Key takeaways from Q2FY25 Concall:

Expect 3500 cr orders expected in H2 FY25 (2000 cr is already bid and 1500 cr yet to be bid), Simulators and anti drones may have approx 60:40 ratio.

Guidance is for 900 cr In FY25 with gross ebitda margin of 35%. Guided for 50% CAGR for next 3 years.

Surveillance and remote control driven systems are in R& D stage and expect the revenues to flow in from FY26 onwards.

Capabilities in simulators meant for army planned to be extended for navy and airforce. Currently mostly in WIP/R&D and may yield revenues from FY27 onwards.

Has plans of USA and will adopt the similar strategy what is being done in India where in 85% of manufacturing job works through SMEs. With Trump’s administration, they expect good push on make in America and good supply chain availability in USA. 50% guided CAGR excludes any possible revenues from USA. Expected capex could be around $10 mn in FY26.

QIP money of Rs 1000 cr would be utilized for possible acquisitions in companies having technical capabilities in navy /airforce simulators. 400 cr is budgeted for acquisition and 100 cr for India capex.

Overall appears to be a consistent compounder story, but rightly valued currently. Triggers would be new large orders which promoter is quite confident about (they have walked the talk largely in past). Success in efforts in R&D and diversification of products would pave the way to beat 50% guided.

Disclaimer: Remain invested

Thanks! I’m not a Sir though.
Of course it matters, I have substantial value in this. I’m expecting Dua to be reasonably good on the next phase but unexpected things could happen. Company has partially changed fundamental business model. They are licensing their software to be used either by corporates (L&T) and their clients in a non-exclusive deal.
Anything else will be pure speculation unless we have more info on what the specific plans are.
The potential here is quite high. It’s not even a mid-cap yet.

Pragnesh bhai, awaiting your views on this company.
I came across Euro 7000 in Delhi NCR region when one of our operations manager mentioned that their sales team are visiting sites in Gurugram and pitching their products and schemes.
What was your thought process while you invested in Jyoti Resins?

While CSD will offtake huge volume, wouldn’t it be at significant discount? We used to get liquor at substantial discount long back although off late I don’t know the pricing structure