Rudra Shares and Stock Brokers Ltd Broker Research reports

Company has a diversified portfolio of products to offer which is used in various applications in different sectors. Such diversification helps company in de-risking its business as it is not dependent on a single sector or industry for its revenue. Moreover, company is looking at expansion opportunities outside India, which will provide better revenue realization and help company in expanding its business on a global scale. Fully commissioned 30MW solar power plant Company has fully commissioned 30MW solar power plant at Ahmednagar, Maharashtra executed on Trunkey basis and will maintain the same plant for 25 years at a fixed tariff of 4.41/unit. Revenue of the company has been increased through solar business to ` 7.4cr in Q3 FY 18 and company is expecting to show a high growth in coming quarters . Further, In Maharashtra...

Company has generated strong operating cash flow, which enabled reduction of debt and is expected to deliver better results going forward. Company's focus is to strengthen the balance sheet, invest in strategic opportunities without increasing debt levels and build strong pipeline or products across its businesses.

Strong fundamentals, superior growth in specialty pharmaceuticals and LSI, reduction in debt coupled with renewed focus on the allergy business & strong order book in CMO, helps company to outperform industry growth, expand its market share and provides sufficient business visibility, going forward.

Investment Rationale

PAN India presence with aggressive expansion in footprint, enrolment growth in its institutes, asset light business model, increasing capacity utilization and increase share of wallet makes ZLL a perfect play to participate in the growing opportunities of Indian education industry.

Company has entered into a new strategic line of manpower recruitment and training business through the newly incorporated subsidiary Liberium Global. This segment generated ` 14.33 Crore revenues in Q3 FY18 . The margins for manpower verticals are on the lower side. However, company see tremendous opportunities for growth. The business being a high ROI and low margin one, company looks to differentiate its offering through value added services and the management is confident that this business will provide robust growth in the future.

Newgen Software Technologies is a software products company that offers a platform enabling organizations to rapidly develop powerful applications addressing their strategic business needs.

Its platform comprises of :-

• Enterprise Content Management (ECM)
• Business Process Management (BPM)
• Customer Communication Management (CCM)

The company is increasing its geographical footprint by adding more verticals beyond the core five verticals (banking, government, insurance, healthcare and business process outsourcing), which the company has and also by going deeper into existing verticals by offering new products to the clients.
But if we look into the company’s profitability it is declining, margins are low & Valuation is also not so attractive. Considering these factors, issue seems to be risky therefore we are NUETRAL for this IPO.

Apollo Micro Systems designs, develops and sells high-performance, mission and time critical solutions to defense, space and home land security for Ministry of Defense, government-controlled public sector undertakings and private sector corporate.

Present Issue:- Fresh Issue aggregating up to 156.00 Cr

Taking into consideration, the current market opportunities in defense and Government of India’s initiative, ‘Make in India’ aims to boost the nation’s domestic manufacturing sector as well as to create market by targeting exports, the issue seems to be fairly priced. We recommend to SUBSCRIBE the IPO.

Yash Papers' compostable tableware brand Chuk is in talks with the Indian Railways to supply meal-trays for its onboard catering services. Considering huge demand for such compostable products in the takeaway segment. It is likely to enter the segment within this month. The company is also looking to launch leak-proof specially designed containers to tap the takeaway market. Yash Papers is in advanced discussions with the Railways and a deal might fructify within this month. Company have already supplied Indian Railways close to one lakh pieces for a trial run on specific routes & is in advanced stage of discussion with them. The Railways will require...

With no new capacity addition during the last 2 decades , India is now a urea deficit market where it produces 24 Mn MT against demand of 32 Mn MT. With a view to bridge this gap & government's favorable New Investment Policy, Chambal is setting up a 1.34 MTPA Brownfield ammoniaurea plant at Gadepan, Rajasthan at a capex of USD 917 Mn of which USD 711 Mn will be funded through debt, is expected to commission by January 2019. With this expansion, existing capacity of Urea will increase from 2.01 MTPA to 3.35 MTPA, further strengthening Chambal's leadership position in the industry. Long-term gas supply contract with GAIL - Ensure availability of gas for existing and new unit Company has entered into a long term natural gas purchase agreement with GAIL for supply of 24,955 bn British Thermal Units annually. The supply of gas will commence on April 1, 2018 and will last for nine years . The gas can also be used in existing plants...

The company has strong symbiotic relationships with most of the global and local OEMs in India. There is inherent mutual trust in these relationships which is backed by decades of strong and reliable performance for long-term mutual benefit. Company is a preferred choice of major automotive companies including Maruti Suzuki, Hyundai Motors, Mahindra & Mahindra, Tata...

SIS is the 2nd largest security services provider in India, and the fastest growing security services provider in India. Between Fiscal Years 2013 and 2017, revenue from operations from the security services business in India grew at a CAGR of 29.67%. The security services market has historically grown at 2.5- 3x GDP growth rate. Hence, India, being the fastest growing major economy in the world, offers significant opportunities for security services. Moreover, Rising security concerns arising out of increasing terror threats faced by countries, and a low police-to-citizen ratio, have rendered the system incapable of catering to the needs of a growing population. These factors, coupled with the nation’s steady economic progress will drive the growth in demand for private security services, domestically and globally.

Estimating the share price of the company as per P/E valuation, putting the estimated P/E of FY19E at 49x & the estimated EPS at ` 29.35 ,the estimated share price for next 1 year tenure turns around to be ` 1440. Therefore, we recommend to BUY.