Fundamental Analysis (Long term)

Windlas Biotech | Q2 FY27 Business Update Healthy growth in the core CDMO business, improving export traction, capacity expansion and a strong balance sheet make this an encouraging update. - Q2 revenue grew 19% YoY to ₹264 crore; H1 revenue grew 18% to ₹512 crore. - Core Generic Formulations CDMO business grew 34% in Q2 and 32% in H1, continuing to be the primary growth driver. - Trade Generics revenue stood at ₹36 crore in Q2. Portfolio transition towards new products is underway. - Exports grew 26% YoY in Q2 and 46% in H1, indicating improving international traction. - Adjusted EBITDA grew 20% to ₹36 crore in Q2, with a 13.7% margin. - Adjusted PAT grew 29% to ₹25 crore. Adjusted numbers exclude non-cash ESOP expenses. - Plant 6 was commercialised in September 2026, while Plants 4 and 5 received EU GMP certification. - Net liquidity stood at ₹223 crore, keeping the company debt-free. H1 ROCE stood at 38% and ROE at 33%, excluding the impact of Plant 6. Key things to track: Sustaining CDMO growth, utilisation of new capacities (new plant 6 and Injectables) export contribution and profitability as the business scales.

China buys 27% of Intel chips, worth about $14.6 billion per year Beijing now says all government offices above township level can only buy Chinese made processors. First approved list has 18 Chinese chips from companies like Huawei and Phytium. State owned companies got until 2027 to switch over. China plans to spend $91 billion between 2023 and 2027 replacing foreign technology in government systems. This is not temporary trade fight that ends with negotiations. This is permanent shift where government demand moves to domestic suppliers and never comes back Huawei launched new desktop computers called Qingyun that run on Kirin 9000X, its own processor. Operating system is Tongxin UOS, made in China, not Windows. These desktops are not fast. Reviews say they struggle with 4K video and cannot run 32 bit apps But speed does not decide who wins here. Chinese government and state companies buy what Beijing approves, not what runs fastest. Microsoft loses little from this, China makes up only 1.5% of its revenue. Intel stands to lose most because China is its single largest market US banned Huawei from buying advanced chips to slow Chinese technology. One of biggest mistake In my View Result was opposite of what was intended. Beijing used sanctions as reason to force biggest domestic chip replacement in history. Bernstein expects domestic servers to reach 23% of China server shipments by 2026. Every Intel chip removed from government office becomes guaranteed order for Huawei or Phytium. Before sanctions, Chinese buyers preferred cheaper Intel chips. After sanctions, government created captive market domestic chipmakers needed. Sanctions ended up building China own chip buyers

Peptides: Potentially one of the biggest emerging growth opportunities I believe the peptide opportunity deserves special attention because GMM is already seeing commercial traction, has established technology credentials and is positioning itself to participate in a potentially significant pharmaceutical manufacturing investment cycle. Management disclosed approximately ₹150 crore of peptide-related orders from Indian customers over the preceding six months. These are actual orders received, not merely enquiries or a prospective pipeline. Management also indicated that it is engaging with additional Indian companies planning substantial investments in peptide manufacturing. The company is actively pursuing opportunities in international markets as well. Why is GMM well positioned? This is not an entirely new technology area for the company. GMM has supplied peptide-related technology to European customers and has years of operating experience. Its technology has been tested through installations in Europe. Installations with major global pharmaceutical/API companies are now operational in India. The company has already established credibility with customers, which is important when supplying specialised equipment for pharmaceutical manufacturing. Why could the opportunity become significantly larger? The global peptide manufacturing ecosystem is attracting investments, particularly around GLP-1 drugs. Management believes the current opportunity is still at an early stage. One interesting observation from the call was the competitive advantage of India and China in establishing manufacturing capacity quickly. Management believes European companies could take four to five years to establish comparable peptide manufacturing capacity, whereas Indian and Chinese manufacturers can move much faster. In this business, speed matters. Pharmaceutical companies looking to expand capacity need reliable technology and equipment suppliers who can execute projects within tight timelines. GMM believes it is well positioned to benefit from this investment cycle. Importantly, the opportunity extends beyond GLP-1 drugs. Management specifically highlighted several potential applications: GLP-1 and other peptide-based pharmaceutical products. - Skincare and personal care products. - Food and nutrition. - Vaccines and cancer vaccines. - Longevity-related applications. - Broader biotechnology and pharmaceutical manufacturing. This makes the opportunity potentially much wider than the current GLP-1 investment cycle. Management's approach is also encouraging. Rather than being satisfied with the initial Rs 150 crore of orders, management indicated that it wants to aggressively pursue this opportunity and grow the business. The MD described peptides as a potentially once-in-a-generation opportunity and believes current developments could represent only the beginning.

NAVNEET EDUCATION Q2 FY27 CONCALL: GUIDES MINIMUM 15% FY28 PUBLISHING GROWTH & 15–20% DOMESTIC STATIONERY GROWTH; EXPECTS ₹450 CR H2 FY27 STATIONERY SALES, ₹5–6 CR ANNUAL MERGER SAVINGS & ₹20–30 CR PUBLISHING RECOVERY

RITES: Sticks to FY27 Growth & Margin Guidance - Q2 performance subdued due to revenue milestones shifting to Q3 Maintains FY27 guidance of double-digit revenue growth, EBITDA margin 20% and export revenue at ₹300 cr

BALKRISHNA INDUSTRIES: CO AIMS TO MAINTAIN LONG-TERM EBITDA MARGINS IN THE 20–25% RANGE

SUNDRAM FASTENERS LTD #Q2FY27 DOMESTIC DEMAND OUTLOOK - Domestic demand remains broadly healthy - M&HCV industry grew approximately 21% in H1 - LCV industry grew approximately 27% in H1 - Passenger vehicles expected to grow low double-digits - Entry-level cars and sedans face some pressure - Tractor demand remains relatively weak - Domestic business growth guidance stands at 3–5% - H2 growth led by CVs and passenger vehicles EXPORT BUSINESS - Export contribution recovered towards 30% of revenue - Earlier contribution declined to around 25% - Stronger customer schedules driving export recovery - Cummins and Navistar report improved activity - Export EBITDA margins exceed 20% - Management targets exports at one-third of revenue - Higher export mix could improve margins NORTH AMERICA | CLASS 8 TRUCKS - EPA 2027 regulatory uncertainty has reduced - Preliminary 12-month orders reached 353,000 trucks - OEM order books remain healthy - Retail sales declined approximately 5% through September - Full-year retail demand expected to grow 3–5% - CY26 industry estimates range ₹210,000–220,000 trucks - Underlying demand remains supported by OEM backlogs EV & HYBRID BUSINESS - Pure EV demand remains relatively subdued - Stellantis ICE and PHEV billing has started - FY26 programme revenue approximately ₹50 Cr - FY27 revenue expectation ₹150–175 Cr - Peak-volume visibility expected by H2FY28 - Exploring additional customers for existing investments NON-AUTOMOTIVE BUSINESS - Non-auto contribution reached 35–37% - Long-term non-auto contribution target stands at 50% WIND ENERGY - Third expansion phase underway - Investment planned at ₹70–80 Cr - Annual revenue potential around ₹500 Cr AEROSPACE - FY26 revenue approximately ₹50 Cr - FY27 revenue ambition exceeds ₹100 Cr - Investment of ₹30–40 Cr in testing equipment - Next-stage revenue ambition around ₹200 Cr RAILWAYS & INDUSTRIAL - New railway tenders and orders secured - Existing capacity sufficient for current railway orders - Industrial aftermarket supports diversification MARGINS & RAW MATERIALS - Steel and aluminium costs remain elevated - Domestic OEM contracts provide pass-through mechanisms - Cost recovery generally takes around one month - Export cost recovery remains relatively challenging - Higher utilisation supports operating leverage - Higher export mix expected to improve margins - Stabilising raw-material prices could support profitability WORKING CAPITAL & CASH FLOW - Export operating cycle can extend up to nine months - Higher exports increase inventory and receivables - Capex and procurement increase GST credit balances - Subcontracting also contributes to accumulated GST credits - Management expects borrowings to moderate - Cash-flow normalisation remains a key monitorable OVERSEAS SUBSIDIARIES - China business grew 10–12% locally - China growth reached 25–30% in INR terms - UK business grew over 20% in INR terms - Both subsidiaries remain profitable - Construction equipment and CVs support China - European truck demand supports UK operations PRODUCT DEVELOPMENT - New product development remains broadly on track - Internal benchmark targets cumulative revenue contribution - New products support long-term growth opportunities CAPEX & EXPANSION - FY27 capex guidance around ₹400 Cr - H1 capex spending reached ₹281 Cr - FY28 indicative capex ₹350–450 Cr - Investments support exports, wind and aerospace - Further clarity expected after Q3 KEY MONITORABLES - Export growth and customer schedules - Export contribution reaching one-third of revenue - Stellantis programme execution and volume ramp-up - Wind energy expansion and revenue conversion - Aerospace growth and customer additions - Margin recovery through improved export mix - Working-capital and cash-flow normalisation - FY28 capex and utilisation levels KEY TAKEAWAY - Domestic demand recovery remains broad-based - Exports are recovering with higher-margin contribution - Non-automotive business now contributes 35–37% - Wind and aerospace offer meaningful growth opportunities - EV execution remains gradual - Margin recovery depends partly on export mix - Working-capital intensity remains the key concern - Diversification beyond automotive is gaining traction Live Corporate Updates Must JOIN 👉 @Stockupdate9

GMM PFAUDLER | Q2 & H1 FY27 PERFORMANCE FINANCIAL PERFORMANCE - Q2 revenue ₹1,065 Cr, up 18% YoY - Revenue increased 15% QoQ - Consolidated EBITDA stood at ₹110 Cr - EBITDA margin stood at 10.3% - Last year's margin was 13.5% - Standalone EBITDA margin improved to 13% - Q1 standalone margin stood at 11% - Last year's standalone margin was 14.4% EUROPEAN RESTRUCTURING - Loss-making European entities reported ₹43 Cr H1 EBITDA loss - Excluding these entities, Q2 margin reached 15.9% - Adjusted H1 EBITDA margin stood at 15.2% - Reported H1 margin remained at 10.2% - European operations remain the biggest profitability drag - Successful restructuring could unlock earnings improvement ORDER BOOK & BUSINESS VISIBILITY - Order intake ₹1,198 Cr, up 36% YoY - India contributed ₹483 Cr order intake - Order backlog reached ₹2,446 Cr - Backlog increased 14% YoY and 7% QoQ - Strong order inflows support revenue visibility DEBT REDUCTION - Repaid approximately ₹116 Cr net debt during H1 - Long-term borrowings reduced by ₹100 Cr - Short-term borrowings reduced by ₹16 Cr - Net debt/equity stood at 0.2x - Net debt/EBITDA stood at 0.6x - Debt reduction supported through internal accruals MANAGEMENT GUIDANCE - FY27 revenue growth guidance remains double-digit - Reported EBITDA margin target stands at 10–11% - Adjusted EBITDA margin target stands at 14–15% - FY28 expected to benefit from restructuring - Global cost efficiencies remain a key focus - Lower finance costs support profitability improvement - Better utilisation of low-cost facilities expected TURNAROUND DRIVERS - Recovery across core business operations - European restructuring and lower operating losses - Strong order inflows and record backlog - Debt repayment and refinancing initiatives - Improved utilisation supporting operating leverage - Lower finance costs supporting earnings growth KEY RISKS & MONITORABLES - European operations continue dragging margins - Cash conversion requires further improvement - Adjusted margins are not reported profitability - Monitor European restructuring progress - Track reported EBITDA margin recovery - Monitor operating cash flow improvement - Assess conversion of backlog into revenue KEY TAKEAWAY - Multiple levers support the turnaround opportunity - Underlying adjusted margins indicate earnings potential - Debt reduction strengthens the balance sheet - European restructuring remains the biggest catalyst - FY28 could see meaningful profitability improvement - Reported margins and cash flows need confirmation - Valuation and entry price remain important - Turnaround remains promising but incomplete

SHIVALIK BIMETAL | CLEAR SHIFT UP THE VALUE CHAIN STRATEGIC BUSINESS TRANSFORMATION - Moving beyond specialised metal-strip manufacturing - Focus shifting towards finished components and assemblies - Shunt business increasingly moving towards higher-value components - Most new developments already in component form - Significant portion of legacy business converted ASSEMBLY BUSINESS OPPORTUNITY - Exploring ₹100–200 Cr assembly opportunity - Potential execution during FY27–FY28 - Expected EBITDA margins around 15–16% - Lower margins than traditional business - Could significantly expand revenue base CAPACITY & CUSTOMER EXPANSION - New manufacturing facility operational since June–July 2026 - Existing customers increasing business with Shivalik - Higher wallet share supporting growth - Blended capacity utilisation around 50–60% - Significant capacity headroom remains available - Major capacity expansion not immediately required VALUE-ADDITION STRATEGY - Exploring higher value addition in thermostatic bimetals - Shunt products increasingly moving towards components - Focus on earning more per product - Strategy targets stronger customer integration EXPORT BUSINESS UPDATE - US revenue declined in certain shunt products - Primarily reflects a change in supply geography - Components now shipped directly to end users - Many end users are located in Asia - Not necessarily indicative of demand weakness MANAGEMENT GUIDANCE - Targeting 30–35% annual revenue growth - Growth outlook covers next two years - Margins may decline 1.5–2.5 percentage points - Lower-margin assemblies will dilute blended margins KEY TAKEAWAY - Shivalik is moving up the value chain - Transitioning from metal supplier to component manufacturer - Assembly opportunity could expand revenue significantly - Existing customers provide growth opportunities - Capacity headroom supports near-term expansion - Revenue growth may come with margin dilution - Monitor assembly execution and profitability

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INOX INDIA | SPECIALISED ENGINEERING GROWTH 1. SPACE & AEROSPACE - Secured US aerospace project worth ₹1,000 Cr+ - Project includes 16 cryogenic subcoolers - Also includes 16 large storage tanks - Equipment designed for liquid oxygen and methane - Additional 3–4 projects in customer pipeline - Working with leading Indian private space startups 2. SEMICONDUCTOR OPPORTUNITY - Entered Tata Electronics' Dholera semiconductor project - Initial order involves specialised piping - Bidding for larger gas-system opportunities - Opportunities include ultra-high-purity gas systems - Also targeting bulk-gas infrastructure - SemiOrbit centre developing skilled orbital welders 3. LNG INFRASTRUCTURE - Secured orders for 40+ LNG semi-trailers - Entered emerging LNG-powered railway segment - Received four railway-related orders - Expanding beyond conventional LNG storage equipment - Transportation creates additional growth opportunities 4. GLOBAL BEVERAGE KEGS - Q2FY27 sales increased 446% YoY - Beverage keg order book increased 155% - Secured three-year global supply agreement - Agreement signed with leading global brewery - Approved by four of five targeted companies - Strengthening international beverage market presence 5. MANUFACTURING EXPANSION - Additional manufacturing space available at Savli - Developing new manufacturing facility at Kandla - Investing in specialised welding capabilities - Increasing manufacturing automation - Preparing for increasingly complex engineering projects KEY GROWTH DRIVERS - Space and aerospace cryogenic equipment - Semiconductor gas and piping infrastructure - LNG transportation and railway applications - Global beverage keg exports - Higher customised equipment contribution - Technical qualifications create entry barriers KEY TAKEAWAY - INOX is moving towards specialised engineering - Complex products could improve product mix - Technical capabilities support premium positioning - Repeat orders could strengthen revenue visibility - Higher-value products may support margin expansion - Monitor execution, order conversion and profitability

Taurian MPS-Comes With First Ever Investor Presentation Interesting To Track Mkt Cap of Rs 546cr Targeting 45-50% Topline Growth

V2 RETAIL: CO CUTS SAME STORES SALES GUIDANCE TO 5% FROM 8-10%

Its financials raise further questions. H1 FY27 PAT stood at ₹90 Cr, but operating cash flow was only ₹52.42 Cr. Borrowings rose from ₹46 Cr in March 2025 to ₹155 Cr by September 2026. With a three-year average ROE of around 5% and ROCE of 9.4%, the company still needs to demonstrate stronger cash generation and returns on capital. Bhageria has benefited from an extraordinary H-acid shortage, but such conditions rarely last forever. Its newer businesses could support future growth, but they are yet to prove their profitability. The real test is whether Bhageria can turn today's exceptional earnings into a stronger business that survives beyond the H-acid boom. END 🙏

The Other Side of Bhageria's Chemical Boom High H-acid prices are attracting fresh competition. Chinese producers such as Runtu, Jihua and Jinji could add supply, while Kiri Industries has around 7,200 tonnes of annual capacity, historically operating at just 46% utilisation. A recovery in production could ease the shortage. Higher prices also raise costs for dye manufacturers and textile mills, potentially hurting demand. Bhageria faces operational risks too, example an oleum tank incident at its Tarapur plant leading to a temporary shutdown in March 2026.