Sovrenn Times 02 Jul 2024

Author: Sovrenn Financial Technologies Pvt. Ltd.
2nd Jul 2024
Aditya Joshi, Co-founder and CEO

Akriti Swaroop, Co-founder and COO
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.
2nd Jul 2024
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SOVRENN FRAMEWORK
Please look at the following parameters to assess any company for investment:
(1) Company type: Evergreen or Seasonal sector is preferable over Cyclical. This is because it is difficult
to predict upswing in Cyclical stocks.
(2) Profit uptrend: The revenue, operating profit and net profit should ideally be following an increasing
trajectory and company must not be loss making.
(3) PE: TTM PE or Trailing 12m Price to Earnings ratio should ideally be on the lower side of the sector
PE range, unless the growth prospects are compelling to justify a higher PE.
(4) Futuristic Sector: A futuristic sector (eg: Solar, Wind EV, Railways, Defence, 5G, Electrification, New
Age IT, etc.) enjoys sector tailwinds and usually has higher growth potential.
(5) HNI / Institutional / Promoter Buying: If a known HNI enters the Company by picking equity stake in
it, it can add to one’s conviction building. Similarly, promoters buying their company’s shares is
generally a positive signal of them demonstrating confidence in their business.
(6) Special Situation: If a company is raising funds through preferential issuance of shares to a select
group of investors, or through Rights issuance where all the current shareholders have the right to
buy additional shares in the company, it signals incoming cash into the company. This cash is
generally used for future growth and hence signals increased possibility of higher future profits.
(7) Future Information: If we have information about future growth drivers of a company, it can help build
conviction before making investment decisions. Examples of such events include: (a) capacity
expansion which indicates future increase in sales, (b) new product launches, (c) large orders, (d)
partnerships and agreements, (e) acquisitions, etc.
This page is created for information purpose. It is not a BUY/SELL recommendation. 2

Please do your own due diligence before making any investment decisions.
2nd Jul 2024
Sovrenn Times Summary
1. K.P. ENERGY LIMITED
Filing: (FUND RAISE) Board Meeting of KP Energy is scheduled to be held on 4th July,2024 to consider
Fund raise.
MCap: INR 2,953 Cr PE: 50.6x
Number of LinkedIn Employees: 113 Members
Number of EPFO Employees: No data found.
GSTR3B: Last filed May ’24.
Clients: Aditya Birla Renewables Subsidiary Limited, NTPC Renewable Energy Limited, etc
2. KPI GREEN ENERGY LIMITED

Filing: (APPROVAL) KPI Green Energy has received approvals from the Chief Electrical Inspector
(CEIG) for 15 MW of solar power projects under our 'Captive Power Producer (CPP)' business segment
and 13.60 MW solar power projects under the Independent Power Producer (IPP) segment of the
Company.
Number of LinkedIn Employees: 217 Members.
GSTR3B: Last Filed May ‘24.
Clients: Gujarat Urja Vikas Nigam Limited (GUVNL), Maharashtra State Power Generation Co. Ltd.
(MAHAGENCO), etc.
3. POLY MEDICURE LIMITED

Filing: (FUND RAISE) Board of Poly Medicure has considered and approved raising of funds to the
amount not exceeding INR 1,000 Cr via QIP.
Number of LinkedIn Employees: 1,021 Members.
Renowned Funds: Small Cap World, Quant Fund.
4. NEWJAISA TECHNOLOGIES LIMITED

Filing: (FUND RAISE) Board of Newjaisa Technologies has considered and approved the issuance of
32.4L shares at INR 98/share, aggregating to INR 31.8 Cr to non-promoter persons/entities.
MCap: INR 348 Cr PE: 55x
Clients: Amazon, Flipkart, etc.
5. SHIVALIC POWER CONTROL LIMITED

Filing: (BULK DEAL) Bofa Securities Europe Sa bought 2.8L shares of Shivalic Power Control at INR
311/share, aggregating to INR 8.7 Cr.
MCap: INR 827 Cr PE: 84.8x
Clients: J K Cement, Escorts, Yamaha Motors, etc.

2nd Jul 2024
1. K.P. ENERGY LIMITED BSE: 539686 (1st time covered: 30th Jan 2023)
Recent filing: (FUND RAISE) Board Meeting of KP Energy is scheduled to be held on 4th July,2024 to
consider Fund raise.
SUMMARY: 4y Operating Profit uptrend | 2q Operating Profit uptrend | PE 50.6x (Sector PE range 50-90) |
Excellent Mar-24 results | Fund raise | Strategic Partnerships | Clean Energy
FUTURE OUTLOOK: Company has Projects in Hand totaling 1012.65 MW.
• MCap of INR 2,953 Crore (share price = INR 443 / share) (as on 2nd Jul ‘24)
• TTM PE 50.6x (as on 2nd Jul ‘24) Retail float = 24.4% (Mar-24)
FOOD FOR THOUGHT: Selling by Director and Immediate Relatives.
Company Description: KP Energy Limited is a balance of plant (BoP) solution provider for the Wind Energy
industry. The company engages throughout the development process of wind farms, right from
conceptualization until the commissioning of the project.
Share price and Volume (last 1 year):
Price Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24
KPEL 359 494 565 551 540 675 336 412 361 426 415 411
(In INR Cr) Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24
Sales 125 56 108 148 113 70 82 207
Op Profit 17 11 20 23 21 16 17 31
Net Profit 10.0 6.7 11.7 15.5 15.2 8.2 9.3 25
OPM 14% 20% 18% 16% 19% 23% 21% 15%
NPM 8% 12% 11% 10% 13% 11% 11% 12%
Promoter % 59.6% 44.8% 44.8% 44.8% 44.8% 44.8% 44.8% 44.8%
(In INR Cr) Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Sales 60 158 75 72 250 438 473
Op Profit 10 33 11 18 34 71 86
Net Profit 2 19 1 6 18 44 58
Website: https://www.kpenergy.in/

2nd Jul 2024
Company Type Evergreen
LT OP uptrend Yes
ST OP uptrend Yes
PE 50.6 (Clean Energy: 50-90)
Lower end of sector range
Yes
Futuristic Sector
(Wind Energy)
Mar ‘24: Affan Faruk Patel, Director has bought 6k share at a price
of INR 415 each, aggregating to INR 25L. He had also bought
INR 24L of shares in Nov and Dec ‘23.
Director and Immediate Relatives sold INR 35L, INR 1.07 Cr and
97L of shares in the months of Mar ’24, Feb ’24 and Dec ’23.
HNI / Institutional
Sep ‘23: Immediate relatives of Director and Employee sold INR
/ Promoter Yes
71L of shares at prices ranging from 518/share to INR 572/share.
Buying
Jun ‘23: Immediate relatives of Director and Employee as well as
Designated person sold INR 55L of shares at prices ranging from
INR 234/share to INR 281/share.
Nov ‘22: Veena Kothari bought 79k shares at INR 412/share,

aggregating to INR 3.3 Cr, but she eventually sold in Jun ‘23
Special Situation
Yes As stated above.
May ’24: Company has commissioned further 12.6MW (Phase-IX)

ISTS connected Wind Power Project comprising 6 numbers of
WTGs of 2.1MW each at Sidhpur site in Devbhoomi Dwarka. This
Phase-IX commissioning is a part of the 250.8MW ISTS connected
Wind Power Project capacity awarded to Apraava Energy Private
Limited by Solar Energy Corporation of India Limited (SECI) under
Tranche-VIII bidding.
Apr ’24: Company has received new order for development of 9MW
wind power project forming part of the wind-solar hybrid power
project to be developed in Gujarat. Project is awarded by Bhathwari
Future Visibility Technologies under Captive Power Project segment, needs to be
Yes completed in FY25.
Mar ’24: Company has successfully commissioned further 16.8MW

(Phase-VIII) ISTS connected Wind Power Project comprising 8
numbers of WTGs of 2.1MW each at Sidhpur site in Devbhoomi
Dwarka. This Phase-VIII commissioning is a part of the 250.8MW
ISTS connected Wind Power Project capacity awarded to Apraava
Energy Private Limited by Solar Energy Corporation of India
Limited (SECI) under Tranche-VIII bidding.
Mar ’24: Company has received new order of total capacity of

368.55MW out of which 185.85MW is awarded by Aditya Birla
Renewables Subsidiary Limited and 182.70MW is awarded by
2nd Jul 2024
ABREL (RJ) Projects Limited for development of Balance of Plant
for 368.55MW wind capacity forming part of the wind-solar hybrid
power project to be developed in Gujarat. The order also includes
development of 220KV transmission line for evacuation capacity of
673MW. The project is scheduled to be completed in FY26.
Mar ’24: KP Energy has successfully commissioned further

29.4MW (Phase-VII) ISTS connected Wind Power Project
comprising 14 numbers of WTGs of 2.1MW each at Sidhpur site in
Devbhoomi Dwarka. This Phase-VII commissioning is a part of the
250.8MW ISTS connected Wind Power Project capacity awarded
to Apraava Energy Private Limited by Solar Energy Corporation of
India Limited (SECI) under Tranche-VIII bidding. KP Energy is
developing the Project for Apraava Energy Private Limited as a
Contractor. With the present Phase-VII commissioning, the net
cumulative capacity commissioned at Sidhpur site stands at
193.2MW against the awarded capacity of 250.8MW.
Feb ’24: Company has successfully commissioned further 25.2MW

(Phase-VI) ISTS connected wind power project comprising 12
numbers of WTGs of 2.1MW each at Sidhpur site in Devbhoomi
Dwarka. This is a part of the 250.8MW ISTS connected wind power
project capacity awarded to Apraava Energy by Solar Energy
Corporation of India Limited (SECI) under Tranche-VIII bidding. KP
Energy is developing the Project for Apraava as a Contractor. With
the present Phase-VI commissioning, the net cumulative capacity
commissioned at Sidhpur site stands at 163.8MW against the
awarded capacity 250.8MW.
Jan ’24: Company has received new order from ABREL EPC
Limited (Aditya Birla group company) for development of Balance
of Plant of 86.1MW wind capacity forming part of the wind-solar
hybrid power project (comprising of 86.1MW wind and 65MWac
Solar) to be connected to existing 140MW power evacuation facility
at Fulsar Pooling Sub-station.
LT OP = Long-term operating profit; ST OP = Short-term operating profit

2nd Jul 2024
2. KPI GREEN ENERGY LIMITED NSE: KPIGREEN
(1st time covered: 1st Feb 2023)
Recent filing: (APPROVAL) KPI Green Energy has received approvals from the Chief Electrical Inspector
(CEIG) for 15 MW of solar power projects under our 'Captive Power Producer (CPP)' business segment and
13.60 MW solar power projects under the Independent Power Producer (IPP) segment of the Company.
SUMMARY: 5y Operating Profit uptrend | PE 65.5x (Sector PE range 50-90) | Fund raising | Institutional
entry | Promoter buying | Solar
FUTURE OUTLOOK: Company has Ambitious Target of 1000 MW by 2025.
• MCap of INR 10,606 Crore (share price = INR 1,761 / share) (as on 2nd Jul ‘24)
• TTM PE 65.5x (as on 2nd Jul ‘24) Retail float = 21% (Mar-24)
FOOF FOR THOUGHT: Negative operating cash flow for FY24.
Company Description: Incorporated in 2002, KPI Green develops, builds, owns, operates, and maintains
solar power plants through Independent Power Producer (IPP) and as service provider to Captive Power
Producer (CPP) under the brand name of 'Solarism'.
Price Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jul-24
KPI 830 894 823 820 1,155 1,468 1,214 1,740 1,523 1,808 1,820 1805
Sales 122 160 179 182 189 215 330 289
Op Profit 42 53 60 54 69 71 104 93
Net Profit 22 21 34 32 33 35 51 43
OPM 34% 33% 34% 30% 37% 33% 31% 32%
NPM 18% 13% 19% 18% 17% 16% 16% 15%
Promoter % 54.7% 54.7% 54.8% 54.8% 54.8% 54.8% 53.1% 53.1%
Sales - 34 59 102 230 644 1,024
Op Profit - 15 27 58 109 208 337
Net Profit - 9 6 22 43 110 162
Website: https://www.kpigreenenergy.in/

2nd Jul 2024
LT OP uptrend Yes
ST OP uptrend No
PE 65.5 (Clean Energy: 50-90)
Lower end of sector range
Yes
Futuristic Sector
(Solar)
Promoter Buying: (Note: 1:1 Bonus issue is Jan ‘23)
Apr ’24: 2.8k shares at INR 1,808/share, aggregating to INR 49L.
Mar ’24: 1.1k shares at INR 1695/share, aggregating to 18.4L
Sep ‘23: 6k shares at INR 807/share, aggregating to INR 49L.
HNI / Institutional Aug ‘23: 1.5k shares at INR 837/share, aggregating to INR 12L.
/ Promoter Yes Nov ‘22: 11.2k shares at INR 773/share, aggregating to INR 86L.
Oct ‘22: 10.8k shares at INR 763/share, aggregating to INR 82L.
Buying Sep ‘22: 3k shares at INR 927/share, aggregating to INR 27L.
In Aug ‘23, Designated Person sold 20k shares at INR 885/share,

aggregating to INR 1.7 Cr.
May ’24: Board of Directors of KPI Green Energy has approved the
raising of funds through the issuance of equity shares for an aggregate
amount of up to INR 1,000 Cr via Qualified Institutions Placement.
Dec ‘23: BoD approved the allocation of 25L Shares to be allotted to

Special Situation Yes eligible QIBs at an issue price of INR 1,183 per Equity Share,
aggregating to INR 300 Cr. Several Institutions are subscribing to the
QIP including Quant Mutual Fund, Societe Generale, Goldman Sachs,
Morgan Stanley, BoFA Securities, Yes Bank, Bengal Finance, etc.
Oct ‘23: BoD will meet on 11th Oct 2023 to consider and evaluate
proposal for raising funds by preferential issue or any other mode.
Jun ’24: Company has secured a final sanction letter for credit facilities
amounting to INR 686 Cr for the development of a 200 MWAC (240
MWDC) Solar Photovoltaic Power Project in Khavda, Kutch District.
Additionally, the company previously raised INR 300 Cr through a
Qualified Institutional Placement (QIP), with INR 225 Cr already used
to partially fund the project.
Jun ’24: Company has received new orders of 26.15 MW for executing
solar power projects under ‘Captive Power Producer (CPP)’ segment
Future Visibility Yes of the company.
Apr '24: Received orders totaling 74.3 MW for solar power projects in
the CPP segment from textile and fabrics companies, scheduled for
completion in FY25.
Mar '24: Obtained CEIG approval for 10 MW solar projects in the IPP
sector.
Mar '24: Awarded new orders totaling 54.7 MWp for solar projects, with
48.18 MWp in CPP and 6.59 MWp in IPP.

2nd Jul 2024
Mar '24: Secured a 2.6 MWp order from Arete Services Pvt. Ltd. in the
CPP segment.
Mar '24: Won a tender for a 100 MWAC Solar Power Project from
MAHAGENCO, marking expansion beyond Gujarat.
Mar '24: Received a Letter of Intent from GUVNL for a 50 MW Wind-

Solar Hybrid Power Project.
Mar '24: Received orders for a 305 MWac solar capacity project in
Gujarat from Aditya Birla Renewables Subsidiary Limited and ABREL
(RJ) Projects Limited.
Mar '24: Received orders totaling 9.40 MW for solar projects in the CPP
segment.
Feb '24: Received orders totaling 1.5 MW for solar projects in the CPP
segment.
Feb '24: Received a 15 MW order for a solar project in the CPP
segment, to be completed in FY24-25.
Jan '24: Received orders totaling 13.7 MW for solar projects in the CPP
segment, to be completed in FY25.
Jan '24: Signed a deal with the government for a 2.6 GW+
solar/wind/hybrid power plant.
Dec '23: Placed a wind turbine supply order for 193.2 MW with Suzlon
Energy Limited.
Dec '23: Received orders totaling 6.15 MW for solar projects in the CPP
segment, to be completed in FY25.
Nov '23: Received orders totaling 6.26 MW for solar projects in the CPP
segment, to be completed in FY24-25.

2nd Jul 2024
Check out Revenue Guidance Bucket under Sovrenn Discovery!!!
List of Stocks that have provided Revenue Guidance.
https://www.sovrenn.com/discovery/revenue-guidance-of-order-book-or-capacity

2nd Jul 2024
3. POLY MEDICURE LIMITED NSE: POLYMED (1st time covered: Today)
Recent filing: (FUND RAISE) Board of Poly Medicure has considered and approved raising of funds to the
amount not exceeding INR 1,000 Cr via QIP.
SUMMARY: 6y Operating Profit uptrend | 7q Operating Profit uptrend | PE 73.3x (Sector PE range 40-80) |
Fund raise | Healthcare
• MCap of INR 18,923 Crore (share price = INR 1,972 / share) (as on 2nd Jul ‘24)
• TTM PE 73.3x (as on 2nd Jul ‘24) Retail float = 4.8% (Mar-24)
FOOD FOR THOUGHT: Volatility in raw material prices.
Company Description: Company manufactures over 125 products using state-of-the-art technology in ultra-
modern facilities, covering more than 400,000 square feet of manufacturing floor space. This includes
approximately 100,000 square feet of cleanrooms ranging from class 100,000 to class 1,000 (ISO Class 7 &
8). A tool room equipped with modern facilities and CNC machines supports the manufacturing processes.
The company employs a high degree of automation and effective process control to deliver consistent product
quality.
Polyme 1236 1465 1374 1406 1526 1490 1457 1563 1589 1643 1802 1931
Sales 249 275 285 307 321 337 340 378
Op Profit 46 65 71 83 87 84 90 97
Net Profit 27 44 50 59 63 62 65 68
OPM 19% 24% 25% 27% 27% 25% 27% 26%
NPM 11% 16% 18% 19% 20% 18% 19% 18%
Promoter % 53.3% 53.3% 53.3% 53.3% 53.3% 53.2% 53.2% 53.1%
Sales 519 610 687 785 922 1,115 1,376
Op Profit 122 131 166 216 215 267 358
Net Profit 71 65 96 136 147 179 258
Website: https://polymedicure.com/
2nd Jul 2024
LT OP uptrend Yes
ST OP uptrend Yes
PE 73.3 (Healthcare: 40-80)
Higher end of sector range
Futuristic Sector No
HNI / Institutional Mar ’24: Smallcap World Fund is holding 2.3% stake. Quant Mutual
Fund is holding 2.1% stake. Max Life Insurance Co. is holding 1.1%
/ Promoter Yes stake.
Buying
Aug ’23: Promoter sold 18 Cr worth of shares in Aug ’23.
Special Situation Yes As stated above.
Future Visibility No

2nd Jul 2024
4. NEWJAISA TECHNOLOGIES LIMITED NSE - SME: NEWJAISA
(SME: Lot Size = 1,500 shares) (1st time covered: 5th Oct 2023)
Recent filing: (FUND RAISE) Board of Newjaisa Technologies has considered and approved the issuance
of 32.4L shares at INR 98/share, aggregating to INR 31.8 Cr to non-promoter persons/entities.
SUMMARY: 3y Operating Profit uptrend | PE 55x (Sector PE range 30-70) | Fund raise | Consumption |
Refurbishment
FUTURE OUTLOOK: Company targeting high-double-digit growth with a minimum CAGR of 50%. Company
expecting a 1-2% improvement in PAT. Company EBITDA margin expected to be around 14-15%.
● MCap of INR 348 Crore (share price = INR 108 / share) (as on 2nd Jul ‘24)
● TTM PE 55x (as on 2nd Jul ‘24) Retail float = 10.7% (Mar-24)
FOOD FOR THOUGHT: Negative operating cash flows for FY24.
Company Description: The Company specializes in providing an end-to-end reverse supply chain for IT
assets, primarily focusing on laptops, desktops and peripherals. Their core business model involves procuring
used IT assets, refurbishing them to a condition close to new, and selling them directly to end-user customers,
including business and retail customers. They aim to reduce e-waste by extending the life of IT equipment
and offering high-quality computing devices with warranties at affordable prices.
Newj - - - 153 161 145 128 116 92 97 85 122
(In INR Cr) Sep-22 Mar-23 Sep-23 Mar-24

Sales 14.1 30.5 26.2 35.6
Op Profit 2.7 6.1 4.1 4.8
Net Profit 2.1 4.7 2.9 3.4
OPM 19% 20% 15% 14%
NPM 15% 15% 11% 10%
Promoter % - - - 69.3%
Sales - - - 9.6 27.9 44.5 61.7
Op Profit - - - 1.1 3.0 8.8 8.9
Net Profit - - - 0.7 1.8 6.8 6.3
Website: https://newjaisa.com/
2nd Jul 2024
LT OP uptrend Yes
ST OP uptrend No
PE 55 (Consumer Disc: 30-70)
Higher end of sector range
Futuristic Sector Yes
Mar ‘24: Venture Capital Funds is holding 4.25% stake. Negen Tech
Opportunities Angel Fund is holding 4.25% stake.
HNI / Institutional Oct ’23: Suresh Bhatia HuF bought 4.3L shares at INR 69/share,
aggregating to INR 3 Cr. Shreekant Phumbhra bought 2.3L shares at
/ Promoter Yes INR 70/share, aggregating to INR 1.6 Cr. Saurabh Tripathi bought 1.7L
Buying shares at INR 71/share, aggregating to INR 1.2 Cr. Alacrity Securities
bought 2.3L shares at INR 70/share, aggregating to INR 1.6 Cr. Bajoria
Financial Services bought 3.6L shares at INR71/share, aggregating to
INR 2.6 Cr.
Special Situation Yes As stated above.
IPO proceeds will be partly used towards expansion of refurbishment

Future Visibility Yes facility, purchase of plant, machinery and equipment, investment in
technology development, branding and marketing.

2nd Jul 2024
5. SHIVALIC POWER CONTROL LIMITED NSE -SME: SPCL
(SME: Lot Size = 1,200 shares) (1st time covered: Today)
Recent filing: (BULK DEAL) Bofa Securities Europe Sa bought 2.8L shares of Shivalic Power Control at INR
311/share, aggregating to INR 8.7 Cr.
SUMMARY: 3y Operating Profit uptrend | PE 84.8x(Sector PE range 30-60) | Institutional Entry | IPO |
Electrification | Capital Goods
● MCap of INR 827 Crore (share price = INR 343 / share) (as on 2nd Jul ‘24)
● TTM PE 84.8x (as on 2nd Jul ‘24) Retail float = NA
FOOD FOR THOUGHT: PE is above sector range.
Company Description: Shivalic Power Control Limited, is in the business of manufacturing LT and HT
electric panels, boasts a rich 20-year operating history, with a sprawling 1,25,000 Sq. Feet in-house
manufacturing facility, the company prides itself on its ability to produce a varied selection of electric panels,
including PCC Panels, IMCC Panels, Smart Panels, MCC Panels, DG synchronization panels, Outdoor
panels, and HT Panels up to 33KV.
(In INR Cr) Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Dec-23* TTM
Sales - - - 52 57 82 64 84.5
Op Profit - - - 5 5 13 - -
Net Profit - - - 1 2 7 8 9.75
OPM - - - 10% 9% 16% - -
NPM - - - 2% 4% 9% 13% 12%
*for the 9 months period ending on 31st Dec ’23.
Website: https://shivalic.com/

2nd Jul 2024
LT OP uptrend Yes
ST OP uptrend Yes
PE 84.8 (Capital Goods: 30-60)
Above sector range
Yes
Futuristic Sector
(Electrification)
HNI / Institutional
/ Promoter Yes As stated above.
Buying
Special Situation Yes IPO in Jun '24
IPO proceeds will be used towards as follows:
Future Visibility Yes • INR 6 Cr towards funding of new machineries

• INR 2 Cr towards Civil construction of warehouse
• INR 6 Cr towards Inorganic growth

2nd Jul 2024
Others
GARDEN REACH SHIPBUILDERS & ENGINEERS LIMITED
(ORDER) Company has signed Contract worth INR 175 Cr for Construction of an Advanced Ocean-Going
Tug for Government of the People's Republic of Bangladesh, needs to be executed with in 2 year.
• MCap of INR 27,541 Cr (share price = INR 2,404/share); TTM PE 77.2x (as on 2nd Jul ‘24)
GRSE 621 817 841 743 847 873 931 814 765 989 1369 2099
DCX SYSTEMS LIMITED

(ORDER) Company has received anorder worth INR 1,250 Cr for Manufacture and Supply of Electronic
Modules from Larsen & Toubro Limited, needs to delivered within 3 years.
• MCap of INR 4,795 Cr (share price = INR 430/share); TTM PE 70.4x (as on 2nd Jul ‘24)
DCX 286 334 294 292 360 341 345 321 294 321 311 361
PENNAR INDUSTRIES LIMITED

(GEOGRAPHICAL EXPANSION) Company is expanding its manufacturing operations in the Northern part
of India by establishing a new plant at Raebareli, Uttar Pradesh. The plant spans 16 acres and features a
built-up area of 12,000 square meters. With a production capacity of 36,000 MT per annum, this facility is
equipped with state-of-the-art machinery and a comprehensive setup. Once fully operational, the plant will
enable the company to meet the demands of clients in the Northern and Eastern part of India, significantly
reducing transportation costs.
• MCap of INR 2,414 Cr (share price = INR 179/share); TTM PE 24.5x (as on 2nd Jul ‘24)
Pennar 83 118 112 102 119 125 153 134 133 137 144 168
CEINSYS TECH LIMITED

(SUBSIDIARY INCORPORATION) Company has incorporated a new subsidiary in the name of Ceinsys Tech
Singapore Pte. Ltd. to carry out business in the field of IT/ ITES and related services.
• MCap of INR 896 Cr (share price = INR 548/share); TTM PE 25.6x (as on 2nd Jul ‘24)
Ceinsy 196 221 216 367 363 354 449 592 588 596 462 528
GENUS POWER INFRASTRUCTURES LIMITED

(SHARE REPURCHASE AGREEMENT) Genus Power Solutions Private Limited (GPSPL) has entered into
a Share Purchase Agreement on June 30, 2024, to purchase 30,000 equity shares (30% of the total share
capital) of Maharashtra Akola Amravati Smart Metering Private Limited. This acquisition will make
Maharashtra Akola Amravati Smart Metering Private Limited a wholly owned subsidiary of GPSPL and a
wholly owned stepdown subsidiary of the Company.
• MCap of INR 10,340 Cr (share price = INR 341/share); TTM PE 138x (as on 2nd Jul ‘24)
Genus 183 259 256 246 221 232 265 250 230 298 314 310

2nd Jul 2024
Sovrenn SME Index: 0.22%
Sovrenn SME Index was up 0.22% today. Please note that the constituents of the Index are private.
Also, the Index is only an indication of the movement of the broader SME market and not available
for replication or commercialization in any form. Sovrenn has the right to make changes to Index
constituents or change weightages of the constituents as per its own discretion.
IPO
SME / Subs
Company Status Open Close Listing GMP
Mainboard (x)
Effwa Infra and Research SME Upcoming 05-Jul-24 09-Jul-24 12-Jul-24 43% NA
Ganesh Green Bharat SME Upcoming 05-Jul-24 09-Jul-24 12-Jul-24 100% NA
Ambey Laboratories SME Upcoming 04-Jul-24 08-Jul-24 11-Jul-24 32% NA
Bansal Wire Mainboard Upcoming 03-Jul-24 05-Jul-24 10-Jul-24 24% NA
Emcure Pharma Mainboard Upcoming 03-Jul-24 05-Jul-24 10-Jul-24 29% NA
Nephro Care India SME Close 28-Jun-24 02-Jul-24 05-Jul-24 183% 716
Diensten SME Close 26-Jun-24 28-Jun-24 03-Jul-24 58% 54
Vraj Iron and Steel Mainboard Close 26-Jun-24 28-Jun-24 03-Jul-24 28% 126
Company Sector Revenue growth (YoY) Profit growth (YoY) Issue PE

Effwa Infra and Research Waste Mangement 26% 2.7x 14x
Ganesh Green Bharat Solar 90% 2.7x 22x
Ambey Laboratories Agrochemical 12% 60% 25x
Bansal Wire Steel Products 2% 31% 51x
Emcure Pharma Pharma 11% -6% 36x
Nephro Care India Healthcare 55% 2.3x 38x
Diensten IT Consulting -7% NA NA
Vraj Iron and Steel Steel Products -21% 10% 12x
Note: GMP keeps updating till listing on exchange. Subscription (x) keeps updating till Issue is Open.
Revenue and Profit growth is calculated after annualizing last period growth.

2nd Jul 2024
Sovrenn Macro
The Growing Threat of Government Debt: A Challenge for Global Stability and Inflation, Warns BIS
The Bank for International Settlements (BIS) has issued a sobering alert about the escalating levels of
government debt worldwide, emphasizing its potential to unsettle global financial markets and worsen
inflationary pressures.
Debt Levels on the Rise
Recent years have witnessed a sharp increase in government borrowing, driven by heightened expenditures
on crucial areas such as energy transition and social welfare amidst changing demographics. The BIS notes
that these elevated debt levels were previously masked by long periods of historically low interest rates post-
2008 global financial crisis.
Global Examples and Fiscal Challenges
Highlighting examples such as the United States, where government debt has soared to unprecedented
levels, projected to exceed 140% of GDP by 2032 without fiscal adjustments. Similarly, fiscal challenges in
countries like France, with deficits surpassing EU limits, underscore the delicate balance between economic
stimulus and fiscal responsibility.
Impact on Stability and Inflation
While increased government spending can stimulate economic growth, it also poses risks of exacerbating
inflation. The BIS cautions that excessive fiscal stimulus amid economic recovery could prolong inflationary
pressures, delaying anticipated declines. This dilemma underscores the careful balance central banks must
strike in promoting economic recovery while safeguarding long-term stability.
Urging Prudent Actions and Future Outlook
In response to these challenges, the BIS calls for proactive measures to curb excessive borrowing before
economic conditions worsen. Emphasizing the need for responsible fiscal management, the institution urges
governments globally to prioritize sustainable fiscal policies. It also warns against premature adjustments to
key interest rates that could disrupt economic recovery.
Conclusion: Navigating a Complex Economic Terrain
As global economies navigate post-pandemic recovery and navigate evolving geopolitical dynamics, the BIS
stresses the importance of vigilant fiscal oversight and coordinated policy responses. Safeguarding financial
stability amidst rising debt levels and inflation remains crucial, necessitating concerted efforts from
policymakers to ensure a sustainable global economic future that benefits all.

2nd Jul 2024
Annexure
Sector specific PE classification:
Sl. No. Sector PE range
1 Information Technology 30 - 50
2 Pharma 20 - 30
3 Commodity Trading/Metal/ Paper 5 - 15
4 Consumer Retail/ FMCG 30 - 100
5 Consumer Discretionary 30 - 70
6 Gems and Jewellery 30 - 70
7 Capital Goods - Electrical Equipment 30 - 60
8 Capital Goods - Non Electrical Equipments 30 - 60
9 Industrial Products 30 - 60
10 Wires and Cables 30 - 60
11 Infrastructure 8 - 25
12 Telecom / Solar / Power Infra 30 - 50
13 Realty 30 - 40
14 Building Material 30 - 60
15 Oil & Gas field services 10-30
16 NBFCs 20 - 40
17 Banking 10 - 20
18 Financial Services 20 - 50
19 Microfinance 10 - 20
20 Brokerage 20 - 40
21 Power generation 20 - 30
22 Electric Vehicles 80 - 120
23 Automobile Manufacturing 30 - 50
24 Automobile Ancillaries 30 - 50
25 Railways 40 - 70
26 Clean Energy 50 - 90
27 Hydro Engineering 30 - 50
28 Smart Meter 30 - 70
29 Recycling 30 - 50
30 Waste Management 25 - 50
31 Healthcare - Hospitals/ Diagnostics 40 - 80
32 Speciality Chemicals 30 - 50
33 Commodity Chemicals 10 - 40
34 FMCG 30 - 70
35 Packaging 20 - 50
36 Defence 50 - 100
37 Drone 70 - 120
38 Contract Manufacturing 40 - 100
39 EMS 50 - 100
40 Logistics 10 - 40
41 Diversified Commercial Services 30 - 50
42 Consulting Services 30 - 50
43 Travel Services 30 - 60
44 HR Services 30 - 50
45 Media 20 - 50
46 Tech Platform 50 - 100
47 Steel products 10 - 50
48 EPC 20 - 50
49 Stationery 20 - 40
50 Education 15 - 40
51 Agro-processing 15 - 30
52 Agri products 30 - 50
53 Alcoholic beverages 30 - 70
54 Event management 25 - 50
55 Entertainment 20 - 40
56 VFX 30 - 60
57 Biofuels 30 - 60

2nd Jul 2024
Retail float calculation:
Shareholding percent for resident individuals holding nominal share capital up to INR 2L.
Special Situation:
Special Situation refers to any form of capital raise by the Company – Preferential issuance or allotment
of equity shares, Preferential issuance or allotment of equity warrants, Rights issuance, recently
conducted IPO / FPO or issuance of any debt security like NCDs, commercial papers, etc.
Future Visibility:
Future Visibility refers to a piece of information / event that positively impacts future revenues. Examples:
a large order win by the company, partnership / acquisition, new factory setup, expansion in existing
factory, new stores, launch of a new brand, etc.
Futuristic Sector:
Futuristic Sector refers to those sectors where high growth is expected. Examples: Green Energy (solar,
wind, etc.), Electric Vehicle, Railways (through railways modernization), Defence (through increasing self-
reliance), New-Age IT (Cloud, AI, ML, big data), 5G, Electrification, etc.


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Sovrenn Times 02 Jul 2024

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Author: Sovrenn Financial Technologies Pvt. Ltd.

2nd Jul 2024

Aditya Joshi, Co-founder and CEO

IMPORTANT: How to use Sovrenn Times

This page is created for information purpose. It is not a BUY/SELL recommendation. 2

2. KPI GREEN ENERGY LIMITED

3. POLY MEDICURE LIMITED

4. NEWJAISA TECHNOLOGIES LIMITED

5. SHIVALIC POWER CONTROL LIMITED

This page is created for information purpose. It is not a BUY/SELL recommendation. 3

FUTURE OUTLOOK: Company has Projects in Hand totaling 1012.65 MW.

FOOD FOR THOUGHT: Selling by Director and Immediate Relatives.

Share price and Volume (last 1 year):

This page is created for information purpose. It is not a BUY/SELL recommendation. 4

Nov ‘22: Veena Kothari bought 79k shares at INR 412/share,

May ’24: Company has commissioned further 12.6MW (Phase-IX)

Mar ’24: Company has successfully commissioned further 16.8MW

Mar ’24: Company has received new order of total capacity of

Mar ’24: KP Energy has successfully commissioned further

Feb ’24: Company has successfully commissioned further 25.2MW

LT OP = Long-term operating profit; ST OP = Short-term operating profit

This page is created for information purpose. It is not a BUY/SELL recommendation. 6

FUTURE OUTLOOK: Company has Ambitious Target of 1000 MW by 2025.

FOOF FOR THOUGHT: Negative operating cash flow for FY24.

Share price and Volume (last 1 year):

This page is created for information purpose. It is not a BUY/SELL recommendation. 7

In Aug ‘23, Designated Person sold 20k shares at INR 885/share,

Dec ‘23: BoD approved the allocation of 25L Shares to be allotted to

This page is created for information purpose. It is not a BUY/SELL recommendation. 8

Mar '24: Received a Letter of Intent from GUVNL for a 50 MW Wind-

This page is created for information purpose. It is not a BUY/SELL recommendation. 9

Check out Revenue Guidance Bucket under Sovrenn Discovery!!!

List of Stocks that have provided Revenue Guidance.

This page is created for information purpose. It is not a BUY/SELL recommendation. 10

FOOD FOR THOUGHT: Volatility in raw material prices.

Share price and Volume (last 1 year):

Special Situation Yes As stated above.

LT OP = Long-term operating profit; ST OP = Short-term operating profit

This page is created for information purpose. It is not a BUY/SELL recommendation. 12

FOOD FOR THOUGHT: Negative operating cash flows for FY24.

Share price and Volume (last 1 year):

(In INR Cr) Sep-22 Mar-23 Sep-23 Mar-24

Special Situation Yes As stated above.

IPO proceeds will be partly used towards expansion of refurbishment

LT OP = Long-term operating profit; ST OP = Short-term operating profit

This page is created for information purpose. It is not a BUY/SELL recommendation. 14

FOOD FOR THOUGHT: PE is above sector range.

Share price and Volume (last 1 year):

This page is created for information purpose. It is not a BUY/SELL recommendation. 15

Special Situation Yes IPO in Jun '24

IPO proceeds will be used towards as follows:

Future Visibility Yes • INR 6 Cr towards funding of new machineries

LT OP = Long-term operating profit; ST OP = Short-term operating profit

This page is created for information purpose. It is not a BUY/SELL recommendation. 16

DCX SYSTEMS LIMITED

PENNAR INDUSTRIES LIMITED

CEINSYS TECH LIMITED

GENUS POWER INFRASTRUCTURES LIMITED

This page is created for information purpose. It is not a BUY/SELL recommendation. 17

Company Sector Revenue growth (YoY) Profit growth (YoY) Issue PE

This page is created for information purpose. It is not a BUY/SELL recommendation. 18

Debt Levels on the Rise

Global Examples and Fiscal Challenges

Impact on Stability and Inflation