Kavach 4.0 seems to be moving ?
Trial order is going on. It will take 6-9 months as per company to complete it. Then only they can participate in bigger orders, considering they get success in trial order.
Concord has received technical prototype clearance from RDSO for Kavach 4.0. There are two key positives as a result of this clearance.
First - Concord can now execute the trial order from South Central Railways
Second - It’s now recognized as a development vendor for all Kavach 4.0 tenders across India.
Expecting big order inflow for the Kavach business in the next 6 to 12 months.
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Looks like a good acquisition -
Source - https://www.bseindia.com/xml-data/corpfiling/AttachLive/29625631-88c8-4990-a15a-c651cc31d386.pdf
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Quick question. What could be the reasons for constant selling of FIIs and DIIs QOQ?
Yes, indeed. Looks interesting.
The revenue potential from the current capacity is INR200cr and they intend to double capacity in the next 3 years. EBITDA margin also likely to be in-line with the company’s target.
The question would be how the company merges this acquisition into the railways ecosystem. Earlier, Fusion was only supplying to automotive companies.
With half yearly results on November 5th and the subsequent con call, a lot of questions will be answered.
As I read the news at one place, it sounds other way round. I think the company intends to diversify their offerings in addition to current railways. It was mentioned that there is very limited competition and huge import dependency in India for the Fusion products.
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It appears company has delivered great set of numbers.
Revenue 82 cr Vs 50 cr (y-o-y) Vs 77 cr (h-o-h),
PAT 16 cr Vs 8 cr (y-o-y) Vs 14 cr (h-o-h),
EPS 25.4 Vs 14.4 (y-o-y) Vs 22.6 (h-o-h).
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They will use fusion capabilities for railways electronics. They have huge electronics subsystems in railways so i guess entire capacity of fusion would be taken by railways segment
Fund raising coming up - maybe to fund expected kavach orders
Name should be interesting in the fund raise. Hope they use the fund to increase stake in progota.
Mukul agrawal daughters. Ashish kacholia and one 6300 cr AUM Dii.
Since company is going mainboard soon, i was expecting some even bigger names like motilal oswal as of their recent meet with concord.
Bigger names will come when the size of the offering is bigger than this. However, the management is conservative on the “equity dilution” front considering the overall cost of capital.
What they have now is a good order book and a healthy liquidity buffer. That’s likely to ensure growth. The management has indicated that it has no challenges on the financing front. If need be, they will raise funding again. Also, with growth accelerating, internal cash flows will also support expansion.
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No positive cash flow ( from operation) in last 5 years.. Big red flag.. Be careful
Yea lets hope for best. Waiting for kavach tenders now.
Mostly government projects. Stretched working capital cycle. Niche areas its in. Other than valuations no other concern i see as of now.
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Valuation might appear stretched - but should be compared to electronic manufacturing for railway engines - lot of TAM expansion is possible there itself. Without, Kavach and new company acquired - without these two also it can do a revenue of 600-800 cr in FY28 with EBITDA of 120-200 Cr. Kavach is an optionality.
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Lets hope. Expecting 300-350 cr developmental kavach orders with 1-2 year timeline. These orders should come in 2 month time. Also mainly DPWCS order book of 300 cr to be executed in 18 months.
Small coach accessories order as of base business. Metro business. Anaconda. Wild. So yeah expecting 600 -800 cr revenue by FY 28. Ebitda would be 22-25% as i feel as kavach has higher margins if we compare hbl kernex n Concord said their kavach is most indegenised. Lets see how it goes. Dont wanna sell atleast before fy27 end