Satish's SME Corner : Notes and Con-call Updates

[jagadishsabat]

Agree on the valuation part. I did a similar projection with a conservative 15% CAGR and keeping gold revenue stagnant, with RV it still seems attractive-

PNGS REVA
Revenue Segment	FY26A	FY27E	FY28E
SIS Network	350	403	463
New EBOs	0	25	97
Other (Existing EBOs/Gold)	89	89	89
Total Revenue	439	517	649
EBITDA (at 22%)	97	114	143
Interest	10	10	10
Depreciation	1	1	1
EBT	86	103	132
Tax at 25%	21	26	33
PAT	64	77	99
EPS	20	24	31
Price at 18PE (industry Avg)	364	437	561
Price at 30PE (PNGS Gargi Fashion)	607	728	935

Disclaimer - not a buy/sell recommedation and its just a projection based on a lot of assumptions. Do your own analysis before investing.

[ha_the_meow]

A cargo company from the same promoters said this in their concall-

“fuel cost is a direct pass-on to the end customer” via “fuel surcharge,” and “100% of the increased fuel cost is passed on.”.

Is there any similar provision for Flysbs as well. If anyone has any idea the impact of fuel volatility on H1 results kindly share your thoughts.

Also, i would kindly request @Satishwe to make new thread for Flysbs.

[Satishwe]

If anyone is willing to put in the necessary effort to create a fresh topic on Flysbs, we can create a dedicated discussion thread for it as well.

[sumit680]

Any idea on fleet expansion plans?? on first glance it seems that they failed to achieve their target this year.. Fleet expansion is key to growth here.

And biggest puzzle to me is is the 125 cr increase in Long term Loans & Advances given to some unknown entity

too many litigations against promoters

[Satishwe]

Disclaimer : This is a not a buy/sell advice. And as already mentioned in the start of this Thread micro cap space is very volatile and illiquid. I do hold all the stocks discussed.

Workmates(WM) :

Kolkata based AWS Premier Tier consulting partner with 300+ clients across BFSI , IT, Healthcare. Founded in 2018 , It has 95% client retention and ~ 170 employees across Kolkata, Mumbai .

Kfintech as its top client in billing.
Highlight of this SME is its CXO strength , Promoters are all ex Sify and HCL tech.
Kamal Nath CEO of WM was the ceo of SifyIndia(3500 cr revenues). Co founders Basant Rana , Debashish Sarkar are all having excellent Pedigree.

History :

2018: Founded as Workmates Core2Cloud Solution Private Limited on November 14, 2018. Registered as
AWS Partner.
2019: Achieved AWS Select Consulting Partner status; upgraded to AWS Advanced Consulting Partner
same year.
2020: Recognized as AWS Managed Category Partner.
2021: Multiple AWS certifications: SAMbhav Partner, Web Architected Partner, CloudFront Service Delivery
Partner, WAF Service Delivery Partner, APN Immersion Days Partner.
2022: Launched Managed Security and Managed Database service lines. Opened new managed services
operations office in Kolkata.
2023: Completed 4 years of operations. Conducted first mega campus recruitment. Completed 350+
projects for 200+ clients.
2024: Achieved AWS Premier Tier Partner status (only select group globally). Won AWS Consulting Partner
of the Year 2025 award. Kamal Nath (ex-Sify CEO) stepped down from Sify after 12 years to focus on
Workmates.
2025 (Nov): Listed on BSE SME on November 18, 2025 at 368.25 (80.5% premium to IPO price of 204).
The company bootstrapped its growth without external funding rounds, reaching profitability organically.

Business:
WM operates a B2B, asset-light, services-led business model as an AWS Premier Consulting
Partner. Revenue is generated through:

1. Cloud Migration & Managed Services ( 50-55% of revenue): End-to-end migration of enterprise workloads to AWS cloud, followed by ongoing managed services contracts. These are typically multi-year contracts providing recurring revenue.
2. DevOps &Automation (15-20%): Implementation of CI/CD pipelines, infrastructure automation using AWS
   CloudFormation, Kubernetes orchestration.
3. Cybersecurity & Analytics (10-15%): Security solutions for cloud and hybrid environments. Data analytics and business intelligence services.
4. Application Development & Modernization (10-12%): Custom application development, legacy application modernization for cloud-native architecture.
5. SAP Infrastructure Support ( 3-5%): SAP workload migration and management on AWS.
6. Emerging Technologies (3-5%): IoT, Blockchain, AI/ML, VR/AR services - nascent but growing segment.

• FY 27 entry MRR at 13.25 cr/month implied annual revenue would be 160 cr. Guidance of 210 cr topline and 25 cr pat. H1 outlook: INR 92 crores , h2 120 cr.
• In Nov 2025 , WM achieved the AWS MSP (Managed Service Provider) status, this is a pivotal moment as AWS Premier Partner + Audited MSP puts them on Top 1% Global Status.

Recent updates:

Workmates Core2Cloud’s board has approved the incorporation of wholly owned subsidiary in Delaware, USA, its first overseas expansion to strengthen its presence in the US market. The new entity will focus on cloud migration, cloud operations, cybersecurity, managed services, data, and AI solutions. This is a new entity with no existing revenue, the move is a strategic long-term growth initiative with low immediate financial impact.

the earlier guidance of 210 cr doesn’t include any revenues form US entity, so H2 if they do some revenues form USA it would be on top of 210 cr with higher gross margins but lower net margins due to initial setup/marketing/sales costs.

TAILWINDS:

• Cloud infrastructure spending in India growing 22-27% CAGR through 2030.
• AWS investing $48.3 billion in India data centers (Maharashtra) by 2030.
• GenAI adoption requiring cloud-native infrastructure.
• Digital India, Startup India government initiatives.
• RBI pilot for cloud data storage solutions for financial institutions.
• Data localization requirements driving domestic cloud demand.
• 10-Year Incremental Revenue Impact from India’s Data-Centre Export Tax Holiday
  (2026–2035)
• Spike in hardware prices push more companies towards cloud

Risks:

• Kfin has inhouse team, possible they might reduce sales to WM
• Aws can change its policies/commissions which could impact margins.

DSCL: I hold WM shares at avg 320/- will plan to add more on dips.

[Satishwe]

Good results from Reva

[AMANDEEPSINHA]

Any fresh update on DSM Foods…I think they have declared good Q1 results

[ha_the_meow]

In one of the concall, Emmforce promotors told that 80% of their revenue is from USA, and trump has gone bonkers and throwing tariffs like anything. The irony is that european nations themselves are importing gas from Russia and they are exempted from this new bill.
This was always the risk with Emmforce, they neither diversified among customers nor geographies. Although from recent price action, which happened after GoIndia conference/Plant visit, it looks like someone accumulated good chunk of shares.

India, China fear 100% US tariffs after Senate clears bill to sanction Russia

[Shail1234]

Emmforce will not get such high margins in Indian sale. If you remove related party sale, their margins from Auto are over 30% so their focus is on US, but they are trying for Europe. Next month visit is planned, some exhibition. Yes risk is there but they dont have option. A new indian customer will ask them to book capacity at much much lower margin which emmforce doesnot want. so they are exploring US and Europe

They soon in a year will go big on hydraulic pump. It has huge potential as well. Also Agri will pick up. Its a long term company not a trade stock which usually SME segment has become.

[Satishwe]

reg DSM foods, I am not sure if there are any cg issues, market doesnt like this stock and derated to 10 pe due to constant acquisitions for growth. Need to watch out for few more Quarters and then take a call.

[Marathondreams]

For DSM Foods, low promoter holding (28%) and 10% reduction in shareholding by DII and FIIs between Oct 25 and Mar 26 is a matter of concern.