Consumer Analyst / Channel Surveillance Specialist, Trudence Capital Advisors

Pranav Bhavsar

Consumer Analyst / Channel Surveillance Specialist

Trudence Capital Advisors

Trudence Capital Advisors Private Limited is a SEBI-registered Research Analyst, holding SEBI registration number INH000015747. Our firm is dedicated to providing independent and unbiased research on Indian mid to large-cap companies. Trudence Capital is known for its counter-consensus views, with a focus on forensic research and on-ground primary investigations. Our research approach is thorough, involving detailed analysis of accounting practices and governance, alongside extensive channel checks.

Independent & Unbiased Research

Equity Bottom-Up

Voltas Limited offers engineering solutions for a wide spectrum of industries in areas such as heating, ventilation and air conditioning, refrigeration, electro-mechanical projects, textile machinery, machine tools, mining and construction equipment, materials handling, water management, building management systems, indoor air quality and chemicals.

<ul>
<li>In this Insight, we aim to understand the current demand, environment, competition, and margin trends for major air conditioner manufacturers in India.</li>
<li>Dealers remain optimistic despite a slower seasonal start, anticipating accelerated growth in this season. While there have been price increases, competition, and cost inflation may not translate into margins. </li>
<li>Some of the companies in Focus include <a href="https://www.smartkarma.com/entities/voltas-ltd" target="_blank" data-smartkarma-citation="entities:19924:1" rel="noopener">Voltas Ltd (VOLT IN)</a>, <a href="https://www.smartkarma.com/entities/havells-india-ltd" target="_blank" data-smartkarma-citation="entities:9158:1" rel="noopener">Havells India (HAVL IN)</a>, <a href="https://www.smartkarma.com/entities/johnson-controls-hitachi-air-conditioning-india-ltd" target="_blank" data-smartkarma-citation="entities:6172:1" rel="noopener">Johnson Controls-Hitachi Air Conditioning India (JCHAC IN).</a>
</li>
</ul>


In this Insight, we aim to understand the current demand, environment, competition, and margin trends for major air conditioner manufacturers in India.
Dealers remain optimistic despite a slower seasonal start, anticipating accelerated growth in this season. While there have been price increases, competition, and cost inflation may not translate into margins. 
Some of the companies in Focus include Voltas Ltd (VOLT IN), Havells India (HAVL IN), Johnson Controls-Hitachi Air Conditioning India (JCHAC IN).



India Air Conditioners | Who's Chilling How

Indian Accounting Research Analyst, Trudence Capital Advisors

Nitin Mangal

Indian Accounting Research Analyst

Forensic Accounting

Transformers & Rectifiers (India) Ltd / Forensic Accounting

Transformers & Rectifiers India Limited manufactures a wide range of transformers. The Company's products include power generation, transmission, and distribution transformers.

Transformers & Rectifiers (India) Ltd (TRIL IN)

<ul>
<li>
<a href="https://www.smartkarma.com/entities/transformers-rectifiers-india-ltd" target="_blank" data-smartkarma-citation="entities:4606:1" rel="noopener">Transformers &amp; Rectifiers (India) Ltd (TRIL IN)</a>  is a prominent player in the manufacturing of transformers and reactors with the largest private sector facility in India producting diverse product range</li>
<li>With three transformer manufacturing facilities, the company has embarked on a capex spree, with planned additions of ~30,000-35,000 MVA. </li>
<li>Taking about forensics, the company has faced concerns with regarding liquidity, issuance of a stop-deal notice and stop payment by a major customer, write offs, etc.</li>
</ul>



Transformers &amp; Rectifiers (India) Ltd (TRIL IN)  is a prominent player in the manufacturing of transformers and reactors with the largest private sector facility in India producting diverse product range
With three transformer manufacturing facilities, the company has embarked on a capex spree, with planned additions of ~30,000-35,000 MVA. 
Taking about forensics, the company has faced concerns with regarding liquidity, issuance of a stop-deal notice and stop payment by a major customer, write offs, etc.


Transformers & Rectifiers (India) Ltd- Ambitious Targets

Eicher Motors Ltd. manufactures light commercial vehicles which are sold domestically and are also exported to other countries. Eicher Motors also manufactures two-wheelers and automotive gears.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/eicher-motors-ltd" target="_blank" data-smartkarma-citation="entities:18316:1" rel="noopener">Eicher Motors (EIM IN)</a>, through its brand Royal Enfield, is experiencing strong export performance driven by strategic global expansion in the middleweight motorcycle segment. </li>
<li>The unit in Thailand, serves as a key manufacturing hub, with a CKD assembly facility supporting both local and Asia-Pacific markets.</li>
<li>Royal Enfield's focus on retro design and competitive pricing attracts customers in Europe and Brazil, filling a niche left by premium brands.</li>
</ul>



Eicher Motors (EIM IN), through its brand Royal Enfield, is experiencing strong export performance driven by strategic global expansion in the middleweight motorcycle segment. 
The unit in Thailand, serves as a key manufacturing hub, with a CKD assembly facility supporting both local and Asia-Pacific markets.
Royal Enfield's focus on retro design and competitive pricing attracts customers in Europe and Brazil, filling a niche left by premium brands.


Eicher Motors (EIM IN) | Why Exports Are on Fire

Cantabil Retail India / Forensic Accounting

Cantabil Retail India Ltd designs, manufactures, brands and retails apparel.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/cantabil-retail-india-ltd" target="_blank" data-smartkarma-citation="entities:12563:1" rel="noopener">Cantabil Retail India (CANT IN)</a> is one of the few vertically integrated garment players and has a store count of 576 and retail space of 7.4 lakh sq.ft.</li>
<li>The company has done well over the last five years to improve its financial position; it has grown its topline at a healthy rate while margins have improved significantly.</li>
<li>But having said that, we have concerns with elevated inventory levels that have remained high historically for a garment player. Moreover, some capital advances and RPT should also be considered.</li>
</ul>



Cantabil Retail India (CANT IN) is one of the few vertically integrated garment players and has a store count of 576 and retail space of 7.4 lakh sq.ft.
The company has done well over the last five years to improve its financial position; it has grown its topline at a healthy rate while margins have improved significantly.
But having said that, we have concerns with elevated inventory levels that have remained high historically for a garment player. Moreover, some capital advances and RPT should also be considered.


Cantabil Retail Ltd- Inventory Concerns Evident

Private Capital Markets

Zepto offers a 10-minute grocery delivery service through an e-grocery app that revolutionizes the grocery buying experience.

<ul>
<li>Quick Commerce offers infinite TAM with rapid metro adoption, but requires endless investment in faster delivery times to remain competitive.</li>
<li>Delivery partners bear the operational burden, working long hours for modest pay while tech stacks across competitors remain largely similar.</li>
<li>Despite investor excitement, QC margins remain elusive due to high competition, homogeneous offerings, and limited pricing power compared to food delivery.</li>
</ul>


Quick Commerce offers infinite TAM with rapid metro adoption, but requires endless investment in faster delivery times to remain competitive.
Delivery partners bear the operational burden, working long hours for modest pay while tech stacks across competitors remain largely similar.
Despite investor excitement, QC margins remain elusive due to high competition, homogeneous offerings, and limited pricing power compared to food delivery.


Postcard from Bengaluru | Quick Commerce On-The-Ground