Sovrenn Times 28 Jun 2024

Author: Sovrenn Financial Technologies Pvt. Ltd.
28th Jun 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.
28th Jun 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.
28th Jun 2024
Sovrenn Times Summary
1. CANTABIL RETAIL INDIA LIMITED

Filing: (PROMOTER BUYING) Promoter of Cantabil Retail bought 3L shares at INR 221/share,
aggregating to INR 6.7 Cr.
MCap: INR 2,050 Cr PE: 33.6x
Number of LinkedIn Employees: 635 Members.
GSTR3B: Last Filed May ‘24.
Products: Products are available on Myntra.
2. SHILCHAR TECHNOLOGIES LIMITED

Filing: (RESCHEDULING OF CAPACITY EXPANSION) Shilchar Technologies currently has a capacity
of 4000 MVA, which is being fully utilized. To meet growing customer demand, the company plans to add
an additional 3500 MVA of capacity by the end of July 2024. This expansion will require an investment of
INR 30 Cr, which will be financed through internal funds. In Feb 2024, Company had announced the
expansion of capacity to be completed in Jun-2024. It has now been rescheduled to July end.
Accreditation: Company transformer testing Lab in Vadodra has been accredited by the National
Accreditation Board for Testing and Calibration Lab (NABL).
3. KPI GREEN ENERGY LIMITED

Filing: (CREDIT FACILITIES) KPI Green Energy 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.
Clients: Gujarat Urja Vikas Nigam Limited (GUVNL), Maharashtra State Power Generation Co. Ltd.
(MAHAGENCO), etc.
4. KRISHCA STRAPPING SOLUTIONS LIMITED

Filing: (FUND RAISE) Board Meeting of Krishca Strapping Solutions to be held on 02-Jul-2024 to
consider Fund raising.
MCap: 380 Cr PE: 28.7x
Number of LinkedIn Employees: 21 Members
Clients: JSW Steel, SAIL, etc.
5. CFF FLUID LIMITED

Filing: (ORDER) Company has received Contract worth INR 9.6 Cr for Procurement of Spare P75 Project
from Material Organisation, Mumbai, needs to be delivered by Dec ‘24.
Clients: Indian NAVY.

28th Jun 2024
1. CANTABIL RETAIL INDIA LIMITED
NSE: CANTABIL (1st time covered: 1st Mar 2023)
Recent filing: (PROMOTER BUYING) Promoter of Cantabil Retail bought 3L shares at INR 221/share,
SUMMARY: 3y Operating Profit uptrend | PE 33.3x (Sector PE range 30-70) | Fund Raise | Institutional entry
| Promoter Buying | Consumption
FUTURE OUTLOOK: Company is planning to achieve a revenue of INR 1,000 Cr by mid-FY27.
• MCap of INR 2,050 Crore (share price = INR 245 / share) (as on 28th Jun ‘24)
• TTM PE 33.6x (as on 28th Jun ‘24) Retail float = 7.34% (Mar-24)
FOOD FOR THOUGHT: Highly competitive sector.
Company Description: Cantabil Retail India is in the business of designing, manufacturing, branding and
retailing of apparels under the brand name of CANTABIL. The CANTABIL brand offers the complete range
of formal-wear, party-wear, casuals & ultracasual clothing for Men and Women in the middle to high income
group. The company has 400+ exclusive retail outlets & employee strength of more than 3,700+ spread
across India.
Share price and Volume (last 1 year):
Price Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24
Cantabil 206 191 205 223 222 200 241 253 243 209 213 212
(In INR Cr) Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24
Sales 101 116 162 173 112 135 174 194
Op Profit 35 31 55 42 34 30 54 44
Net Profit 14 9 27 17 12 8 24 18
OPM 35% 27% 34% 24% 30% 22% 31% 23%
NPM 14% 8% 17% 10% 11% 6% 14% 9%
Promoter % 74.9% 74.9% 75% 75% 75% 75% 75% 73.2%
(In INR Cr) Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Sales 196 289 338 252 383 552 616
Op Profit 20 30 85 59 112 164 163
Net Profit 8 16 24 12 60 67 62
Website: https://www.cantabilinternational.com/
28th Jun 2024
Company Type
Structural
LT OP uptrend Yes
ST OP uptrend No
PE 33.6
(Consumer Discretionary: 30-70)
Lower end of sector range
No
Futuristic Sector
Mar ’24: Think India Opportunities Master Fund LP is holding 2.4%

stake. Bofa Securities Europe SA is holding 2.1% stake. Authum
HNI / Institutional
Investment and Infrastructure is holding 1.9% stake.
/ Promoter Yes
Buying Dec ‘23: Bofa Securities Europe SA bought 17.3L shares at INR
235/share, aggregating to INR 40.7 Cr and P.C.Kothari[Huf] bought
5L shares at INR 200/share, aggregating to INR 10 Cr.
Feb ‘24: Company has considered and approved the allotment of 20L
Special Situation Equity shares at an issue price of INR 252 each, aggregating to INR
Yes 50.4 Cr by way of Preferential Issue for Cash basis to Think India
Opportunities Master Fund LP.
May ‘24: Company opened 5 New Showrooms/ Shops at different

location in India during April 2024 Total stands at 539.
Apr ‘24: Company opened 5 New Showrooms/ Shops at different

location in India during March 2024. Total stands at 534.
Feb ‘24: Company opened 13 New Showrooms/ Shops at different

location in India during February 2024. Total stands at 529.
Jan ‘24: Company opened 2 New Showrooms/Shops at different

location in India during Jan 2024. Total stands at 517.
Future Visibility Yes
Dec ‘23: Company opened 11 New Showrooms/Shops at different
location in India during Dec 2023. Total stands at 515.
Nov ‘23: Company opened 6 New Showrooms/Shops at different

location in India during Nov 2023. Total stands at 504.
Nov ‘23: Company added new products to its catalogue i.e. footwear
and athleisure wear with the grand opening of its new showroom at
Hapur, Uttar Pardesh under this category.
Nov ‘23: Company has crossed milestone of 500 Retail Brand Outlets
with the grand opening of its latest showroom at Ayodhya.
LT OP = Long-term operating profit; ST OP = Short-term operating profit

28th Jun 2024
2. SHILCHAR TECHNOLOGIES LIMITED BSE: 531201
(1st time covered: 31st Jan 2023)
Recent filing: (RESCHEDULING OF CAPACITY EXPANSION) Shilchar Technologies currently has a

capacity of 4000 MVA, which is being fully utilized. To meet growing customer demand, the company plans
to add an additional 3500 MVA of capacity by the end of July 2024. This expansion will require an investment
of INR 30 Cr, which will be financed through internal funds. In Feb 2024, Company had announced the
expansion of capacity to be completed in Jun-2024. It has now been rescheduled to July end.
SUMMARY: 4y Operating Profit uptrend | PE 45.9x (Sector PE range 30-60) | Capacity expansion |
Institutional entry | Electrification | Capital Goods
FUTURE OUTLOOK: Company’s Capacity Utilisation is at 100% with a capacity of 4000 MVA, Company is
planning to expand capacity by 88% which brings the total capacity to 7500 MVA by Jul ‘24.
• MCap of INR 4,211 Crore (share price = INR 5,521 / share) (as on 28th Jun ‘24)
• TTM PE of 45.9x (as on 28th Jun ‘24) Retail float = 15% (Mar-24)
FOOD FOR THOUGHT: Top 5 Domestic Customer contribute to 60% of Domestic Sales in FY ‘24.
Company Description: Shilchar Technologies is one of India’s prominent manufacturers of Electronics &
Telecom and Power & Distribution transformers. It was founded in 1990 to manufacture R-core
transformers. In 1995, the company ventured into the manufacturing of Ferrite transformers. As part of the
expansion plans, they started manufacturing Distribution and Power Transformers in a phased manner
from 2005 to 2007.
Shilc 938 1,393 1,617 1,567 2,759 2,517 2,534 3,383 9,978 3,848 6,462 5,042
Sales 57 60 68 95 67 106 118 105
Op Profit 7 10 15 21 20 30 32 31
Net Profit 6 9 12 16 16 24 26 25
OPM 12% 17% 22% 22% 30% 28% 27% 30%
NPM 10% 15% 18% 17% 24% 23% 22% 24%
Promoter % 65.9% 65.9% 65.9% 65.9% 65.9% 65.9% 64.0% 64.0%
Sales 88 118 71 118 180 280 397
Op Profit 9 14 3 10 19 53 113
Net Profit 6 8 2 6 14 43 92
28th Jun 2024
Website: https://www.shilchar.com/
Company Type Evergreen
LT OP uptrend Yes
ST OP uptrend No
PE 45.9 (Capital Goods: 30-60)
Middle of sector range
Yes
Futuristic Sector
(Electrification)
Dec ‘23: As per Dec-23 shareholding data, K-India Opportunities

Fund Ltd. has picked up 2.48% stake in the Company. The
HNI / Institutional Investment Manager of the Fund is Kotak Mahindra (International)
/ Promoter Yes Ltd., Mauritius.
Buying Promoter Alay Jitendra Shah sold 1.4L shares of worth INR 38.7 Cr
in Oct and Nov 2023.
Special Situation No
Aug ‘23: Company is under the process of expansion of production

facilities from 4,000 MVA to 5,000 MVA by extension of existing shop
floor for manufacturing of Distribution and Power Transformers. The
Company will be able to complete this capacity expansion by end of
Future Visibility Yes the current financial year. Further, manufacturing facilities of
Electronic and Telecommunication Transformers will be shifted from
existing Bil plant to Gavasad factory. Both put together, it will require
capital expenditure of INR 10 Cr.

28th Jun 2024
3. KPI GREEN ENERGY LIMITED NSE: KPIGREEN
(1st time covered: 1st Feb 2023)
Recent filing: (CREDIT FACILITIES) KPI Green Energy 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.
SUMMARY: 5y Operating Profit uptrend | PE 67.2x (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 10,879 Crore (share price = INR 1,805 / share) (as on 28th Jun ‘24)
• TTM PE 67.2x (as on 28th Jun ‘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'.
KPI 815 830 894 823 820 1,155 1,468 1,214 1,740 1,523 1,808 1,820
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/
28th Jun 2024
LT OP uptrend Yes
ST OP uptrend No
PE 67.2 (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,

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 received new orders of 26.15 MW for executing
solar power projects under ‘Captive Power Producer (CPP)’ segment
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.
Future Visibility Yes
Mar '24: Awarded new orders totaling 54.7 MWp for solar projects, with
48.18 MWp in CPP and 6.59 MWp in IPP.
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.

28th Jun 2024
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.

28th Jun 2024
4. KRISHCA STRAPPING SOLUTIONS LIMITED
NSE: KRISHCA (SME: Lot Size = 500 shares) (1st time covered: 19th Jun 2023)
Recent filing: (FUND RAISE) Board Meeting of Krishca Strapping Solutions to be held on 02-Jul-2024 to
consider Fund raising.
(BREAKOUT) Company has given a recently 10 months Breakout.
SUMMARY: 4y Operating Profit uptrend | PE 28.7x (Sector PE range 30-60) | Excellent Mar-24 results |
Capacity expansion | Fund Raise | Ace Investor | Industrial Products
FUTURE OUTLOOK: Company is targeting a 20% overall growth in revenue for FY25, including both
domestic and export markets and focusing on 25% top line growth for the next five years.
• MCap of INR 380 Crore (share price = INR 315 / share) (as on 28th Jun ‘24)
FOOD FOR THOUGHT: Volatility in Raw Material (steels) can impact profit margins.
Company Description: Krishca Strapping Solutions is engaged in the business of manufacturing and
trading/ wholesale of Strapping Tools and Strapping Seals. Steel strapping is highly effective packaging
consumable for packing heavy loads, especially in the steel industry.
Krishca 173 191 281 235 240 226 220 289 252 222 286 211
(In INR Cr) Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Sep-23* Mar-24*
Sales 1 9.4 18.6 72.3 105 48.5 57
Op Profit -1.5 0.6 3.1 13.8 20 8.4 12
Net Profit -2.2 -0.7 1.5 9.3 13 5.7 8
OPM -150% 6% 17% 19% 19% 17% 21%
NPM -220% -7% 8% 13% 12% 12% 14%
*Half-yearly results (Rest are annual)
Website: https://www.krishcastrapping.com/

28th Jun 2024
LT OP uptrend Yes
ST OP uptrend Yes
PE 28.7
(Industrial Products: 30-60)
Below sector range
Steel Strapping tool
Futuristic Sector No
May ‘23: Selvamurthy Akilendaswari bought 70k shares at INR
HNI / Institutional
118/share, aggregating to INR 82.6L, of which 64k shares were
/ Promoter Yes sold in Jun ‘23. Raghav Karol Huf bought 1L shares at INR
Buying 119/share, aggregating to INR 1.2 Cr, which was sold in Jun ‘23.
Special Situation Yes As stated above.
May ’24: Company has announced the successful commissioning

of a new eco-friendly strapping line, which began commercial
operations. This development aims to boost operational efficiency
and expand production capacity, aligning with the company's
strategic growth plans.
Apr ‘24: Company has secured a new packaging contract valued

at INR 1.8 Cr from Shyam Metalics and Energy Limited for TMT
Strapping.
Mar ’24: Company has secured a new packaging contract valued

at INR 20.2 Cr from Vedanta Limited. The order includes services
for Lashing, Choking, and Tarpaulin Coverage for Finished Goods,
Trucks and Containers. With a duration spanning 3 years, the
contract is scheduled to commence on April 1, 2024.
Future Visibility Yes Nov ‘23: Company has got order worth INR 3.2 Cr from Steel
Authority of India Limited (SAIL) for palletization and supply of
packaging material.
Sep ‘23: BoD approved the proposal for forming a subsidiary in

Singapore as part of expansion of business.
Aug ‘23: BoD approved entering into a packaging contract worth

INR 2 Cr over 6 months and renewable thereafter. This will be the
first packaging contract entered by the Company.
Jul ‘23: BoD approved the incorporation of a subsidiary company

in Dubai, in which Krishca will be holding 90% stake. The
subsidiary will be engaged in Packing & Packaging Materials
trading including reselling freight packing and wrapping, industrial
packaging materials, including packs, boxes, panels, sheets, foils
and straps made of paper, plastic or metal materials or other
substances.
28th Jun 2024
5. CFF FLUID CONTROL LIMITED BSE: 543920
(SME: Lot Size = 400 shares) (1st time covered: 28th Jul 2023)
Recent filing: (ORDER) CFF Fluid Control has received Contract worth INR 9.6 Cr for Procurement of Spare
P75 Project from Material Organisation, Mumbai, needs to be delivered by Dec ‘24.
SUMMARY: 3y Operating Profit uptrend | PE 91.7x (Sector PE range 50-100) | Defense
• MCap of INR 1,568 Crore (share price = INR 805 / share) (as on 28th Jun ‘24)
FOOD FOR THOUGHT: Negative operating cash flow for FY24.
Company Description: CFF Fluid Control Limited, specializes in fluid control products for submarines, tanks
and missiles, offering a range of equipments such as isolation valves, control valves, pressure relief valves,
reducing stations, fittings and orifice plates.
(In INR Cr) Sep-20 Mar-21 Sep-21 Mar-22 Sep-22 Mar-23 Sep-23 Mar-24
Sales - - - - 39 32 59 47
Op Profit - - - - 10 8 18 13
Net Profit - - - - 6 4 10 7
OPM - - - - 26% 26% 30% 28%
NPM - - - - 15% 13% 17% 15%
Promoter % - - - - - - 73.3% 73.3%
Sales 32 15 47 71 107
Op Profit 5 3 13 18 31
Net Profit 1 0 8 10 17
Website: https://www.cffdefenseys.com/

28th Jun 2024
LT OP uptrend Yes
ST OP uptrend No
PE 91.7 (Defence: 50-100)
Higher end of sector range
Yes
Futuristic Sector
(Defence)
Jun ‘23: Ss Corporate Securities bought 1.1L shares at INR 175/share,

aggregating to INR 1.9 Cr. Sappers Infra Realtors bought 1.8L shares
HNI / Institutional
at INR 166/share, aggregating to INR 3 Cr. Blackberry Projects bought
/ Promoter Yes 3.1L shares at INR 166/share, aggregating to INR 5.2Cr. Vedankit
Buying Traders bought 4.4L shares at an average of INR 180/share,
Special Situation No
Jun ‘24: Company has received Contract worth INR 9.6 Cr for
Procurement of Spare P75 Project from Material Organisation,
Mumbai, needs to be delivered by Dec ’24.
May ‘24: Company has received a contract worth INR 5.6 Cr from Naval
Dockyard, Mumbai for RRC for Repair Rate Agreement for Structural
Renewal Onboard IN Ships, to be delivered by Apr 2026.
Mar ‘24: Company has received a contract worth INR 3.5 Cr from Naval
Dockyard for RRC for hiring of Services/Expertise Eng. For DI/DR of
MCA 62.5 System Installed Onboard in Submarines, to be delivered by
Future Visibility Yes Mar 2027.
Mar ‘24: Company has received order worth INR 46.5 Cr from
Mazagon Dock Shipbuilders Limited for the Biennial Rate Contract for
Engineering Work, to be executed by Aug 2026.
Feb ’24: Company has received the Contract worth INR 4.1 Cr for RRC
for Routines & Repairs of Hull Valves and Doublers onboard P-75 Class
Submarines.
Feb ’24: Company has received the Contract worth INR 4.81 Cr for
Procurement of Spare P75 Project totaling to approx.

28th Jun 2024
Others
EXHICON EVENTS MEDIA SOLUTION LIMITED
(ACQUISITION) BoD has considered and approved the acquisition of 76% Equity Stake for INR 4.5 Cr of
Green Branch Contracting & Land Scaping LLC and has also signed the Share Purchase Agreement for the
said acquisition. Target Company Target is engaged in the business of providing event venue construction,
maintenance, and landscaping. The acquisition will enhance Exhicon's 360- degree service portfolio, allowing
it to offer comprehensive solutions including temporary and permanent event venue construction,
maintenance, and landscaping. Revenue of Target Company in FY 23 (Jan – Dec 2023) – INR 15 Cr.
• MCap of INR 364 Cr (share price = INR 281/share); TTM PE 27.9x (as on 28th Jun ‘24)
Exhico 216 295 314 272 281 373 377 402 364 337 311 271
Sovrenn SME Index: 2.14%

Sovrenn SME Index was up 2.14% 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.

28th Jun 2024
IPO
SME / Subs
Company Status Open Close Listing GMP
Mainboard (x)
Ambey Laboratories SME Upcoming 04-Jul-24 08-Jul-24 11-Jul-24 0% NA
Bansal Wire Mainboard Upcoming 03-Jul-24 05-Jul-24 10-Jul-24 0% NA
Emcure Pharma Mainboard Upcoming 03-Jul-24 05-Jul-24 10-Jul-24 25% NA
Nephro Care India SME Open 28-Jun-24 02-Jul-24 05-Jul-24 111% 16
Diensten SME Close 26-Jun-24 28-Jun-24 03-Jul-24 25% 53
Vraj Iron and Steel Mainboard Close 26-Jun-24 28-Jun-24 03-Jul-24 36% 126
Petro Carbon and Chemicals SME Close 25-Jun-24 27-Jun-24 02-Jul-24 53% 92
The Money Fair SME Close 25-Jun-24 27-Jun-24 02-Jul-24 19% 35
Divine Power SME Close 25-Jun-24 27-Jun-24 02-Jul-24 153% 394
Allied Blenders & Distillers Mainboard Close 25-Jun-24 27-Jun-24 02-Jul-24 16% 25
Sylval Plyboard SME Close 24-Jun-24 26-Jun-24 01-Jul-24 49% 84
Shivalic Power Control SME Close 24-Jun-24 26-Jun-24 01-Jul-24 175% 257
Mason Infratech SME Close 24-Jun-24 26-Jun-24 01-Jul-24 23% 33
Visaman Global Sales SME Close 24-Jun-24 26-Jun-24 01-Jul-24 33% 42
Company Sector Revenue growth (YoY) Profit growth (YoY) Issue PE

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
Petro Carbon and Chemicals Chemicals 36% 14x NA
The Money Fair NBFC -21% -15% 21x
Divine Power Wires 48% 2.3x 13x
Allied Blenders & Distillers Alcoholic Beverages 11% 3.5x 1698x
Sylval Plyboard Building Material 8% 69% 20x
Shivalic Power Control Capital Goods 3% 41% 26x
Mason Infratech Real Estate 18% 2x 19x
Visaman Global Sales Steel Products -27% 20% 46x
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.

28th Jun 2024
Sovrenn Macro
RBI Reveals Gross NPA of Banks Hit 12-Year Low of 2.8%, Credit Growth to Improve: 5 Key Highlights
of June Report
The Reserve Bank of India (RBI) released its June Financial Stability Report on June 27, 2024, presenting a
comprehensive overview of the Indian economy's resilience and the robust health of the financial system.
The report highlighted significant improvements in the banking sector, particularly in asset quality and credit
growth, amidst global financial stability.
1. Gross NPA of Banks at a Multi-Year Low

The RBI report disclosed that the gross non-performing assets (GNPA) ratio of banks fell to a 12-year low of
2.8% at the end of March 2024. The scheduled commercial banks' (SCBs) net non-performing assets (NNPA)
ratio also improved, reaching a record low of 0.6% at the same period. This sustained improvement in asset
quality is a testament to the effective management and operational efficiency within the banking sector.
2. CRAR of SCBs and NBFCs

The capital to risk-weighted assets ratio (CRAR) of SCBs stood at a robust 16.8%, while the common equity
tier 1 (CET1) ratio was 13.9% at the end of March 2024. The RBI's macro stress tests for credit risk project
that SCBs will maintain compliance with minimum capital requirements even under adverse scenarios
3. RBI Governor Stresses High Priority on Governance

RBI Governor Shaktikanta Das emphasized the importance of governance in maintaining financial stability.
In his foreword to the report, Das highlighted the strength and resilience of the Indian economy, despite global
headwinds. The RBI is vigilant regarding emerging risks from cyber threats, climate change, and global
economic spillovers.
4. NPA of SCBs May Fall Further to 2.5%

The RBI projects that the GNPA ratio of SCBs could decrease further to 2.5% by the end of the current fiscal
year. This optimistic outlook is based on macro stress tests assessing the resilience of SCBs' balance sheets
to potential economic shocks.
5. Healthy Balance Sheets to Support Credit Growth

The report highlighted the resilience of the global financial system despite ongoing geopolitical tensions, high
public debt, and inflation challenges. The Indian financial system, supported by strong macroeconomic
fundamentals, is poised for sustained credit growth. Healthier balance sheets of banks and financial
institutions facilitate this growth, thereby bolstering economic activity.
Conclusion
The June Financial Stability Report by the RBI paints a promising picture of the Indian banking sector and
the overall financial system. With the GNPA ratio at 12-year low and robust capital ratios, the sector is well-
positioned to support sustained economic growth. The emphasis on governance and vigilance against
emerging risks further underpins the stability and resilience of the Indian financial system.

28th Jun 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

28th Jun 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 28 Jun 2024

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Author: Sovrenn Financial Technologies Pvt. Ltd.

28th Jun 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

1. CANTABIL RETAIL INDIA LIMITED

2. SHILCHAR TECHNOLOGIES LIMITED

3. KPI GREEN ENERGY LIMITED

4. KRISHCA STRAPPING SOLUTIONS LIMITED

5. CFF FLUID LIMITED

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

FUTURE OUTLOOK: Company is planning to achieve a revenue of INR 1,000 Cr by mid-FY27.

FOOD FOR THOUGHT: Highly competitive sector.

Share price and Volume (last 1 year):

Mar ’24: Think India Opportunities Master Fund LP is holding 2.4%

May ‘24: Company opened 5 New Showrooms/ Shops at different

Apr ‘24: Company opened 5 New Showrooms/ Shops at different

Feb ‘24: Company opened 13 New Showrooms/ Shops at different

Jan ‘24: Company opened 2 New Showrooms/Shops at different

Nov ‘23: Company opened 6 New Showrooms/Shops at different

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. 5

Recent filing: (RESCHEDULING OF CAPACITY EXPANSION) Shilchar Technologies currently has a

Share price and Volume (last 1 year):

Dec ‘23: As per Dec-23 shareholding data, K-India Opportunities

Aug ‘23: Company is under the process of expansion of production

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. 7

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):

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

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

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

Share price and Volume (last 1 year):

This page is created for information purpose. It is not a BUY/SELL recommendation. 11

Special Situation Yes As stated above.

May ’24: Company has announced the successful commissioning

Apr ‘24: Company has secured a new packaging contract valued

Mar ’24: Company has secured a new packaging contract valued

Sep ‘23: BoD approved the proposal for forming a subsidiary in

Aug ‘23: BoD approved entering into a packaging contract worth

Jul ‘23: BoD approved the incorporation of a subsidiary company

SUMMARY: 3y Operating Profit uptrend | PE 91.7x (Sector PE range 50-100) | Defense

FOOD 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. 13

Jun ‘23: Ss Corporate Securities bought 1.1L shares at INR 175/share,

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

Sovrenn SME Index: 2.14%

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

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

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

1. Gross NPA of Banks at a Multi-Year Low

2. CRAR of SCBs and NBFCs

3. RBI Governor Stresses High Priority on Governance

4. NPA of SCBs May Fall Further to 2.5%

5. Healthy Balance Sheets to Support Credit Growth

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

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

This page is created for information purpose. It is not a BUY/SELL recommendation. 19