New Research Reports

About the Company: Pace Digitek Ltd. (PDL) is a multi-disciplinary solutions provider with presence across Telecom, Energy and ICT verticals In telecom vertical, it provides end-to-end integrated solutions in the tower infrastructure and optical fibre cables (OFC). In Energy Segment, it a) undertakes solar energy projects on a build, own and operate' model, b) solarization of telecom towers, c) undertakes BESS projects and d) manufacture and supply lithium-ion battery systems. In ICT vertical, it...

Company is a telecom infrastructure solution provider with a significant focus on the telecom infrastructure industry including telecom towers and optical fibre cables. Company undertake manufacturing, installation and commissioning services of products at the site and undertake operation and maintenance of site including tower erection and optical fiber cable laying as turnkey solution. Company generate its revenue from operations from 3 verticals i.e., telecommunications, energy, and...

IPO NOTE

Pace Digitek Ltd. (PDL) is a telecom infrastructure solution provider with a primary focus on the telecom infrastructure industry including telecom towers and optical fibre cables. PDL generates revenue under three verticals namely telecommunications, Energy, Information & communication technology (ICT). With the acquisition of GE Power Electronics India in 2014, the company commenced end to end manufacturing of direct current systems which are tailored for telecom tower companies and operators helping it in energy management...

Telecom products & defence to propel growth

Tejas Networks reported a beat on our revenue and margin estimates, led by
BSNL’s 4G project execution. We see Tejas benefits chiefly from: 1) GoI
emphasis on domestic manufacturing and the PLI scheme

5G, Defence and RailwaysAll set for the next leg of growth

...

STL announced a fresh capex of | 200 crore to set up 9 mn Fkm optical fibre cable plant in the US and UK. Consequently, its overall optical fibre cable capacity is expected to expand from 33 mn Fkm to 42 mn Fkm. STL indicated that capacity enhancements will support extensive fibre build-outs planned across the US, Europe and UK to boost rural broadband and 5G roll outs. On the financial front, it aims to reach | 10000 crore revenue run rate by Q4FY23 (vs. | 10000 crore revenue target in FY23 earlier, given Covid led delays in services portfolio) along with net debt/equity < 0.5 and RoCE > 20%. The...

STL has indicated that OFC capacity utilisations are at 100%. It also said that optical fibre demand has revived by investments in digital infrastructure. Globally, OFC industry volumes in 2021 are likely to grow ~6% YoY. STL perceives that unprecedented decade of digital network creation is on the anvil. The company has also maintained that, going ahead, growth should be driven by growing OFC volumes, optical interconnect business, scaling up SI business (both domestically and going global) and building access solution business. We bake in revenues CAGR of ~26.6% in FY21-23E. We...

STL has indicated that capacity utilisations are at all-time high and execution on the ground for services also continues to improve on Q-o-Q basis. It has guided for continued growth in Q4FY21 on QoQ basis. It has indicated that Optical fiber demand has revived by investments in digital infrastructure. Globally, OFC Industry volumes in H22020 have grown by 5% YoY and STL volumes have grown faster than the industry high. STL perceives that unprecedented decade of digital network creation. Factors such as adoption of open source standard and software defined networking, are some of the...

We highlight that while long term target is attractive, the fibre pricing weakness persists. Moreover, we would await meaningful traction in demand before turning constructive. Post ~40% run up since our last update, we downgrade our rating to REDUCE (vs. HOLD, earlier). We value...