India Equity Analyst - Fundamental & Thematic, Sree Capital

Sreemant Dudhoria

India Equity Analyst - Fundamental & Thematic

Fundamental Research on Listed Indian Companies

Sree Capital

Sree Capital is a platform to share fundamental research on listed Indian companies. We do this research for our own investment

Equity Bottom-Up

GNA Axles Ltd. manufactures automotive parts. The Company offers rear axle shafts, spindles, and splined Shafts for light and commercial vehicles. GNA Axles markets its products worldwide.

<ul>
<li>Favorable reservoir level, an uptick in Kharif Harvest, and strong sowing for the Rabi season are expected to drive good demand for tractors in the medium term.</li>
<li>We summarize the sales volume published by listed players Mahindra &amp; Mahindra(M&amp;M), and Escorts Kubota Limited.</li>
<li>Positive management commentary augurs well for uptick in tractor OEM stocks and related auto ancillary companies like <a href="https://www.smartkarma.com/entities/gna-axles-ltd" target="_blank" data-smartkarma-citation="entities:28070:1" rel="noopener">GNA Axles Ltd (GNA IN)</a> in medium term.</li>
</ul>


Favorable reservoir level, an uptick in Kharif Harvest, and strong sowing for the Rabi season are expected to drive good demand for tractors in the medium term.
We summarize the sales volume published by listed players Mahindra &amp; Mahindra(M&amp;M), and Escorts Kubota Limited.
Positive management commentary augurs well for uptick in tractor OEM stocks and related auto ancillary companies like GNA Axles Ltd (GNA IN) in medium term.


Monthly Sales Overview of Indian Listed Tractor Companies (December 2024)

<ul>
<li>GNA Axles is a cyclical play driven by revival of the tractor industry in India and pre-buying in commercial vehicles(trucks) in the U.S. market.</li>
<li>A good monsoon in India in 2024 is expected to revive domestic tractor demand, while changes in emission regulations in the U.S. are likely to increase truck sales.</li>
<li>The company is currently valued at a comfortable 18x trailing P/E, with a 15% RoE and RoCE.</li>
</ul>


GNA Axles is a cyclical play driven by revival of the tractor industry in India and pre-buying in commercial vehicles(trucks) in the U.S. market.
A good monsoon in India in 2024 is expected to revive domestic tractor demand, while changes in emission regulations in the U.S. are likely to increase truck sales.
The company is currently valued at a comfortable 18x trailing P/E, with a 15% RoE and RoCE.


GNA Axles – A Positive Shift in the Business Cycle Could Be Approaching

High Energy Batteries Limited manufactures and distributes nickel cadmium, silver oxide zinc, and silver chloride magnesium batteries. The Company markets its batteries to the Army, Navy and Air Force, and for use in launch vehicles.

<ul>
<li>High Energy Batteries is a well established manufacturer of high-tech batteries for the Indian defence requirements. In CY2024, the promoters purchased shares worth INR 43 Mn from open market.</li>
<li>Company has robust pipeline of new products, including the 330kW Torpedo Propulsion Battery, One-Shot-Battery, Battery for Sonobuoy, Proton Exchange Membrane Fuel Cells, Vanadium-Redox Flow Battery which could drive future earnings.</li>
<li>The Indian Government's procurement policy, with its focus on indigenization in defence procurement, promotes the domestic manufacturing sector, creating favorable growth opportunities for the company.</li>
</ul>


High Energy Batteries is a well established manufacturer of high-tech batteries for the Indian defence requirements. In CY2024, the promoters purchased shares worth INR 43 Mn from open market.
Company has robust pipeline of new products, including the 330kW Torpedo Propulsion Battery, One-Shot-Battery, Battery for Sonobuoy, Proton Exchange Membrane Fuel Cells, Vanadium-Redox Flow Battery which could drive future earnings.
The Indian Government's procurement policy, with its focus on indigenization in defence procurement, promotes the domestic manufacturing sector, creating favorable growth opportunities for the company.


Promoter Buy Alert: High Energy Batteries (India) Ltd – Can Newer Technologies Drive Future Growth?

Event-Driven

Quess Corp Limited operates as an integrated business services provider. The Company offers IT staffing, industrial asset and facility management, skill development, and general recruitment services. Quess serves customers worldwide.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/quess-corp-ltd" target="_blank" data-smartkarma-citation="entities:26937:1" rel="noopener">Quess Corp Ltd (QUESS IN) </a>will spinoff into 3 different companies, each representing a business vertical of its consolidated operations. All three companies are expected to be listed during Q1FY26.</li>
<li>It has received approval from the stock exchanges and is now awaiting the go ahead from National Company Law Tribunal (NCLT).</li>
<li>Improving business performance and sum-of-the-parts valuation of the three separate listed businesses indicate potential upside from the current valuation.</li>
</ul>



Quess Corp Ltd (QUESS IN) will spinoff into 3 different companies, each representing a business vertical of its consolidated operations. All three companies are expected to be listed during Q1FY26.
It has received approval from the stock exchanges and is now awaiting the go ahead from National Company Law Tribunal (NCLT).
Improving business performance and sum-of-the-parts valuation of the three separate listed businesses indicate potential upside from the current valuation.


Quess Corp - Can the Spinoff of India’s Largest Staffing Company Unlock Value?

Aegis Logistics Limited distributes liquefied petroleum gas and provides logistics and terminalling services in the oil, gas  and chemicals sectors. The Company also manufactures and distributes oleochemicals and kerosene oil and provides chemical storage facilities.

<ul>
<li>Aegis Logistics is India’s leading logistics player in Liquified Petroleum Gas (LPG/Propane) and Chemicals.</li>
<li>It has demonstrated a stellar track record over past decade, delivering a 25% CAGR in EBITDA and Net profit, along with a 28% CAGR in dividend payouts.</li>
<li>Given the strength of its partnership with Vopak and various capital expenditure lined up in medium term, it should continue to deliver robust operational and financial performance.</li>
</ul>


Aegis Logistics is India’s leading logistics player in Liquified Petroleum Gas (LPG/Propane) and Chemicals.
It has demonstrated a stellar track record over past decade, delivering a 25% CAGR in EBITDA and Net profit, along with a 28% CAGR in dividend payouts.
Given the strength of its partnership with Vopak and various capital expenditure lined up in medium term, it should continue to deliver robust operational and financial performance.


2025 High Conviction Idea:Aegis Logistics-A Decade Track Record of 25% Growth in Profits & Dividends

Sreemant Dudhoria is a CFA Charterholder with 15 years of experience in equity research and information technology. He is also a SEBI-registered Research Analyst (Registration Number: INH000016861). His focus is on analyzing companies where promoters buy their own shares. Previously, he has worked with Unifi Capital and Infosys Technologies Limited.

Sreemant Dudhoria
India Equity Analyst - Fundamental & Thematic
• Sree Capital

Monthly Sales Overview of Indian Listed Tractor Companies (December 2024)

Favorable agricultural conditions expected to drive demand for tractors, positive outlook for tractor OEM stocks and related companies like GNA...

Sreemant Dudhoria

GNA Axles – A Positive Shift in the Business Cycle Could Be Approaching

GNA Axles poised for growth with revival of tractor industry in India and pre-buying in U.S. truck market, offering good value at 18x P/E with...

Sreemant Dudhoria

Promoter Buy Alert: High Energy Batteries (India) Ltd – Can Newer Technologies Drive Future Growth?

High Energy Batteries, a leading supplier for Indian defence, sees growth potential with new products and government's focus on domestic...

Sreemant Dudhoria

Quess Corp - Can the Spinoff of India’s Largest Staffing Company Unlock Value?

Post our note on the spin off transaction of Quess Corp, the company convened NCLT(National Company Law Tribunal) meeting for shareholders and...

Sreemant Dudhoria

2025 High Conviction Idea:Aegis Logistics-A Decade Track Record of 25% Growth in Profits & Dividends

Aegis Logistics is India's top player in LPG and chemicals logistics, showing impressive growth in net profit, and dividends. Strong partnerships...

Sreemant Dudhoria

Monthly Sales Overview of Indian Listed Tractor Companies (December 2024)

​Favorable agricultural conditions expected to drive demand for tractors, positive outlook for tractor OEM stocks and related companies like GNA...

Sreemant Dudhoria

GNA Axles – A Positive Shift in the Business Cycle Could Be Approaching

​GNA Axles poised for growth with revival of tractor industry in India and pre-buying in U.S. truck market, offering good value at 18x P/E with...

Sreemant Dudhoria

Promoter Buy Alert: High Energy Batteries (India) Ltd – Can Newer Technologies Drive Future Growth?

​High Energy Batteries, a leading supplier for Indian defence, sees growth potential with new products and government's focus on domestic...

Sreemant Dudhoria

Quess Corp - Can the Spinoff of India’s Largest Staffing Company Unlock Value?

Post our note on the spin off transaction of Quess Corp, the company convened NCLT(National Company Law Tribunal) meeting for shareholders and...

Sreemant Dudhoria

2025 High Conviction Idea:Aegis Logistics-A Decade Track Record of 25% Growth in Profits & Dividends

​Aegis Logistics is India's top player in LPG and chemicals logistics, showing impressive growth in net profit, and dividends. Strong partnerships...

Sreemant Dudhoria

Favorable agricultural conditions expected to drive demand for tractors, positive outlook for tractor OEM stocks and related companies like GNA...

GNA Axles poised for growth with revival of tractor industry in India and pre-buying in U.S. truck market, offering good value at 18x P/E with...

High Energy Batteries, a leading supplier for Indian defence, sees growth potential with new products and government's focus on domestic...

Aegis Logistics is India's top player in LPG and chemicals logistics, showing impressive growth in net profit, and dividends. Strong partnerships...