Hi,
No expert here but I do not completely agree with what you said, as you’re comparing the existing tailwinds to be the same as the previous ones, India has never been in the place it is today. The amount of capital/infra goods being consumed is at an all-time high and is expected to only grow with the economy due to how stranded we are when it comes to infra compared to other countries…so judging a steel stock only based on the traditional steel cycle metrics won’t work. Think out of the books…

Jan-2024

He is also part of the ruling party now, leaving the opposition right before the elections creating a favourable leadership of like-minded people.

Is this what you are looking at?

To recap recent history, the promoters were arrested in 2019 for misappropriation of funds. In June 2021, the company was declared “promoter-less” and has since then been run by an Independent Board.

And so, there have been no insiders in this company in the past few years.

The Burmans are now looking to take a majority stake. They have filed for an open-offer with the regulators.

Hike in stock prices

Emudhra- the recent price hike has been influeneced by many factors such as

In January 2024, eMudhra raised Rs 200 crore through a qualified institutional placement (QIP). The company issued 4.74 million equity shares at a price of Rs 422 per share

• total income increased by 59.5% on a YoY basis, accompanied by growth at 26.9% and 20.1% in EBITDA and PAT margins
• Dollar got stronger in last 3 days 45% revenue from overseas mkt
• 20% to 30 % cheaper producst in Us mrkt compared to peers.
• 30- 40% increase in order book last qtr
• 40% depreciation in tax last qtr
• Recievable closing time as financial year end
• In Q3 FY24, significant expansion in the international markets, supported by wins across various regions, driven by increased demand for our cybersecurity solutions
• rollout of e-signature platform for a large urban development company in Kingdom of Saudi Arabia, rollout of e-signature platform for paperless transformation of customs authority in the Middle East, upgradation of e-signature platform for a certifying authority and single window operator in West Africa, rollout of e-sign for bank officials of a large public sector bank for digitally signed approvals to enhance transparency
• The growth was primarily driven by the sales in the overseas market. There was a rise in the enterprise solution segment, which generated a revenue of Rs. 745 million,
• Almost it is 35% to 40% growth we have achieved in the order book compared to March
• 20% to 30% cheaper compared to competition because we are at a penetration stage.
• e US market development, we had spent some Rs. 2 crores, Rs. 3 crores of marketing.
• got quite a few wins in the SSL, TLS, and emDiscovery . large banks, stock exchange in India and some private sector clients. North America also recently, one IT company is using for private PKI.
• 40% depreciation from the tax perspective

Some more insights on the business on last Investors concall:

How they are evaluating business:” We remain steadfast in our commitment to growth, both organic and inorganic. Current market conditions have presented us with opportunities to consider the acquisition of several compelling bolt-on businesses. We are actively involved in discussions with various complementary enterprises. Our criteria for engagement revolves around several key factors including appealing valuation, synergies with our existing business, adjacencies to our current markets and the potential to enhance our technological capabilities. These parameters serve as a guiding principle as we navigate these discussions and evaluate potential opportunities. We are optimistic about the potential for strategic acquisitions to further strengthen our position in the market and drive sustainable growth for our Company.”

If we can successfully navigate the entire artificial intelligence acquisition that we’re looking at, I think there we will not only use it as a toolkit for our own use, but we will also sell it in the market as a solution for our partners. (“SuperScan”: Orbo.ai)

Interesting Question and Answer: if there any update regarding the remaining stake in iServeU (Currently 51%) and how we’re thinking of going about that?

Answer: I think no update really to give to the market just yet. We have got busy with a couple of M&A situations quite honestly and while we have signed a non-binding term sheet, there are a couple of others that we are actively looking at. So, that sort of took a little bit of a back seat and I want the business to start becoming profitable, but it’s certainly on the cards at some point in time we will do it, but nothing to really report or update right now.

We haven’t really shared anything in the public domain, but I can’t talk about it except that these are all situations where we think they are good bolt-on ideas and suggestions or businesses that either gave us access to technology or access to a client base that we otherwise don’t have access to. So, that’s really the driver and obviously there could be potential businesses where we could also get access to some licenses, which again will require us to go back to RBI and get permission.

Who are the main distribution partners in the business: We have more than 5,500 CAs that log into our platform NiyoBlu and NiyoBlu is a digital platform, where a customer can log in and apply for a loan. We have more than 30 partners that work with us. These are lending partners apart from Niyogin itself being a lending partner and our plan there is to keep making some fee income on the distribution of unsecured business loans. So, that business is going quite well.!!!
NiyoginQ3.pdf (1.1 MB)