InvestingFreak

जय श्री राधेकृष्णा🙏
☆Insights on SM companies☆No Investment Advice☆Not SEBI registered

[InvestingFreak @rnshrm120]

Don't know why all analysts suddenly start shouting around a commodity or a stock when they already had run up a lot. All their optimism, bullishness suddenly awakens. How come they start seeing crunch in supplies, robust demand only when stock has given significant run up. Where were there analysis, thesis gone when the stock or commodity was lying beaten down. Why no one was speaking about Hind Copper or Copper itself six months back. Do hell with their analysis & wisdom.

[InvestingFreak @rnshrm120]

GNG Electronics: Investment Case, a thread.

▶️ Investment Thesis

▶The global PC industry is undergoing a structural transformation as AI-driven demand for memory, storage, and processing power continues to raise hardware costs, making new computers increasingly expensive.

▶This has improved the relative affordability of professionally refurbished devices & GNG Electronics as a refurbisher of old devices
is positioned to benefit from a structural shift in enterprise adoption rather than hardware inflation.

▶Strong operating execution, improving pricing discipline, wider global reach, and a strengthening distribution ecosystem continue to reinforce earnings quality.

▶Upward revision in FY27 guidance improves confidence in sustaining both growth and profitability.

▶️ Q1FY27 snapshot

• Revenue from operations grew 32.1% YoY
• EBITDA increased 52.8% YoY
• EBITDA margin expanded by162 bps to 12%.
• Gross margin improved 329 bps YoY to 24.6%

▶Margins were supported by procurement efficiencies, higher realisations, and a favourable geographic mix.

▶Reflecting stronger execution, FY27 revenue growth guidance was raised to 30% from 25% earlier, while PAT margin guidance was also increased by 50-100 bps.

[InvestingFreak @rnshrm120]

Zen Technologies

▶️ Q1 FY2027 performance analysis

1️⃣ Revenue

• Revenue from operations stood at Rs.141.6 Crores (revenue decline -10% YoY & -20% QoQ).

• A significant portion of the current order book was secured from the second half of FY2026 and given a typical execution cycle of around 12 months, revenue for the year is expected to be weighted towards Q2 and Q3. Company remain on track with our delivery schedules.

2️⃣ EBITDA & Operating margin

• Operational EBITDA for the quarter stood at Rs.38.7 Crores at an operational EBITDA margin of 27.3%, compared with 28.6% in Q4 FY2026 and 40.9% in Q1 FY2026.

3️⃣ PAT

• Profit after tax for the quarter stood at Rs.34.5 Crores at a PAT margin of 24.3% compared with Rs.31.5 Crores in Q4 FY2026 and Rs.47.8 Crores in Q1 FY2026.

• Quarter’s consolidated PAT includes a one-off exceptional loss of Rs.3.4 Crores relating to a fire incident at company's subsidiaries, however the damaged inventory was adequately insured.

• Excluding exceptional item, PAT for the quarter would have been approximately Rs.37 Crores at a margin of approximately 26.1%.

▶️Why EBITDA margin contracted?

• The margin was lower than the guidance of 35% at the EBITDA level, due to negative operating leverage.

⏩️YoY Compression

• Q1 FY2026 benefited from reversal of certain provisions created in FY2025, amounting to Rs.7.65 Crores, this provision release had given Q1 FY2026 an additional margin measurement of approx. 5%.

• In addition, Q1FY27 has seen an increase in warranty provisions of Rs.2.88 Crores and incremental R&D costs of Rs.4.25 Crores.

⏩️QoQ margin compression

• On a sequential basis, margin of 27.3% is broadly in line with the 28.6% in Q4 FY2026, reflecting a stable underlying run rate.

⏩️Management Commentary on margins.

• A significant portion of company's cost base, is fixed in nature. On a lower revenue base, this fixed cost absorption compresses the margins. As revenue scales, margins are expected to recover to mid-30s, in line with given guidance.

• Gross margins for the quarter stood at 72.9%, broadly consistent both sequentially and YoY. This indicates that the margin this quarter is a function of revenue timing and operating leverage & profitability of the business has not changed structurally.

[InvestingFreak @rnshrm120]

▶️ Order Book

• Consolidated order book stood at Rs.1239 Crores as of June 30,2026, comprising an equipment order book of Rs.920.6 Crores and an AMC order book of Rs.318.4 Crores.

• Execution during the quarter was Rs.141.6 Crores of orders and while company secured Rs.44.6 Crores of new orders, resulting in a net reduction over the March position.

• At quarter end, company received another order of Rs.177.5 Crores from the Ministry of Defense for the upgradation and integration of the tank and crew gunnery simulators.

• Apart from them, expecting Rs.700-800 Crores worth of incoming orders very soon. This is only for the simulators & do not includes anti-drone system.

• Management's expectation is that company will end the year at around Rs.2500 Crores of order book that is after the execution for the current year.

▶️ Working Capital & Debt position

• Consolidated working capital cycle stood at 257 days as of June 30, 2026.

• Debtor days remained stable at 122 days.

• Cash and bank balances of approx. Rs.1217 Crores as of June 30, 2026 and the group remains debt free.

▶️ Strategic Growth and Market Dominance in Simulation Technology

▶Air Force Entry and Market Expansion

• Entry into Simulators for Air Force is a very crucial step for us where the simulators are exceedingly required, even for a regular practice.

• Company looking for a breakthrough in US market, which may be much, much larger breakthrough in next 3-4 years.

Management told that the market size is very large, & the orders that they are getting are only a small part of that so far.

▶️ Revenue Generation Through Product Lifecycle

• A concept proving at this point in time and again, typically, once the comoany gets the order, the order lifecycle is 10 years and after the second or third year onward, they get the AMC. That will generate revenues for the company through the life cycle of a simulator.

• And 10 years later simulators are replaced.

▶️ Conclusion

While future market & order size for simulators can be very huge given current geopolitical scenario & training requirements among forces, however in near-term both may remain subdued owing to Indian government’s prioritization of emergency procurements (especially anti-drone systems) after Operation Sindoor, which pushed regular training/simulator acquisitions to the back burner.

This casts shadow on revenue growth for the company in near-term & guidance of 4000 Cr revenue for next 2 fiscal years combined looks ambitious for now.

Though company has diversified into robotics, hard kill, anti-drone & tank gunnery...simulators still form major portion of the revenue.

[InvestingFreak @rnshrm120]

Zen Technologies

▶️ Q1 FY2027 performance analysis

1️⃣ Revenue

• Revenue from operations stood at Rs.141.6 Crores (revenue decline -10% YoY & -20% QoQ).

• A significant portion of the current order book was secured from the second half of FY2026 and given a typical execution cycle of around 12 months, revenue for the year is expected to be weighted towards Q2 and Q3. Company remain on track with our delivery schedules.

2️⃣ EBITDA & Operating margin

• Operational EBITDA for the quarter stood at Rs.38.7 Crores at an operational EBITDA margin of 27.3%, compared with 28.6% in Q4 FY2026 and 40.9% in Q1 FY2026.

3️⃣ PAT

• Profit after tax for the quarter stood at Rs.34.5 Crores at a PAT margin of 24.3% compared with Rs.31.5 Crores in Q4 FY2026 and Rs.47.8 Crores in Q1 FY2026.

• Quarter’s consolidated PAT includes a one-off exceptional loss of Rs.3.4 Crores relating to a fire incident at company's subsidiaries, however the damaged inventory was adequately insured.

• Excluding exceptional item, PAT for the quarter would have been approximately Rs.37 Crores at a margin of approximately 26.1%.

▶️Why EBITDA margin contracted?

• The margin was lower than the guidance of 35% at the EBITDA level, due to negative operating leverage.

⏩️YoY Compression

• Q1 FY2026 benefited from reversal of certain provisions created in FY2025, amounting to Rs.7.65 Crores, this provision release had given Q1 FY2026 an additional margin measurement of approx. 5%.

• In addition, Q1FY27 has seen an increase in warranty provisions of Rs.2.88 Crores and incremental R&D costs of Rs.4.25 Crores.

⏩️QoQ margin compression

• On a sequential basis, margin of 27.3% is broadly in line with the 28.6% in Q4 FY2026, reflecting a stable underlying run rate.

⏩️Management Commentary on margins.

• A significant portion of company's cost base, is fixed in nature. On a lower revenue base, this fixed cost absorption compresses the margins. As revenue scales, margins are expected to recover to mid-30s, in line with given guidance.

• Gross margins for the quarter stood at 72.9%, broadly consistent both sequentially and YoY. This indicates that the margin this quarter is a function of revenue timing and operating leverage & profitability of the business has not changed structurally.

[InvestingFreak @rnshrm120]

▶️ Outlook

▶The organised refurbished computing market remains at an early stage of formalisation, supported by increasing enterprise adoption, affordability requirements, and sustainability initiatives.

▶At the same time, GNG Electronics continues to strengthen its competitive position through better procurement capabilities, improving pricing discipline, expanding global operations, and a more diversified distribution network.

▶The upward revision in FY27 guidance reflects improving confidence in sustaining both growth and profitability.

▶While working-capital intensity remains an important determinant, stronger gross margins, improving operating leverage, and deeper penetration across developed markets should continue to support earnings growth over the medium term.

Overall, GNG Electronics remains well positioned to benefit from the ongoing formalisation of the refurbished computing market. Continued execution across procurement, distribution, and global expansion should support long-term earnings growth as enterprise adoption accelerates.

At 17.3x FY29E earnings, the current valuation remains attractive given the company's improving profitability and structural growth opportunity.

[InvestingFreak @rnshrm120]

GNG Electronics: Investment Case, a thread.

▶️ Investment Thesis

▶The global PC industry is undergoing a structural transformation as AI-driven demand for memory, storage, and processing power continues to raise hardware costs, making new computers increasingly expensive.

▶This has improved the relative affordability of professionally refurbished devices & GNG Electronics as a refurbisher of old devices
is positioned to benefit from a structural shift in enterprise adoption rather than hardware inflation.

▶Strong operating execution, improving pricing discipline, wider global reach, and a strengthening distribution ecosystem continue to reinforce earnings quality.

▶Upward revision in FY27 guidance improves confidence in sustaining both growth and profitability.

▶️ Q1FY27 snapshot

• Revenue from operations grew 32.1% YoY
• EBITDA increased 52.8% YoY
• EBITDA margin expanded by162 bps to 12%.
• Gross margin improved 329 bps YoY to 24.6%

▶Margins were supported by procurement efficiencies, higher realisations, and a favourable geographic mix.

▶Reflecting stronger execution, FY27 revenue growth guidance was raised to 30% from 25% earlier, while PAT margin guidance was also increased by 50-100 bps.

[InvestingFreak @rnshrm120]

▶️ Inventory remains a strategic differentiator.

▶Inventory continues to attract attention because of its impact on working capital, but the business model suggests it should be evaluated differently from a conventional technology distributor.

▶Procurement opportunities typically arise through periodic asset disposals by large enterprises and financial institutions, making sourcing inherently non-linear.

▶Maintaining adequate inventory enables the company to secure attractive procurement opportunities, fulfil customer orders with minimal lead time, and respond quickly when market availability tightens.

▶It also allows the company to lock in procurement ahead of component price inflation, which could support gross margins over time.

▶Rather than being only a balance-sheet item, inventory enhances procurement efficiency, improves customer responsiveness, and provides greater pricing flexibility, strengthening the company's competitive positioning in the organised refurbished computing market.

[InvestingFreak @rnshrm120]

GNG Electronics: Questionnaire

▶️ Why the stock is experiencing back to back lower circuits even after putting strong YoY growth & even strong margin expansion?

Investors concerns are mainly placed around sequential slowdown in Q1 FY27 results, despite strong YoY growth & guidance upgrade from 25% to 30%.

• GNG Electronics is benefiting from rising new-PC prices due to AI-driven component shortages. Revenue up ~32%, 12% EBITDA margins, spread rise by 162 bps YoY, while PAT was up ~56%. However, company has shown notable sequential declines (revenue down ~37%, PAT down ~31% from the prior quarter). This raised certain questions about sustainability and near-term momentum.

• Investors believe that margins are not sustainable because a notable portion of the FY26 expansion came from buying used devices/components before prices spiked sharply. The company then sold at higher realizations while input costs remained anchored lower. As newer high cost inventory works through, this advantage is expected to fade over the next 12-18 months if the memory/component cycle normalizes or reverses. Higher inventory also creates downside risk if demand softens or component prices fall faster than expected.

• During concall management highlighted IDC estimates of an ~11.3% decline in global PC shipments in CY26 (potentially worsening to ~20% YoY in H2), ongoing memory shortages expected to persist into late 2027, and related supply-chain pressures. Component inflation has raised new entry-level laptop costs (e.g., from ~₹42,000 to ~₹48,000 in India), which on one hand supports the refurbished market long-term but also adds into near-term uncertainty.

Given that, stock witnessed heavy selling pressure post results.

▶️Management Clarification on Sequential decline.

Founder and Managing Director Sharad Khandelwal directly addressed an analyst question about decelerating growth (YoY growth of ~30% vs higher rates in prior quarters):

“This is a low seasonality quarter. First quarter is usually a low seasonality quarter. But yeah, again, I would say that we would rather be conservative and give conservative guidance. Our job, while we give conservative guidance, my and my colleagues’ job remains to accelerate growth, both on top line and bottom line side.”

• Some secondary reports describe it as linked to “standard seasonal trends in the IT procurement cycle.

• Management has upgraded FY27 revenue growth guidance (to ~30% from the earlier ~25% conservative view) & PAT margin guidance was also increased by 50-100 bps.

In short, they framed the QoQ drop as expected seasonality for the first quarter rather than a demand or operational problem, while emphasizing continued execution, margin gains, and long-term growth potential.

[InvestingFreak @rnshrm120]

✅️PN Gadgil Jewellers Ltd.

▶️ June 2026 performance

• Revenues grew strongly 41% YoY owing to strong consumer demand on the back of weddings and festivities (Akshaya Tritiya).

• Exceptional retail SSSG stood at 46% YoY, driven by healthy consumer footfalls and higher transaction volumes, despite elevated gold prices.

✅️This highlights strong underlying demand & gold's role as portfolio diversifier.

• The EBIDTA margins improved 120 bps YoY, driven mainly by the reduction in marketing spends as well as operating leverage.

• Net profits grew strongly 52% YoY.

▶️ Why PNGJL is poised for strong earnings growth?

• Strong earnings growth is primarily driven by lower marketing spends, and operating leverage.

• PNGJL is aggressively expanding its distribution reach both under the legacy PN Gadgil brand as well as the Litestyle (light weight jewellery) brand.

• Margins are expected to improve further, driven by lower marketing spends, a better product mix, and the increasing number of mature stores.

▶️ Robust network expansion

PNGJL would continue aggressive network expansion.

• While there were no store openings in Q1, PNGJL has retained its guidance of opening "25 new stores" in the current fiscal, taking the overall network to 103 stores by the end of FY27.

• Also, most of the store additions (20 stores) would be via asset light FOCO model.

• The share of FOCO stores in overall PNGJL's network would double to 40 stores by the end of FY27.

• PNGJL stated that FY28 and FY29 are likely to witness the addition of 37 stores each with the company reaching a network of 177 stores by the end of FY29, implying a store CAGR of ~31% over the next three years.

• The legacy PN Gadgil stores would increase from the current 65 to 113 by FY29, while the Litestyle (light weight jewellery) network would increase from the current 13 to 64 by FY29.

The company would deepen the presence in the core market of Maharashtra as well as expand in other states such as Bihar, Uttar Pradesh, and Delhi NCR.

PNGJL indicated that it has received an encouraging response in new states with the stud ratios in these markets already touching 15-16% levels.

▶️Margins to improv

PNGJL had incurred larger advertising and sales promotion expenses (higher discounts) in FY26 when it entered Bihar and Uttar Pradesh.

• However, PNGJL's marketing & sales promotion expenses are expected to decline in the current fiscal.

• As during FY27, PNGJL is focussing on enhancing reach in the existing markets and would not enter any new state.

• PNGJL expects ~Rs 100 crore reduction in the marketing spends in the current fiscal which would aid in margin improvement.

• Also, PNGJL's product mix is expected to improve, given the increasing share of diamond studded jewellery as well as the management's conscious decision to enhance jewellery sales and restrict the gold coin and gold bar sales.

Moreover, as the cohort of mature stores with better profitability increases, PNGJL's margins are expected to improve.

The PNGJL management has guided for net profit margins of 4.7-4.9 percent by FY29 as against a 3.8 percent margin reported in FY26.

▶️ Valuation discount

PNGJL's valuation discount to another regional jewellery player Thangamayil Jewellery has widened considerably. Hence, the stock has become attractive.

PNGJL remains my preferred bet in the jewellery retailing space.
Valuations

At the CMP, the stock is trading at P/E of 15 times FY28 projected earnings which is a steep ~50% discount to another regional player Thangamayil Jewellery.

PNGJL's current valuations are attractive.

⭐️Not a buy/sell recommendation.

[InvestingFreak @rnshrm120]

✅️PN Gadgil Jewellers Ltd.

▶️ June 2026 performance

• Revenues grew strongly 41% YoY owing to strong consumer demand on the back of weddings and festivities (Akshaya Tritiya).

• Exceptional retail SSSG stood at 46% YoY, driven by healthy consumer footfalls and higher transaction volumes, despite elevated gold prices.

✅️This highlights strong underlying demand & gold's role as portfolio diversifier.

• The EBIDTA margins improved 120 bps YoY, driven mainly by the reduction in marketing spends as well as operating leverage.

• Net profits grew strongly 52% YoY.

▶️ Why PNGJL is poised for strong earnings growth?

• Strong earnings growth is primarily driven by lower marketing spends, and operating leverage.

• PNGJL is aggressively expanding its distribution reach both under the legacy PN Gadgil brand as well as the Litestyle (light weight jewellery) brand.

• Margins are expected to improve further, driven by lower marketing spends, a better product mix, and the increasing number of mature stores.

▶️ Robust network expansion

PNGJL would continue aggressive network expansion.

• While there were no store openings in Q1, PNGJL has retained its guidance of opening "25 new stores" in the current fiscal, taking the overall network to 103 stores by the end of FY27.

• Also, most of the store additions (20 stores) would be via asset light FOCO model.

• The share of FOCO stores in overall PNGJL's network would double to 40 stores by the end of FY27.

• PNGJL stated that FY28 and FY29 are likely to witness the addition of 37 stores each with the company reaching a network of 177 stores by the end of FY29, implying a store CAGR of ~31% over the next three years.

• The legacy PN Gadgil stores would increase from the current 65 to 113 by FY29, while the Litestyle (light weight jewellery) network would increase from the current 13 to 64 by FY29.

The company would deepen the presence in the core market of Maharashtra as well as expand in other states such as Bihar, Uttar Pradesh, and Delhi NCR.

PNGJL indicated that it has received an encouraging response in new states with the stud ratios in these markets already touching 15-16% levels.

▶️Margins to improv

PNGJL had incurred larger advertising and sales promotion expenses (higher discounts) in FY26 when it entered Bihar and Uttar Pradesh.

• However, PNGJL's marketing & sales promotion expenses are expected to decline in the current fiscal.

• As during FY27, PNGJL is focussing on enhancing reach in the existing markets and would not enter any new state.

• PNGJL expects ~Rs 100 crore reduction in the marketing spends in the current fiscal which would aid in margin improvement.

• Also, PNGJL's product mix is expected to improve, given the increasing share of diamond studded jewellery as well as the management's conscious decision to enhance jewellery sales and restrict the gold coin and gold bar sales.

Moreover, as the cohort of mature stores with better profitability increases, PNGJL's margins are expected to improve.

The PNGJL management has guided for net profit margins of 4.7-4.9 percent by FY29 as against a 3.8 percent margin reported in FY26.

▶️ Valuation discount

PNGJL's valuation discount to another regional jewellery player Thangamayil Jewellery has widened considerably. Hence, the stock has become attractive.

PNGJL remains my preferred bet in the jewellery retailing space.
Valuations

At the CMP, the stock is trading at P/E of 15 times FY28 projected earnings which is a steep ~50% discount to another regional player Thangamayil Jewellery.

PNGJL's current valuations are attractive.

⭐️Not a buy/sell recommendation.

[InvestingFreak @rnshrm120]

Syngene International Ltd.: Pain continues

Syngene reported a weak Q1FY27, with consolidated revenue from operations declining ~16% YoY and the company posting a net loss, primarily due to the anticipated impact of destocking at a major biologics client (Librela-related), higher forex losses, and exceptional costs.

Performance aligns with management’s prior guidance (from Q4FY26) of a muted start to FY27, with H1 weaker and H2 expected to be meaningfully stronger, and overall flat performance for the year while targeting "mid-20s EBITDA margins".

▶️Analysis of Performance

▶Revenue

• The sharp sequential and YoY decline in revenue reflects the pronounced impact of inventory destocking/correction by Syngene’s largest large-molecule biologics manufacturing client (linked to Librela).

• Management had flagged this as a key headwind for early FY27, with near-zero contribution expected in Q1-Q2 and only minor volumes later in the year.

• Underlying Research Services and other businesses have shown more resilience in prior periods, but could not fully offset the biologics hit in this quarter.

▶Profitability

• The swing to a net loss was driven by lower volumes (operating leverage impact), elevated forex losses, and exceptional termination costs.

• Depreciation remains elevated due to recent capitalizations (including the Bengaluru biologics facility and ongoing US site investments). Cost of chemicals/reagents, employee benefits, and other expenses did not decline in line with revenue.

Management said that performance during the quarter was primarily impacted by the lack of offtake from a major LMCDMO client and forex hedge loss, partially offset by ongoing cost optimization initiatives.

Further, the management expects a degrowth in the first half of the fiscal year, business momentum is expected to improve in the second half, resulting in "single-digit revenue degrowth" in rupee terms for the full year and EBITDA margins in the mid-20s.

[InvestingFreak @rnshrm120]

Star Health & Allied Insurance Company Ltd. : Strong Performance

Delivered a strong Q1FY27 performance, with net profit rising ~25% YoY to ₹550 crore, driven by solid premium growth, a sharp improvement in underwriting profitability, and the shift to Ind AS accounting.

▶️Results Analysis

✅️Gross Written Premium rose +19% YoY is solid for a large player.

✅️Fresh retail health growth of 37% stands out and supports volume + value strategy (renewals + new business).

This aligns with the company’s earlier FY27 GWP target of ~₹24,000 crore (implying ~18% full-year growth from FY26 levels).

✅️Underwriting profit jumped nearly seven-fold to ₹111 crore.

✅️Combined ratio improved YoY to 90.93% (still healthy vs. Q4’s 88.55%). Net insurance margin expanded.

▶Investment income recovery: Positive contribution after Q4FY26 mark-to-market (MTM) losses that had dragged results into a loss.

▶Accounting change: Ind AS transition aids the reported underwriting picture by spreading acquisition costs.

Management (MD & CEO Anand Roy) highlighted “sustainable growth, improving core underwriting profitability, and sustained operating discipline.”

▶️Caveat

Q1 is typically a seasonally softer claims period relative to monsoons later in the year; industry health insurance growth was strong early in the quarter.

[InvestingFreak @rnshrm120]

Gravita India: Can be a decent compounder for 2-3 horizon.

▶️ Key numbers (Q1 FY27 consolidated)

• Very Strong Revenue Growth both on YoY & QoQ basis: ₹1,475 Cr (+42% YoY, +26% QoQ).

• Modest uptick in YoY EBITDA, while QoQ almost flat: ~₹110 Cr (+9% YoY, roughly flat/slightly down QoQ).

• EBITDA margin declined bot YoY & QoQ basis: 7.4% (vs ~9.7% YoY and ~9.6% in Q4 FY26).

• PAT saw decent growth both YoY & QoQ: ~₹106 Cr (+14% YoY & 15% QoQ).

⭐️Copper (RMIL) contributed ~₹376 Cr in revenue (vs nil in Q1 FY26 and only partial in Q4 FY26). Lead revenue was more modest (~₹955 Cr).

▶️ While company has delivered a very strong revenue growth, compression in the margins is the talk of the town. A few reasons for the same are listed below;

▶RMIL/copper consolidation (mix dilution):

• This was the first full quarter of RMIL. RMIL has structurally lower percentage EBITDA margins (around 8% or so, with sustainable EBITDA/ton guided lower than core lead) versus Gravita’s historical consolidated ~10–11%.

• Strong revenue addition from copper therefore diluted overall margins even as absolute EBITDA grew modestly. Analysts had flagged this exact risk pre-results, and had already guided for FY27 EBITDA margin compression to ~9.6% partly for this reason.

▶West Asia/Middle East disruption (product mix + costs): ~10–12% of sales (often higher-margin value-added products) go to the Middle East. Ongoing disruptions reduced those sales, lowered the value-added mix, and raised inward logistics/raw-material costs.

• Management highlighted this in the Q4 FY26 call as already pressuring Q4 margins and indicated it would continue into Q1 (with lead EBITDA/ton expected near the lower end of the sustainable ₹19,000–20,000 range).

Other income was elevated (~₹47.5 Cr), which supported PAT growth despite the operating-margin pressure.

🌟 Future Outlook & Growth Levers
Under Vision 2030, company is targeting following (mentioned in Q1FY27 PPT)

▶️Scalable Growth with Diversification

• Expansion across core recycling segments

• Expansion in new verticals: Copper, Rubber & Steel.

• The Company has commissioned a pilot lithium-ion battery recycling project.

• Company has acquired 99.44% stake in Rashtriya Metal Industries Ltd.(RMIL) marking its entry into copper recycling.

Foray into lithium-ion & copper recycling has strengthened its non-lead portfolio and enhances its position as an integrated, multimaterial recycling and value-added products company.

▶️Disciplined Growth Targets

• ~20–25% Volume CAGR
• 9-10% EBITDA margins
• ~ Sustain high ROIC (~25%)
• ~30–35% profitability growth

▶️Evolving Business Mix

• Increasing share of value-added products (~45–50%).

• Expanding contribution from non-lead businesses (~35–40%)

▶️Sustainable & Efficient Operations

• Higher renewable power usage (~25–30%).

• Improved energy efficiency (~8–10% reduction)

With management guiding for EBITDA margins in range of 9-10% under its Vision 2030, that means profitability growth going forward will be driven by higher volume growth expected from diversification & acquisition.

Cimpany is expected to deliver revenue/EBITDA/PAT CAGR of ~38%/36%/27% over FY26-28E given the current trajectory & if execution remains on track and margins stabilise post-Q1.

Trading at ~28-29x FY27E and ~22x FY28E earnings, Gravita trades at a growth premium that is justified by its multi-year volume visibility and diversification into copper, but is not cheap on absolute terms.

The stock is more attractive on a 2-year forward basis as multiples compress with earnings ramp.

However, valuations can shift quickly with the upcoming earnings call tomorrow on 28 Jul 26.... commentary on organic volumes, lead EBITDA/ton, RMIL margins, and updated guidance.

[InvestingFreak @rnshrm120]

Gravita India: Can be a decent compounder for 2-3 horizon.

▶️ Key numbers (Q1 FY27 consolidated)

• Very Strong Revenue Growth both on YoY & QoQ basis: ₹1,475 Cr (+42% YoY, +26% QoQ).

• Modest uptick in YoY EBITDA, while QoQ almost flat: ~₹110 Cr (+9% YoY, roughly flat/slightly down QoQ).

• EBITDA margin declined bot YoY & QoQ basis: 7.4% (vs ~9.7% YoY and ~9.6% in Q4 FY26).

• PAT saw decent growth both YoY & QoQ: ~₹106 Cr (+14% YoY & 15% QoQ).

⭐️Copper (RMIL) contributed ~₹376 Cr in revenue (vs nil in Q1 FY26 and only partial in Q4 FY26). Lead revenue was more modest (~₹955 Cr).

▶️ While company has delivered a very strong revenue growth, compression in the margins is the talk of the town. A few reasons for the same are listed below;

▶RMIL/copper consolidation (mix dilution):

• This was the first full quarter of RMIL. RMIL has structurally lower percentage EBITDA margins (around 8% or so, with sustainable EBITDA/ton guided lower than core lead) versus Gravita’s historical consolidated ~10–11%.

• Strong revenue addition from copper therefore diluted overall margins even as absolute EBITDA grew modestly. Analysts had flagged this exact risk pre-results, and had already guided for FY27 EBITDA margin compression to ~9.6% partly for this reason.

▶West Asia/Middle East disruption (product mix + costs): ~10–12% of sales (often higher-margin value-added products) go to the Middle East. Ongoing disruptions reduced those sales, lowered the value-added mix, and raised inward logistics/raw-material costs.

• Management highlighted this in the Q4 FY26 call as already pressuring Q4 margins and indicated it would continue into Q1 (with lead EBITDA/ton expected near the lower end of the sustainable ₹19,000–20,000 range).

Other income was elevated (~₹47.5 Cr), which supported PAT growth despite the operating-margin pressure.

🌟 Future Outlook & Growth Levers
Under Vision 2030, company is targeting following (mentioned in Q1FY27 PPT)

▶️Scalable Growth with Diversification

• Expansion across core recycling segments

• Expansion in new verticals: Copper, Rubber & Steel.

• The Company has commissioned a pilot lithium-ion battery recycling project.

• Company has acquired 99.44% stake in Rashtriya Metal Industries Ltd.(RMIL) marking its entry into copper recycling.

Foray into lithium-ion & copper recycling has strengthened its non-lead portfolio and enhances its position as an integrated, multimaterial recycling and value-added products company.

▶️Disciplined Growth Targets

• ~20–25% Volume CAGR
• 9-10% EBITDA margins
• ~ Sustain high ROIC (~25%)
• ~30–35% profitability growth

▶️Evolving Business Mix

• Increasing share of value-added products (~45–50%).

• Expanding contribution from non-lead businesses (~35–40%)

▶️Sustainable & Efficient Operations

• Higher renewable power usage (~25–30%).

• Improved energy efficiency (~8–10% reduction)

With management guiding for EBITDA margins in range of 9-10% under its Vision 2030, that means profitability growth going forward will be driven by higher volume growth expected from diversification & acquisition.

Cimpany is expected to deliver revenue/EBITDA/PAT CAGR of ~38%/36%/27% over FY26-28E given the current trajectory & if execution remains on track and margins stabilise post-Q1.

Trading at ~28-29x FY27E and ~22x FY28E earnings, Gravita trades at a growth premium that is justified by its multi-year volume visibility and diversification into copper, but is not cheap on absolute terms.

The stock is more attractive on a 2-year forward basis as multiples compress with earnings ramp.

However, valuations can shift quickly with the upcoming earnings call tomorrow on 28 Jul 26.... commentary on organic volumes, lead EBITDA/ton, RMIL margins, and updated guidance.

[InvestingFreak @rnshrm120]

Gravita India: Can be a decent compounder for 2-3 horizon.

▶️ Key numbers (Q1 FY27 consolidated)

• Very Strong Revenue Growth both on YoY & QoQ basis: ₹1,475 Cr (+42% YoY, +26% QoQ).

• Modest uptick in YoY EBITDA, while QoQ almost flat: ~₹110 Cr (+9% YoY, roughly flat/slightly down QoQ).

• EBITDA margin declined bot YoY & QoQ basis: 7.4% (vs ~9.7% YoY and ~9.6% in Q4 FY26).

• PAT saw decent growth both YoY & QoQ: ~₹106 Cr (+14% YoY & 15% QoQ).

⭐️Copper (RMIL) contributed ~₹376 Cr in revenue (vs nil in Q1 FY26 and only partial in Q4 FY26). Lead revenue was more modest (~₹955 Cr).

▶️ While company has delivered a very strong revenue growth, compression in the margins is the talk of the town. A few reasons for the same are listed below;

▶RMIL/copper consolidation (mix dilution):

• This was the first full quarter of RMIL. RMIL has structurally lower percentage EBITDA margins (around 8% or so, with sustainable EBITDA/ton guided lower than core lead) versus Gravita’s historical consolidated ~10–11%.

• Strong revenue addition from copper therefore diluted overall margins even as absolute EBITDA grew modestly. Analysts had flagged this exact risk pre-results, and had already guided for FY27 EBITDA margin compression to ~9.6% partly for this reason.

▶West Asia/Middle East disruption (product mix + costs): ~10–12% of sales (often higher-margin value-added products) go to the Middle East. Ongoing disruptions reduced those sales, lowered the value-added mix, and raised inward logistics/raw-material costs.

• Management highlighted this in the Q4 FY26 call as already pressuring Q4 margins and indicated it would continue into Q1 (with lead EBITDA/ton expected near the lower end of the sustainable ₹19,000–20,000 range).

Other income was elevated (~₹47.5 Cr), which supported PAT growth despite the operating-margin pressure.

🌟 Future Outlook & Growth Levers
Under Vision 2030, company is targeting following (mentioned in Q1FY27 PPT)

▶️Scalable Growth with Diversification

• Expansion across core recycling segments

• Expansion in new verticals: Copper, Rubber & Steel.

• The Company has commissioned a pilot lithium-ion battery recycling project.

• Company has acquired 99.44% stake in Rashtriya Metal Industries Ltd.(RMIL) marking its entry into copper recycling.

Foray into lithium-ion & copper recycling has strengthened its non-lead portfolio and enhances its position as an integrated, multimaterial recycling and value-added products company.

▶️Disciplined Growth Targets

• ~20–25% Volume CAGR
• 9-10% EBITDA margins
• ~ Sustain high ROIC (~25%)
• ~30–35% profitability growth

▶️Evolving Business Mix

• Increasing share of value-added products (~45–50%).

• Expanding contribution from non-lead businesses (~35–40%)

▶️Sustainable & Efficient Operations

• Higher renewable power usage (~25–30%).

• Improved energy efficiency (~8–10% reduction)

With management guiding for EBITDA margins in range of 9-10% under its Vision 2030, that means profitability growth going forward will be driven by higher volume growth expected from diversification & acquisition.

Cimpany is expected to deliver revenue/EBITDA/PAT CAGR of ~38%/36%/27% over FY26-28E given the current trajectory & if execution remains on track and margins stabilise post-Q1.

Trading at ~28-29x FY27E and ~22x FY28E earnings, Gravita trades at a growth premium that is justified by its multi-year volume visibility and diversification into copper, but is not cheap on absolute terms.

The stock is more attractive on a 2-year forward basis as multiples compress with earnings ramp.

However, valuations can shift quickly with the upcoming earnings call tomorrow on 28 Jul 26.... commentary on organic volumes, lead EBITDA/ton, RMIL margins, and updated guidance.

[InvestingFreak @rnshrm120]

Ratnaveer Precision Engineering Ltd (RPEL)

▶️Q1 FY27 results

• ~20% YoY revenue growth
• ~20% YoY PAT growth,
• Healthy absolute growth, but sequential margin compression of 100 bps
• Subsidiary (Ratnaveer Stainless Inox LLC) contributed nil.

Higher interest costs (interest ~₹6.7 Cr, up significantly YoY) weighed on bottom line amid expansion-related debt/working capital needs.

▶️ Key business updates highlighted from "press release" by management as "no official concall available".

• CCL Project: ~60% complete; commercial production on track for November 2026 (key machinery shipments expected shortly).

• Received In-principle approval under Gujarat Electronics Policy for the ~₹472 Cr project. Positioned as India’s first fully integrated high-volume CCL facility for import substitution (FR-4 grade focus, supporting electronics/PCB ecosystem and Aatmanirbhar Bharat).

• Infomerics (IVR) long-term to IVR A-/Stable (from BBB+/Positive); short-term to A2+. Bank facilities enhanced to ~₹388 Cr.

• Rights Issue: In-principle approval taken for up to ₹330 Cr (to support expansion, including CCL/electric division and working capital).

▶️Future Outlook

As per management mentioned during Q4FY26 concall;

▶They are targeting consolidated revenue of ~₹2,500 Cr in 2.5-3 years at 35% CAGR. Breakdown given below⏬️

• Stainless steel/core business ~₹1,800 Cr (guided ~25% CAGR) + CCL contribution ~₹750 Cr (from multiple lines by FY28).

• Margins: Consolidated EBITDA ~13-13.5%, PAT ~9-10.5%.

• CCL standalone targeted higher (~20% EBITDA / ~13% PAT initially).

▶FY27 revenue growth guided in 25-30% range);

• 80%+ capacity utilisation focus;

• CCL first-line commercialisation by Nov 2026, a key catalyst.

Commercialisation of Copper Clad Laminates (CCL) facility is going to be the key watch point for the company. If scaled successfully it would be the key growth & margin driver going forward.

India is reliant on imports for entire 100% of its needs, so being India’s first fully integrated high-volume CCL facility received In-principle approval under Gujarat Electronics Policy for the ~₹472 Cr project.

Facility is positioned as India’s first fully integrated high-volume CCL facility for import substitution, can be a significant growth driver.

CCL standalone margins anticipated at 20% EBITDA can be huge margin accretive segment.

If execution sustains, company is poised for a bright future.

[InvestingFreak @rnshrm120]

Ratnaveer Precision Engineering Ltd (RPEL)

▶️Q1 FY27 results

• ~20% YoY revenue growth
• ~20% YoY PAT growth,
• Healthy absolute growth, but sequential margin compression of 100 bps
• Subsidiary (Ratnaveer Stainless Inox LLC) contributed nil.

Higher interest costs (interest ~₹6.7 Cr, up significantly YoY) weighed on bottom line amid expansion-related debt/working capital needs.

▶️ Key business updates highlighted from "press release" by management as "no official concall available".

• CCL Project: ~60% complete; commercial production on track for November 2026 (key machinery shipments expected shortly).

• Received In-principle approval under Gujarat Electronics Policy for the ~₹472 Cr project. Positioned as India’s first fully integrated high-volume CCL facility for import substitution (FR-4 grade focus, supporting electronics/PCB ecosystem and Aatmanirbhar Bharat).

• Infomerics (IVR) long-term to IVR A-/Stable (from BBB+/Positive); short-term to A2+. Bank facilities enhanced to ~₹388 Cr.

• Rights Issue: In-principle approval taken for up to ₹330 Cr (to support expansion, including CCL/electric division and working capital).

▶️Future Outlook

As per management mentioned during Q4FY26 concall;

▶They are targeting consolidated revenue of ~₹2,500 Cr in 2.5-3 years at 35% CAGR. Breakdown given below⏬️

• Stainless steel/core business ~₹1,800 Cr (guided ~25% CAGR) + CCL contribution ~₹750 Cr (from multiple lines by FY28).

• Margins: Consolidated EBITDA ~13-13.5%, PAT ~9-10.5%.

• CCL standalone targeted higher (~20% EBITDA / ~13% PAT initially).

▶FY27 revenue growth guided in 25-30% range);

• 80%+ capacity utilisation focus;

• CCL first-line commercialisation by Nov 2026, a key catalyst.

Commercialisation of Copper Clad Laminates (CCL) facility is going to be the key watch point for the company. If scaled successfully it would be the key growth & margin driver going forward.

India is reliant on imports for entire 100% of its needs, so being India’s first fully integrated high-volume CCL facility received In-principle approval under Gujarat Electronics Policy for the ~₹472 Cr project.

Facility is positioned as India’s first fully integrated high-volume CCL facility for import substitution, can be a significant growth driver.

CCL standalone margins anticipated at 20% EBITDA can be huge margin accretive segment.

If execution sustains, company is poised for a bright future.

[InvestingFreak @rnshrm120]

E2E Networks Ltd

• Company has delivered an exemplary performance in Q1FY27, reinforcing investor conviction in the company.

• With strong sequential uptick in EBITDA margins for 4th quarter in a row company is entering a phase of accelerated earnings growth.

▶️Evolution

• E2E is not just a cloud infrastructure provider, as it has been rapidly evolving into India's AI infrastructure platform.

** ~133% rally in stock since Dec 2025 reflects improved investor confidence in the company's growth trajectory.

▶️ Impressive Q1FY27 results

• Company's revenue surged 334% YoY to ~Rs 157 crore.

• EBITDA margin expanded to an exceptional 75.2% a "quantum leap" from 29% in QE Jun 25 & 61% in QE Mar 26.

**Higher GPU utilisation, operating leverage, and rapid scaling of its AI cloud platform helped company to deliver such an exceptional quarterly show beyond anyone's expectations.

▶️ Robust execution

• GPU utilisation has increased to near-maximum levels, and the monthly revenue run-rate (MRR) has reached record levels at nearly "Rs 72 crore"
"(almost 5x from Q1FY26 & 2x from Q4FY26)".

**MRR was Rs 37 Cr during Q4FY26 & Rs 15 Cr during Q1FY26.

• With the recent deployment of NVIDIA's latest Blackwell B200 GPUs, E2E's live fleet has now expanded to about 5,100 GPUs.

• Additionally, another 1,024 GPUs are expected to be deployed shortly, thus enhancing company's compute capacity, while improving capital efficiency and long-term returns.

▶️ Operational strength intact

• Growth is increasingly driven by capacity additions rather than pricing, making the earnings trajectory more sustainable.

• More customers are now locking in contracts for longer period of 2-3 years, which further improves revenue visibility and cash-flow predictability.

• Management expects demand for AI compute to remain robust, and remains confident of current high margins to sustain over medium term.

▶️ Growth strategy and outlook

• The company operates its in-house AI platforms – TIR (Training, RAG, and model endpoints) and Jarvis Labs (a developer-friendly GPU cloud).

• E2E has secured Rs 265 crore worth of sovereign AI orders under the India AI Mission.

• Additionally, the company is deepening its enterprise presence through its strategic partnership with Larsen & Toubro (L&T), wherein the TIR platform uses L&T's data centre capacity and L&T uses TIR cloud infrastructure.

• Further, E2E has formed dedicated subsidiaries for GPU infrastructure and international operations, thereby demonstrating the management's long-term execution roadmap while also enhancing its global relevance.

▶️ Valuation and recommendation

• E2E is emerging as one of the strongest beneficiaries of India's AI infrastructure build-out.

• As one of the few listed companies operating large-scale GPU cloud infrastructure, it sits at the intersection of multiple structural growth drivers, including sovereign AI, enterprise AI adoption, and hyper-scale compute demand.

• While near-term earnings may remain volatile due to elevated depreciation and finance costs, this should be viewed as a transitional phase as the company continues to invest aggressively in capacity building that should benefit from operating leverage for several years.

• Given its early-mover advantage in domestic GPU cloud infrastructure and strong structural tailwinds from India's AI push, long-term view remains constructive on the company.

• Currently trading at ~20x FY28e EV/EBITDA, so any market-led correction should be viewed as an opportunity to accumulate the stock for long-term AI infrastructure exposure.

**Note:- L&T Ltd.'s 18% stake in the company strengthens the conviction in the future of the company.

▶️ Key risks to watch

• Rising competition from global hyper-scalers
• Delayed enterprise and government procurement
• Technology obsolescence and execution
• Ramp-up risks