I was going through their products after phreak’s excellent post.

I found that many premium products under microscope have the below logos of IIT Delhi and ‘xinova’. At which point I doubted what level of research capability exists here. The lack of publication under holmarc’s name could be because those research outputs are with the other two orgs.

Portfolio update

Current portfolio
E2E Networks Limited
L&T has acquired a 21% stake in it and will develop data center which will be operated by E2E Networks. Localisation of the data theme will give them an advantage over bigger players.

https://nsearchives.nseindia.com/corporate/E2E_05112024105909_PressRelease08102024.pdf

Senco Gold Limited
Sales growth was good but margins were affected due to one time impact of customs duty approximately to Rs. 29.8 Cr.

Trust Finance Limited
This quarter results were poor due to delay in payments due to election. Management expects the payment to come through in this quarter. They got an order from Bank of Baroda which shows their capabilities.
There is an overhang of old software which has to be replaced and IPO money has not been utilized properly for the same.

https://nsearchives.nseindia.com/corporate/TRUST_18112024170244_InvestorMeetandpresentation18112024.pdf

Virat Industries Limited
Money is being infused by way of preferential allotment. 100 Cr is being infused into a 200 Cr company.
Future business and equity dilution has to be monitored.

Trident Techlabs Limited
It provides software related to Power and Engineering solutions to clients. Client list comprises State electricity boards, power companies, defense agencies like Navy and DRDO. It has partnered with global leaders like Eaton.
They are forming a semiconductor subsidiary which will provide electronic design automation tools.

https://nsearchives.nseindia.com/corporate/TECHLABS_14112024201304_Investor_Presentation_S.pdf

Annvrridhhi Ventures Limited (J Taparia Projects Limited)
This company has been taken over by Mr. Chirayu Agrawal and Mr. Sarvesh Agrawal. They have experience in the FMCG and QSR industry. They are shareholders and directors in Transglobal Trade Integration Private Limited which is engaged in the business of Master Franchisee of La Pinoz Pizza of Gujarat.
Company name is changed and indicates the future business to be in line with FMCG or QSR.

I have been also invested in KPIT as well since 200 level. KPIT had different kind of advantage due to opening of EV theme as new theme. So one can’t compare Newgen with KPIT.

Second things , my opinion is different on newgen management. I believe on their words. They have done almost everything they have said in concall. So, take it that way. I respect your opinion on Newgen which is different than me.

Concall Notes Q2

Business Overview:

• SAMHI Hotels Limited reported strong performance for Q2 FY25, with asset income of ₹266 crores, a 20% YoY growth.
• Same-store assets achieved a RevPAR growth of 16.5% YoY, driven by significant demand in core markets.

New Developments:

• Signed a long-term variable lease for a building in HITEC City, Hyderabad, to be converted into a 170-room upper-upscale hotel.
• Acquired an existing 142-room hotel in Bangalore, Whitefield, with plans for renovation and rebranding to the upscale segment.
• Development of an additional tower in Whitefield, expected to add 200 to 220 rooms to the portfolio.

Portfolio Growth:

• Secured a total of 525 rooms across three new upscale hotels in Bangalore and Hyderabad, enhancing the growth potential in core markets.
• The existing hotel portfolio is strategically positioned to capitalize on robust demand, with strong net absorption in office space and significant air passenger growth in Bangalore and Hyderabad.

Operating Performance:

• Same-store assets reported a 13.3% YoY revenue growth, leading to an EBITDA growth of approximately 20.2%.
• EBITDA margin improved to nearly 40%, indicating strong operational efficiency.

Internal Growth Initiatives:

• Integration of the ACIC Portfolio is progressing well, contributing to a 590 basis point margin improvement in Q2 FY25.
• Renovation and rebranding of the 137-room Caspia Pro in Greater Noida to Holiday Inn Express completed, with expected revenue contributions in the coming weeks.
• Approved conversion of commercial block in Sheraton, Hyderabad, into 42 additional rooms, operational by Q3 to Q4 FY26.

Capital Expenditure (Capex):

• Anticipated capex for Bangalore hotel renovation is ₹70-80 crores over the next 12-18 months, with an additional ₹270 crores for the new tower.
• Hyderabad asset capex is estimated at ₹180-190 crores, expected to be spent over the next 18-24 months.

Financial Guidance:

• Consolidated EBITDA for Q2 FY25 stood at ₹97 crores, an 80% YoY growth, with a consolidated margin of 36%.
• Net debt as of September 30, 2024, was approximately ₹1,880 crores, with plans to maintain a net debt to EBITDA ratio of 4.5x by the end of FY25.

Market Insights:

• HITEC City market shows strong performance with an average rate of ₹12,400 and RevPAR growth of 26% YoY in FY24.
• Management expresses confidence in the Hyderabad market due to limited new supply and strong demand drivers.

Strategic Vision:

• Management is focused on capital-efficient growth through variable leases, aiming to increase the share of revenue from such leases from 13% to 20% in the near term.
• Plans to recycle capital through divesting non-strategic assets to maintain a healthy balance sheet while pursuing growth opportunities.