshi It's overvalued only when the rate of growth slows down.

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If a company is posting exceptional earnings visibility, but institutions haven't noticed yet or can't buy due to size constraints, you can accumulate shares before the crowd arrives.

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Shanti Gold vs Sky gold :

"Who hedges better against Gold price volatility?"

Sky Gold : Strict back-to-back hedging + Advance Gold (17% of mix).

Shanti Gold : Natural hedging / GML (quarter margins exposed to FIFO/WAC inventory shifts).

"Sky Gold isolates its P&L from Gold price volatility, driving consistent ROIC."

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5 Future Growth Levers of Car Trade Tech :

"Target of achieving INR 1,000 crores in profit over the next 4–5 years"

1) Olx crossed 100,000 monthly paid users, with plans to make all high-volume business buyers mandatory paid users.

2) Partnering with organized players (starting with Spinny) and large dealer groups. CarTrade provides digital discovery, AI evaluation, and consumer reach, while partners fulfill physical inspections, refurbishment, and delivery. Integrating ~550 abSure and Signature dealer outlets

3) One-click auto loans via partners like IDFC FIRST Bank and other NBFCs at expected take rates of 2–3%.
and Rolling out micro-lending integrations for consumer durables and electronics (phones, TVs, appliances) sold on OLX.

4) AI Integration via VAYA AI

5) "40-40" Company Goal: Scaling toward sustained 40%+ EBITDA margins while delivering 40%+ profit growth.

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@dany081966 high volatility, since its an illiquid script.

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Sky Gold & Diamonds

1)Long-Term Revenue Targets: Targeting ₹8,100 Crores in FY27 and ₹18,000–₹19,000 Crores by FY30 with ₹1,000 Crores in PAT (excluding uncounted Advance Gold conversion volume).

2) Channel Drivers: Expanding wallet share with Tier-1 national jewelers, scaling Gen-Z/D2C brand partnerships (CaratLane, Candere, GIVA), and growing high-margin LGD export channels across the UK and Europe.

3) Operational Leverage: Minimal capex needs (~₹80–₹100 Crores post-2028 on a leased basis), with margin expansion supported by high-margin Advance Gold and diamond-studded lines.

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SETL ( Standard Engineering) :

"A Company scaled via twin engines, Core Pharma/Chemical + AI Data Centers."

1) Backed by an unexecuted order book of ₹1,400 Crores.

2) Capacity Expansion: Setting up a 4,00,000 sq. ft. manufacturing facility (Phase 1 of 2,00,000 sq. ft. operational by November 2026; next 2,00,000 sq. ft. by December 2026).

3) Value Proposition: Reduces typical data center build cycles from 24–36 months down to 15–18 months by building modular skids off-site. Currently in advanced discussions/LOIs with 5 large hyperscalers and domestic data center players.

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Shanti Gold : Next Sky Gold ?

1) Near-Term Guidance: Targeting 50%–60% revenue growth (guidance of ~₹3,500 Crores for FY27) and 30%–40% volume growth, driven by newly added capacity.

2) Capacity Expansion: Commissioned the Marol unit (4-ton capacity) and constructing a new 50,000 sq. ft. facility in Jaipur (~₹47 Cr capex) across a 3-acre site, allowing multi-fold expansion.

3) Channel Drivers: Scaling presence across North India and establishing a direct export office in Dubai to access Middle Eastern markets.

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Vintage Cofee :

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Vintage Coffee:

"Can It Grow at the Same Pace (~70%–80% CAGR) for the Next 3 Years?"

Installed Capacity Ramp-up Roadmap:

>>FY25-FY26 (Base) : 6,500 MTPA
>>Q4 FY26 / FY27 : 11,000 MTPA
>>FY27 / FY28 : 16,500 MTPA
>>FY29 (Pipeline) : 22,000 MTPA

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1) Margin Outperformance: Aimtron generates higher EBITDA margins (21%–23%) through its focus on niche, complex High-Mix Low-Volume (HMLV) electronics and direct exports to North America.

2) Capital Efficiency: Its ROE (>20%) and ROCE (>22%) outpace larger-scale peers that carry higher capex and corporate overheads.

3) Valuation: The market prices Aimtron at ~76x–79x P/E, pricing in sustained profit growth and continued expansion in high-margin verticals.

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Aimtron Electronics vs its EMS Peers

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Capri Global Capital Ltd :

"What's going good for the company? "

1) Consistent Return on Average Equity (RoAE) target of 19% to 21% by FY28.

2) Consistent Return on Average Assets (RoAA) target of 4.2% to 4.7%.

3) Plans to add 400 branches during FY27.

4) Cost-to-income ratio is guided to stabilize around 44% to 45%.

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EBITDA margin improvement causes EPS to compound substantially faster than revenue.