Author 02 May 2023

Sovrenn Financial Technologies Pvt. Ltd.

Co-founder and CEO – Aditya Joshi (https://twitter.com/Aditya_joshi12)

Co-founder and COO – Akriti Swaroop (https://twitter.com/SwaroopAkriti)

Sovrenn Financial Technologies Private Limited

02 May 2023

SOVRENN TIMES

DISCLAIMER: This document is created for educational and informational purposes only and
should NOT be construed as a Buy/Sell recommendation, investment advice or a research
report. Although the document accurately reflects the personal views of the authors, there may
be manual/ human errors in the document. The authors may also have equity shares in the
companies mentioned in this report. Investor is advised to consult his/her investment advisor
and undertake further due diligence before making any investment decision in the companies
mentioned. Authors are not liable for any financial gains or losses due to investments made as
per the information written in this document.
 02 May 2023

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Sovrenn Financial Technologies Pvt. Ltd. 2

 02 May 2023

VERTOZ ADVERTISING

(BUSINESS EXPANSION) Vertoz incorporated a wholly owned subsidiary in Hong

Kong to carry on the business of online digital advertising, domain selling, cloud
hosting, IT & IT-enabled services in domestic and international markets.

Vertoz is an ad-tech company helping businesses emerge swiftly and smartly in their
digital expedition, helping them with everything right from building a website to running
successful ad campaigns. In order to make the whole process hassle-free, it’s
developed all the possible products and services in-house.

Type of Company Structural

Long-term Op. Profit uptrend Yes
Short-term Op. Profit uptrend Yes
PE Low
Yes

(Digital
Futuristic Sector Media) Offerings
HNI / Institutional / Promoter Buying No
Dec ’22: BoD considered and approved the allotment of
66L warrants to promoters and non-promoters at INR
Special Situation Yes 123/share, total INR 81 Crore.
Future Visibility Yes As stated above

Ø MCap of INR 297 Crore (share price = INR 248 / share) (As on 2nd May ‘23)
Ø TTM PE of 27x (As on 2nd May ‘23) Retail float = 20.7% (Mar-23)
Ø At an all-time high quarterly and TTM sales, operating profit and net profit

(In INR Cr) Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23
Sales 9.3 10.1 12.2 10.0 11.0 15.9 21.6 34.3
Op. Profit 1.7 2.9 3.1 2.6 2.7 3.6 4.3 6.5
Net Profit 1.2 1.3 1.8 1.8 1.4 2.3 3.2 4.1
Promoter % 56.3% 56.3% 56.3% 56.3% 56.3%

(In INR Cr) Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Sales 37 46 41 57 42 83
Op. Profit 8 11 7 12 11 17
Net Profit 6 7 4 8 6 11

Share Price May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr-
(INR) 22 22 22 22 22 22 22 22 23 23 23 23
Vertoz 91 84 83 85 113 103 197 239 230 220 200 245

Website link: https://www.vertoz.com/

Sovrenn Financial Technologies Pvt. Ltd. 3

 02 May 2023

MERCURY EV-TECH LIMITED

(LARGE ORDER) An 80% subsidiary of the Company, Powermetz Energy, received

an open order worth INR 110 Cr for supply of E2W batteries to one of the leading 2W
EV manufacturers of India. Lithium-ion batteries supplied under the order will be used
for their entire range of Electric 2W. The Company has commenced the supply of
batteries against the order.

Mercury EV-Tech is involved in the manufacturing of Electric Scooter, Electric Car,

Electric Bus, Electric Vintage car, Electric Golf Car and Electric Vehicles in India.
Production of 2W has started with brand name of “Thunderbolt EZ” and “Thunderbolt
Smart”. The Company has now introduced this model in market with 130+ dealers
network PAN India. Company owns a 17-acre land where it has started setting up in-
house facility for manufacturing key components like battery, chassis, motor controller,
break shoe, CED paint and already operational assembly line.

Type of Company Structural

Long-term Op. Profit uptrend Yes
Short-term Op. Profit uptrend No
PE Very high
Yes
Futuristic Sector (EV)
HNI / Institutional / Promoter Buying No
Sep ‘22: BoD approved the allotment of 16 Cr Rights
Special Situation Yes Equity shares at INR 3/share, aggregating to INR 48 Cr.
Future Visibility Yes As stated above

Ø MCap of INR 357 Crore (share price = INR 21.4 / share) (As on 2nd May ‘23)
Ø TTM PE of 549x (As on 2nd May ‘23) Retail float = 12.3% (Mar-23)

(In INR Cr) Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22
Sales 0.03 0.49 0.34 0.02 0.35 1.70 2.91 2.01
Op. Profit -0.01 -0.04 -0.01 0.00 0.34 0.02 0.08 0.44
Net Profit 0.02 -0.03 0.00 0.00 0.27 0.01 0.06 0.31
Promoter % 49.8% 49.8% 49.8% 49.8% 65.1% 65.1% 62.6% 62.6%

(In INR Cr) Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 TTM

Sales 0.68 0.83 0.00 1.15 1.18 6.97
Op. Profit -0.17 -0.12 -0.14 -0.12 0.28 0.88
Net Profit -0.26 -0.12 -0.13 -0.09 0.23 0.65

Share Price May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr-
(INR) 22 22 22 22 22 22 22 22 23 23 23 23
Mercury NA 1.3 3.0 6.6 5.9 5.2 7.6 11.9 21.2 15.0 13.5 20.4

Website link: http://www.mercurymetals.in/

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 02 May 2023

MOLD-TEK TECHNOLOGIES LIMITED

(EXCELLENT RESULTS) For the Mar-23 quarter, Sales increased by 49% from INR
28.5 Cr to INR 42.6 Cr. Net Profit increased by 115% over the same period from INR
4.7 Cr to INR 10.1 Cr.

As a part of the Mold-Tek Group, Mold-Tek Technologies is a leading Engineering

Services Provider in India. The company provides Civil, Structural & Mechanical
Engineering Services to its clients located across the globe.

Type of Company Structural

Long-term Op. Profit uptrend Yes
Short-term Op. Profit uptrend Yes
PE Low

Futuristic Sector No Design of BIW Tooling

HNI / Institutional / Promoter Buying No
Special Situation No
Future Visibility No

Ø MCap of INR 849 Crore (share price = INR 300 / share) (As on 2nd May ‘23)
Ø TTM PE of 29.3x (As on 2nd May ‘23) Retail float = 22.2% (Mar-23)
Ø At an all-time high quarterly and TTM sales, operating profit and net profit

(In INR Cr) Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23
Sales 23 23 24 29 29 35 41 43
Op Profit 6 5 3 7 5 10 13 14
Net Profit 3 4 2 5 3 7 9 10

(In INR Cr) Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Sales 74 89 101 83 98 147
Op Profit 10 19 20 15 20 42
Net Profit 6 12 11 10 13 29

Share Price May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar-
(INR) 22 22 22 22 22 22 22 22 23 23 23 Apr-23
Mold- Tek 100 96 97 89 88 111 103 142 172 236 244 274

Website link: http://www.moldtekindia.com/

Sovrenn Financial Technologies Pvt. Ltd. 5

 02 May 2023

GRAVITA INDIA LIMITED

(AVERAGE RESULTS) For the Mar-23 quarter, Sales increased by 12% from INR 666
Cr to INR 749 Cr. Net Profit increased by 54% over the same period from INR 46 Cr
to INR 64 Cr, while Operating Profit decreased by 10% from INR 70 Cr to INR 63 Cr.

Established in 1992, Gravita is one of the largest recyclers of non-ferrous metals in

India. It has diversified into Manufacturing, International Trade, Turnkey Solutions in
nonferrous metals, Plastics industry and in Information Technology. It has its offices
and plants in India, USA, Singapore, Netherland, Srilanka, Ghana, Mozambique,
Senegal, Tanzania, Jamaica, Mali, Mauritania, and Nicaragua.

Type of Company Structural

Long-term Op. Profit uptrend Yes
Short-term Op. Profit uptrend Yes
PE Very low
Futuristic Sector No Recycled PET flakes
HNI / Institutional / Promoter 7th Oct ‘22: Abu Dhabi Investment Authority bought 5.6L
Buying Yes shares at INR 332/share, aggregating to INR 18.4 Cr.
Special Situation No
Executed an MoU to establish a recycling plant in Oman (1st in
Middle-East) + Capacity at the Mundra unit increased from
19.5k MTPA to 60k MTPA (including a shift of 19.5k from
Gandhinagar) + Stared commercial production of red led and
Future Visibility Yes plastic granules

Ø MCap of INR 3,530 Crore (share price = INR 511 / share) (As on 2nd May ‘23)
Ø TTM PE of 17.3x (As on 2nd May ‘23) Retail float = 13.8% (Mar-23)
Ø At an all-time high quarterly and TTM net profit, and TTM sales

(In INR Cr) Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23
Sales 446 546 557 666 580 683 789 749
Op Profit 37 50 54 70 16 59 69 63
Net Profit 23 39 41 46 45 45 50 64
Promoter % 73% 73% 73% 73% 73% 73% 73% 73%

(In INR Cr) Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Sales 1,017 1,242 1,348 1,410 2,216 2,801
Op Profit 92 62 109 121 217 198
Net Profit 48 19 37 57 148 204

Share Price May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar-
(INR) 22 22 22 22 22 22 22 22 23 23 23 Apr-23
Gravita 266 290 290 323 319 370 360 450 519 457 485 508

Website link: https://www.gravitaindia.com/

Sovrenn Financial Technologies Pvt. Ltd. 6

 02 May 2023

R M DRIP & SPRINKLERS SYSTEMS LIMITED (SME: Lot Size = 2,000)

(PREFERENTIAL ALLOTMENT) BoD has considered and approved the allotment of

36L shares at INR 20.7/share, aggregating to INR 7.5 Cr on preferential basis to a
group of non-promoters. It also approved the allotment of 1.5 Cr of warrants at INR
20.7/warrant, aggregating to INR 30.4 Crore to non-promoters.

RM Drip & Sprinkler Systems Ltd. provides customers with irrigation products that
comply consistently with quality requirements in all respects, providing trainings for
customers, technical services for installation & post installation, which ensure
enhanced customer satisfaction. The Company has a decent infrastructure with
advance machineries and world class technology.

There has been a change in Management, as Nivrutti Pandurang Kedar has taken
over the Company under him with current holding of 52%.

Type of Company Structural RM Sprinkler

Long-term Op. Profit uptrend No
Short-term Op. Profit uptrend No
PE Very high

Futuristic Sector No
HNI / Institutional / Promoter Feb ‘23: Shetty Leena Sachin bought 48,000 shares at INR
Buying Yes 30.2/share and aggregating to INR 15L.
Special Situation Yes As stated above
Future Visibility No

Ø MCap of INR 31.4 Crore (share price = INR 47 / share) (As on 2nd May ‘23)
Ø TTM PE NA (As on 2nd May ‘23) Retail float = 17.4% (Mar-23)

(In INR Cr) Mar-21 Sep-21 Mar-22 Sep-22 Mar-23

Sales 14.9 5.6 12.3 3.8
Op Profit 2.5 -0.7 2.2 -2.8
Net Profit 1.3 -2.3 1.3 -3.7
Promoter % 60.2% 60.2% 60.3% 59.4% 51.9%

(In INR Cr) Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 TTM

Sales 42.6 22.3 23.2 18.2 17.9 16.1
Op Profit 4.7 -3.5 3.9 1.9 0.8 -0.6
Net Profit 1.6 -5.4 2.8 0.1 -0.9 -2.4

Share Price May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr-
(INR) 22 22 22 22 22 22 22 22 23 23 23 23
RM Drip 17 16 13 16 15 16 17 16 19 30 46 49

Website link: https://www.rmdrip.com/

Sovrenn Financial Technologies Pvt. Ltd. 7

 02 May 2023

Sovrenn Macro Daily

1. GST collection for April-2023 is the highest ever: GST collection for the
month of April-2023 stands at INR 1.87L Crore, the highest ever and 12% more
than the previous highest which came in April-2022, at INR 1.68L Crore.

GST collection (in Lac Crore)

2.0 1.87
1.68
1.58 1.60
1.6 1.50 1.42
1.41
1.33
1.2

0.8

0.4

-
Jan Feb Mar Apr
2022 2023

The state wise distribution shows that the maximum collection came in from the
state of Maharashtra at INR 33k Cr, followed by Karnataka at INR 15k Cr and
Gujarat at INR 12k Cr. For the month of April, the YoY collection in Maharashtra
and Karnataka grew by 21% and 23% respectively, while that in Gujarat grew
by only 4%. The collections in the next 3 states, i.e., Tamil Nadu, UP and
Haryana, all stood at around 10k Cr and their collections also grew by around
20%.

GST collection - Top 10 states

35,000 25%
30,000 20%
25,000
20,000 15%
15,000 10%
10,000
5,000 5%
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GST collection for April-23 (in Cr) GST growth (Apr-23 vs Apr-22)

Takeaway: The increase in GST collection is driven by three main factors: (i)
increase in economic activity, (ii) increase in inflation, (iii) increase in tax

Sovrenn Financial Technologies Pvt. Ltd. 8

 02 May 2023

compliance. The first factor is indicative of a growing economy, increasing

consumption, vibrant business environment – all of which would imply growth
in real GDP. The second factor indicates the rise in general price levels, which
not only squeezes the margins of businesses but also makes final products and
services expensive for the consumers. This would ideally lead to reduction in
demand, and does not contribute to real GDP, although it does add to the
nominal GDP *. The third factor indicates stricter compliance measures
implemented by the Govt. to prevent evasion of tax. It also indicates
formalization of the economy, i.e., shift from informal to formal economy as well
as increasing digitization.

If we look at the GST collection for 4QFY23, it was INR 467k Cr, vs. INR 416k
Cr in 4QFY22, a 12.3% increase. Real GDP for 4QFY23 is expected to be
around 5.3% as per RBI’s estimate. Further, 6.2% has been the average CPI
inflation in the quarter. Hence, out of a total of 12.3%, the rest of it, i.e., 0.8%
could be attributed to increased compliance. In short, both increase in economic
activity and inflation have contributed almost equally, around 45-50% each, to
the increase in GST, while the balance 5-6% is due to increased compliance.

*(1 + Nominal GDP growth) = (1 + Real GDP Growth) * (1 + Inflation), which can be
simplified to approximately: Nominal GDP = Real GDP + Inflation

Sovrenn Financial Technologies Pvt. Ltd. 9

 02 May 2023

Annexure

PE classification:

Less than 20 Very low

20 – 30 Low
30-50 Medium
50-70 High
More than 70 Very high

Retail float calculation:

Shareholding percent for resident individuals holding nominal share capital up to

INR 2L.

Sovrenn Financial Technologies Pvt. Ltd. 10