Ranvir's Portfolio

[ranvir]

Orient Electric -

Q1 FY 26 results and concall highlights -

Q1 outcomes -

Revenues - 769 vs 754 cr, up 2 pc
Gross Profits - 250 vs 250 cr ( GMs @ 32.6 vs 33.1 pc, down 56 bps )
EBITDA - 46 vs 40 cr, up 15 pc ( due lower other expenses )
PAT - 17.6 vs 14.4 cr, up 21 pc

WC days @ 25
Net Cash on books @ 72 cr

Segmental performance -

Electrical consumer durables ( ECD ) revenues @ 545 vs 545 cr, flat YoY ( water heaters saw high double digit growth. Early rains led to industry wide disruption in sales of cooling products )

Lighting and Switchgear revenues @ 224 vs 210 cr, up 7 pc YoY ( Switchgears, Wires saw high double digit growth. Lighting performance aided by greater share of higher value / premium product sales )

B2C lighting volumes grew in double digits ( with single digit value growth due price erosions )

Coolers business saw a de-growth of 40 pc - due weak summers + heavy rains - this was the primary reason for a weak performance in company’s ECD division

In next 7-8 Qtrs, company aspires to reach 10 pc EBITDA margins ( if this happens, can significantly boost profitability )

ROHS compliance has kicked in India in the LED lighting segment wef 01 Apr 25. Company hopes, this should bring about some discipline in the LED lighting space

Company’s share of premium range in the Fans business is around 30 pc ( industry avg is around 20 pc ). Aim to take it to 40 pc in next 2 yrs

Company estimates that coolers inventory @ the end of Q1 should be at higher than normal levels across most parts of the country due weak summers

Company intends to keep spending 4-5 pc on advertising and marketing spends going forward ( in Q1 they spent 5.5 pc but the season turned out to be weak )

Festive season in 2025 is about 2 weeks earlier vs 2024. Therefore, Q2 should see descent build up in inventories ahead of festive season

The EBIT margins in ECD division saw a sharp contraction from 9.1 pc to 6.8 pc. Primary reason for the same the the operating de-leverage that the company witnessed due weak summers

Company’s new Hyderabad facility shall ensure that capex requirements for next 2-3 yrs shall be minimal. As their Hyderabad facility ramps up, it should also help ramp up their EBITDA margins

Disc: hold a small tracking position, looking for signs of uptick in the Industry, not SEBI registered, not a buy/sell recommendation

[Chetanpinto]

Thanks for the well researched QoQ updates @ranvir.

I generally consider myself a novice at naked/direct stock pick based investing.

Also I am not a numbers person although I do understand that ALL businesses are cyclical, instead of simply assuming a category of stocks (like commodities) which are generally deemed cyclical.

It would be helpful to investors like me if you could clarify your investing style based on a few questions-

Would it be safe to assume that your starting point criteria for stock picking is a company 1) already growing at ~15%+ EBITDA or 2) predicted to grow at ~15%+ EBITDA based on management commentary or some other criteria/marker you have set for your self? Is this more or less accurate?

This would then also mean that you have some kind of a ball park criteria target you assume the stock will achieve?

And incase it isn’t achieved, you may at best give it a quarter or two and would not hesitate to exit the stock if it doesn’t meet your initial expectation?

For me this would qualify as momentum or ‘ride the wave’ style of investing. Am I correct in assuming this?

Also do you believe in a) allocating a proportion of your funds specifically only for Index/ETF or Mutual Fund or even PMS style of investing to reduce the errors and risks or b) do you believe there’s no point anyways as you assume all of these are generally in the same boat in terms of actual behaviour but MFs/PMSs just think/pretend (as opposed to their actions) they are more long term?

The reason for asking you these questions is because whatever your investing style is, it’s atleast more honest and transparent and there is good reason to believe that you are doing reasonably well.

Would be great to get your thoughts and gain some clarity, thanks

[ranvir]

Blue Jet Healthcare -

Q1 FY 26 results and concall highlights -

Revenues - 353 vs 161 cr, up 119 pc ( revenues in Q4 FY 25 were @ 340 cr ). Revenues in Q4 FY 25 were @ 340 cr
Gross margins @ 48 vs 54 pc ( gross margins in Q4 FY 25 were @ 55 pc )
EBITDA - 121 vs 45 cr, up 173 pc ( margins @ 34 vs 27 pc ). EBITDA in Q4 FY 25 was @ 140 cr with 41 pc margins
PAT - 91 vs 38 cr, up 141 pc ( PAT margins @ 25.7 vs 23.2 pc ). PAT in Q4 FY 25 was @ 110 cr

Segmental Breakup of Q1 sales -

Contrast media intermediates - 97 vs 64 cr
High intensity sweeteners - 35 vs 35 cr
Pharma intermediates and APIs - 212 vs 60 cr
Others ( spent oils & industrial solvents ) - 10 vs 2 cr

Segmental revenue CAGR over last 4 yrs -

Contrast media intermediates - 3.4 pc
High intensity sweeteners - 7.8 pc
Pharma intermediates and APIs - 82 pc

Overall company level revenue CAGR for last 4 yrs @ 26 pc

Cash on books @ 248 cr

Company’s total reactor capacity @ 1178 KL ( across its 3 facilities ) with a portfolio of 51 commercialised products - 19 contrast media products, 4 high intensity sweeteners and 28 Pharma grade products

BlueJet supplies contrast media intermediates to 3 of the world’s largest contrast media players. The relationship of company with its clients is very sticky as the supplies require strict control over impurities and specific product profiles. Company now aims to forward integrate into more advanced contrast media intermediates in order to realise better sales and profitability by moving up the value

Seeing good traction in new contrast media intermediates - company hopes that H2 should be much better than H1 for their contrast media business

Company’s high intensity sweeteners plant in US FDA compliant. Company offers sweeteners to aprox 300 customers globally. Target industries include - Oral care products, table top sweeteners, soft drinks, confectionary products, Pharma products, food supplements, animal feed

Company makes Pharma intermediates and API in 3 key therapies - Cardiovascular, CNS, Oncology. Company’s clients include 40 multinationals across India, EU, North America and Asia

Company is currently supplying advanced intermediates for 4 APIs that are currently under patent. One is an Onco API, another one is a CNS API and 02 are Cardiovascular APIs

Seeing good traction in new contrast media intermediates - company hopes that H2 should be much better than H1 for their contrast media business

The Cardiovascular intermediate that the company supplies for the on patent molecule is seeing strong demand as the end molecule is growing rapidly in Developed markets

Company’s new plant in Mahad ( expected to go commercial in H2 ) - focussing on Contrast media intermediates and KSMs shall position them very strongly in this space

Seeing increased enquiries in their CDMO business. Given the interest that they are seeing in this segment, they are advancing with a plan to build a multipurpose plant at Mahad and a state-of-the-art R&D center at Hyderabad. The GMP compliant plant shall have a 30 reactor capacity and will be a versatile plant with capability to supply from a few kilos to multi-tons to their CDMO clients in any geography. This plant should go live in H2 FY 27 and should entail a capex of aprox 300 cr ( this capex includes aprox 100 cr already spent towards the contrast media plant as mentioned above ). Company is also building a state of the art R&D plant at Hyderabad focussing on newer chemistry platforms like peptides, intermediates for GLP-1s, biocatalaysis

Company is tracking about 20 new opportunities with high client interest and visibility. About 30% of these, which is approximately six, are in late phase III or commercial phase

Additionally, company aims to add another 1000 KL reactor capacity in next 2-3 yrs in order to emerge as a globally competitive CDMO. Company intends to acquire a land parcel for the same and build 4 manufacturing blocks on the same - 2 for CM products, 01 for HI sweeteners and 01 as a multi purpose block ( mainly catering to Pharma intermediates )

In Q4 LY, there was an inventory buildup of aprox 75 cr which got liquidated in Q1. This inventory build up led to better cost absorption in Q4 and hence there is a QoQ GM drop that’s visible in company’s results

New CM intermediates - based on Iodine and Gadolinium are expected to go commercial in Q2 - should support the contrast media vertical in Q2

Company believes, they should be able to sustain > 50 pc GM wef Q2 ( closer to 52-53 pc )

Company has a good estimate of the expected demand coming their way and that’s why they are going in for the aggressive capex as mentioned above ( conjecture : they seem to be anticipating very strong demand in contrast media segment in addition to Pharma intermediates )

Company aspires to clock 500 cr kind of sales in CM division in FY 26. This should be their new base for this division from where they intend to keep growing

In a recent media interview, CEO guided for a 15-20 kind of growth for FY 26 ( although they refused to give guidance on the concall )

Disc: initiated an investment position, not SEBI registered, not a buy/sell recommendation, posted only for informational purposes

[ranvir]

Kotak Bank -

Q1 FY 26 results and concall highlights -

Bank’s standalone P&L outcomes -

NII - 7259 vs 6862 cr, up 6 pc
Other income - 3080 vs 2929 cr, up 5 pc
Total income - 10339 vs 9771 cr, up 6 pc
Operating expenses - 4775 vs 4517 cr, up 6 pc
Operating profit - 5564 vs 5472 cr, up 6 pc
Provisions - 1208 vs 578 cr, up 109 pc
PAT - 3282 vs 3520 cr, down 7 pc

NIMs @ 4.65 vs 5.02 pc
RoA @ 1.94 vs 2.38 pc
CASA ratio @ 41 vs 43 pc

Total deposits @ 4.91 lakh cr, up 13 pc ( CA deposits up 9 pc , SA deposits up 2 pc , Term deposits up 19 pc ). Cost of funds @ 5.01 vs 5.10 pc YoY

Total advances @ 4.44 vs 3.89 lakh, up 14 pc

Segmental growth in advances -

Home loans and LAP - 1.31 lakh cr, up 19 pc
Business banking - 44.5k cr, up 18 pc
Personal loans + Consumer durable loans - 24.4k cr, up 20 pc
Credit cards - 12.9k cr, down 12 pc
Others - 3.1k cr, up 31 pc

CV + CE loans - 42.9k cr, up 13 pc
Agri Finance - 25.1k cr, up 11 pc
Tractor finance - 17.8k cr, up 17 pc
Retail Microcredit - 5.8k cr, down 43 pc
Others - 5.4k cr, down 19 pc

Corporate banking - 1.02 lakh cr, up 10 pc
SME - 34.8k cr, up 23 pc
Others - 7.5k cr, up 37 pc

Credit substitutes - 34k cr, up 14 pc

Overall advances @ 4.44 lakh cr, up 14 pc YoY

Asset Quality -

Opening GNPAs - 6134 vs 5275 cr
Fresh slippages - 1812 vs 1358 cr
Upgrades and recoveries - 549 vs 586 cr
Write offs - 759 vs 570 cr
Closing GNPAs - 6638 vs 5477 cr

GNPAs @ 1.48 vs 1.39 pc ( 6638 vs 5477 cr )
NNPAs @ 0.34 vs 0.35 pc
PCR @ 77 vs 75 pc
Total provisions including specific provisions @ 7440 vs 6037 cr

Performance of subsidiaries -

Kotak securities -

Revenues - 1446 vs 1298 cr
PAT - 465 vs 400 cr

Kotak AMC -

Avg AUM - 5.25 vs 4.21 lakh cr
Equity AUM - 3.32 vs 2.68 lakh cr
PAT - 326 vs 175 cr
Monthly SIP flow @ 1792 cr, up 15 pc YoY

Kotak Mahindra Life Insurance -

Gross written premium - 2861 vs 2857 cr
PAT - 327 vs 174 cr

Kotak Mahindra Prime -

NII - 568 vs 503 cr
Other income - 177 vs 153 cr
PAT - 272 vs 232 cr
NNPAs @ 1.0 vs 0.9 pc

Group’s consolidated profit @ 4472 vs 4435 cr, up 1 pc YoY

Management commentary -

Credit off take is yet to pick up despite rate cuts and liquidity boosting measures by RBI. Demand for retail credit, sales of CVs, PVs remain tepid. Rural India is doing better led by healthy monsoons

MFI segment is the main culprit in elevated credit costs reported in Q1. Management believes, the same has peaked and should see a declining trend in coming Qtrs

Credit Card and Personal loan stress is also plateauing. These two segments are core for banks continued growth and sustenance of good margins

Seeing some stress in retail CV segment

Share of bank’s unsecured advances stood @ 9.7 pc vs 11 pc YoY - due bank being cautious on MFI segment and other unsecured segments

NIM compression is because the bank had to pass on the RBI’s rate cuts on the floating rate book on an immediate basis. As the deposits start to get repriced, NIMs are expected to stabilise in the later half of the year

Home loans seeing pricing pressures / high competitive intensity

CV + CE lending are expected to pickup post monsoons. Q1 was relatively weaker for this segment due early onset on monsoons and regulatory challenges in CE segment which led to price hikes of new CEs. Tractor sales have been good this segment has been doing well for the company

Credit losses / Slippages should start to moderate wef Q2 and should continue moderating for the remainder of the year

Savings account rate has now fallen to 2.5 pc ( wef Q2 ) vs 3.25 pc in Q1

Company’s aspiration is to have a retail unsecured book of 15 pc ( PL + MFIs + Credit Cards ). Bank has started increasing disbursements in all these areas wef Q2

NIMs are likely to bottom out wef Q2 ( as the full benefits of rate cuts are passed on ). Wef Q3, NIMs are expected to rise again as more deposits get repriced and full effects of CRR cut are felt

Company’s avg age of portfolio on term deposits is 9-12 months. Hence the price reduction in the term deposits rates should take some time

Stress in CV lending may continue for another 1-2 Qtrs. Not seeing any significant stress in SME and business banking - a key positive

Company has identified 488 branches from where they r building their gold loan capabilities. On a small base, their Gold loan portfolio has grown by 30 pc YoY

Disc: holding, biased, not SEBI registered, not a buy/sell recommendation, posted for educational purposes

[ranvir]

IIFL Finance -

Q1 FY 26 results and concall highlights -

Consolidated P&L -

AUM @ 83.9 vs 69.6 k cr, up 21 pc
Interest income @ 2265 vs 2046 cr, up 11 pc
Interest Expenses @ 1288 vs 1041 cr, up 24 pc
NII - 976 vs 1005 cr, down 3 pc
Non Fund based income @ 661 vs 380 cr, up 74 pc
Operating expenses @ 801 vs 746 cr, up 7 pc
Pre Prov operating profit - 836 vs 639 cr, up 31 pc
Loan losses and Provisions - 512 vs 251 cr, up 104 pc ( 215 cr of these came from MFI segment vs 103 cr YoY )
PAT - 274 vs 338 cr, down 19 pc ( due elevated provisioning )

Cost to Income @ 48 vs 57 pc YoY
Opex to AUM @ 4 vs 3.6 pc YoY
RoA @ 1.6 pc
Avg cost of borrowing @ 9.5 vs 9.1 pc
Off Book loans @ 26.6 k cr ( @ 32 pc of total AUMs )
Interest spreads @ 6.9 pc

GNPAs @ 2.3 vs 2.2 pc
NNPAs @ 1.1 vs 1.1 pc

Home loans - grew 14 pc YoY to 32.01 k cr ( company operates in affordable housing segment, discontinued micro LAP - no new disbursements in Q1 FY 26 )

MSME loans - grew 13 pc YoY to 13.9 k cr ( discontinued small ticket MSME loans, now new disbursements in Q1 FY 26 )

Gold Loans - grew 85 pc YoY to 27.3 k cr - demonstrating strong recovery post lifting of RBI’s embargo

MFI - de-grew 26 pc YoY to 8.9 k cr - impacted by continued stress in this segment ( identified high stress regions and deployed focussed recovery teams )

Have received an approval from RBI to open 500 new branches to sustain the growth momentum going forward

Segmental GNPAs -

Home loans - 1.74 vs 1.29 pc
MSME loans - 5.42 vs 2.97 pc ( mostly led by MSME unsecured book where the GNPAs stood @ 6.85 pc )
Gold loans - 0.18 vs 2.93 pc
Microfinance - 4.68 vs 2.32 pc

Total outstanding loans in MFI segment to borrowers with 3+ loans @ 14.7 pc vs 28.9 pc YoY. Company has stopped disbursing loans to customers with > 3 loans

Segmental PAT, Spreads -

IIFL Home Finance - 201 vs 240 cr. Spreads @ 3.8 pc
IIFL standalone ( Gold Loans + MSME loans ) - 132 vs (-) 23 cr. Spreads @ 8.7 pc
IIFL samasta finance - (-) 60 vs 120 cr. Spreads @ 14 pc

New Gold loan new onboarding LTV @ 70-75 pc

Company firmly believes that the worst is definitely over wrt loan losses. Should see improved trends in Q2 and even better trends in H2

On a consolidated basis, looking to grow AUM by 20 pc + for full FY ( due slower growth in MFI segment )

MFI + unsecured MSME + Micro LAP ( problem areas ) constitute aprox 15 pc of total loan book

Shall start opening new branches only when the company’s profitability stabilises

Expected provisioning to start dropping on a QoQ basis starting Q2

Company aims to bring its GNPAs below 2 pc by end of FY 26

For the company, micro LAP is seeing max stress in rural Maharashtra and AP

Should see high growth in disbursements in the Gold loan business for next 2-3 Qtrs

Cost of funds should start to taper off wef Q2 due easing measures taken by RBI

Both disbursements and collections should start improving post monsoons + beginning of festive season in the MFI business

Credit cost for full FY 26 should settle @ 2.8-3 pc levels

Disc: holding, biased, not a buy/sell recommendation, posted for educational purposes, waiting for asset quality trends to reverse ( fingers crossed )

[ranvir]

I broadly agree with ur observations. I invest in individual stocks with a hope to get > 15-20 / yr kind of returns. If the company keeps delivering, I am happy to hold. Eg - I ve been holding RPG Lifesciences, Lumax Auto, Mankind Pharma, Eris Lifesciences, Adani Ports, KVB, Dodla Dairy, Dhanuka agritech, Nippon AMC, Time Technoplast for over 2 -3 yrs now. If the company starts to underperform ( read bad Qtrly results ), I generally run out of patience after 2-3 Qtrs

Just to keep my peace of mind ( at the cost of extra returns ), I generally keep 40 + stocks in my portfolio ( I know its an overkill ) but it helps me study harder, helps me keep track of larger no of Industries, helps me play sector rotation, gives me confidence to stay invested at all times. Since the no of stocks kept by me are on the higher side, I don’t see any reason to buy MFs / PMS etc

[ranvir]

Dhanuka Agritech -

Q1 FY 26 results and concall highlights -

Q1 outcomes -

Revenues - 528 vs 493 cr, up 7 pc
Gross margins - 36 vs 34.66 pc
EBITDA - 83 vs 72 cr, up 16 pc ( margins @ 15.75 vs 14.53 pc )
PAT - 55 vs 49 cr, up 13 pc

Launched one 9(3) product - DINKAR - a herbicide for Paddy crop. Recieving good response in South India. Total pipeline of launches iro 9(3) and 9(4) products stand @ 8 products for next 2 yrs

Will be launching their second AI from Dahej plant in H2

Geographical distribution of sales in Q1 -

North - 31
East - 9
West - 41
South - 19

Product wise distribution of sales in Q1 -

Insecticides - 23 pc
Fungicides - 11 pc
Herbicides - 50 pc
PGRs and others - 16 pc

Early rains in May did not help Soya and Cotton crop sowing. Hence the results are on the weaker side despite good rains

Guiding for a full yr revenue growth in early double digits with EBITDA margins in vicinity of 19 pc { assuming a topline of 2300 cr ( @ 13 pc growth ) , EBITDA should be around 435 cr vs 417 cr in FY 25 }

Dahej plant should be able to clock revenues of 60-65 cr for this FY

Targaa Super - a herbicide for Soya and Onion and Sampra - a herbicide for sugarcane and maize - are both doing well despite increased competition

At present, 10 of company’s brands clock revenues > 50 cr. Five yrs ago, this figure was 3 brands

Herbicides inventory remains elevated for crops like cotton, soyabean ( these r imp crops for the company )

Company’s paddy crop’s portfolio is expected to do really well due to above normal monsoons. Insecticides and Fungicides consumption is also likely to pick up ( as the company sees it )

Not seeing too much of pricing pressures in the mkt. In fact, healthy rains should help the prices of agrochemicals inch upwards

In Q1, company’s volume growth was @ 5 pc

Dahej AI facility reported a 16 cr revenue and an EBITDA loss of 3 cr in Q1

Last year, Q1 was a bumper Qtr for Dhanuka and hence Q1 this FY looks tepid. Second reason for tepid Q1 for Dhanuka has been lower consumption of Soyabean and Cotton herbicides where Dhanuka is traditionally quite strong

Company’s key crops include - Rice, Maize, Chilli, Grapes, Soyabean, Cotton

Will be launching Kinzan this year ( in-licensed product from Nissan ) - a fungicide for grapes and potato crops

Because of heavy and early rains in MP and Maharashtra, early sowing of Soyabean and Cotton got washed out. Farmers had to re-sow these crops. Hence the herbicide consumption for Dhanuka got adversely affected

Disc: holding, biased, not SEBI registered, not a buy/sell recommendation, posted for educational purposes only

[ranvir]

Mankind Pharma -

Q1 FY 26 results and concall highlights -

Revenues - 3570 vs 2868 cr, up 24 pc
Gross margins @ 70.5 vs 71.8 pc
EBITDA - 850 vs 675 cr, up 26 pc ( margins @ 23.8 vs 23.6 pc )
PAT - 445 vs 538 cr ( down 17 pc - due steep hike in interest and amortisation charges - on account of BSV acquisition )

Debt on books @ 5239 on 30 Jun vs 5784 cr on 31 Mar 25

Segmental revenues -

Domestic business - 3101 vs 2609 cr, up 19 pc ( led by steady growth in base business and addition of revenues from BSV’s business ). Base business’s volumes grew by 2.5 pc vs 1.6 pc volume growth for IPM. Respiratory and Anti Infective categories grew the fastest @ 18 pc and 9 pc respectively. Chronic therapies now contribute to 38.8 pc of company’s sales vs 36.9 pc @ the end of Q1 LY. 23 of company’s brands clock sales > 100 cr in the domestic mkt. Company’s domestic field force stands @ 16,500 MRs

Domestic consumer healthcare ( OTC ) business - 237 vs 206 cr, up 15 pc YoY. Growth was led by brands like GasOFast, PregaNews, Manforce, HealthOK. Ovanews and Nimulid are gaining good traction in the market. Manforce now commands 29 pc mkt share in Condoms mkt

Exports business - 469 vs 259 cr, up 81 pc. Export growth was primarily led by BSV’s consolidation into Mankind’s results

Some of the speciality brands launched by the company in last 2 yrs -

Neptaz ( heart failure ) - in-licensed from Novartis

Crenzlo ( high LDL ) - in-licensed from Novartis

Nobeglar ( type 1 and 2 Diabetes ) - in - licensed from Biocon

Combinable ( Obstructive pulmonary disease ) - acquired from DRL

Symbicort ( Obstructive pulmonary disease ) - exclusive distribution arrangement with AstraZeneca

Daffy ( Pediatric skin and hair care ) - acquired from DRL

Vonatime + Vonalong ( Gastroesophageal reflux disease ) - in - licensed from Takeda

These r all high growth brands in high growth categories with healthy margins. They intend to keep adding to this list

R&D expenses in Q1 stood @ 80 cr

Going to set up another biosimilars facility near Vadodara to de-risk the BSV’s business. Should be ready by end of CY 27. Expected to cost them aprox 200 cr

Have repaid aprox 500 cr of Debt in Q1. Should be able to repay another 1500 within FY 26

Holding onto their EBITDA margin guidance of 25-26 pc for full FY 26

Company’s dydrogesterone facility is operating @ 60 pc capacity. As they receive more international approvals this yr, the capacity utilisation should move up. They ll even start making the KSMs in house before end of FY 26

Overall growth in Q1 for company’s base domestic business ( including OTC business ) was 10 pc, for international base business was in single digits

Aiming to grow BSV’s business by 18-20 pc for FY 26 with 26-28 EBITDA margins

Tax rate for full FY should be around 20-21 pc for full FY. Finance cost for full FY should be around 450 cr ( due to the planned debt retirement throughout FY 26 )

Company shall be launching both oral and injectable Semaglutide as soon as their India patent expires

Most of the biologic manufacturers across the world are into making MABs ( monoclonal anti bodies ). Whereas BSV’s biologics are mostly recombinants ( a lot of them focussed on infertility treatments ) . That’s why they r investing behind their biologics facilities so as to get complete control over the recombinant manufacturing value chains

Company intends to be debt free by FY 28

Disc: holding, biased, not a buy/sell recommendation, not SEBI registered, posted for educational purposes

[ranvir]

Wonderla Holidays -

Q1 FY 26 results and concall highlights -

Revenues - 168 vs 172 cr, down 3 pc
EBITDA - 87 vs 96 cr, down 9 pc ( margins @ 49 vs 54 pc, down 500 bps YoY )
PAT - 52 vs 63 cr, down 17 pc

Footfalls - 9.17 vs 10.02 lakh
Avg ticket prices - Rs 1281 vs Rs 1237, up 4 pc
Avg non ticket revenues - Rs 493 vs Rs 443, up 11 pc
ARPU - Rs 1775 vs Rs 1680, up 6 pc

Park wise revenues, footfalls -

Bengaluru - 61 vs 64 cr, FFs @ 3.32 vs 3.58 lakh
Kochi - 39 vs 42 cr, FFs @ 2.37 vs 2.74 lakh
Hyderabad - 49 vs 53 cr, FFs @ 2.6 vs 3 lakh
Bhuvneshwar - 13 vs 9 cr, FFs @ 0.96 vs 0.70 lakh
Wonderla resort - 5 vs 4.5 cr, ARR @ 5.7k vs 6.1k, occupancy @ 56 vs 55 pc

New addition to portfolio - ISLE Bengaluru - a luxury resort with 39 cottages ( located adjacent to their Bengaluru park )

The month of Apr started off well with footfalls growing in double digits in Apr. Early onset of monsoons then led to a de-growth in the subsequent periods

Construction of their 5th amusement park in Chennai is on track. Should be able to commence operations wef Dec 25

ISLE resort opened aprox 1 month ago. Initial response has been good

Company is in advanced talks with 2 state Govts ( Haryana, UP ) to set up a park near NCR. Will make an announcement when everything is finalised

Have already incurred 480 cr of capex towards setting up the Chennai park. Expected to incur another 120 cr to complete the Park and to make it go live by Dec. It ll be a soft opening in Dec. Full scale opening shall happen by Mar-Apr 26

Expecting single digit footfalls growth ( low single digits from old parks and double digits from Bhuvneshwar park ) for the company for current FY

Weather does affect company’s footfalls in a big way. Inclement weather in Q1 did take its toll on company’s growth

ISLE resort is already clocking > 60 pc occupancy. ARR at the ISLE is aprox double of the older Wonderla resort

Bhuvneshwar park has turned EBITDA positive in Q1

Have lined up aprox 10 cr / park kind of capex for the existing parks for current FY. Should be adding 2-3 rides per park this yr

In Oct / Nov company shall start to spend on marketing in anticipation of opening of Chennai park

Expecting a footfall of 3 lakhs for the Bhuvneshwar park for FY 26

Disc: holding, biased, not a buy/sell recommendation, not SEBI registered, posted for educational purposes

[ranvir]

Eris Lifesciences -

Q1 FY 26 results and Concall highlights -

Revenues - 773 vs 720 cr, up 7.5 pc
Gross margins @ 76.1 vs 74.9 pc
EBITDA - 277 vs 250 cr, up 11 pc ( margins @ 38.5 vs 34.7 pc )
PAT - 125 vs 89 cr, up 41 pc ( amortisation cost in Q1 @ 56 cr - this can be safely added back to PBT )

Company started ramping down its trade generics business wef Q1 - down from 13 to 3 cr. This led to an EBITDA level loss of 5 cr

Debt on books as on 30 Jun @ 2317 cr ( up from 2222 cr on 31 Mar - due to 66 cr of capex in Q1 + strategic buildup of inventory of Biocon products ). Aim to bring down this debt to 1800 cr by 31 Mar 26

Priorities for FY 26 -

Commercialisation of company’s pipeline of ’ first to market ’ Oral Hypoglycemic agents ( used to treat type 2 diabetes )

Leverage the mkt opportunity in RHI cartridges

Complete Insulin in-sourcing with all vials and carts by Q4

Scale up of company’s new business divisions. Aim to launch over 10 new products in India in FY 26 ( including non-diabetes focussed Injectable products )

To secure ANVISA approval for ERIS’s and Swiss Parenteral’s manufacturing facilities

Strengthen CMO pipeline from ERIS’s and Swiss Parenteral’s facilities wrt Injectables and OSDs

Company now has the following brands under its injectables Insulin play in India -

Regular Human Insulin ( fast acting ) - Xsulin, Insugen
Insulin Glargine ( slow acting ) - Basalog, Xglar
GLP -1 - Erly ( Liraglutide )

In addition, company has an array of brands of Oral Hypoglycemic Agents, like -

Sulfonylureas - GlimmiSave, Cyblex
DPP4 inhibitors - Zomelis, Glura, Tendia
SGLT 2 Inhibitors - Glut, Linares

In Q1, domestic business grew by 11 pc - from 632 to 702 cr ( had there been no insulin shortages, growth in domestic business would have been 13-14 pc )

International business de-grew in Q1 from 74 to 68 cr. EBITDA from international business also de-grew from 25 to 22 cr. Have received EU-GMP approvals for both the company’s injectable sites in Q1. Should see pick up in international business wef Q2 - both wrt Injectables + OSDs

Biocon’s business reported EBITDA margins of 30 vs 19 pc ( at the time of acquisition )

Commenced insulin vials production from Bhopal facility in Q1. Should commence production of Insulin cartridges wef Q4

Have commenced validation of synthetic Semaglutide at Swiss Parenteral’s manufacturing facility @ Ahmedabad

Company exports business should pick up wef FY 27. They have confirmed contracts of > 100 cr / yr like ( combined value ) -

Corticosteroids in DPI form for several EU countries for Client -1
Niche Betalactam DPI ( antibiotic - dry powder inhaler ) for EU countries + AUS/NZL + Canada for Client 2
Niche Betalactam DPI for a different set of EU countries for client 3
Corticosteroids in Ampoule form for UK for client 4
Anti Fungal injections for UK mkt for client 5

The CMO business is likely to be capacity constrained for FY 27,28. Company is likely to make investments in this space to expand capacities so that they can ramp up this business as soon as possible

Corticosteroids are a class of steroid hormones that are used to treat a wide range of conditions due to their potent anti-inflammatory and immune-suppressing effects. They are often used to manage conditions like asthma, arthritis, lupus, and skin conditions like eczema

Still guiding for a 15 pc kind of topline growth for entire FY 26

GLP-1 mkt in India should be 2500-3000 cr in the first year of launch and should grow from thereon

Aim to take up the International business revenues to 1000 cr by FY 29 ( from a base of aprox 370 cr at present )

The Insulin mkt being vacated by Novo Nordic in India is of the order of 500 cr/ yr. Eris should be able to capture 200 cr/yr out of the same

Disc: holding, biased, not SEBI registered, not a buy/sell recommendation, posted for educational purposes

[ranvir]

Electronics Mart India -

Q1 FY 26 results and concall highlights -

Revenues - 1740 vs 1926 cr, down 10 pc
Gross margins @ 14.6 vs 15.6 pc
EBITDA - 110 vs 160 cr ( margins @ 6.3 vs 8.3 pc - steep fall in margins due lower absorption of fixed costs like rentals, employee costs, other expenses due lower topline )
PAT - 21 vs 77 cr ( on 29th may, there was a fire accident in one of the Godowns leading to a loss of 8 cr of inventory. Company has made provisions for the same although the same was insured - likely to be reversed once the claim is settled. Additionally, the interest and depreciation costs in Q1 this yr are higher due higher store openings over LY )

Sales of ACs and Coolers fell by 40 pc in Q1. These 2 segments represent 21 pc of company’s Q1 sales ( This represents a sales loss of 158 cr. Adjusted for this, EBITDA would have been higher by aprox 20 cr - rough estimates arrived at by reverse calculating the sales impact )

Company’s current store count @ 208 ( 197 MBOs and 11 EBOs ) out of which, 17 stores are owned. Total central warehouses @ 12. Company’s stores are present across 86 cities

Segmental breakdown of sales -

Mobiles - 40 pc
Large appliances - 48 pc
Small appliances, IT and others - 12 pc

Total stores opened in Q1 @ 8 stores. Total stores opened in FY 25 @ 40 stores

Cluster wise revenue break up -

Hyderabad City - 962 vs 1069 cr, down 10 pc
Telangana - 233 vs 264 cr, down 12 pc
AP - 275 vs 346 cr, down 20 pc
Delhi NCR - 160 vs 131 cr, up 22 pc

The phenomenon of excess rains / milder temperatures were more pronounced in AP + Telangana regions ( vs Delhi NCR ). On the other hand, Q1 FY 25 was unusually strong due strong heat waves LY

Out of the 8 new stores opened in Q1, 7 were opened in AP + Telangana

In Q1, South cluster’s ( total stores @ 178 ) EBITDA margins stood @ 6.7 pc. North cluster’s ( total stores @ 30 ) EBITDA margins stood @ 3.6 pc ( vs 2.6 pc LY )

Plan to open a total of 25-30 new stores in FY 26. Out of these 8 stores should come up in the Northern Cluster

GMs are higher in cooling products vs other products. Hence the company level gross margins are down by 1 pc vs LY

Inventory of ACs on 30 Jun 25 vs 30 Jun 24 is higher by 250 cr which they would try and liquidate by end of this CY

Sales growth in July have been very strong ( for all categories including ACs, Phones, Refrigerators ). Should see high double digit growth in Q2

Aim is to clock low double digit sales growth for full FY 26 despite a weak Q1. Should be able to sustain EBITDA margins above 6 pc for full FY

Company expects that the North cluster should start clocking 5 pc + kind of EBITDA margins by end of next FY

Once the North cluster sales cross 750 cr on an annual basis, they should be able to clock 5 pc + kind of EBITDA margins and on sales > 1000 cr, EBITDA margins should start crossing 6 pc ie in line with the South cluster

In last 2 yrs, company did buy some properties in Delhi NCR at prime locations. That has led to a bigger jump in depreciation vs the jump in sales. Going forward, the buying out of properties is gonna reduce substantially. Hence the rate of increase in depreciation should also slow down in future

Considering the peripheral areas in NCR like Manesar, Faribadad, Ghaziabad, Greater Noida ( over and above Delhi, Gurugram, Noida ), company should able able to reach a stores figure of 50 + stores by FY 28

Areas where the company is looking to expand into include - Rohtak, Sohana, Muzaffarnagar, Meerut, Saharanpur + 2-3 stores in Orrisa + Tier 3-4 towns in AP + Telangana

Out of a total of 208 stores, 85 stores are less than 24 months old ( aprox 50 stores are less than 9 months old )

GMs in North cluster are aprox 1 pc lower than the Southern cluster

Capex in Q1 stood @ 56 cr

Disc: holding, biased, added recently, not a buy / sell recommendation, not SEBI registered, posted for educational purposes

[ranvir]

Rainbow Children’s Medicare -

Q1 FY 26 results and concall highlights -

Current portfolio of Hospitals + Clinics -

Hyderabad - 8 hospitals + 2 clinics
Bengaluru - 4 hospitals + 1 clinic
Chennai - 3 hospitals
Vijaywada - 1 hospital + 1 clinic
Warangal - 1 hospital
Vishakhapatnam - 1 hospital + 1 clinic
Delhi - 2 hospitals

Q1 outcomes -

Revenues - 352 vs 330 cr, up 7 pc
EBITDA - 103 vs 93 cr, up 11 pc
PAT - 54 vs 40 cr, up 35 pc ( due steep jump in other income on account of MTM gains on company’s debt fund investments )

Cash on books @ 735 cr

Q1 outcomes in mature hospitals ( > 5 yrs old ) -

No of Beds - 1371
Occupancy - 44 vs 49 pc
APPOB - 66 k vs 58 k
ALOS - 2.67 vs 2.80

Q1 outcomes in newer hospitals ( < 5 yrs old ) -

No of beds - 564
Occupancy - 31 vs 26 pc
ARPOB - 53k vs 49k
ALOS - 2.61 vs 2.58

Current bed capacity @ 2035 beds

Upcoming facilities in next 3 yrs -

FY 26 -

Bengaluru - 2 hospitals - 60 beds + 90 beds
Rajahmundry - 1 hospital - 100 beds

FY 27 -

Coimbatore - 1 hospital - 130 beds

FY 28 -

Gurugram ( Sec 44 and 56 ) - 2 hospitals - 325 beds + 125 beds

By end of FY 28, total bed capacity should reach 2865 beds. All these capex requirements should be met with internal cash generation by the company + the healthy cash balances that they have

Q1 is a seasonally weak Qtr for the company. Q2 and Q3 are the strongest Qtrs

Company’s acquired majority stake ( 76 pc ) in a hospital in Warangal to take its hospital count to 20 in Q1. Its a 100 bedded hospital

In advanced stages of finalising a new Greenfield hospital @ Pune. This Pune hospital should commence operations in about 30 months time

As the hospitals mature, the company migrates its Doctors to revenue share model. Its a win win for both the company and the doctors

Still confident of growing company’s topline in mid - high teens in FY 26 ( as 100 acquired beds have just gone live + 250 organic bed additions are lined up for this FY @ Bengaluru and Rajamundhry )

Once Pune Hospital is ready ( it shall act as a Hub hospital ) , company shall look to add more hospitals in nearby areas ( as spoke hospitals )

Also scouting for in-organic opportunities in NE mkts as well

Contribution to total revenues from IVF business now stands @ 3.2 pc

Warangal hospital’s ( recently acquired ) numbers shall be added to company’s consolidated results wef Q2. The current occupancy @ Warangal is around 30-35 pc

Drop in occupancy in Q1 in company’s mature hospitals was due to a weak paediatric season. However their tertiary and quaternary care business continued to do well - and hence the ARPOB and total revenue were higher despite a weak paediatric season. Seeing a descent pickup in paediatric season in Q2. The low ticket paediatric business is what brings in volumes but is a lower value business

Insurance : Cash mix @ 52 : 48

Disc: holding, biased, added recently, not a buy/sell recommendation, posted for educational purposes

[ranvir]

Narayana Hrudayalaya -

Q1 FY 26 results and concall highlights -

Company’s current portfolio of healthcare facilities -

South India - 6 hospitals, 2 heart centers, 12 clinics, 1 Diagnostics center ( total beds @ 2050 ) - 3 hospitals @ Bengaluru, 1 each @ Mysuru, Shimoga, Davangere

East India - 7 hospitals, 4 clinics, 1 Dialysis center ( total beds @ 2030 ) - 4 hospitals @ Kolkata, 1 each @ Jamshedpur, Guwahati, Raipur

North India - 3 hospitals ( total beds @ 828 ) - 1 each at Gurugram, New Delhi, Jaipur

West India - 2 hospitals ( total beds @ 354 ) - 1 each @ Mumbai, Ahmedabad

Cayman Islands - 2 hospitals ( total beds @ 169 )

Grand total - 20 hospitals + 2 Heart centers + 18 Clinics + Dilaysis centers ( total beds @ 5924 ). Total doctors working for the company @ 4217

Upcoming hospitals and Capex involved -

FY 27 -

South West Bengaluru - 100 beds ( on lease ). Project cost @ 84 cr

FY 28 -

HSR Bengaluru - 215 beds. Project cost @ 490 cr
Central Bengaluru - 220 beds ( on lease ). Project cost @ 160 cr
Rajarhat Kolkata - 350 beds. Project cost @ 900 cr
Raipur - 300 beds ( brownfield expansion ). Project cost @ 540 cr

FY 29 -

South Bengaluru - 350 beds. Project cost 800 cr

Q1 FY 26 outcomes -

Revenues - 1507 vs 1306 cr, up 15 pc
EBITDA - 337 vs 302 cr, up 11.5 pc ( margins @ 22 vs 23 cr, drop in margins is due to the expenses incurred towards the health insurance and integrated care business )
PAT - 197 vs 202 cr ( due higher depreciation, higher interest expenses )

India revenues @ 1082 vs 961 cr, up 12 pc ( adjusted for discontinued Jammu operations, inter company eliminations )
Cayman Islands revenues @ 405 vs 279 cr, up 43 pc ( due opening of new facility vs LY where only one facility was live )

India ARPP - Out-patient @ 4800 vs 4500, In Patient @ 1.48 vs 1.36 lakh

Cayman Island ARPP - Out-patient @ 1.22 vs 1.30 lakh, In Patient @ 29.6 vs 27.7 lakh

Company has started selling its Health Insurance product outside wef Jan 25. Seeing good response from retail customers and large employers

Integrated care ( Clinics + Health Insurance business ) is ramping up well. But will take time to break even. Some of company’s Insurance products like Aditi, Aditi plus, Arya are seeing encouraging mkt response

Company intends to invest a total of aprox 450 cr towards their Clinics + Health Insurance ( including the initial cash burn ). They have already invested 300 cr out of this

The new hospital @ Cayman has been operating for 2 Qtrs now. Expect Qtly numbers from Cayman to keep inching upwards for multiple Qtrs to come

Company is also open to inorganic expansion ( ie acquiring hospitals ) over next 2-3 yrs

Disc: initiated a tracking position, studying, not SEBI registered, not a buy/sell recommendation

[ranvir]

Crompton Greaves Consumer Electricals -

Q1 FY 26 results and concall highlights -

Q1 segmental revenues and EBIT -

ECD ( electrical consumer durables ) -

Revenues - 1586 cr, down 8 pc ( vs Industry wide decline of 11 pc )
EBIT - 212 cr, down 18 pc ( margin compression from 15 to 13.3 pc )

Lighting -

Revenues - 232 cr, flat YoY
EBIT - 29 cr, up 27 pc ( due margin expansion from 8.9 to 12.6 pc )

Butterfly ( Kitchen appliances ) -

Revenues - 187 cr, up 3 pc
EBIT - 7 cr, up 100 pc YoY ( due margin expansion from 1.7 to 3.5 pc )

Q1 consolidated outcomes -

Revenues - 1998 vs 2138 cr, down 6.5 pc
Gross margins @ 32.1 vs 31.9 pc
EBITDA - 192 vs 232 cr, down 17 pc ( margins @ 9.6 vs 10.9 pc )
PAT - 124 vs 152 cr, down 19 pc

Company is now debt free post repayment of 300 cr of NCDs

Muted performance in ECD division driven by weather related challenges - milder summer, above avg rains etc

Secured largest ever pumps order from Maharashtra govt ( in Q1 ) for 101 cr

Industrial fans, air circulators, heavy duty exausts, solar pumps, small appliances emerged as growth levers in ECD category

TPW fans + Cooler + residential pump categories saw a sharp slowdown in Q1 due lower temperatures and excess rains

Company has decided to enter roof-top solar energy business. It’s a large category with a current mkt size of 20k cr ( a comment from Q4 FY 25’s concall ). In the Solar Rooftops business, brand name does play an important role. Plus the addressable mkt is huge. Confident of a quick ramp up going forward

Company believes - even when the PM Kusum scheme ends, the solar pumps business should continue as a going concern with increased demand because it’s so beneficial for the farmer. PM Kusum is just the initial push ( which is often required ) just like Fame 1, Fame 2 subsidies in the EV business ( taken from Q4 FY 25’s concall )

Company’s solar pumps business grew by > 100 pc vs Q1 FY 25

Large kitchen appliance business recorded sales of 15 cr in Q1

B2B lighting grew in double digits in Q1. Outdoor and decorative lighting saw good traction in Q1 ( these r higher margin areas )

Added 40 new SKUs in Butterfly’s product portfolio

Company’s Solar rooftops business is executed with a selected partner ( both sourcing and installation ). Crompton has overall responsibility for marketing and branding. The EBITDA margins in this business are similar to company level margins

Seeing good demand trends in the ECD business wef July

Still aiming for double digit growth in the Butterfly’s kitchen appliances business with a 100 bps EBITDA margins improvement in FY 26

Margin improvement in lighting business is led by greater share of business from decorative, downlighter, panels business ( vs bulbs / batons )

Disc : holding, biased, not SEBI registered, hoping for a long overdue recovery in the FMEG space, also holding Orient electric, posted for educational purposes

[ranvir]

Hariom Pipes -

Q1 FY 26 results and concall highlights -

Revenues - 461 vs 343 cr, up 34 pc ( up 15 pc QoQ )
EBITDA - 58 vs 45 cr, up 28 pc ( margins @ 12.5 vs 13 pc )
PAT - 23.6 vs 17.5 pc, up 34 pc

Total sales volume - 78.2 k MT vs 57.99 k MT, up 35 pc
VAP sales - 75.3 k MT vs 55.60 k MT, up 36 pc

EBITDA / MT @ Rs 7360 vs 7681 ( impressive margins )

New product development - high strength, pre galvanised tubular sections for solar structures - replacing traditional HR steel channels. Advantages include - reduced steel weight leading to cost effective and sustainable solutions, superior durability due galvanisation, more flexibility wrt designs. These r well positioned to capture booming demand from renewable energy ( solar ) sector

Company’s Infrastructure -

Installed manufacturing capacity - 701 k MT / yr spread across 112 acres ( spread across 4 manufacturing units ).For finished products, installed capacity is 510 k MT / yr. Strong presence in South and West India

No of SKUs being manufactured @ 800 +

Dealers across India @ 900 + selling their products under 4 brands ( they achieve 85 pc of their sales through their dealer network )

15 pc sales come from B2B channels

Going to set up a 60 MW solar plant in 2025-26

High degree of vertical integration. Company makes billets in-house

Company is targeting 30 pc volume growth over next 2 yrs ( if achieved, can be a great outcome for shareholders )

Last 5 yr revenue CAGR @ 52 pc, EBITDA CAGR @ 51 pc, PAT CAGR @ 41 pc. EBITDA margins have hovered in a tight band of 12.0 to 13.5 pc

Commentary from Q1 FY 26 concall -

Avg selling price / MT improved to 58931 / MT, up 9 pc QoQ - due higher sales of VAP and better branding + trust that company’s products command

Increased thrust on solar projects augurs really well for the comapny

Continue to maintain volume growth guidance of 30 pc for FY 26

The power plant acquired by the company shall get commissioned by Sep 26. They have entered into a power supply agreement with Maharashtra Govt to supply electricity for 20 Yrs @ Rs 2.96 / unit ( + they r getting some subsidy for construction + for first 3 yrs, the supply rate shall be Rs 3.21 / unit )

Product wise volume, revenue breakup in Q1 -

MS tubes + Scaffoldings - 25196 MT, 126.51 cr
Galvanised products - 52500 MT, 333 cr
Sponge iron products - 501 MT, 10.5 cr

No capex plan for FY 26 except for the power plant

Backward integration upto billet level helps them clock better EBITDA / MT vs the Industry

Net Debt as on 30 June stands 360 cr. Should be able to retire the long term debt in next 2 yrs

EBITDA / Ton as reported in Q1 looks sustainable going forward

EBITDA / MT for galvanised products was aprox Rs 7200, for MS Tubes, Scaffoldings was around Rs 8200

Capex for Solar plant should be around 200 cr

Solar structures is a new product line for the company. Seeing good off take to begin with. EBITDA / MT here is higher than the Scaffolding’s / Galvanised product lines

For the Galvanised products division, company procure HR coils from open mkt. That is the reason for this division’s lower EBITDA / MT vs the MS tubes + Scaffolding’s division where they make their own billets

Company’s MS tube capacity @ 210k MT / yr

Disc: looks promising, initiated a tracking position, not SEBI registered, not a buy/sell recommendation, posted for educational purposes

[ranvir]

Five Star business finance -

Q1 FY 26 results and Concall highlights -

No of branches - 767, opened 19 new branches in Q1

Loan disbursement - 1290 cr, down 2 pc YoY
AUM - 12,457 cr, up 20 pc YoY
30 + DPD @ 11.31 ( up 3.2 pc YoY, 1.66 pc QoQ - indicating increased stress in the loan book )

Cost income stood @ 41.34 vs 34.34 pc YoY ( including credit cost ). Excluding credit cost, Cost / Income stood @ 33.45 vs 30.73 pc YoY

GNPAs ( 90 + DPD ) @ 2.46 pc vs 1.41 pc YoY
NNPAs @ 1.25 vs 0.68 pc YoY

Loan book is 100 pc secured - 95 pc of it is secured against self owned residential property. Avg portfolio LTV @ 39 pc ( indicating conservative lending practices )

Interest income @ 791 vs 669 cr, up 18 pc
Interest expenses @ 187 vs 158 cr, up 18 pc
Other expenses @ 201 vs 156 cr, up 29 pc
Credit cost @ 47 vs 18 cr, up 158 pc
PAT @ 266 vs 251 cr, up 6 pc YoY

Avg portfolio yeild @ 23.51
Avg cost of borrowing @ 9.54
Avg portfolio spreads @ 13.97

NIMs @ 16.43
RoA @ 7.24
RoE @ 16.57

AUM by geography -

TN - 28 pc
AP - 37 pc
Telangana - 19 pc
Karnataka - 6 pc
MP - 7 pc
Others - 2 pc

AUM by ticket size -

< 3 lakh @ 31 vs 35 pc YoY
3-5 lakh @ 53 vs 52 pc YoY
5 -10 lakh @ 15 vs 11 pc YoY
Above 10 lakh @ 1 vs NIL YoY

Management commentary -

Over-leveraging in the retail segment led by indiscriminate lending by MFIs, other NBFCs is the main cause of stress in the system

Management has deliberately slowed down lending in riskier segments, areas, colonies and in general for tick sizes < 3 lakh ( where the stress is more ). 3-5 lakh tick size bucket’s behaviour is much better. 5-10 lakh bucket is what the company is replacing the < 3 lakh bucket with

Closely monitoring customers debt profile before sanctioning loans. However, a lot of customers have over leveraged themselves post taking loans from Five Star - which is also another major reason for stress. To counter this, company is now focussing on financially literate / conservative customers who won’t over leverage themselves in times of easy liquidity

Seeing early signs of improvement as a lot of MFIs have taken the hits on their P&L accounts wrt bad loans. This should ease up the situation for lenders like Five Star ( since they hold customer’s residential properties as collateral )

Company’s July month’s collections have been much better than what was seen Apr, May, June - a key positive

Most of the pain should be over by end of Q2. Hence the company is not revising its full year AUM growth guidance of 20 pc + and 12-15 pc PAT growth

Credit cost guidance @ 1.2 - 1.25 pc for full FY

Because of secured nature of their loans, they should be the first to bounce back as the lending environment improves

New branch opening + splitting of branches continues as before

Disbursements and AUM growth moderated due to tough lending environment at present

No fresh over leverage is being created by the MFI players in the market ( as they too have turned cautious - for obvious reasons ) - a great thing to be happening for the sector

Q2 credit cost is not expected to be higher than Q1 ( most likely, should be marginally lower ). Credit cost should start tapering off wef Q3

Historically, 10-15 pc of loans flow down from 30+ DPD to 90+ DPD

Company has 100 advocates on its pay rolls - as a part of recovery team. LY, company recovered an avg of 12-14 cr / Qtr from NPA accounts ( written down ). This year, company hopes to recover an avg of aprox 18 cr / Qtr

Collections in Karnataka are bouncing back nicely. Once collections stabilise at higher levels, will the company start focusing on disbursements in Karnataka again

TN and Telangana are doing much better than the company avg wrt NPAs / slippages

Since the company began its operations ( over 2 decades ago ) they have hardly ever lost their principal ( because of secured nature of lending )

Disc: holding a tracking position, will add only when the stress starts to abate, not SEBI registered, not a buy/sell recommendation

[ranvir]

Sandhar Technologies -

Q1 FY 26 results and concall highlights -

Consolidated outcomes -

Revenues - 1090 vs 912 cr, up 19 pc ( Sales from Indian operations @ 967 vs 795 cr, up 18 pc )
EBITDA - 102 vs 90 cr, up 13 pc ( margins @ 9.3 vs 9.9 pc )
PAT - 28 vs 29 cr, down 4 pc

Consolidated Debt @ 862 cr vs 821 cr as on 30 Mar

Category wise revenue split -

2Ws - 66 pc
PVs - 14 pc
OHVs - 12 pc
CVs - 2 pc
Others - 6 pc

Product wise revenue split -

Cabins and Fabrications - 11 pc
Sheet metal parts - 17 pc
Aluminium dye castings - 34 pc ( domestic + overseas )
Assemblies - 10 pc
Locking systems - 17 pc
Vision systems - 5 pc
Others - 6 pc

EV product sales has gone live wef last FY. Products include - Motor controllers, AC-DC converters

Lower growth in EBITDA is due to 2 cr of exceptional charges + Forex loss of aprox 4 cr

In addition, company lost some sales in the OHV segment because of kicking in of newer emission norms

Overseas subsidiaries ( mostly in Europe ) have reported a loss of aprox 10 cr ( on a topline of 130 cr ) due weak economic conditions in Europe. Hopeful of a turnaround ( ie from losses to profits ) by end of FY 26 - in the European operations ( undertaking a lot of corrective measures to control costs )

EV products ( launched recently ) generated a revenues of 2 cr in Q1

Have sought a shareholder approval for a QIP to raise 500 cr - for inorganic acquisitions

Won’t let Debt levels cross 900 cr

Sundaram’s acquired business ( acquired their low pressure dye castings business in Q4 LY for 163 cr ) clocked a topline of 103 cr in Q1, made losses at PBT levels ( made an EBITDA of +3 cr ). Hope to turn into profits by current FY end

Offtakes for smart locks remain subdued in Q1. Should be able to sell aprox 1 lakh smart locks in entire FY 26 ( sales off takes are mostly expected to be back ended )

Expecting a revival in construction equipment’s demand wef Q4

Hero and one more of company’s important customers faced some supply chain issues in Q1 due to which they lowered their production in Q1. This impacted Sandhar’s sales off take in Q1

Still guiding for an EBITDA margin of 11 pc for rest of FY 26

Capex of 101 cr in Q1 ( includes payment to Sundaram Clayton ). Intend to spend another 250 cr on Capex this FY

Q1 is generally soft Qtr for the auto Industry. Company believes Q2 should be significantly better for the company vs Q1 - due better demand + lack of one offs

Ex of Sundaram Clayton’s revenues, company’s revenues have grown by 8 pc in Q1. They r confident of growing their organic revenues by 15 pc for full FY 26 - indicating a much better pick up in business going forward

Locks and Mirrors are the highest EBITDA margin business in the company’s portfolio - followed by dye castings, followed by sheet metals business

In most segments, company is operating @ aprox 65 pc capacity utilisations

Company’s domestic business ( 89 pc of sales ) is not affected by the tariffs imposed by US Govt. International business is getting affected due to negative sentiment and genuine demand slowdown

Disc: holding, biased, added recently, not SEBI registered, not a buy/sell recommendation, posted for educational purposes

[ranvir]

Yatharth Hospitals -

Q1 FY 26 results and concall highlights -

Revenues - 257 vs 211 cr, up 22 pc
EBITDA - 64 vs 54 cr, up 18 pc ( margins @ 25 vs 25.3 pc )
PAT - 42 vs 31 cr, up 35 pc ( due sharp reduction in interest costs and higher other income - both due to QIP )

Corporate level operational metrics -

Occupancies - 65 vs 61 pc
ARPOB - 32.4 k vs 30.5 k
IPD volumes - 19 k vs 15 k
OPD volumes - 1.05 lakh vs 0.87 lakh
IPD revenues - 228 vs 188 cr
OPD revenues - 29 vs 23 cr

Q1 FY 26 vs Q1 FY 25 revenue split ( hospital wise ) -

Noida Extension ( 450 beds ) - 34 vs 38 pc
Greater Noida ( 400 beds ) - 30 vs 33 pc
Noida ( 250 beds ) - 20 vs 23 pc
Jhansi ( 300 beds ) - 7 vs 5 pc
Greater Faridabad ( 200 beds ) - 9 vs 1 pc

Total bed capacity @ 1600

New Delhi hospital inaugurated in Jul 25 and Faridabad facility is set to open in Aug 25 - combined shall add 700 beds to the group’s capacity

Greater Faridabad hospital turned net profit positive within 1 yr of its opening ( its ARPOB was Rs 31 k )

Jhansi hospital’s occupancy improved sharply to 59 from 45 pc LY. Similarly, Greater Faridabad Hospital’s occupancy saw a sharp surge from 10 pc LY to 55 pc

Company aims to add another 750 beds - through a mix of inorganic acquisitions + brownfield expansions over next 2 yrs - taking the bed count to > 3000 ( including the New Delhi, Faridabad facilities going live in Q2 FY 26 )

New Delhi’s ARPOB should be in line with their Noida hospital. Their Faribabad facility’s ARPOB should be in line with their Noida extension facility

Company estimates that both Delhi and Faribadab hospitals ( 2 new openings in Q2 ) should turn PAT positive in 15 months time

Oncology now contributes to > 10 pc of company’s revenues. Should trend higher going forward

Payor mix - Govt business mix is down from 40 to 35 pc over last 15 months ( this is a key monitorable - should come down going forward otherwise the working capital cycle and ARPOBs suffer ) . Rest 65 pc is almost equally split between insurance and cash business

Cash on books @ aprox 300 cr ( very comfortable position for the company to be able to even go for an inorganic acquisition )

Greater Faridabad hospital’s Govt Payor mix is much lower @ around 20 pc . Company expects similar trends for their new Delhi and Faridabad hospitals going live in Q2

Looking @ 8-10 pc ARPOB growth at corporate level for this year and next FY

Greater Noida + Noida extension - brownfield expansion should now begin ( post opening of 2 new hospitals in Delhi ). Aim to add aprox 250 beds here ( combined ) by FY 28

Cumulative capex for next 3 yrs projected to be around 1400 - 1500 cr - this should take the total beds beyond 3000 beds which they aim to hit by FY 28 ( including acquisitions + brownfield expansions ).

Guiding for an approximate topline growth of 30 pc for FY 26

Noida extension, Greater Noida - peak occupancies should be around 75-80 pc. Company is inching towards it. In coming 1-2 yrs, should be able to reach there

Company is targeting - their new hospitals at Delhi + Faridabad should get empaneled with Govt and 90 pc of Insurance companies within their first year of operations

EBITDA margins should be around 24 pc for Q2 and Q3 ( vs 25 pc for Q1 ) due to the expenses that are going to be incurred as the two new hospitals go live - not a meaningful contraction ( imho )

Greater Noida + Noida extension brownfield should cost them aprox 175 cr. Have earmarked 300-350 cr for inorganic acquisition inside next 1 yr. Rest of the money ( out of budgeted capex of 1400 cr, shall be spent on Greenfield expansion or another acquisition )

Debtor days for FY 25 was around 125 days. By end of H1, this should reduce to aprox 117-118 days

The brownfield expansion @ Greater Noida and Noida extension should go live within 24 months from now

As the govt business comes down below 25 over next 2-3 yrs, receivables should show a further decline

Disc: holding, biased, not SEBI registered, not a buy/sell recommendation, posted for informational purposes

[ranvir]

Broad brush highlights from Krsnaa Diagnostics Q1 FY 26 concall -

Revenues up 13 pc
EBITDA up 16 pc
PAT up 14 pc ( due lower other income )

Retail business ( RPL ) now contributes to 6 pc of company’s revenues. Rapidly scaling up retail B2C business across Punjab, Maharashtra and Orrisa

Have won Rajasthan state Govt’s contract - a key positive. Should start making a meaningful financial impact from next FY

Recievables @ 120 days ( vs 150 days @ end of FY 25 ). Have started receiving long overdue payments from Karnataka and HP. Have received official confirmation on receipt of pending dues from these and other states

The capex required to execute the Rajasthan contract shall be around 250 cr. Rajasthan business has the potential to clock 300 cr / yr kind of business for the company

Revenue growth for next 3 Qtrs should be > Q1’s revenue growth

RPL ( their retail venture ) should contribute to 18 -20 pc of company’s revenues by end of FY 27 ( vs 6 pc currently ). RPL should start breaking even on PAT level by end of FY 26

Company’s Rajasthan contract is only for pathology ( and not Radiology ). Hence investment required is lesser vs annual revenue potential

Rajasthan contract is initially for 5 yrs ( starting from date of commercialisation )

Apulki hospital in Pune should go live by Q3. Krsnaa being their diagnostics parter - should see revenues flowing in wef Q3

Disc: holding, biased, not a buy/sell recommendation, posted for educational purposes, not SEBI registered

[ranvir]

Entero Healthcare -

Q1 FY 26 results and Concall highlights -

Revenues - 1404 vs 1097 cr, up 28 pc ( vs IPM growth of 9 pc )
Gross Profits - 140 vs 100 cr, up 40 pc ( gross margins @ 9.9 vs 9.1 pc )
EBITDA - 50 vs 30 cr, up 66 pc ( margins @ 3.6 vs 2.8 pc )
PAT - 30 vs 21 cr, up 47 pc

Company is diversifying into new medical categories like - medical devices, diagnostics, trade generics etc to become one stop solution of its customers

Operating leverage impact was not felt in Q1 due annual salary and wage hikes implemented in Q1. Should happen Q2 onwards

Company’s strategic playbook rests on pillars like -

Disciplined inorganic growth ( have already made 50 + acquisitions )
Organic scale up in underserved markets
Deepening partnerships with Healthcare brands

Company now serves 71 k retailers vs 60.3 k served in Q1 FY 25

Districts covered @ 469 vs 448 YoY ( across 19 states )

No of Warehouses @ 102 vs 85

No of Hospitals procuring from Entero has already crossed 2500

Last 4 yr revenue CAGR @ 30 pc, EBITDA CAGR @ 67 pc

Out of a 28 pc growth in topline, 15 pc is organic growth and 13 pc growth has come from M&A executed in last FY

Company announced aprox 400 cr of acquisitions in Q1. Have closed some of them in Q1 and will close the rest in Q2

As the additional revenues kick in wef Q2, positive operating leverage effects shall be felt as the annual pay hikes are behind. For full year FY 26, company aims to reach EBITDA margins of 4 pc

Aim to reduce working capital days by another 10 days by end of FY 26 - through better use of technology systems

Organised distributors account of < 10 pc of IPM as of today - naturally, the headroom for growth is huge

Maintain their guidance of 30 pc topline growth for FY 26 ( Assumption - @ 3.8 pc EBITDA margins, full year EBITDA should be around 250 cr vs 172 cr LY - a growth of 45 pc )

Q1 is generally a weak Qtr for the company. Q2,Q3 are generally the strongest

For full year FY 26, guiding to be cash flow positive

Have made a lot of investments in the tech platforms over last 2-3 yrs ( for the ease of their customers ie retailers and better inventory management for them ). Going forward is the time to utilise these investments and drive better efficiencies through them

Tax rate for full FY should be around 17-18 pc

Targeting another 100 cr of acquisitions for current FY

Medical devices contributed to 4-5 pc of company’s revenues in Q1 - they have higher margin structure vs the std pharmaceuticals business

Cash on books @ 365 cr

Disc: initiated a new tracking position, business looks interesting to me, not a buy/sell recommendation, not SEBI registered