In my view, these were solid operational results, even though consensus and street expectations were looking for a 40% to 45% top-line jump. Timex delivered a 30% revenue growth, reaching ₹218.9 Crore (compared to ₹168.9 Crore in Q1FY26), which fell slightly short of those elevated expectations and triggered a small market knee-jerk reaction. But looking under the hood, this was another quiet masterclass in ground level execution by Deepak Chhabra.

Operating leverage did all the heavy lifting this quarter. While top-line revenue grew 30%, EBITDA surged 63% to ₹35.8 Crore, expanding EBITDA margins by 330 basis points YoY to 16.3%. Standalone net profit (PAT) jumped 70.5% YoY to ₹25 Crore. (Note: Timex operates as a single primary standalone operating entity in India, so these standalone figures reflect the entire operational business strength).

What stands out is how they delivered this margin expansion. They intentionally built up inventory on the balance sheet ahead of the festive rush, while Advertising and Promotion (A&P) expenses actually rose to 8.49% of sales from 7.36% last year. At the exact same time, royalty payments to the global parent company dropped to 3.65% from 4.18% of sales. They spent roughly 50% more cash on marketing and still expanded operating margins by 330 bps. That is the exact opposite of cutting ad spend to manufacture a fake quarter beat; it proves that profitability is coming from product mix and operational scale rather than starving the brands.

Their collaboration led product strategy continues to drive brand desirability, bringing in launches like Todd Snyder, J.Crew, Supergirl, Aston Martin, and vintage 70s timepieces, backed by influencer campaigns like Palak Tiwari.

Looking at sales channels, E-commerce continued its upward trajectory with an exponential 67% growth, supported by quick-commerce dark store expansions that improve product accessibility. The offline Trade channel, their largest distribution leg, grew 51% on higher door productivity and deeper market penetration. Product wise, the core Timex brand registered a 42% growth rate driven by higher priced global franchises. Guess emerged as a massive growth pillar with a 74% surge through fresh collection rollouts, alongside steady performance in Guess Jewelry.

Management noted that going into the festive season, they remain focused on scaling with intent and deepening presence across channels, confident because profitability is growing faster than revenue.

Since Timex does not hold public earnings calls, analyzing historical performance shows a clear seasonal pattern:

The company needs sequential growth driven by Q2 numbers to avoid consolidation. But heading into next quarter, trade partners buy inventory in advance for the festive season. Looking at peers across the watch space, demand remains structurally intact. KDDL grew revenue by 36% with 44% PAT growth, while Ethos grew top-line by 30% with 38% PAT growth on an expanded 103-store network. Timex clocked the highest profit growth in the group at 70.5%, proving that premiumization is dropping straight to their bottom line. Q2 will be the crucial quarter for all these players, so execution will be the ultimate differentiator.

On the valuation front, assuming a conservative 30% revenue growth rate for a margin of safety, operating leverage at play though… means PAT will grow significantly faster. At a trailing P/E of around 60x, the forward P/E comes down to roughly 46x with a PEG ratio near 1.5x. It is fair to say the stock is in a fairly valued zone. You will not find classic valuation comfort here, but high execution consumer compounders in India often trade at elevated valuations as long as they keep delivering. If they keep executing, the market will continue to reward them with high multiples. But if there is an execution error or a missed expectation, the market punishment will be swift.

Disclaimer: Views are personal. Might be Biased, Not a buy or sell recommendation!

May and June brought a decent operational recovery in the business, helping the overall quarterly numbers bounce back. While BlackBuck has been in the telematics space for the last five years, this past quarter saw major traction that management expects will continue to grow. It delivered the highest quarterly sales on both AIS and non-AIS telematics products, creating a solid base for future renewals in the coming quarters and years. The underlying engine remains clean: the core business continues to compound, smoothly translating revenue into EBITDA and cash flows, while management reinvests quarter by quarter into high-potential growth verticals.

The standout story to track is the execution of company’s superloads business. After launching across four initial cities, BlackBuck expanded into ten additional cities by March and April, and these newer hubs are actually growing faster than the original four. The operational learnings from key hubs like Bangalore are directly helping them implement and scale faster across new locations. Comapany is targeting benchmark metrics of 5,000 monthly loads and 250 loads a day, and they are already steadily advancing halfway toward those numbers. Given that BlackBuck is currently present in only about 4% to 5% of the roughly 300 to 350 logistics hubs across India, the expansion runway is massive. This growth stage business delivered a 50% sequential growth jump, up sharply from the 23–24% sequential growth seen in previous quarters.

Across other segments, metrics have largely normalized. The tolling business has returned to business as usual levels, while fueling, which forms a smaller portion of revenue is seeing a partial, cautious recovery and looks much better than it did three months ago. On competition, management’s perspective was notably positive. The presence of competitors signals strong, growing market demand, and in an unorganized industry where there is so much efficiency left to solve, there is more than enough market share for strong platforms to capture. In fact, Delhivery entering this space is a key competitive development to watch closely going forward.

On customer retention and platform stickiness, the data is reassuring. Yearly renewal rates for standard GPS sit between 70% and 75%, while high-end products maintain an 85% renewal rate, rising even further after the second year. This reflects a very low churn rate. Crucially, the market is closely watching the execution of Superloads because the unit economics are working: it has a positive contribution margin right from the start of execution, boosted by AI integration. As macro growth slowly returns, telematics demand is peaking, and BlackBuck is outperforming industry growth rates to capture market share in a highly sticky ecosystem.

Looking at valuation purely through a traditional P/E ratio makes the stock appear decently overvalued. However, judging BlackBuck solely on P/E is fundamentally flawed because it is a multi-segmented tech platform, not a simple transport company. The business spans payments and telematics through fuel sensors and FASTag integration, financial services via vehicle finance and insurance, and a marketplace for regular loads and Superloads. Currently, the market is aggressively valuing the Superload business: a segment whose full scaling potential is yet to be truly unlocked. If management gets the execution right here, a massive structural rerating can happen. As profitability normalizes, metrics like EV/EBITDA, Price-to-Sales, or Operating Cash Flow give a far better picture, especially since management expects the majority of EBITDA to convert directly into cash flows as operating leverage kicks in.

The broader thesis relies on BlackBuck acting as a direct proxy for India’s consumption, urbanization, and logistics growth. Truckers spend an average of 40 to 45 minutes daily on the app, giving BlackBuck an unmatched ability to cross sell tech and financial products to a loyal customer base.

This remains a high-risk, high-reward play that requires active tracking rather than a buy and forget mindset. Key risks include execution, macro uncertainity, recovery in core business, policy changes and keeping a close eye on a pending ₹22 Crore tax dispute notice.

Disclaimer: Views are personal. Might be Biased, Mention of specific stocks — is for informational purposes only and is not a buy or sell recommendation.

The Timex name carries massive legacy and nostalgia, dating all the way back to 1854. If you haven’t owned one, your parents definitely have. An interesting piece of history is their joint venture with Titan back in the 1990s and 2000s, but today, this traditionally run company has completely transitioned its business strategy, distribution model, brand acquisition, and marketing. Globally, the group has sold over 2.7 billion watches, managing a massive portfolio of over 15 global brands with a network of 120 distributors and more than 22,000 retail touchpoints. The core architect behind this domestic turnaround is Deepak Chhabra, the Managing Director. His execution has been incredible, focusing on brand building, deep market expertise, and distinct customer experiences. Given his prior turnaround track record at Tupperware and Crocs, along with deep retail experience at Nike, Skechers, and Tag Heuer, it is highly interesting to see how this Timex story unfolds.

The fundamental differentiator for Timex is its pyramid portfolio structure. They have unique products positioned at every single price point, managing premium and luxury licensed brands with high agility. The domestic watch industry is witnessing massive structural momentum. Rising disposable incomes are shifting consumer perception, where watches are no longer just for utility but are heavily perceived as fashion, luxury statements, and essential accessories for outfits. Premiumization is the dominant trend here. Timex is capitalizing on this through targeted brand storytelling, an agile supply chain, and high-impact new launches like the Timex Harry Potter, Timex NASA, and Timex Signio Mastery in Motion collections. Their marketing dominance is highly visible across cinemas, celebrity red carpets, and major events. However, because of this aggressive play, advertising expenses and the royalty fees paid for global licensed brands are two critical line items in the books that we must track closely.

Operationally and financially, the Q4 and full-year results were phenomenal. The company delivered strong revenue growth and clear operating leverage. The momentum looks set to continue into Q1, with e-commerce, trade channels, and retail segments all witnessing high double-digit growth. On the manufacturing front, the company has successfully scaled its capacity from 4 million units to the 6 million mark, and they are now actively targeting a 10 million unit capacity to meet the growing industry demand. The core thesis rests on this massive execution and supply chain efficiency. Every business segment is growing cleanly, their Cash Conversion Cycle (CCC) is structurally improving, and their ability to onboard and scale legacy global brands under Chhabra’s leadership gives them a highly unique competitive edge.

Looking at the valuations, the stock currently trades at a trailing P/E of 53x. If we stay extremely conservative and pencil in a 30% growth rate from here, the forward P/E drops to around 40x, which translates to a PEG ratio of roughly 1.35x. Considering the company’s 3-year median P/E sits at 59x and the 1-year median P/E is at 69x, the stock is available at a comfortable valuation relative to its history. A company executing this well with strong operating leverage, deep structural industry tailwinds, and top-tier leadership easily commands a premium multiplier and offers a high-growth opportunity.

“Investment success doesn’t come from ‘buying good things,’ but rather from ‘buying things well.’” — Howard Marks

Disclaimer: Views are personal. Might be Biased, Not a buy or sell recommendation! (Invested from 270 levels)

The Indian SME IPO market is running a fever, and Millworks Technologies is the latest company capturing everyone’s attention. If you look at the grey market premium numbers, the excitement seems completely justified. The GMP has steadily climbed from ₹350 on July 8, 2026, to an astonishing ₹395 by July 12, 2026. This translates to an estimated listing gain of nearly 119%. While the trackers show a single-lot profit of ₹1,58,000, remember that the mandatory retail application size is 2 lots (800 shares). This means if you are lucky enough to get a full allotment, those numbers act like a magnet, promising a massive total profit of ₹3,16,000 on an issue price of ₹331 per share.

But let us be brutally honest, this is not a mainboard IPO. If things turn sour in the SME segment and you get stuck here, toh lanka hai bhai! Let’s put the cards on the table: SME stocks are manipulated many times in the dark corners of the market, so you have to be incredibly careful. There is always an inherent, structural risk embedded in these micro-cap stocks, meaning you have to choose your horse carefully. While an in-depth look at the business operations will have to wait for a later article, assuming consistency remains on track, a foundational understanding of the IPO structure and the listing day mechanism is mandatory right now just to survive the chaos and capture those gains.

Millworks Technologies operates as a precision engineering company focused on manufacturing machined components and sheet metal parts. To meet high capacity demands, the company has structured a book-building public issue worth ₹160.34 crore, which opens for subscription on July 14, 2026, and closes on July 16, 2026. The entire issue is structured as a 100% fresh issue of shares, meaning no existing promoters are offloading their stakes via an Offer for Sale. Looking at the fund allocation, the company plans to utilize ₹61.03 crore of the fresh proceeds for capital expenditure to purchase new plant and machinery. The remaining ₹81.50 crore is earmarked strictly for working capital requirements to execute its existing order backlog efficiently.

The Quota Structure and Retail Realities

For retail individuals evaluating this public issue solely for allotment and listing gains, understanding the exact mechanics of the SME trading framework is a necessity. The company is offering a total pool of 48,44,000 equity shares, which translates into 12,110 market lots based on a lot size of 400 shares.

Here is the exact numerical breakdown of how the shares and liquidity are distributed across the entire ecosystem:

The critical operational catch here is that fractional trading is entirely barred. You cannot buy or sell individual shares. Every single transaction must occur strictly in multiples of the 400-share market lot. Because the minimum application size for retail individuals requires bidding for 2 lots, or 800 shares (amounting to ₹2,64,800), your eventual exit must be executed as either 1 lot or both lots together.

As a retail player, you have to face a hard truth: An application layout of ₹2,64,800 is all you got on the line, and you are completely blind to the supply-demand dynamics of the big players. We have absolutely no clue whether the institutions (QIBs and HNIs) will decide to dump their shares at the opening bell or sit tight. You are a small fish in a highly illiquid pond.

Clearing the Confusion: How the Circuit Filter Actually Works

Let’s address the massive elephant in the room regarding the listing day math. You might ask: How do we know if a circuit will happen, and what are the exact price boundaries?

On the day of listing (tentatively July 21, 2026), the official pre-open window on the BSE SME platform runs from 9:00 AM to 9:45 AM. This is where the opening price is discovered through an equilibrium matching mechanism. Under exchange guidelines, the maximum price discovery allowed during this pre-open session is capped at a 90% premium over the issue price.

• IPO Upper Band: ₹331.00 per share.

• Maximum Allowed Opening Price (10:00 AM): ₹331 x 1.90 = ₹628.90.

No matter how crazy the grey market premium is (even if it’s trading at a 119% premium like the current ₹395 GMP), the stock cannot open higher than ₹628.90 at 10:00 AM.

Once that official opening price is discovered at 10:00 AM, a strict 5% daily circuit filter takes effect for the remainder of the trading day. This means the stock can only move up or down by exactly 5% from its discovered price. If the stock hits the absolute maximum demand cap during pre-open, the remaining price action unfolds under three strict conditional boundaries:

• IF the stock locks into an Upper Circuit: The price instantly jumps 5% from its opening price to ₹660.30. In this scenario, the market depth window will display a massive pool of buy orders with zero available sellers. For an allottee looking to exit, liquidity is 100% guaranteed, and a market sell order will fill instantly because buyers are desperately waiting.

• IF the stock falls into a Lower Circuit Trap: This occurs if institutional investors dump large blocks that completely overwhelm the market maker’s capacity, causing the stock to drop 5% to ₹597.45. If this happens, millions of sell orders pile up with zero buyers present. You will be completely locked out of an exit, and your capital will be frozen until the next trading session.

• IF the stock does NOT get locked into a circuit (Fluid Trading): The stock trades freely between the ₹597.45 floor and the ₹660.30 ceiling. Both buyers and sellers remain active in the order book without hitting either wall, allowing you to freely execute your trade at any point during the day by placing standard market or limit orders as the price moves.

What You Must Research

Before hitting that apply button, there are critical underlying factors you absolutely need to track and check. Treat this checklist as your ultimate baseline research filter:

• The Pre-Open Cap vs. GMP Reality Check: The recent grey market data shows an estimated listing price of ₹726, reflecting a 119.34% premium. However, as analyzed above, exchange guidelines cap the pre-open discovery at +90% (₹628.90). Do not expect to see a ₹726 price tag at 10:00 AM on the dot; that premium can only be reached if the stock hits its upper circuits in normal trading hours.

• The Lead Manager Track Record Factor: The Book Running Lead Manager for this issue is GYR Capital Advisors Private Limited. Before risking your hard-earned capital, you must independently research their historical track record. A deep dive into recent 2025–2026 listings shows they have a history of handling aggressive SME listings. For instance, Exato Technologies and Luxury Time managed by them both hit listing gains of exactly 90.00%, while Merritronix also captured a flat 90.00% listing pop. However, issues like INDO SMC Limited listed flat at 0.00% and Accord Transformer managed a modest 14.13% gain. This mixed track record shows that while their popular issues hit the absolute +90% pre-open ceiling, a few can open completely flat or low. You must thoroughly review their last 5 to 10 mandates to weigh your downside risk!

The Listing-Day Game Plan

If you are fortunate enough to secure an allotment, though I am personally not that lucky. A definitive exit strategy is crucial. Since you are entering this trade purely for listing gains, the most practical approach is to lock in your profits immediately rather than trying to time the peak of the post-listing circuit movements.

Placing a sell order during the pre-open window (9:00 AM — 9:45 AM) guarantees a clean execution at the opening equilibrium price, protecting you from post-10:00 AM circuit volatility. Remember, you are here strictly for the listing gain, so get out of it whether it is a 100% gain or a 10% gain. Securing your profits cleanly ensures you walk away without risking a sudden shift in market liquidity.

Disclaimer: Views are personal. Might be Biased, Not a apply or not recommendation! SMEs are really risky though!!!

The structural story for India’s water sector is massive, driven by a critical demand-supply gap that is projected to reach 50% by 2030, with nearly 70% of urban wastewater currently remaining untreated. This crisis is bringing long-term government investment through schemes like AMRUT 2.0, Namami Gange, and the Swachh Bharat Mission, which mandate advanced technologies like Zero Liquid Discharge (ZLD) and Sequencing Batch Reactors (SBR). Enviro Infra capitalizes on this with their 100% in-house design and execution model to bid for larger, technically complex projects up to 200 MLD. Company have maintained solid historical EBITDA margins while actively moving away from slow-paying rural schemes to de-risk their portfolio.

Simultaneously, the company is undergoing a major transformation into an integrated environmental infrastructure platform by pivoting into the renewables and Battery Energy Storage Systems (BESS) segments.

(Let’s see if it’s diversification or diworsification?)
Revenue has already started kicking in, and since the major focus remains heavily on the water space, I don’t see any issue.

Through a partnership with NTPC and the acquisition of wind EPC player: Suyog Urja Limited, company is targeting a first-mover position in India’s projected 90 GW battery storage pipeline. This renewable shift is further supported by the massive power demand coming from AI-driven data centers, where Enviro Infra’s BESS and HT-line experience gives them the technical pre-qualifications to bid. Over the last two years, company have been moving into this B2B and renewable space to de-risk their business from pure government-linked water project concentration, and this year they have officially started contributing revenue from it.

However, looking at the ground reality, the past year was not that good because of execution delays, longer order finalization timelines, and broader sectoral issues. I just read the Enviro Infra Q4FY26 concall, and there is a big shift in stance. Till Q3, management flatly refused to cut their guidance, which was a major turn-off for me, but in Q4 they finally accepted reality. They admitted they missed their 35% topline growth guidance because the process of grabbing projects got elongated. For instance, the company were L1 in a project around November-December that unexpectedly went into re-bidding. Other major projects, including an MIDC CETP ZLD project and two Bangalore projects, remained stuck in the slow design and approval stages, so revenue couldn’t kick in. On top of that, global geopolitical crises have pushed up raw material costs. Consequently, management has revised their guidance downwards, cutting the blended EBITDA margin target to 21–22%, down from the earlier 22–24%, while targeting a topline of around ₹2,000 Crores with a PAT of 13.5% to 14% for FY27.

The working capital cycle has also stretched to 166 days, which management addressed transparently. The main issue was that funds from AMRUT projects across five to six states like Chhattisgarh, MP, Rajasthan, Haryana, and Punjab did not get released by March. Instead of stopping work or slowing down, Enviro Infra kept the momentum going. This choice kept the projects moving but caused Unbilled Revenue (UBR) days to shoot up substantially to 195 days, even though actual receivable days came down to 53 days. The positive side is that funds from Chhattisgarh have finally been released, and they have received confirmations that money is starting to flow from Rajasthan, Haryana, and MP too. Management expects the situation to ease out soon, stating working capital will remain under control and FY27 will turn cash-flow positive.

On the business pipeline front, the order flow is currently moving well. They have an order book of around ₹6,000 Crores in hand, giving them two years of clean visibility. Their current bid pipeline stands at roughly ₹1,200 Crores where bids are submitted, with an additional ₹5,000 Crores of projects where they intend to bid. They are protective about their margins, keeping a win rate of 20–25% by only bidding for quality projects that meet their 21–22% floor. Just in the last few weeks, they bagged a cumulative order win of ₹512 Crores across three orders. For the new BESS EPC business, they expect a PAT margin of around 10%. Because global lithium-ion battery cell prices have spiked due to geopolitical issues, they are smartly delaying the cell procurement until prices settle down, while already starting the civil works, transformers, and electrical HT line mobilization.

The valuation looks reasonable. The stock is trading at a P/E of 22.4x. If we assume a conservative growth rate of 30%, the forward P/E comes to 17.2x with a PEG of 0.57x. Compared to peers, VA Tech Wabag is the clear sector leader, while players like EMS and Ion Exchange are on downward trajectory in my view. Enviro Infra is well-positioned in terms of technology and project quality, and while smaller SME players like Effwa are keeping their growth intact on a lower base, Enviro can demand a higher premium valuation if they execute. This year is completely a pivotal execution year. The factors that will rerate this company are strong execution in the renewable pivot, achieving cash-flow positivity, and cleaning up the working capital cycle. It is good to see the management becoming conservative and transparent now, but we will know the true ground reality by the end of Q1.

Disclaimer: Views are personal. Might be Biased, Not a buy or sell recommendation!

Prime Cables is an intriguing SME player in the cables and wires industry with over 17 years of manufacturing experience. While they primarily operate in the Low Voltage (LV) segment — which commands the highest market share in terms of volume — they are strategically moving up the value chain.

What makes them stand out? Despite being an SME, they hold various state government approvals and certifications that are notoriously difficult for new players to obtain. These certifications require a proven track record and extensive experience, serving as a significant entry barrier and a testament to their operational history.

1. Product Portfolio & Revenue Mix

The company manufactures a wide range of cables (up to 1.1 KV). Here is how the revenue and margins break down across their portfolio:

• Control Cables (~47.3% of Revenue): Their highest margin driver (12–13% EBITDA). Used in complex electrical systems.

• Power Cables (~27% of Revenue): Essential for the transmission of electrical power.

• Aerial Bunch (AB) Cables (~16% of Revenue): Used in tough terrains (hilly, coastal) and congested urban areas. These are the lowest margin products (9–10% EBITDA).

• Others (Instrumentation & Housing Wires): Small but essential categories serving both commercial and domestic buildings.

2. Industry Drivers & Market Segments

Prime Cables supplies to every stage of the industry, from production to the end consumer… That is from generation to transmission to distribution to consumption. Majority of the company revenue comes from transmission, then distribution, followed by others.

Revenue Break-up by Industry (H1FY26) for Prime Cable Industries:

• Transmission: 53.5%

• Distribution: 33.5%

• Generation: 8%

• Consumption: 5%

(Polycab gets their majority of revenue from the consumption space because of brand recognition and distribution power!)

Prime Cables has two brands under them: Primecab and Renufo. I haven’t heard they want to go aggressive on the consumption side; they are currently focusing on low voltage. Now, the new capex will get them into medium voltage, and they are also planning to enter the high voltage space, covering all the pie of the market share. They also want to get into solar cables (non-tender based revenue).

• New Product Addition (Solar): The company plans to add solar cables to its product portfolio by the end of November 2025 or early December 2025, and will be actively adding new client categories such as solar power generation clients.

• Growth Drivers: This move capitalizes on the robust growth projected in the MV segment (CAGR of 15.4% by CY’30), which is critical for power transmission, industrial use, utility projects (like wind and solar farms), and supporting schemes like the Revamped Distribution Sector Scheme (RDSS) and smart grid expansion.

3. Manufacturing Strengths & Capex

PCIL relies on two manufacturing units in Narela, Delhi, and Ghiloth, Rajasthan. Crucially, the Manufacturing Unit-II at Ghiloth is NABL accredited, which helps meet stringent quality and compliance standards required for government tenders. The company maintains low maintenance capex for its newer machines.

Capex, Capacity, and Utilization:

• IPO Fund Usage: 14 crores for the new manufacturing plant (Medium Voltage), 4 crores for debt repayment, and 7 crores for working capital.

• Expansion: The new unit at Ghiloth, Neemrana (Rajasthan) is aimed at increasing production capacity by 5,000 Kms per annum to manufacture Medium Voltage (up to 33 KV) Power Cables and Covered Conductors.

• Revenue Potential: Current capacity can easily generate 300–350 crores. The new capacity can take the revenue potential to 500 crores (an addition of 150–200 crores).

• Utilization: As of Sep H1FY26, capacity utilization is 55% (prior it was 35%). By March 31st this year, capacity is expected to expand to 60–65%. The target for FY27 is 80% utilization for current capacity and 40–45% for the new facility. The plant will be operational by Q2FY27.

4. Competitive Moats, Client Strategy & Market Reach

• The Certification Moat: Their in-house NABL-certified testing lab is a key advantage. It allows them to meet the stringent quality standards required for lucrative government tenders and Bid-Qualification Requirements (BQR).

• Client Strategy: Management intends to leverage existing customer relationships by offering these new MV products. They will target clients who are already purchasing LV cables from them, focusing largely on the power distribution segment.

• Client Retention: They boast a healthy retention rate of over 65%, with nearly 70% of revenue coming from repeat clientele.

• Diversification: They are successfully shifting away from pure government dependence. Government/PSU revenue dropped to 53.5% in H1FY26 as private corporate sales expanded significantly to 46.5%.

• Geographical Reach: Strong PAN-India presence with 88% revenue from the top 11 states. They are looking to broaden the market base and expand beyond the 5–6 current key states to reduce state dependency.

5. Orderbook

• Current Orderbook: More than INR 100 crores (approximately INR 106 crores as of Sep).

• Split: ~INR 48 crores from private institutions and ~INR 58 crores from the government side. Most will be executed within this year (5–6 months).

• Pipeline: The win ratio is about 20% in tendering. The current bid pipeline (as of Sep/Nov) is 500–600+ crores, which could add 100–120 crores to the orderbook.

6. Key Financial Observations & Analogy

1. Revenue Growth: Scaling the Peak The company’s revenue jumped 70.8% from FY24 to FY25. This momentum continued into H1FY26 with a 61.9% YoY increase. The major catalyst here was the commercialization of their Rajasthan facility and the addition of high-value clients who contributed over ₹27 crores in FY25 alone.

2. Profitability: The Multiplier Effect While revenue grew significantly, the Profit After Tax (PAT) skyrocketed by 319% in FY25.

• Why? The Cost of Goods Sold (COGS) as a percentage of revenue dropped from 86.8% to 83.3%.

• Operating Leverage: As the company scales, fixed costs like salaries (Employee Benefit Expenses) are being spread over a much larger revenue base, pushing more money directly to the bottom line.

3. Efficiency Metrics The management has been tightening the ship:

• Debtor Days: Have been reduced, meaning they are collecting cash from customers faster.

• Capacity Utilization: Jumped from 35% to 55% in H1FY26. They are targeting 80% utilization for the current plant by next year.

7. Risks

• Raw Materials: Copper and Aluminum. Volatility here can hamper company margins.

• Supplier Concentration: Top 10 suppliers account for 80.64% of total purchases (9M FY25).

• Customer & Geographical Concentration: Top 10 customers constituted 61.04% of revenue. Sales are concentrated in Bihar, UP, MP, Karnataka, and Odisha.

• Internal: Attrition rate is high, which can add to costs and squeeze margins.

8. Valuation and My View

Company has good certification and stringent quality measures; the client/vendor relationships and these certifications are their moats,Why they are different basically. Good growth in H1FY26. Typically in the first half there is an infra slowdown, monsoon, and low work on transmission and distribution, but despite this, company posted good results. H2 is typically better for the industry as companies start working on projects and government goes aggressive on tenders, so the company can see traction from here and increase their orderbook at a good pace.

Overall margin can be around 11–12%… debtor days have reduced, utilization is going up, product mix is improving. Margins have been expanding because of economies of scale, successful execution, certifications, reduced COGS, operating leverage, and higher contribution of control cables.

Regarding Valuation: Good growth and revenue visibility for at least 2–3 years. Company can easily grow at around 60% in FY26 in my opinion, which makes the company available at a very cheap valuation of just 12.2x forward PE and 0.2 forward PEG. The industry average PE is around 40–45 levels, so there is huge scope if the company expands and delivers growth!!

Regarding management: the management is pretty confident and giving interviews, so you can judge or observe. I felt okay about them — young blood, looking for growth, and good knowledge about the sector. One more observation: market leader Polycab has enjoys margins of 14.73% while Prime Cable has 10.60%. Though they operate differently, as Prime gets into medium voltage, margins can go up toward Polycab levels.

What do you think? Should they start pivoting toward the “Consumption” side to capture brand premiums, or is staying focused on Transmission/Distribution the safer bet for now?

Disclaimer: Views are personal. Might be Biased, Not a buy or sell recommendation!

The biggest point of confusion for most investors is the frequency: when is this fee actually charged? You don’t get a bill in the mail, and nothing is ever deducted directly from your bank account. Instead, the Total Expense Ratio (TER) is deducted daily. The fund house takes the annual percentage, divides it by 365 days (or 366 in a leap year), and snatches that small slice every single day. For example, if a fund has a 1.5% TER, the AMC deducts approximately 0.0041% from the fund’s total assets before they even calculate and announce the daily NAV. The result is that the NAV you see on your app or in the news is already net of expenses. You never actually see the money leaving your pocket. You just see a slightly lower NAV than you would have if the fund were free.

You also need to realize that the expense ratio is an asset-based fee, not a performance fee. The fund house gets paid to manage your money regardless of whether they make you a profit or a loss. If the market is up and the fund’s stocks gain 1%, that daily 0.004% deduction means your NAV will show a gain of roughly 0.996%. However, if the market crashes and your fund loses 1%, that expense ratio is still taken out, meaning your NAV will show a total drop of roughly 1.004%. Essentially, the AMC gets their cut even when you’re losing money.

SEBI sets strict caps on how much an AMC can actually charge you, and these are tiered based on the fund’s Assets Under Management (AUM). This is where economies of scale kick in, as a fund grows larger, the percentage it is allowed to charge must decrease. For equity funds, the first ₹500 Crores can be charged up to 2.25%, the next ₹250 Crores up to 2.00%, and once a fund grows beyond ₹50,000 Crores, the limit drops to approximately 1.05%. It’s also worth noting that passive funds like Index funds or ETFs have much lower caps, usually limited to 1.00%, but many often charge as little as 0.10% to 0.30% because they aren’t trying to beat the market, just track it. Keep this in mind because over the long term, these small daily slices significantly impact your final wealth.

A 1% fee sounds small until you realize it’s taking 20% of your final wealth over 30 years. Watch the decimals.