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@selvaprathee

Jun 6

Yash Highvoltage Ltd - Hidden Gem

- India’s ₹9.15 Lakh Cr power transmission capex has begun.
- Bushings are critical, few make them, even fewer master RIP technology.

🗣️ Keyur Shah, MD:
“We are amongst one or two or three… not more than three companies… developing products for global standards.”

Let’s decode this quiet compounder ⤵️

1⃣ What They Do
Yash manufactures:
🔹Oil Impregnated Paper (OIP) Bushings
🔹Resin Impregnated Paper (RIP) Bushings
🔹High Current (HC), Oil-to-Oil, Wall Bushings
🔹Services: Repair, retrofit, on/off-site testing

✅ ISO 9001:2015 certified
✅ Vendor to PSUs & top private transformer OEMs

🗣️ Keyur Shah:
“We will continue to focus on high value and high margin products like RIP and HC bushings with increased price realization per unit.”

2⃣ FY25 Performance
🔹Revenue: ₹152 Cr (↑38% YoY)
🔹PAT: ₹21.4 Cr (↑73% YoY)
🔹EPS: ₹8.92
🔹ROCE (pre-tax): 20.23%
🔹Gross margin: 47.5%
🔹Inventory: 62 days | Receivables: 49 days
🔹Cash: ₹50 Cr | Net Debt: Zero

🗣️ Management Commentary:
“Margins have consistently remained in the 20% range. We focus on quality and realization.”

3⃣ Capacity & Pricing Power
Existing Capacity (FY25):
🔹 Location: Vadodara, Gujarat
🔹 Installed Capacity: ~9,000-10,000 bushings/year
🔹 OIP: 6,000-8,000 units
🔹 RIP: balance capacity
🔹 Utilization: ~50-60%

🗣️ Keyur Shah (MD):
“We are today in a position to manufacture about 9,000 to 10,000 bushings... OIP around 6,000 to 8,000, RIP is the balance.”
“Utilization is about 50 to 60%.”

Product-Level Pricing Power:
🔹With RIP priced up to 5x OIP, every unit sold adds serious margin
🔹Volume growth = profit surge.

🗣️ Keyur Shah:
“In India, RIP is 4 to 5x OIP.”
“Globally, RIP is about 2x OIP.”
“Exported OIP gives us about 2 to 2.4x compared to the same product sold in India.”

#StocksInFocus #StocksToWatch
#yashhighvoltage #SME #yhv

4⃣ Backward Integration (RIP Cores)
🔹RIP core = 35–40% of raw material cost
🔹Previously imported from Switzerland/China
🔹 Now localized in-house engineering team + external consultants

🗣️ Keyur Shah:
“The main advantage is a significant cost advantage overseas... and savings on transportation plus import duty.”

🗣️ Keyur Shah:
“This is a major technological leap. We’ve built a team that has developed RIP cores from concept to commissioning.”

5⃣ Greenfield Capex
🔹₹90 Cr greenfield plant - Vadodara
🔹1.6 lakh sq ft land, 1.2 lakh built-up
🔹Capacity: 9,000 ➡️ 15,000-16,000 bushings/year
🔹Commissioning: H2 FY26
🔹Ramp-up: 1-2 years (testing + approvals)

🗣️ Keyur Shah:
“This capacity what we will build should take care of our plans till 2030.”

6⃣ Export Strategy
🔹FY25: ~35-40% of OIP volume exported
🔹Total exports ~6% of revenue
🔹Targeting retrofit/replacement markets globally
🔹US subsidiary: sales office + service hiring underway
🔹Future plan: localized assembly in US

🗣️ Keyur Shah:
“Customers are willing to book 3 years in advance.”
“Worldwide demand has increased substantially… across sectors like renewables, data centers, infra.”
“We are currently exporting about 5–6%, which we want to take it up to 25% or 30% over a period of time.”

#StocksToWatch #StocksInFocus #Yashhighvoltage #SME #yhv

7⃣ Order Book & Demand
🔹Order book sufficient for FY26 revenue
🔹Client/product filtering to maintain margin focus
🔹Industry-wide transformer lead times rising

🗣️ Keyur Shah:
- “We have a reasonable order book which can take care of the ongoing year now i.e. 2025-26.”
- “Most of our orders are booked at least 6 to 12 months in advance.”
- “We are being very selective. We don’t want to go for volumes. We go for a better price realization.”

8⃣ Technology Leadership
🔹Global standard compliance: IEC, IEEE, EU, Russia
🔹RIP bushing = critical high voltage infra
🔹No major innovations expected in next 10-15 years

🗣️ Keyur Shah:
- “The technology what we are bringing in the new factory is already the latest one.”
- “Beyond that, there is no latest innovation in bushing technology what we see today or going forward.”

9⃣ Strategic Partnerships
🔹Past partner: Moser Glaser (Pfiffner Group)
• Yash was once an equity partner - now reverted to a buyer-supplier relationship
• Retains 3-year exclusivity for India under current supply agreement

🔹No Sourcing Restrictions:
• Yash is not contractually bound to buy only from Moser Glaser
• Actively multi-sourcing RIP cores from other global suppliers (25-30% non-Swiss)

🗣️ Keyur Shah (MD):
- “There is no exclusivity at our end that we must buy from them only.”
- “We are currently sourcing about 25 to 30% of RIP cores from non-Swiss suppliers.”

#StocksToWatch #StocksInFocus

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Investors Compass

@selvaprathee

May 24

Shilchar vs TARIL – The Transformer Showdown

- Two giants.
- One sector.
- Very different models.

Which one could be your portfolio's best performer over the next 3-5 years?

Let’s break it down 🔍

1 | Business Model

Shilchar Technologies
🔸Focused on custom-made transformers for solar, wind, hydro & furnace use
🔸Operates in the ≤132 kV segment with high-mix, low-volume exports
🔸Products: Inverter Duty (IDT), Generator, Hydro, Furnace transformers
🔸Export-led: 44% revenue from 15+ countries
🔸Clientele: Solar EPCs, wind OEMs, industrial users

TARIL (Transformers & Rectifiers India Ltd)
🔸Manufacturer of EHV power transformers up to 765 kV class
🔸Plays in high-volume, infra-heavy segments: utilities, PGCIL, SEBs, EPCs
🔸Products: Power, auto, rectifier, furnace & traction transformers
🔸Domestic-driven: 85% revenue from infra-linked projects
🔸Backward integration into CRGO laminations + large capex cycle ongoing

#StocksInFocus #StocksToWatch #shilchar #taril

2 | Who’s Winning on Cost Efficiency?

One compounds quietly. The other scales loudly.

1. Zero Working Capital Stress
🔹70–75% of receivables are LC-backed
🔹Shilchar doesn't discount them early - earns interest instead
➡️ Boosts net profitability without touching the P&L

2. 100% Capacity Utilization
🔹 Shilchar’s existing infra is already fully sweating assets
➡️ Every ₹ of revenue is operating at peak efficiency

3. No Capex Drag
🔹FY25: No major capex outflow
🔹FY26: Expansion optional, not urgent
➡️ Zero depreciation spike, no interest cost pressure = clean cost structure

4. Skilled Labour Advantage
🔹Custom transformers require fewer but higher-skilled workers
➡️ Lower employee cost % (as seen in past 4 quarters: 2-4%)

5. Export-Mix Cushion
🔹~44% export revenue = dollar billing + premium pricing
➡️ Buffers input cost volatility & improves gross margins

📌 Verdict:
- Shilchar doesn’t just cut costs - it designs its business to avoid them.

- It’s not just about having lower RM % or higher OPM.
- It’s about how the model is structured to stay efficient, cycle after cycle..

#StocksInFocus #StocksToWatch #shilchar #taril

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@selvaprathee

May 14

Future Wars Won’t Start with Soldiers. They’ll Start with Drones.

In the recent Indo-Pak border flare-up, it wasn’t tanks that led the attack.
It wasn’t jets that responded first.
It was Drones.

And what stood between us and destruction?
Anti-drone systems.

Welcome to a new era of warfare One where Zen Technologies is quietly building India’s edge 👇

- A silent compounder is building India’s own Palantir + Anduril.

1 | Drones Will Be the First to Strike.

Cheap. Silent. Precise. Swarm-capable.
From surveillance to kamikaze hits - Drones are now the first wave of war.

Zen isn’t just watching this shift.
It’s arming the counterstrike.

Zen isn’t building drones - yet. But it powers them.
Through Vector Technics, Zen owns the engine room of India’s drone ecosystem:
🔹Modular IC engines (2/4/6-cylinder)
🔹Counter-rotary motors (↑30% flight time)
🔹Non-Chinese electronics & power boards
🔹Supplies to 60+ Indian drone firms
🔹Exporting to US, UK, Japan

"We found Vector powering the indigenization of India’s drone ecosystem. We had to own it."
“We’re not a drone company - yet. But we’re getting there.”
– Ashok Atluri

Zen isn’t stopping at propulsion.
It’s laying the foundation for combat-grade drone production.
Not if. Just when.

#DroneAttack #Zentech #StocksInFocus #StocksToWatch

2 | Meet India’s Defence OS in the Making

Zen is engineering a multi-layered battlefield framework:
🔹Simulation – Train soldiers in hyper-realistic war scenarios
🔹Anti-Drone Systems – Neutralize threats before they strike
🔹UAV Propulsion – Power India’s own fleet, no Chinese dependence
🔹Combat Robotics – Build autonomous warriors for tomorrow’s conflicts

This isn’t diversification.
This is doctrinal warfare evolution.

#Zentech #StocksInFocus #StocksToWatch

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@selvaprathee

May 8

♻️ Gravita India – A Silent Compounding Machine | Why Top Analysts Are Rushing to Raise Targets

- Everyone sees Gravita as a "recycler."
- But here’s the real story: it’s morphing into a global, capital-efficient, multi-material platform and the Street is only just waking up.

This thread breaks down why Axis, ICICI Sec, Kotak, and Nuvama are all bullish 🧵

1 | Not Just Revenue Growth - Gravita Is Rewiring Its DNA

Most companies scale by adding volume.
Gravita is doing something rarer - it's compounding value by upgrading mix, sourcing, and margins.

Here’s what analysts are seeing under the hood:
🔹46% revenue from value-added products
🔹60% YoY jump in domestically sourced scrap
🔹Aluminium & Rubber gaining momentum vs Lead
🔹Targeting 30%+ revenue from non-lead verticals by FY28
🔹Rubber vertical poised to scale from H1FY26

➡️ This is not just scale. This is strategic, capital-disciplined business transformation.
➡️ Shift from commodity to value - that's where analysts see rerating coming

#StocksInFocus #GravitaIndia #gravita #StocksToWatch

2 | Massive Operating Leverage Ahead (Q4 Proved It)

🔹Revenue: ₹1,037 Cr (↑20% YoY)
🔹PAT: ₹95 Cr (↑38% YoY | 4% beat vs est.)
🔹Operating Cash Flow ↑6.7x → ₹282 Cr vs ₹42 Cr YoY
🔹EPS: ₹13.7 | EBITDA Margin: 10.5%

➡️ Margin stability + cash flow surprise = quality growth underpriced
➡️ Profits are compounding faster than sales due to fixed cost leverage, better input sourcing, and hedging strategy

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@selvaprathee

Apr 22

Waaree Energies Q4FY25 Investor Presentation Highlights :

FY25 Full-Year Performance
🔹Revenue: ₹14,846 Cr (⬆️ 27.6%)
🔹EBITDA: ₹3,123 Cr (⬆️ 72.6%)
🔹PAT: ₹1,932 Cr (⬆️ 107%)
🔹OCF: ₹3,158 Cr
🔹Net Cash: ₹510 Cr

Order Book & Capacity
Total Order Book: ₹47,000 Cr (~25 GW)
🔹India: 46% | Overseas: 54%

Manufacturing Capacity
🔹Modules: 15 GW
🔹Cells: 5.4 GW (operational)
🔹Expansion: Additional 4.8 GW (FY26–27)

Waaree Energies - Full Stack Solar Powerhouse in Motion

Backward Integration
🔹6 GW ingot & wafer plant to be ready by FY27
🔹Existing cell capacity of 5.4 GW
🔹Tech tie-ups for Perovskite tandem cells
🔹15 GW module capacity; +4.8 GW by FY27
🔹On track for 6 GW PLI cell facility by FY27

Forward Integration
🔹EPC: 3.2 GW under execution
🔹O&M: 695 MWp of operating solar assets
🔹Inverters: 3 GW (3 lakh units) facility to go live by Q4FY26
🔹Power Infra: RUMSL 170 MW win, ~1 GW connectivity
🔹Battery Storage: 3.5 GWh Li-ion plant by FY27
🔹Green Hydrogen: 300 MW electrolyser PLI project by FY27

Waaree Energies - FY25 Balance Sheet & Cash Flow Snapshot

📊 Balance Sheet
🔹Assets: ₹19,747 Cr (vs ₹11,314 Cr YoY)
🔹Shareholders’ Fund: ₹9,595 Cr (⬆️ 2.3x YoY)
🔹Fixed Assets: ₹5,469 Cr (⬆️ 2.2x YoY)

💵 Cash Flow
🔹OCF: ₹3,158 Cr
🔹Capex-heavy: ₹6,808 Cr outflow on investments
🔹Cash at year-end: ₹510 Cr (⬆️ 4x YoY)

📌 Waaree is deploying aggressively for scale - strong cash engine + capex push = long-term moat

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@selvaprathee

Apr 1

🏥 Ami Organics Ltd - A Detailed Analysis

- Ami Organics is a research driven specialty chemicals and pharmaceutical intermediates company with a strong global presence.
- With strong financial performance and rapid expansion in CDMO and specialty chemicals, it is well-positioned for sustained growth in the coming years.

📌 Current Price: ₹2,528
📊 52-Week High / Low: ₹2,644 / ₹1,004
💰 Market Cap: ₹10,344 Cr

Data Credit: Sovrenn

1 | Who is Ami Organics?

📍Company Overview:
🔹Founded: 2004
🔹Headquarters: Surat, India
🔹Business Model: Research-driven manufacturer of Advanced Pharmaceutical Intermediates & Specialty Chemicals
🔹Presence: Strong foothold in pharmaceutical, battery chemicals, and semiconductor industries, exporting to 55+ countries
🔹Manufacturing Facilities: 4 state-of-the-art plants in Gujarat & Uttar Pradesh, including USFDA and PMDA Japan-compliant sites
🔹Total Installed Capacity: 1,100 KL across multiple production lines with zero-liquid discharge systems
🔹Market Position: A leading CDMO & pharma intermediates player, expanding into specialty and semiconductor chemicals

🏢 Subsidiaries & Business Divisions:
🔹Ami Organics Electrolytes Pvt. Ltd. – Focus on battery chemicals (electrolyte additives)
🔹Baba Fine Chemicals (Acquisition) – India’s only player in semiconductor-grade photoresist chemicals
🔹Global Customer Base: 500+ clients across 55+ countries, including major pharma & specialty chemical companies

📌 With a strong pipeline of pharma intermediates, expanding CDMO business, and entry into high-growth segments like battery & semiconductor chemicals, Ami Organics is well-positioned for sustained long-term growth.

#StocksToWatch #StocksInFocus #Amiorganics

2 | Business Model – How Does Ami Organics Make Money?

💊 Core Business Segments:
1️⃣ Advanced Pharmaceutical Intermediates (incl. CDMO)
🔹~550 products invoiced in last 5 years
🔹Focused on chronic therapies: anticancer, antipsychotic, antidepressants, cardiovascular, Parkinson’s, etc.
🔹Includes CDMO business for global innovator pharma companies
🔹50+ CDMO projects in pipeline; some in Phase-II/III trials

2️⃣ Specialty Chemicals
🔹Products: Parabens, Methyl Salicylate, cosmetic/agro KSMs
🔹BFC (Battery Fine Chem) segment shows sequential recovery

📌 Supporting Strengths:
🔹Expanding into battery chemicals (electrolyte additives) and semiconductor chemicals (via Baba Fine Chem)

#StocksToWatch #StocksInFocus #Amiorganics

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