About the Company:
Integra Engineering India Limited (INTEGRA) provides a range of solutions for the railway industry. Our expertise comprises the design and manufacturing of sheet metal and wiring as well as electro-mechanical solutions. Integra is a trusted partner and manufacturer of components of propulsion systems for locomotives (WAG/WAP - 6000 / 9000/ 12000 HP). We moreover manufacture a broad range of interior parts for the metro and semi-high speed train segment. In addition, INTEGRA is a reputed supplier of railway control systems such as M2M / M2C relays, FACS and LED Signals.
Certifications:
INTEGRA strives for excellence in quality and holds various certifications including process standards like EN 15085 CL-1 and DIN 6701, product approval and certificates like RDSO, IP 65 & 55, CE marking, and various management standards of quality, environment and safety, like ISO 9001:2015, 14001:2015 & 45001:2018.
Management:
Integra is a subsidiary of Integra Holding AG, Switzerland. Integra Holding AG is a Swiss management holding company with shareholdings in markets across the world. The current Integra portfolio comprises participation in real estate, flow metering and energy measuring technology, life science laboratory equipment technologies, road signing and marking solutions, as well as mechanical and electrical engineering. Integra Holding’s main shareholder is a foundation under Swiss law. Its foremost objective is to support innovative companies by co-financing future-oriented, new developments.
Professional management with a Chairperson of Swiss origin.
Product Offering:
- Railway Panels: Fabrication of boxes/ enclosures and other parts for Rolling Stock application for various locomotive sections has been INTEGRA’s major USP for more than two decades now INTEGRA is consistently catering to various requirements of several players who need railway panels. Alstom, BHEL, Medha Servo, Siemens, CG, and CAF Power trust us as their reliable partners for any requirement related to railway panels. They supply propulsion systems, Hotel Load converter AC EMU panels (EDC/ECC/TCC) and Vehicle Control Units (VCU).
The railway propulsion system consists of various electrical devices to give force and drive the locomotives (wagons, carriages) INTEGRA supplies the enclosures for the subcomponents of the propulsion system: Traction Converters, Auxiliary panels, and Velocity control units.
In trains ( Railways ), Electrical power is required for running Exhaust fans, coach lighting, vestibule lighting, AC system, water pumps, etc. In the coaches and in the pantry car equipment for hot cases, bottle coolers, refrigerators, electric burners, etc. This electrical load is termed as “Hotel Load” and the power converter system for this requirement is called Hotel Load Converter.
Integra has acquired profound expertise in manufacturing panels/enclosures for the HLC. Various manufacturers are having their own designs of HLC and we, at INTEGRA make enclosures for them.
An electric multiple unit (EMU) is a multiple unit train having self-propelled carriages As the electric traction motors are incorporated into the passenger carriages, EMU does not require a separate engine/locomotive as in a normal propulsion system
INTEGRA manufactures various panels for this AC EMU system, like EDC, ECC (Electrical Control Cabinet ), TCC ( Traction Control Cabinet ), etc
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Metro Interiors: While attaining expertise in making parts for railway panels, INTEGRA is rapidly growing in the supply of metro interior products. INTEGRA is already supplying the following: Cab Back wall with salon door, Central ceiling, Lateral ceiling, Sidewall, Door Pod, Floor Coving, Partition wall, Cab cubical trims, Electrical Cabinet, Luggage racks, Door Threshold, Flasher Light Cover, Gangway Threshold, Cab Interiors, Driver Desk Metallic components, Air duct, Bulkhead Panel, etc.
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Railway Control System: INTEGRA is supplying several products related to Railway Control Systems for more than two decades now Metal to Metal carbon relays, Railway signalling, have been INTEGRA’s major supply to Indian Railways and its contractors. Being RDSO approved supplier, the reliability and quality standards of INTEGRA’s products are unquestionable. They provide metal-to-metal signalling relays, Q series signalling relays (Metal to Carbon), LED Signals, Fuse Auto change over the system, and Wire harnesses.
Fuse Auto Changeover Systems continuously monitor various fuses provided in Railway Signaling Installations. The System not only monitors the fuses, but also changeover to a Spare Fuse (provided within the system) automatically on failure of the Main Fuse. The system simultaneously monitors the status of both the Main and the Spare fuse and provides audio / visual alarm on failure of any fuse.
INTEGRA provides Contract manufacturing of Wire Harnesses to various OEMs as per their requirement, We have a complete in house facility to fulfil variety of customer requirements.
IEIL introduced Metal-to-Metal TM type signaling Relays in 1987 for the Indian Railways. With the technical collaboration with Integra Holding AG, Switzerland, IEIL ensured fail safe solutions for the passage of trains through interlocking functions thereby replacing the old technology of mechanical lever frames. IEIL is an ISO 9001:20 Certified company and is an approved vendor for metal-to-metal TM type relays, as per IRS specifications, at Research Design and Standards Organization (RDSO) Lucknow.
For further product details please check below link:
https://integraengineering.in/products/railway_panels#
Past Financial Numbers:
| Compounded Sales Growth | |
|---|---|
| 10 Years: | 19% |
| 5 Years: | 24% |
| 3 Years: | 28% |
| TTM: | 28% |
| Compounded Profit Growth | |
|---|---|
| 10 Years: | 43% |
| 5 Years: | 40% |
| 3 Years: | 47% |
| TTM: | 148% |
| Return on Equity | |
|---|---|
| 10 Years: | 16% |
| 5 Years: | 22% |
| 3 Years: | 20% |
| Last Year: | 28% |
Clients:
Our clients include OEMs such as Alstom, Siemens Mobility, Medha Servo, CAF Power & Automation, CG Power, BHEL, Hind Rectifier, and Sepsa Medha for the domestic and export market.
Investment Rationale:
- Professional management with a Swiss company holding the majority of the company.
- Company have a technical edge. They have been able to maintain a 9% yearly NPM throughout the years.
- Proxy play on the modernisation of the Indian railways.
- Every city wants to have a metro network because of rapid urbanisation.
- Excellent numbers in the past across sales, profit and ROE.
Risks:
- Delay in plans of infrastructure building by the Indian government.
- Three customers contributed to 53.03% and 43.41% of total revenue for the year ended 31st March 2023 and 31st March 2022 respectively.
- Need to understand why there is no holding of DII and FII
- No con-calls and very limited information about the company in the public domain.
- Never paid the dividend.
Valuation:
Company is trading at a P/E of 33 and P/B of 11.3
Disclosure: Currently studying. Please share your insights if you’re tracking this company.
Market cap: 700 cr.
Price: 204
