Daily Brief Industrials: Premier Energies Limited, Sanyo Industries, Elgi Equipments, BQE Water , Frontier Management Inc, Mineral Resources and more

• Premier Energies made SALE before Offer For Sale – A mini OFS just before IPO to close investors who helped company in its journey till IPO.
• The stake sale amounting to INR 800+ crores raises the concern over governance and disclosure norms
• Such a unique case where the promoter used the loophole might face actions from SEBI.

• Sanyo Industries Product Categories Sanyo Industries (TYO 5958) is a manufacturer of construction materials that’s been in business since 1948.
• Their main products are sheet metal works used for flooring, roofing, aluminium building materials, and rooftop ventilators.
• They also manufactur earthquake and other disaster resilient components.

• Elgi Equipments (ELEQ IN) headquartered in Tamil Nadu, India manufactures a range of air compressors and automotive equipments and sells across domestic and international geographies.
• Overall, balance sheet looks strong with consistent FCF generation, upward sloping ROCEs and low risk of solvency
• But one needs to be cautious about the performance of subsidiaries, especially the Belgium and US arms, and goodwill assessment, whistle blower trends, etc.

• BQE announced that it has been contracted for a new water treatment plant for the closure of the legacy Valley Tailings Facility in the Yukon.
• This continues the rapid growth that BQE has posted in its recurring operations segment which grew 79% YoY and 43% QoQ in Q2.
• The plant is expected to be completed in Q2/25 and operate for six years.

• In terms of topline, both the Management Consulting Business and the Revitalization Support Business continued to perform favorably, achieving net sales of ¥2,908 mn (+14.3% YoY) and ¥791 mn (+5.6% YoY), respectively.
• The M&A Advisory Business reported net sales of ¥746 mn (-52.3% YoY).
• The Investment Business posted significant growth (+117% YoY), though its scale remained small with net sales of only ¥39 mn. 

• Minres reported full year results, leading to a 10% drop in share price and a 50% decline since May
• Company’s balance sheet is a concern due to exposure to the cyclical nature of the mining industry and risky investments in lithium
• Analysts are nervous about the company’s direction and future prospects, particularly with over $3 billion in capex invested in projects like Onslow

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