Sector Update | 20 February 2024
Hotels
EMS
Kindly refer our thematic
report on EMS: Transforming
Dreams into Devices
Strong revenue and orderbook growth; margin
weakened
The quarter maintained a strong revenue growth momentum, although margins continued
to remain under pressure due to company-specific factors. In this report, we present
insights based on 3QFY24 results and management commentaries of major EMS players –
KAYNES, AVALON, SYRMA, CYIENTDL, DATAPATT, DIXON, and AMBER.
The 3QFY24 performance was characterized by strong revenue growth, but margins
were adversely impacted by a change in product mix for multiple players and other
company-specific business adjustments/investments opex to sustain strong growth for
the long term.
Among EMS players, DIXON posted the highest revenue growth (up 2x YoY), while
SYRMA and Kaynes recorded the highest order inflow (up 2.1x/48% YoY).
The EMS basket witnessed margin pressure, with SYRMA/AVALON reporting a
contraction of 380bp/100bp due to unfavorable product mix and adverse operating
leverage, respectively. DATAPATT registered the highest margin expansion (100bp
YoY).
Aggregate revenue up 57% YoY
Change Change
The growth momentum is expected to continue in FY25, led by strong execution of the
%
YoY
QoQ
large order book as on 9MFY24, coupled with continued order inflows from the
Kaynes
76%
41%
existing and newer end-user industries.
Avalon
Cyient DLM
Syrma SGS
Data Patterns
Dixon
Amber
Aggregate
Aggregate
(ex Dixon & Amber)
-8%
50%
38%
25%
100%
-4%
57%
39%
7%
10%
-1%
29%
-3%
40%
6%
13%
Revenue growth continues remain strong…
EBITDA performance
Change Change
Growth %
YoY
QoQ
Kaynes
Avalon
Cyient DLM
Syrma SGS
Data Patterns
Dixon
Amber
Aggregate
Aggregate
(ex Dixon & Amber)
70%
-18%
43%
-19%
28%
66%
0%
30%
21%
43%
31%
25%
-21%
47%
-7%
32%
10%
23%
EMS companies registered a strong revenue growth of 57% YoY, driven by
healthy order inflow, up 44% YoY and 26% since Mar’23 (order book growth
excludes Dixon and Amber).
Dixon led the pack with 2x YoY revenue growth, driven by a healthy growth in
mobile and EMS division revenues (up 251% YoY on a low base), followed by
Kaynes (76%), Cyient DLM (50%), Syrma SGS (38%), and Data Patterns (25%).
Avalon/Amber reported a revenue decline of 8%/4% YoY.
A major decline in Avalon’s performance was led by a continued slowdown in
the US business (reported a loss of ~INR200m in 9MFY24). However, the India
business registered a growth of 12% in 9MFY24.
…with healthy order inflow providing near term growth visibility
Strong traction from both global and domestic OEMs in the Indian EMS industry
is evident from the healthy sequential and YoY growth in order flows across
players and verticals in 3QFY24.
The order inflow spanned diverse industries. For instance, Kaynes secured large
orders in the aerospace and industrial segment (educational robots and UPS), as
well as motor controllers in the EV segment. Avalon reported order inflow
across power, industrial, clean energy, automotive, and rail sectors; Cyient DLM
witnessed an increasing mix of its aerospace and defense vertical; Syrma
experienced strong growth in the industrials, automotive, and consumer
segments.
Among the EMS basket, Syrma and Kaynes witnessed the highest order inflow,
up 2.1x/48% YoY (up 50%/43% since Mar’23), followed by Data Patterns (up
25% YoY/ down 25% since Mar’23) and Avalon (up 7% YoY/4% since Mar’23).
Sumant Kumar - Research Analyst
(Sumant.Kumar@motilaloswal.com)
Research Analyst: Meet Jain
(Meet.Jain@motilaloswal.com) |
Omkar Mangesh Shintre
(omkar.shintre@motilaloswal.com)
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
Investors are advised to refer through important disclosures made at the last page of the Research Report.
 Motilal Oswal Financial Services
EMS
Cyient DLM reported muted order inflow down 2% YoY and 6% since Mar’23
despite reporting order wins (USD10m) in the A&D. This was on the back of the
high order execution this quarter (revenue up 50% YoY) and lumpy order flow
nature of its key-end industry, i.e., A&D.
Overall, the order book-to-bill ratio for the basket (excluding Dixon and Amber)
has been stable at 1.8x for the last three quarters, indicating a strong revenue
growth and order inflows for the sector.
Despite recording healthy revenue, the EMS basket’s margins have been under
pressure. EBITDA margins for the basket has contracted 120bp YoY. Excluding
Dixon and Amber, the basket witnessed a contraction of 160bp YoY.
Gross margin for the EMS basket declined 360bp YoY/170bp QoQ, led by the
major contraction in EBIDTA margins.
The companies who reported the strongest revenue growth such as Dixon,
Kaynes, Syrma have reported major gross margin contraction of
220bp/550bp/280bp YoY. This was majorly on the back of a change in product
mix (toward high volume low margin products) – for Dixon and Syrma; and
higher initial prototyping cost for new order/clients added in 2Q/3QFY24 - for
Kaynes. However, Amber, Avalon, Data Patterns, and Cyient DLM witnessed
gross margin expansion of 270bp/220bp/130bp/60bp YoY, led by improvement
in product mix.
While revenue increased 57% YoY for the basket, EBITDA grew by only 30%
YoY/10% QoQ. Gross margin contraction coupled with higher SG&A costs
(mainly top tier recruitments) has led to an overall contraction of EBITDA
margin.
EBITDA margins witnessed contraction for all the companies (except DATAPATT
and Amber) with Syrma leading the pack (down 380bp YoY) led by an
unfavorable business mix and a spillover of revenue in 4QFY24. This is followed
by Avalon (100bp), Dixon (80bp), Kaynes (50bp), and Cyient DLM (50bp).
Despite reporting a strong gross margin expansion of 220bp, Avalon reported a
100bp contraction in EBITDA margins. This was due to a revenue decline in the
US business and high operational cost (adverse operating leverage).
Data Patterns had a strong quarter. EBITDA margins expanded 100bp YoY/
540bp QoQ on the back of a favorable business mix and operating leverage.
Margins continued to remain under pressure
Emerging opportunities for the EMS companies
High performance computing (HPC) servers
Recently, the government has increased its focus on HPC servers, which has
multiple applications, such as weather forecasting, drug discovery, and artificial
intelligence.
Currently, India relies majorly on the import of HPC and to curb that the
government has launched the National Supercomputing Mission. Under this
mission, the Center for Development of Advanced Computing (CDAC) has
entered into transfer of technology (TOT) agreement with three EMS
companies, namely
Kaynes, Avalon, and VVDN Technologies
for the
development of HPC servers called ‘Rudra’.
The government is providing financial and technical support to the project and
the companies are in the process of setting up manufacturing facilities and
developing prototypes.
20 February 2024
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EMS
The focus on indigenous manufacturing of HPC in partnership with EMS
companies will facilitate cost-effective development of HPC with enhanced
security measures. Additionally, this initiative will generate thousands of jobs
and will stimulate R&D in HPC technology within India.
Kavach – Automatic Train protection (ATP) system
Kavach is an ATP system designed to prevent train collisions and improve safety
on Indian railway networks.
It is developed by the Research Designs & Standards Organization (RDSO) in
collaboration with Indian vendors (OEMs); it adheres to the highest safety
standards.
The Indian railways is installing Kavach alongside the entire railway network of
nearly 68,500 route kilometer (rkm). With an average costing of nearly INR5m
per rkm, a target market of INR340b over the next five years opens up for
players active in the space. So far, Kavach has been deployed on only 1,465 rkm
and 121 locomotives.
The Railways has approved three domestic and two international players
(OEMs) for the deployment of Kavach. These OEMs will in turn appoint EMS
companies to develop the products for them, thereby providing a good
opportunity for them.
EMS companies such as
Avalon and Kaynes
have been actively pursuing this
opportunity and started working on prototyping products for OEMs and
government agencies.
Key management commentaries: Outlook remains strong
Kaynes:
1) Reaffirmed revenue guidance of ~INR17-18b in FY24 and double-digit
PAT margin. However, EBITDA margin to remain at par with FY23 levels. EBITDA
margin improvement is expected in FY25/26. 2) Export mix in this quarter is ~15-
20% and is expected to go up to ~25% in FY25, driven by new orders from the
railway and aerospace sectors; 3) Kaynes won large orders in aerospace; two major
orders in the industrial segment catering to educational robots and UPS; and an
order for motor controller in the EV segment. 4) The company has formed a
manufacturing alliance for producing a clear glass lens through a technology
partnership. Additionally, the company has entered into an exclusive partnership
with FiDO-2, a certified Microsoft-compatible biometric security solution provider;
5) the company is on schedule for the OSAT/PCB project and by mid-FY26, it plans
to start commercial production. However, full-fledged revenue is expected to flow
in from FY27/28; 6) Kaynes is working with the government agency to develop
Kavach and is expected to take ~6-12 month before showcasing the product to the
government. The commercial activity will happen after 1-1.5years.
Avalon:
1) Management anticipates ~8-10% YoY decline in revenue for FY24,
targeting an EBITDA margin of ~7-8%. However, it projects a robust revenue growth
of 20-25% going forward. Despite a loss of INR200m in the US business in 9MFY24,
the company foresees a turnaround in 1HFY25, with an accelerated recovery in
2HFY25. 2) Management expects a strong traction from the railways (Signaling
system, Kavach, Vande Bharat), Industrial, Energy, and EVs in the domestic market.
3) To cater to the growing domestic demand, the company is planning to expand its
existing domestic facilities. It aims to commission a new manufacturing plant in
Chennai by 1QFY25, with an expected annual capex of around INR350-400m; 4)
Order book as on Dec’23 stood at ~INR12.75b and is executable over the next 12-14
months. However, it includes long-duration orders of ~INR8.4b, which will be
3
20 February 2024
 Motilal Oswal Financial Services
EMS
executed over the next couple of years. 5) Avalon is now a strategic manufacturing
partner for C-DAC, playing a pivotal role in advancing India's capabilities in High-
Performance Computing through the 'RUDRA' program.
Syrma:
1) The management anticipates FY24 revenue of ~INR30b with EBITDA
margins of 7-7.5%. It is confident of maintaining a 40-45% revenue growth in FY25
with margins at ~7-8%. 2) Exports, comprising 28% of 3QFY24 sales, are expected to
grow, driven by healthcare and new clients. 3) SYRMA invested INR2.4b in capex in
9MFY24, planning an additional INR400-500m in 4QFY24. 4) Order book stood at
~INR45b as of Dec’23 vs. ~INR38b/INR35b in Sep’23/Jun’23. Exports accounted for
~20% of the total order book; 5) Syrma has increased SMT capacity to ~6.3m
components from ~3.2m earlier. 6) SYRMA has got approval from Research Design
and Standards Organization (RDSO) for delivering the signaling system. It also
received an order for INR350m in 2QFY24, which was expected to ship out in
Mar’23.
Cyient DLM:
1) CYIENTDL has completed its SG&A investments and anticipates
margin improvements starting next quarter, aiming for approximately 10-10.5% in
the near term and 11-12% in the long term. 2) 3QFY24 order intake totaled
approximately USD41.8m (INR3.3b), with additional awards of USD10m expected to
be realized over the next three to four years. Order execution spans over 12-18
months on average. 3) For working capital, the company has marginally reduced its
working capital days in 3Q to 137days and projects a reduction in inventory and
debtor days in 4QFY24, targeting a net working capital of around 120 days in the
short term and 90 days in the medium term. 4) The Defense segment revenue grew
more than 100% YoY, while Aerospace grew ~75%YoY. Temporary slowdown in
demand led to a YoY decline in Industrial & Med Tech revenues by 34% and 9%,
respectively. 5) The company has inaugurated a new precision machining facility in
Bengaluru with 36,000 sq ft of manufacturing area. The expansion has elevated the
capacity to ~180K hours p.a. 6) The company has appointed a CTO and Head of
Supply Chain Management during the quarter to strengthen its leadership team.
Data Patterns:
1) The management reaffirmed a revenue growth target of 20-
25% for the next two years, aiming for a sustainable EBITDA margin of
approximately 40%. 2) Despite a decrease in order inflow to about INR991m in
3QFY24 from INR1.6b in 3QFY23, attributed to delayed contracts from BEL and
other clients, DATAPATT anticipates orders worth INR6-8b over the next few
quarters. 3) Received major orders from DRDO (INR439m/INR167m
development/production orders) and DoS (INR101m development order) during
3QFY24. 4) The company aims for 240-270 days working capital cycle from 275
in FY23 over the next two years, expecting improvement, driven by decreased
inventory days, due to supply chain normalization. 5) DATAPATT plans to
replicate its successful India model in the defense segment for export markets,
with contracts from the UK and the EU, deliverable over the next two to three
years. It also has orders from South Korea. 6) In the non-defense sector, the
company aims to manufacture critical systems and advanced technological
products, currently presenting its offerings to potential customers without
existing orders.
Dixon:
1) The company is increasing its focus on vertical integration in mobile
business to strengthen its growth outlook and profitability. 2) Dixon has rolled out
India’s first ODM-based Google TV solutions. 3) It has entered into a partnership
with Samsung for Tizen operating system and has also entered into a JV with
Rexxam for inverter controller boards for air conditioners. 4) Dixon is looking to
4
20 February 2024
 Motilal Oswal Financial Services
EMS
invest in capacities and diversify into new product categories with focus on quality
and meeting principal customer’s needs. 5)
Consumer Electronics:
Revenue up 8%
YoY. The company started TV-related production such as injection molding and LED
bars and increased ODM share to 35%. 6)
Mobile and EMS segment
grew 251%
YoY, driven by increased mobile volumes. The company is expecting more orders
from Motorola and Xiaomi and is also adding two new major customers. 7)
Home
Appliances
entered into new partnerships with Bosch, Reliance, and Panasonic and
increased semi-automatic washing machine volumes. 8)
Laptops/IT
Hardware/Telecom:
Signed new contracts for laptop production under the PLI 2.0
scheme. Dixon is planning INR2.5b investment over the next five to six years.
Amber:
1) Amber management aims for ROCE of 19%-21% by FY '27 with revenue
set to double in two years for railway subsystems and mobility division. 2)
Exponential growth anticipated in railway subsystems in the next four to five years.
3) Targeting 7%-7.5% margins next year. 4) Decent revenue expected in the first
year with high growth from operational leverage. 5) Amber Group acquired a 60%
stake in Ascent Circuits Private Limited for INR3.1b. Additionally, it signed an MoU
with Korea Circuits and formed a strategic partnership with Titagrad Rail Systems
Limited, establishing a joint venture named Shivalik for train components and
subsystems in India and Italy. Four customers are in the approval process post-
acquisition, with expectations to start purchasing for captive use within six months.
6) The company plans to set up a new greenfield facility in Faridabad for existing
product portfolio and establish two more facilities through SPVs for interiors and
other subsystems. 7) The company has added new products such as wearables,
telecom products, and smart meters, and is in the process of obtaining approvals for
defense and aerospace and industrial business.
Our aggregate revenue for EMS coverage basket is poised to register a 37%
CAGR over FY23-26E, aided by an order flows from new as well as existing
segments both in domestic and international markets in areas such as high
computing servers, railways, A&D, clean energies, EV, automotive, and
Industrials.
Consequently, combined EBITDA margin is likely to remain at the current levels
due to changing product mix (toward high volume, low margin products).
EBITDA is expected to register a CAGR of ~37% to reach INR18.6b over FY23-26
from INR7.3b in FY23.
We reiterate our
BUY
rating on
KAYNES/AVALON/CYIENTDL/SYRMA
with a TP
of INR3,300/INR610/INR830/INR720 for FY26. We retain our
Neutral stance
on
DATAPATT
with a TP of INR2,020 for FY26.
EPS
P/E
RoE (%)
FY24E FY25E FY26E FY24E FY25E FY26E FY24E FY25E
28.3
45.1
63.4 100.1 62.8
44.7
15.8
20.9
4.8
11.4
17.4 105.2 44.4
29.2
5.7
12.3
8.0
14.4
23.5
80.5
44.9
27.5
11.0
11.2
7.0
10.6
18.1
75.1
49.6
29.0
7.7
10.6
33.1
43.5
58.1
57.8
44.0
32.9
14.7
16.6
65.4 100.2 131.1 97.6
63.6
48.7
26.2
30.2
47.0
78.4 113.3 84.9
50.9
35.2
7.9
12.0
RoCE (%)
FY26E FY24E FY25E FY26E
23.5
17.4
20.2
22.8
16.2
5.8
11.8
15.9
16.0
10.0
10.7
15.5
15.9
8.2
10.9
15.5
18.6
15.3
17.2
19.1
29.3
NA
NA
NA
15.2
NA
NA
NA
Source: MOFSL
Valuation and view
Exhibit 1: Comparative Valuation
Peers
CMP
TP
MCap
Rating
(INR) (INR)
(INR b)
Kaynes
2,831 3,130 Buy 157.1
Avalon
508
640
Buy
33.2
Cyient DLM 646
830
Buy
51.3
Syrma SGS
524
760
Buy
92.6
Data Pattern 1,913 2,050 Neutral 108.8
Dixon*
6,359
NA
NA
324.0
Amber*
3,911
NA
NA
110.2
Note: *Bloomberg Estimate
20 February 2024
5
 Motilal Oswal Financial Services
EMS
Exhibit 2: Aggregate revenue grew 57% YoY/39% QoQ in 3QFY24
(INR m)
Kaynes
Avalon
Cyient DLM
Syrma SGS
Data Patterns
Dixon
Amber
Aggregate
Aggregate (ex Dixon & Amber)
2QFY23
2,732
2,447
1,702
4,669
882
38,668
7,504
58,603
12,431
3QFY23
2,891
2,327
2,144
5,126
1,118
24,047
13,483
51,136
13,606
4QFY23
3,645
2,718
2,774
6,795
1,851
30,655
30,026
78,464
17,783
1QFY24
2,972
2,351
2,171
6,013
897
32,715
17,020
64,139
14,404
2QFY24
3,608
2,010
2,918
7,117
1,083
49,432
9,271
75,440
16,737
3QFY24
5,093
2,143
3,210
7,067
1,395
48,183
12,948
80,038
18,908
Change
YoY
76%
-8%
50%
38%
25%
100%
-4%
57%
39%
Change
QoQ
41%
7%
10%
-1%
29%
-3%
40%
6%
13%
Source: MOFSL
Exhibit 3: EBITDA Performance
(INR m)
Kaynes
Avalon
Cyient DLM
Syrma SGS
Data Patterns
Dixon
Amber
Aggregate
Aggregate (ex Dixon & Amber)
2QFY23
432
286
237
472
302
1,446
367
3,541
1,728
3QFY23
412
202
206
478
470
1,112
785
3,665
1,768
4QFY23
593
411
319
575
734
1,563
2,035
6,229
2,631
1QFY24
403
162
200
369
278
1,319
1,319
4,050
1,412
2QFY24
488
126
235
490
408
1,989
596
4,332
1,747
3QFY24
699
165
294
388
600
1,844
785
4,776
2,147
Change
YoY
70%
-18%
43%
-19%
28%
66%
0%
30%
21%
Change
QoQ
43%
31%
25%
-21%
47%
-7%
32%
10%
23%
Source: MOFSL
Exhibit 4: EBIDTA Margin Trend
%
Kaynes
Avalon
Cyient DLM
Syrma SGS
Data Patterns
Dixon
Amber
Aggregate
Aggregate (ex Dixon & Amber)
2QFY23
15.8%
11.7%
13.9%
10.1%
34.2%
3.7%
4.9%
6.0%
13.9%
3QFY23
14.2%
8.7%
9.6%
9.3%
42.1%
4.6%
5.8%
7.2%
13.0%
4QFY23
16.3%
15.1%
11.5%
8.5%
39.6%
5.1%
6.8%
7.9%
14.8%
1QFY24
13.5%
6.9%
9.2%
6.1%
31.0%
4.0%
7.8%
6.3%
9.8%
2QFY24
13.5%
6.3%
8.1%
6.9%
37.6%
4.0%
6.4%
5.7%
10.4%
3QFY24
13.7%
7.7%
9.2%
5.5%
43.0%
3.8%
6.1%
6.0%
11.4%
Change
YoY
-51
-96
-46
-384
96
-80
24
-120
-164
Change
QoQ
20
145
110
-139
540
-20
-36
23
92
Source: MOFSL
Exhibit 5: Gross Margin Trend
% of Sales
Kaynes
Avalon
Cyient DLM
Syrma SGS
Data Patterns
Dixon
Amber
Aggregate
Aggregate (ex Dixon & Amber)
2QFY23
29.9%
35.5%
26.4%
29.4%
64.9%
8.6%
21.1%
11.2%
32.8%
3QFY23
29.8%
34.8%
21.4%
25.4%
66.3%
11.0%
17.0%
12.9%
30.7%
4QFY23
32.7%
37.5%
23.6%
21.5%
57.8%
10.2%
13.6%
12.0%
30.3%
1QFY24
30.8%
32.8%
25.0%
22.1%
62.2%
9.7%
17.5%
11.9%
28.6%
2QFY24
27.9%
37.2%
20.8%
22.5%
69.0%
9.6%
22.3%
11.0%
28.1%
3QFY24
24.3%
37.0%
22.0%
22.6%
67.7%
8.9%
19.8%
9.4%
27.9%
Change
YoY
-550
219
56
-283
135
-220
273
-358
-278
Change
QoQ
-356
-21
117
7
-131
-74
-250
-166
-23
Source: MOFSL
20 February 2024
6
 Motilal Oswal Financial Services
EMS
Exhibit 6: Adj. PAT Trend
%
Kaynes
Avalon
Cyient DLM
Syrma SGS
Data Patterns
Dixon
Amber
Aggregate
Aggregate (ex Dixon & Amber)
2QFY23
212
148
71
283
211
772
-30
1,667
924
3QFY23
229
57
57
332
333
519
142
1,669
1,008
4QFY23
412
227
126
423
554
806
1,040
3,588
1,741
1QFY24
246
71
54
285
258
688
456
2,059
914
2QFY24
323
73
147
297
338
1,073
-69
2,181
1,177
3QFY24
452
66
184
155
510
964
-5
2,327
1,367
Change
YoY
98%
15%
223%
-53%
53%
86%
-103%
39%
36%
Change
QoQ
40%
-10%
26%
-48%
51%
-10%
-93%
7%
16%
Source: MOFSL
Exhibit 7: Order book increased 44% YoY/10% QoQ as of 3QFY24
(INR m)
Kaynes
Avalon
Cyient DLM
Syrma SGS
Data Patterns
Aggregate
3QFY23
25,579
11,900
23,513
21,000
1,118
83,110
2QFY24
34,618
12,440
22,866
38,000
1,083
1,09,007
3QFY24
37,890
12,750
22,949
45,000
1,395
1,19,984
Change
YoY
48%
7%
-2%
114%
25%
44%
Change
QoQ
9%
2%
0%
18%
29%
10%
Source: MOFSL
Exhibit 8: Employee as % of Sales trend
30.0%
22.5%
15.0%
7.5%
0.0%
Kaynes
Avalon
Cyient DLM Syrma SGS
Data
Patterns
Dixon
Amber
Source: MOFSL
2QFY23
3QFY23
4QFY23
1QFY24
2QFY24
3QFY24
Exhibit 9: Other Expenses as a percentage of sales trend
16.0%
12.0%
8.0%
4.0%
0.0%
Kaynes
Avalon
Cyient DLM Syrma SGS
Data
Patterns
Dixon
Amber
Source: MOFSL
2QFY23
3QFY23
4QFY23
1QFY24
2QFY24
3QFY24
20 February 2024
7
 Motilal Oswal Financial Services
EMS
Exhibit 10: Our revised EPS estimates (INR)
Rating
Kaynes
Avalon
Cyient DLM
Syrma SGS
Data Patterns
BUY
BUY
BUY
BUY
Neutral
Rev
28.3
4.8
8.0
6.7
33.1
FY24E
Old
28.2
8.6
7.9
8.1
31.5
Chg (%)
0
-44
2
-17
5
Rev
45.1
11.4
14.4
7.0
43.5
FY25E
Old
44.9
15.2
14.3
12.0
43.2
Chg (%)
0
-25
1
-42
1
Rev
63.4
17.4
23.5
10.6
58.1
FY26E
Old
62.5
21.5
23.5
18.8
60.4
Chg (%)
1
-19
0
-44
-4
Exhibit 11: Sizeable and growing global EMS market opportunity
Source: Company, MOFSL
Exhibit 12: Key industry growth drivers
Source: Company, MOFSL
20 February 2024
8
 Motilal Oswal Financial Services
EMS
Kaynes: Financials & Valuations
Consolidated - Income Statement
Y/E March
Total Income from Operations
Change (%)
RM Cost
Employees Cost
Other Expenses
Total Expenditure
% of Sales
EBITDA
Margin (%)
Depreciation
EBIT
Int. and Finance Charges
Other Income
PBT bef. EO Exp.
PBT after EO Exp.
Total Tax
Tax Rate (%)
Reported PAT
Adjusted PAT
Change (%)
Margin (%)
FY20
3,682
1.1
2,417
424
428
3,269
88.8
413
11.2
84
330
236
19
113
113
19
17.1
94
94
-3.8
2.5
FY21
4,206
14.2
2,861
459
477
3,797
90.3
409
9.7
101
308
240
40
109
109
11
10.5
97
97
4.0
2.3
FY22
7,062
67.9
4,894
602
629
6,126
86.7
937
13.3
132
805
256
41
590
590
174
29.4
417
417
328.2
5.9
FY23
11,261
59.4
7,801
771
1,006
9,578
85.1
1,683
14.9
187
1,496
349
114
1,260
1,260
308
24.5
952
952
128.4
8.5
FY24E
17,651
56.7
12,919
968
1,204
15,090
85.5
2,561
14.5
243
2,318
534
345
2,129
2,129
485
22.8
1,644
1,644
72.7
9.3
FY25E
24,711
40.0
17,866
1,359
1,656
20,881
84.5
3,830
15.5
422
3,408
227
321
3,503
3,503
882
25.2
2,621
2,621
59.5
10.6
(INRm)
FY26E
32,866
33.0
23,664
1,775
2,136
27,575
83.9
5,291
16.1
587
4,705
177
394
4,923
4,923
1,239
25.2
3,684
3,684
40.5
11.2
Consolidated - Balance Sheet
Y/E March
Equity Share Capital
Preference Capital
Total Reserves
Net Worth
Minority Interest
Total Loans
Deferred Tax Liabilities
Capital Employed
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Goodwill on Consolidation
Capital WIP
Total Investments
Curr. Assets, Loans&Adv.
Inventory
Account Receivables
Cash and Bank Balance
Loans and Advances
Curr. Liability & Prov.
Account Payables
Other Current Liabilities
Provisions
Net Current Assets
Misc Expenditure
Appl. of Funds
FY20
68
0
959
1,027
6
1,643
79
2,755
930
382
547
23
119
16
3,075
1,511
937
123
504
1,027
921
76
30
2,048
0
2,755
FY21
68
11
1,308
1,387
9
1,526
52
2,974
1,181
483
698
23
126
17
3,330
1,639
1,218
143
331
1,219
954
226
39
2,110
0
2,974
FY22
462
4
1,560
2,026
11
1,779
68
3,884
1,544
615
929
23
83
15
5,173
2,264
1,977
216
716
2,340
1,641
648
52
2,833
0
3,884
FY23
581
0
9,009
9,590
13
1,359
77
11,039
1,925
802
1,123
23
293
33
12,715
4,132
2,271
4,860
1,453
3,148
2,229
857
62
9,567
0
11,039
FY24E
581
0
10,653
11,234
13
1,509
77
12,833
3,410
1,045
2,365
23
1,309
33
13,524
5,132
3,143
3,660
1,589
4,421
3,008
1,236
177
9,103
0
12,833
FY25E
581
0
13,274
13,855
13
1,009
77
14,954
5,207
1,467
3,740
23
1,012
33
16,284
6,853
4,401
2,807
2,224
6,138
4,161
1,730
247
10,147
0
14,954
(INRm)
FY26E
581
0
16,957
17,539
13
1,009
77
18,638
6,766
2,054
4,712
23
952
33
21,057
8,752
5,853
3,494
2,958
8,140
5,511
2,301
329
12,917
0
18,638
20 February 2024
9
 Motilal Oswal Financial Services
EMS
Kaynes: Financials & Valuations
Ratios
Y/E March
Basic (INR)
EPS
Cash EPS
BV/Share
DPS
Payout (%)
Valuation (x)
P/E
Cash P/E
P/BV
EV/Sales
EV/EBITDA
Dividend Yield (%)
FCF per share
Return Ratios (%)
RoE
RoCE
RoIC
Working Capital Ratios
Fixed Asset Turnover (x)
Asset Turnover (x)
Inventory (Days)
Debtor (Days)
Creditor (Days)
Leverage Ratio (x)
Current Ratio
Interest Cover Ratio
Net Debt/Equity
FY20
13.8
26.1
151.0
0.0
0.0
205.8
108.5
18.7
5.6
50.3
0.0
20.6
9.1
10.8
10.9
4.0
1.0
205
106
136
3.0
1.4
1.5
FY21
14.3
29.1
203.9
0.0
0.0
197.8
97.2
13.9
4.9
50.5
0.0
4.0
8.1
11.2
10.7
3.6
1.0
201
93
120
2.7
1.3
1.0
FY22
9.0
11.9
43.9
0.0
0.0
313.5
238.3
64.5
18.7
141.2
0.0
-4.6
24.4
17.8
18.2
4.6
1.1
146
83
97
2.2
3.1
0.8
FY23
16.4
19.6
164.9
0.0
0.0
172.9
144.5
17.2
14.3
95.7
0.0
-17.2
16.4
16.5
24.0
5.9
0.8
150
69
91
4.0
4.3
-0.4
FY24E
28.3
32.4
193.2
0.0
0.0
100.1
87.3
14.7
9.2
63.4
0.0
-20.0
15.8
17.4
26.2
5.2
1.0
145
65
85
3.1
4.3
-0.2
FY25E
45.1
52.3
238.3
0.0
0.0
62.8
54.1
11.9
6.6
42.5
0.0
-7.7
20.9
20.2
26.9
4.7
1.2
140
65
85
2.7
15.0
-0.1
FY26E
63.4
73.4
301.7
0.0
0.0
44.7
38.5
9.4
4.9
30.6
0.0
8.1
23.5
22.8
27.9
4.9
1.2
135
65
85
2.6
26.6
-0.1
Consolidated - Cash Flow Statement
Y/E March
OP/(Loss) before Tax
Depreciation
Interest & Finance Charges
Direct Taxes Paid
(Inc)/Dec in WC
CF from Operations
Others
CF from Operating incl EO
(Inc)/Dec in FA
Free Cash Flow
(Pur)/Sale of Investments
Others
CF from Investments
Issue of Shares
Inc/(Dec) in Debt
Interest Paid
Dividend Paid
Others
CF from Fin. Activity
Inc/Dec of Cash
Opening Balance
Other cash & cash equivalent
Closing Balance
FY20
113
84
228
-19
44
451
2
452
-312
140
205
8
-99
0
-118
-236
0
0
-354
-1
8
115
123
FY21
109
101
233
-28
-137
277
0
277
-250
27
2
7
-241
270
-44
-240
0
-6
-19
17
126
0
143
FY22
590
132
-11
-22
-743
-53
265
211
-422
-211
-33
11
-445
228
301
-256
0
0
272
38
143
35
216
FY23
1,260
187
-100
-503
-1,629
-784
365
-419
-581
-1,001
0
-4,352
-4,933
6,600
-336
-349
0
-371
5,543
191
216
4,453
4,860
FY24E
2,129
243
189
-485
-736
1,339
0
1,339
-2,500
-1,161
0
345
-2,155
0
150
-534
0
0
-384
-1,200
4,860
0
3,660
FY25E
3,503
422
-95
-882
-1,897
1,052
0
1,052
-1,500
-448
0
321
-1,179
0
-500
-227
0
0
-727
-853
3,660
0
2,807
(INRm)
FY26E
4,923
587
-218
-1,239
-2,083
1,969
0
1,969
-1,500
469
0
394
-1,106
0
0
-177
0
0
-177
687
2,807
0
3,494
20 February 2024
10
 Motilal Oswal Financial Services
EMS
Avalon: Financials & Valuations
Consolidated - Income Statement
Y/E March
Total Income from Operations
Change (%)
RM Cost
Employees Cost
Other Expenses
Total Expenditure
% of Sales
EBITDA
Margin (%)
Depreciation
EBIT
Int. and Finance Charges
Other Income
PBT bef. EO Exp.
EO Items
PBT after EO Exp.
Total Tax
Tax Rate (%)
Minority Interest
Reported PAT
Adjusted PAT
Change (%)
Margin (%)
FY20
6,419
NA
4,128
1,162
484
5,774
90.0
645
10.0
155
490
450
113
153
0
153
30
19.4
8
115
115
NA
1.8
FY21
6,905
7.6
4,574
1,192
478
6,243
90.4
662
9.6
158
504
270
54
288
0
288
58
19.9
16
215
215
86.1
3.1
FY22
8,407
21.8
5,552
1,314
566
7,432
88.4
975
11.6
172
803
248
309
864
0
864
183
21.1
50
632
632
193.9
7.5
FY23
9,447
12.4
6,067
1,605
647
8,319
88.1
1,128
11.9
197
931
348
144
727
0
727
202
27.8
0
525
525
-16.9
5.6
FY24E
8,814
-6.7
5,647
1,829
656
8,132
92.3
682
7.7
241
441
165
150
426
0
426
111
26.0
0
315
315
-40.0
3.6
FY25E
11,282
28.0
7,322
1,929
790
10,041
89.0
1,241
11.0
280
961
78
147
1,029
0
1,029
283
27.5
0
746
746
136.7
6.6
(INRm)
FY26E
14,666
30.0
9,460
2,493
983
12,936
88.2
1,731
11.8
326
1,404
29
191
1,566
0
1,566
431
27.5
0
1,135
1,135
52.2
7.7
Consolidated - Balance Sheet
Y/E March
Equity Share Capital
Preference Capital
Total Reserves
Net Worth
Minority Interest
Total Loans
Deferred Tax Liabilities
Capital Employed
FY20
15
356
450
822
-431
2,388
-263
2,515
1,126
139
987
0
27
24
0
3,197
1,553
1,138
266
241
1,719
1,369
216
134
1,478
0
2,516
FY21
16
388
584
988
-317
2,775
0
3,445
1,335
295
1,041
0
0
0
0
4,084
1,458
1,819
335
472
1,680
1,289
253
138
2,404
0
3,445
FY22
16
388
856
1,260
0
2,789
0
4,049
1,512
390
1,123
0
20
0
0
4,738
2,330
1,774
101
532
1,831
1,242
449
141
2,906
0
4,049
FY23
116
0
5,254
5,370
0
3,063
0
8,433
1,861
586
1,275
0
153
0
0
10,375
3,179
2,062
4,219
915
3,370
1,418
1,823
130
7,005
0
8,433
FY24E
131
0
5,570
5,700
0
963
0
6,663
2,159
827
1,332
0
206
0
0
7,026
2,243
1,811
2,267
705
1,901
1,160
617
123
5,125
0
6,663
FY25E
131
0
6,316
6,446
0
463
0
6,909
2,548
1,107
1,441
0
266
0
0
7,541
2,608
2,318
1,825
790
2,339
1,504
677
158
5,202
0
6,909
(INRm)
FY26E
131
0
7,451
7,582
0
63
0
7,644
2,961
1,433
1,528
0
253
0
0
8,746
3,240
3,014
1,613
880
2,882
1,944
733
205
5,863
0
7,644
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Goodwill on Consolidation
Capital WIP
Total Investments
Current Investments
Curr. Assets, Loans&Adv.
Inventory
Account Receivables
Cash and Bank Balance
Loans and Advances
Curr. Liability & Prov.
Account Payables
Other Current Liabilities
Provisions
Net Current Assets
Misc Expenditure
Appl. of Funds
20 February 2024
11
 Motilal Oswal Financial Services
EMS
Avalon: Financials & Valuations
Ratios
Y/E March
Basic (INR)
EPS
Cash EPS
BV/Share
DPS
Payout (%)
Valuation (x)
P/E
Cash P/E
P/BV
EV/Sales
EV/EBITDA
Dividend Yield (%)
FCF per share
Return Ratios (%)
RoE
RoCE
RoIC
Working Capital Ratios
Fixed Asset Turnover (x)
Asset Turnover (x)
Inventory (Days)
Debtor (Days)
Creditor (Days)
Leverage Ratio (x)
Current Ratio
Interest Cover Ratio
Net Debt/Equity
FY20
2.0
4.7
14.2
0.0
0.0
254.8
108.7
35.8
4.8
48.3
0.0
8.4
14.1
15.1
21.4
5.7
1.5
98
65
87
1.9
1.1
2.6
FY21
3.7
6.4
17.0
0.0
0.0
136.9
79.0
29.8
4.6
47.7
0.0
-2.4
23.8
12.8
17.7
5.6
1.3
120
78
106
2.4
1.9
2.5
FY22
10.9
13.9
21.7
0.0
0.0
46.6
36.6
23.4
3.8
32.9
0.0
-0.4
56.2
22.5
20.2
5.9
1.4
125
78
83
2.6
3.2
2.1
FY23
9.1
12.5
92.7
0.0
0.0
56.0
40.8
5.5
3.0
25.1
0.0
-7.0
15.8
12.4
17.7
5.6
0.8
166
74
80
3.1
2.7
-0.2
FY24E
4.8
8.5
87.3
0.0
0.0
105.2
59.6
5.8
3.6
46.7
0.0
2.3
5.7
5.8
7.9
4.4
1.0
145
75
75
3.7
2.7
-0.2
FY25E
11.4
15.7
98.7
0.0
0.0
44.4
32.3
5.1
2.8
25.6
0.0
-0.1
12.3
11.8
15.5
4.8
1.2
130
75
75
3.2
12.3
-0.2
FY26E
17.4
22.4
116.1
0.0
0.0
29.2
22.7
4.4
2.2
18.3
0.0
0.4
16.2
15.9
19.2
5.3
1.4
125
75
75
3.0
48.6
-0.2
Consolidated - Cash Flow Statement
Y/E March
OP/(Loss) before Tax
Depreciation
Interest & Finance Charges
Direct Taxes Paid
(Inc)/Dec in WC
CF from Operations
Others
CF from Operating incl EO
(Inc)/Dec in FA
Free Cash Flow
(Pur)/Sale of Investments
Others
CF from Investments
Issue of Shares
Inc/(Dec) in Debt
Interest Paid
Dividend Paid
Others
CF from Fin. Activity
Inc/Dec of Cash
Opening Balance
Other cash & cash equivalent
Closing Balance
FY20
153
155
434
-47
-121
574
83
657
-170
487
-24
2
-192
0
-296
-426
-4
302
-424
42
204
20
266
FY21
288
158
222
-35
-561
72
-17
55
-192
-137
29
-104
-267
73
461
-217
-37
22
301
89
246
0
335
FY22
856
180
209
-125
-805
315
-158
157
-177
-21
0
-6
-184
0
158
-189
-38
-138
-207
-234
335
0
101
FY23
727
197
244
-189
-1,125
-147
13
-133
-273
-406
0
2
-271
798
128
-283
-37
3,915
4,522
4,118
101
0
4,219
FY24E
426
241
15
-111
-73
498
0
498
-350
148
0
150
-200
15
-2,100
-165
0
0
-2,250
-1,952
4,219
0
2,267
FY25E
1,029
280
-68
-283
-518
440
0
440
-450
-10
0
147
-303
0
-500
-78
0
0
-578
-441
2,267
0
1,825
(INR m)
FY26E
1,566
326
-162
-431
-874
425
0
425
-400
25
0
191
-209
0
-400
-29
0
0
-429
-213
1,825
0
1,613
20 February 2024
12
 Motilal Oswal Financial Services
EMS
Cyient DLM: Financials & Valuations
Consolidated - Income Statement
Y/E March
Total Income from Operations
Change (%)
RM Cost
Employees Cost
Other Expenses
Total Expenditure
% of Sales
EBITDA
Margin (%)
Depreciation
EBIT
Int. and Finance Charges
Other Income
PBT bef. EO Exp.
EO Items
PBT after EO Exp.
Total Tax
Tax Rate (%)
Minority Interest
Reported PAT
Adjusted PAT
Change (%)
Margin (%)
FY18
3,878
NA
3,079
428
333
3,840
99.0
38
1.0
83
-45
108
91
-62
0
-62
-24
38.1
0
-38
-38
NA
-1.0
FY19
4,805
23.9
3,833
455
331
4,619
96.1
185
3.9
83
102
141
25
-14
0
-14
-6
43.1
0
-8
-8
-79.7
-0.2
FY20
4,571
-4.9
3,649
441
344
4,434
97.0
137
3.0
106
31
182
78
-72
0
-72
-5
7.2
0
-67
-67
760.3
-1.5
FY21
6,280
37.4
4,953
469
399
5,821
92.7
460
7.3
185
275
208
89
156
0
156
38
24.2
0
118
118
-276.3
1.9
FY22
7,205
14.7
5,440
517
409
6,365
88.3
840
11.7
193
647
220
79
507
0
507
109
21.6
0
398
398
236.0
5.5
FY23
8,320
15.5
6,452
647
344
7,442
89.4
878
10.6
194
684
315
63
432
0
432
114
26.5
0
317
317
-20.2
3.8
FY24E
12,102
45.4
9,376
1,138
442
10,956
90.5
1,146
9.5
221
926
300
225
851
0
851
215
25.2
0
636
636
100.6
5.3
FY25E
17,011
40.6
13,149
1,446
714
15,310
90.0
1,701
10.0
243
1,458
111
180
1,527
0
1,527
384
25.2
0
1,143
1,143
79.6
6.7
(INRm)
FY26E
23,135
36.0
17,814
1,735
972
20,521
88.7
2,614
11.3
270
2,344
48
198
2,495
0
2,495
628
25.2
0
1,867
1,867
63.3
8.1
Consolidated - Balance Sheet
Y/E March
Equity Share Capital
Preference Capital
Total Reserves
Net Worth
Minority Interest
Total Loans
Deferred Tax Liabilities
Capital Employed
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Goodwill on Consolidation
Capital WIP
Total Investments
Current Investments
Curr. Assets, Loans&Adv.
Inventory
Account Receivables
Cash and Bank Balance
Loans and Advances
Curr. Liability & Prov.
Account Payables
Other Current Liabilities
Provisions
Net Current Assets
Misc Expenditure
Appl. of Funds
FY18
14
0
348
362
0
1,508
-40
1,830
965
513
452
30
0
0
0
3,049
1,222
1,375
135
317
1,702
1,232
440
30
1,347
0
1,830
FY19
14
0
336
349
0
1,603
-49
1,904
1,039
586
452
30
10
0
0
4,119
1,789
1,197
596
537
2,709
962
1,707
39
1,411
0
1,904
FY20
14
0
243
257
0
3,080
-62
3,275
1,705
674
1,032
30
774
3
0
4,034
2,226
546
661
601
2,599
1,205
1,330
64
1,435
0
3,274
FY21
14
0
363
377
0
2,790
-51
3,116
2,650
824
1,826
30
23
3
0
4,517
1,555
2,264
342
357
3,284
1,928
1,262
93
1,233
0
3,116
FY22
14
0
757
771
0
3,369
-39
4,101
2,668
977
1,692
30
34
3
0
5,971
2,696
1,523
1,218
534
3,629
1,932
1,564
134
2,342
0
4,101
FY23
529
0
1,450
1,979
0
3,561
-54
5,485
2,642
1,063
1,579
30
13
895
0
8,476
4,251
1,618
1,676
931
5,508
2,867
2,521
120
2,968
0
5,486
FY24E
793
0
8,822
9,615
0
2,061
-54
11,622
2,853
1,283
1,569
30
203
895
0
15,481
4,752
2,155
7,485
1,089
6,557
3,468
2,904
185
8,925
0
11,622
FY25E
793
0
9,965
10,758
0
561
-54
11,265
3,190
1,526
1,664
30
216
895
0
16,615
5,944
2,796
6,343
1,531
8,155
4,323
3,572
259
8,460
0
11,265
(INR m)
FY26E
793
0
11,832
12,625
0
561
-54
13,131
3,537
1,796
1,741
30
218
895
0
21,083
7,321
3,803
7,877
2,082
10,836
5,857
4,627
353
10,247
0
13,131
20 February 2024
13
 Motilal Oswal Financial Services
EMS
Cyient DLM: Financials & Valuations
Ratios
Y/E March
Basic (INR)
EPS
Cash EPS
BV/Share
DPS
Payout (%)
Valuation (x)
P/E
Cash P/E
P/BV
EV/Sales
EV/EBITDA
Dividend Yield (%)
FCF per share
Return Ratios (%)
RoE
RoCE
RoIC
Working Capital Ratios
Fixed Asset Turnover (x)
Asset Turnover (x)
Inventory (Days)
Debtor (Days)
Creditor (Days)
Leverage Ratio (x)
Current Ratio
Interest Cover Ratio
Net Debt/Equity
FY18
-28.0
32.3
264.1
0.0
0.0
-23.1
20.0
2.4
0.6
59.3
0.0
-206.8
-21.2
NA
NA
4.0
2.1
115
129
116
1.8
-0.4
3.8
FY19
-0.1
0.9
4.4
0.0
0.0
-6,571.2
680.7
146.7
10.9
281.9
0.0
2.2
-2.2
3.8
3.9
4.6
2.5
143
98
104
1.5
0.7
2.9
FY20
-0.8
0.5
3.2
0.0
0.0
-763.9
1,324.4
199.4
11.7
391.2
0.0
-8.4
-22.1
3.8
1.9
2.7
1.4
201
70
108
1.6
0.2
9.4
FY21
1.5
3.8
4.7
0.0
0.0
433.3
169.2
136.1
8.6
116.9
0.0
0.9
37.3
8.5
9.1
2.4
2.0
139
82
115
1.4
1.3
6.5
FY22
5.0
7.4
9.7
0.0
0.0
128.9
86.8
66.5
7.4
63.6
0.0
5.2
69.3
15.6
18.1
2.7
1.8
143
96
130
1.6
2.9
2.8
FY23
4.0
6.4
25.0
0.0
0.0
161.6
100.2
25.9
6.4
60.5
0.0
5.6
23.1
11.3
17.5
3.1
1.5
196
69
136
1.5
2.2
1.0
FY24E
8.0
10.8
121.2
0.0
0.0
80.5
59.8
5.3
3.8
40.0
0.0
4.8
11.0
10.0
23.3
4.2
1.0
185
65
135
2.4
3.1
-0.6
FY25E
14.4
17.5
135.7
0.0
0.0
44.9
37.0
4.8
2.7
26.7
0.0
3.7
11.2
10.7
31.9
5.3
1.5
165
60
120
2.0
13.1
-0.5
FY26E
23.5
26.9
159.2
0.0
0.0
27.5
24.0
4.1
1.9
16.8
0.0
17.4
16.0
15.5
44.1
6.5
1.8
150
60
120
1.9
49.2
-0.6
Consolidated - Cash Flow Statement
Y/E March
OP/(Loss) before Tax
Depreciation
Interest & Finance Charges
Direct Taxes Paid
(Inc)/Dec in WC
CF from Operations
Others
CF from Operating incl EO
(Inc)/Dec in FA
Free Cash Flow
(Pur)/Sale of Investments
Others
CF from Investments
Issue of Shares
Inc/(Dec) in Debt
Interest Paid
Dividend Paid
Others
CF from Fin. Activity
Inc/Dec of Cash
Opening Balance
Other cash & cash equivalent
Closing Balance
FY18
-62
83
108
-4
-319
-194
59
-135
-149
-283
0
4
-144
0
0
0
0
212
212
-67
127
75
135
FY19
-14
83
124
-1
39
232
57
289
-116
172
0
17
-100
0
0
0
0
-16
-16
173
135
288
596
FY20
-67
106
133
3
-105
69
93
163
-830
-667
-3
-51
-884
0
905
-183
0
0
723
2
596
64
662
FY21
118
185
171
1
-200
275
74
349
-274
75
0
265
-9
0
-336
-92
0
-232
-660
-320
662
0
342
FY22
398
193
175
-62
-329
375
111
486
-77
409
0
-247
-324
0
534
-73
0
0
461
622
342
254
1,218
FY23
317
194
267
-168
-229
381
140
521
-76
445
-892
-450
-1,418
889
-4
-145
0
0
740
-157
1,218
615
1,676
FY24E
851
221
75
-215
-148
783
0
783
-400
383
0
225
-175
7,000
-1,500
-300
0
0
5,200
5,809
1,676
7,485
FY25E
1,527
243
-69
-384
-677
640
0
640
-350
290
0
180
-170
0
-1,500
-111
0
0
-1,611
-1,142
7,485
6,343
(INR m)
FY26E
2,495
270
-150
-628
-253
1,734
0
1,734
-350
1,384
0
198
-152
0
0
-48
0
0
-48
1,534
6,343
7,877
20 February 2024
14
 Motilal Oswal Financial Services
EMS
Syrma SGS: Financials & Valuations
Consolidated - Income Statement
Y/E March
Total Income from Operations
Change (%)
RM Cost
Employees Cost
Other Expenses
Total Expenditure
% of Sales
EBITDA
Margin (%)
Depreciation
EBIT
Int. and Finance Charges
Other Income
PBT bef. EO Exp.
EO Items
PBT after EO Exp.
Total Tax
Tax Rate (%)
Minority Interest
Reported PAT
Adjusted PAT
Change (%)
Margin (%)
FY20
8,621
143.5
5,847
748
731
7,325
85.0
1,295
15.0
191
1,105
154
183
1,134
0
1,134
219
19.3
31
884
884
321.5
10.3
FY21
8,858
2.8
6,276
781
786
7,842
88.5
1,016
11.5
228
789
97
177
869
0
869
213
24.5
25
630
630
-28.7
7.1
FY22
12,667
43.0
9,408
823
1,148
11,380
89.8
1,287
10.2
249
1,038
108
178
1,108
0
1,108
343
31.0
42
722
722
14.5
5.7
FY23
20,484
61.7
15,405
1,060
2,142
18,606
90.8
1,878
9.2
312
1,566
216
437
1,787
0
1,787
556
31.1
38
1,193
1,193
65.2
5.8
FY24E
30,050
46.7
23,313
1,407
3,237
27,957
93.0
2,093
7.0
507
1,587
356
581
1,812
-14
1,799
449
25.0
129
1,221
1,234
3.4
4.1
FY25E
42,671
42.0
32,985
1,963
4,480
39,428
92.4
3,243
7.6
691
2,552
345
640
2,846
0
2,846
716
25.2
264
1,866
1,866
51.2
4.4
(INR m)
FY26E
57,606
35.0
44,299
2,535
5,761
52,594
91.3
5,012
8.7
828
4,184
320
864
4,728
0
4,728
1,190
25.2
343
3,195
3,195
71.2
5.5
Consolidated - Balance Sheet
Y/E March
Equity Share Capital
Preference Capital
Total Reserves
Net Worth
Minority Interest
Total Loans
Deferred Tax Liabilities
Capital Employed
FY20
46
47
4,182
4,275
2
1,205
42
5,523
2,089
191
1,898
1,059
12
301
0
4,591
1,419
1,804
780
588
2,338
1,707
506
125
2,253
0
5,523
FY21
46
0
5,946
5,992
6
1,029
62
7,089
2,264
405
1,858
1,059
0
1,316
0
5,365
1,789
2,084
729
763
2,509
1,848
554
108
2,856
0
7,089
FY22
1,376
0
4,344
5,721
108
2,183
124
8,136
3,233
635
2,597
1,182
408
410
0
6,945
2,913
2,722
369
940
3,407
2,405
857
145
3,538
0
8,136
FY23
1,768
0
13,635
15,403
26
3,468
138
19,035
4,821
947
3,874
1,182
253
8,500
780
11,603
5,874
4,032
544
1,151
6,377
4,881
1,362
134
5,226
0
19,035
FY24E
1,768
0
14,856
16,624
155
3,968
138
20,884
8,003
1,454
6,550
1,182
1,501
5,500
780
15,691
7,664
5,763
461
1,803
9,540
7,345
1,998
196
6,151
0
20,884
FY25E
1,768
0
16,722
18,490
419
4,668
138
23,714
9,954
2,145
7,809
1,182
1,050
5,500
780
21,681
10,664
7,950
508
2,560
13,509
10,392
2,838
278
8,173
0
23,714
FY26E
1,768
0
19,917
21,685
761
3,868
138
26,452
11,544
2,973
8,571
1,182
960
5,500
780
28,402
13,957
10,416
572
3,456
18,164
13,957
3,831
376
10,238
0
26,452
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Goodwill on Consolidation
Capital WIP
Total Investments
Current Investments
Curr. Assets, Loans&Adv.
Inventory
Account Receivables
Cash and Bank Balance
Loans and Advances
Curr. Liability & Prov.
Account Payables
Other Current Liabilities
Provisions
Net Current Assets
Misc Expenditure
Appl. of Funds
20 February 2024
15
 Motilal Oswal Financial Services
EMS
Syrma SGS: Financials & Valuations
Ratios
Y/E March
Basic (INR)
EPS
Cash EPS
BV/Share
DPS
Payout (%)
Valuation (x)
P/E
Cash P/E
P/BV
EV/Sales
EV/EBITDA
Dividend Yield (%)
FCF per share
Return Ratios (%)
RoE
RoCE
RoIC
Working Capital Ratios
Fixed Asset Turnover (x)
Asset Turnover (x)
Inventory (Days)
Debtor (Days)
Creditor (Days)
Leverage Ratio (x)
Current Ratio
Interest Cover Ratio
Net Debt/Equity
FY20
6.4
7.8
31.1
0.0
0.0
81.6
67.1
16.9
8.4
56.0
0.0
7.8
35.8
29.4
31.1
4.1
1.6
89
76
107
58.4
2.0
7.2
0.1
FY21
4.6
6.2
43.5
0.0
0.0
114.4
84.1
12.0
8.2
71.3
0.0
1.3
12.3
11.7
12.6
3.9
1.2
104
86
107
82.5
2.1
8.1
0.1
FY22
5.2
7.1
41.6
0.0
0.0
99.9
74.2
12.6
5.8
57.5
0.0
-7.5
12.3
11.2
11.9
3.9
1.6
113
78
93
98.2
2.0
9.6
0.3
FY23
6.7
8.5
87.1
0.0
0.0
77.6
61.6
6.0
4.6
50.5
0.0
-12.1
11.3
10.3
12.9
4.2
1.1
139
72
116
95.4
1.8
7.3
0.1
FY24E
7.0
9.8
94.0
0.0
0.0
75.1
53.2
5.6
3.2
45.6
0.0
-21.5
7.7
8.2
10.3
3.8
1.4
120
70
115
75.0
1.6
4.5
0.2
FY25E
10.6
14.5
104.6
0.0
0.0
49.6
36.2
5.0
2.3
29.7
0.0
-5.4
10.6
10.9
12.7
4.3
1.8
118
68
115
71.0
1.6
7.4
0.2
FY26E
18.1
22.8
122.7
0.0
0.0
29.0
23.0
4.3
1.7
19.1
0.0
1.8
15.9
15.5
17.4
5.0
2.2
115
66
115
66.0
1.6
13.1
0.1
Consolidated - Cash Flow Statement
Y/E March
OP/(Loss) before Tax
Depreciation
Interest & Finance Charges
Direct Taxes Paid
(Inc)/Dec in WC
CF from Operations
Others
CF from Operating incl EO
(Inc)/Dec in FA
Free Cash Flow
(Pur)/Sale of Investments
Others
CF from Investments
Issue of Shares
Inc/(Dec) in Debt
Interest Paid
Dividend Paid
Others
CF from Fin. Activity
Inc/Dec of Cash
Opening Balance
Other cash & cash equivalent
Closing Balance
FY20
1,134
191
117
-207
301
1,535
23
1,558
-479
1,079
-20
42
-457
0
-416
-119
-20
-37
-593
508
143
130
780
FY21
869
228
52
-220
-499
430
-58
371
-187
184
-51
-888
-1,127
331
-179
-70
0
622
705
-51
780
0
729
FY22
1,108
249
54
-289
-1,212
-90
-36
-126
-901
-1,027
11
-2,844
-3,734
2,715
1,159
-70
0
-303
3,500
-360
729
0
369
FY23
1,787
312
-222
-556
-2,140
-818
115
-703
-1,433
-2,136
0
-7,711
-9,144
9,682
1,285
-216
0
-730
10,022
175
369
0
544
FY24E
1,812
507
-225
-449
-1,009
635
-14
621
-4,430
-3,809
0
3,581
-849
0
500
-356
0
0
144
-83
544
461
FY25E
2,846
691
-295
-716
-1,974
553
0
553
-1,500
-947
0
640
-860
0
700
-345
0
0
355
47
461
508
(INR m)
FY26E
4,728
828
-544
-1,190
-2,001
1,821
0
1,821
-1,500
321
0
864
-636
0
-800
-320
0
0
-1,120
65
508
572
20 February 2024
16
 Motilal Oswal Financial Services
EMS
Data Patterns: Financials & Valuations
Consolidated - Income Statement
Y/E March
Total Income from Operations
Change (%)
RM Cost
Employees Cost
Other Expenses
Total Expenditure
% of Sales
EBITDA
Margin (%)
Depreciation
EBIT
Int. and Finance Charges
Other Income
PBT bef. EO Exp.
EO Items
PBT after EO Exp.
Total Tax
Tax Rate (%)
Minority Interest
Reported PAT
Adjusted PAT
Change (%)
Margin (%)
FY19
1,311
NA
489
367
199
1,055
80.5
255
19.5
59
197
108
15
104
0
104
27
25.6
0
77
77
NA
5.9
FY20
1,561
19.1
561
411
157
1,129
72.4
432
27.6
55
377
133
41
284
0
284
74
26.0
0
211
211
173.4
13.5
FY21
2,240
43.5
704
472
144
1,320
58.9
920
41.1
56
864
145
26
745
0
745
190
25.4
0
556
556
163.9
24.8
FY22
3,109
38.8
861
604
233
1,698
54.6
1,410
45.4
66
1,344
110
40
1,274
0
1,274
334
26.2
0
940
940
69.1
30.2
FY23
4,535
45.9
1,709
795
312
2,816
62.1
1,718
37.9
84
1,634
77
92
1,649
0
1,649
409
24.8
0
1,240
1,240
31.9
27.3
FY24E
5,680
25.3
1,959
1,043
362
3,364
59.2
2,316
40.8
134
2,182
98
383
2,466
0
2,466
614
24.9
0
1,852
1,852
49.4
32.6
FY25E
7,413
30.5
2,550
1,320
474
4,344
58.6
3,069
41.4
150
2,919
108
445
3,256
0
3,256
820
25.2
0
2,436
2,436
31.5
32.9
(INR m)
FY26E
9,699
30.8
3,317
1,668
611
5,596
57.7
4,103
42.3
171
3,932
119
533
4,347
0
4,347
1,094
25.2
0
3,253
3,253
33.5
33.5
Consolidated - Balance Sheet
Y/E March
Equity Share Capital
Preference Capital
Total Reserves
Net Worth
Minority Interest
Total Loans
Deferred Tax Liabilities
Capital Employed
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Goodwill on Consolidation
Capital WIP
Total Investments
Current Investments
Curr. Assets, Loans&Adv.
Inventory
Account Receivables
Cash and Bank Balance
Loans and Advances
Curr. Liability & Prov.
Account Payables
Other Current Liabilities
Provisions
Net Current Assets
Misc Expenditure
Appl. of Funds
FY19
17
0
1,312
1,329
0
601
9
1,940
423
59
365
0
0
0
0
2,410
867
1,029
3
511
835
159
606
71
1,575
0
1,940
FY20
17
0
1,518
1,535
0
606
8
2,148
447
113
334
0
0
0
0
2,620
794
1,156
15
655
805
173
506
126
1,815
0
2,148
FY21
17
0
2,062
2,079
0
372
9
2,460
425
93
332
0
0
0
0
2,954
737
1,559
88
569
826
120
560
146
2,128
0
2,460
FY22
104
0
5,641
5,745
0
92
-8
5,830
634
159
475
0
173
0
0
6,411
1,198
1,983
1,771
1,460
1,230
416
570
244
5,182
0
5,830
FY23
112
0
11,559
11,671
0
7
0
11,678
1,176
243
933
0
14
557
557
12,847
1,930
3,825
5,445
1,647
2,671
431
2,107
134
10,175
0
11,678
FY24E
112
0
13,361
13,473
0
7
0
13,480
1,287
378
909
0
103
557
557
14,834
2,094
4,357
6,395
1,988
2,923
483
2,272
168
11,911
0
13,480
FY25E
112
0
15,747
15,859
0
7
0
15,866
1,469
528
941
0
121
557
557
17,690
2,480
5,078
7,537
2,595
3,442
629
2,595
219
14,247
0
15,866
(INR m)
FY26E
112
0
18,949
19,061
0
7
0
19,068
1,665
698
967
0
124
557
557
21,919
2,999
6,244
9,281
3,395
4,499
818
3,395
286
17,420
0
19,068
20 February 2024
17
 Motilal Oswal Financial Services
EMS
Data Pattern: Financials & Valuations
Ratios
Y/E March
Basic (INR)
EPS
Cash EPS
BV/Share
DPS
Payout (%)
Valuation (x)
P/E
Cash P/E
P/BV
EV/Sales
EV/EBITDA
Dividend Yield (%)
FCF per share
Return Ratios (%)
RoE
RoCE
RoIC
Working Capital Ratios
Fixed Asset Turnover (x)
Asset Turnover (x)
Inventory (Days)
Debtor (Days)
Creditor (Days)
Leverage Ratio (x)
Current Ratio
Interest Cover Ratio
Net Debt/Equity
FY19
9.1
16.0
156.3
0.0
0.0
211.2
119.9
12.2
12.9
66.0
0.0
-6.5
11.6
16.3
15.1
3.1
0.7
647
287
118
2.9
1.8
0.5
FY20
24.8
31.2
180.6
0.0
0.0
77.3
61.3
10.6
10.8
39.0
0.0
14.4
14.7
15.2
13.7
3.5
0.7
517
270
112
3.3
2.8
0.4
FY21
65.4
71.9
244.6
0.0
0.0
29.3
26.6
7.8
7.4
18.0
0.0
45.2
30.7
28.9
28.6
5.3
0.9
382
254
62
3.6
6.0
0.1
FY22
18.1
19.4
110.7
0.0
0.0
105.7
98.7
17.3
31.4
69.2
0.0
2.3
24.0
24.6
31.7
4.9
0.5
508
233
176
5.2
12.2
-0.3
FY23
22.1
23.6
208.4
0.7
3.2
86.4
80.9
9.2
22.3
58.9
0.0
-9.9
14.2
14.8
25.7
3.9
0.4
412
308
92
4.8
21.2
-0.5
FY24E
33.1
35.5
240.6
0.9
2.7
57.8
53.9
8.0
17.6
43.3
0.0
12.8
14.7
15.3
27.1
4.4
0.4
390
280
90
5.1
22.3
-0.5
FY25E
43.5
46.2
283.2
0.9
2.1
44.0
41.4
6.8
13.4
32.3
0.0
15.3
16.6
17.2
31.0
5.0
0.5
355
250
90
5.1
27.1
-0.5
FY26E
58.1
61.1
340.4
0.9
1.5
32.9
31.3
5.6
10.0
23.7
0.0
24.6
18.6
19.1
35.1
5.8
0.5
330
235
90
4.9
33.2
-0.5
Consolidated - Cash Flow Statement
Y/E March
OP/(Loss) before Tax
Depreciation
Interest & Finance Charges
Direct Taxes Paid
(Inc)/Dec in WC
CF from Operations
Others
CF from Operating incl EO
(Inc)/Dec in FA
Free Cash Flow
(Pur)/Sale of Investments
Others
CF from Investments
Issue of Shares
Inc/(Dec) in Debt
Interest Paid
Dividend Paid
Others
CF from Fin. Activity
Inc/Dec of Cash
Opening Balance
Closing Balance
FY19
104
59
93
-11
-289
-45
0
-45
-10
-55
0
15
4
0
27
0
-4
0
23
-18
21
3
FY20
284
55
108
-28
-283
136
-2
134
-12
123
0
26
14
0
-132
0
-4
0
-136
12
3
15
FY21
745
56
123
-190
-299
435
-1
434
-50
384
0
137
88
0
-300
-145
-3
0
-449
73
15
88
FY22
1,274
66
70
-284
-624
503
0
503
-382
121
0
-796
-1,178
3,000
-283
-89
-111
-159
2,359
1,683
88
1,771
FY23
1,649
84
-15
-409
-1,482
-173
0
-173
-383
-555
0
-1
-384
0
-85
-77
-39
4,432
4,231
3,675
1,771
5,445
FY24E
2,466
134
-285
-614
-786
916
0
916
-200
716
0
383
183
0
0
-98
-50
0
-148
950
5,445
6,395
FY25E
3,256
150
-337
-820
-1,194
1,055
0
1,055
-200
855
0
445
245
0
0
-108
-50
0
-158
1,142
6,395
7,537
(INR m)
FY26E
4,347
171
-415
-1,094
-1,429
1,580
0
1,580
-200
1,380
0
533
333
0
0
-119
-50
0
-169
1,744
7,537
9,281
Investment in securities market are subject to market risks. Read all the related documents carefully before investing
20 February 2024
18
 Motilal Oswal Financial Services
EMS
Explanation of Investment Rating
Investment Rating
BUY
SELL
NEUTRAL
UNDER REVIEW
NOT RATED
Expected return (over 12-month)
>=15%
< - 10%
> - 10 % to 15%
Rating may undergo a change
We have forward looking estimates for the stock but we refrain from assigning recommendation
*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall within following 30 days take
appropriate measures to make the recommendation consistent with the investment rating legend.
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 Motilal Oswal Financial Services
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ARN .: 146822. IRDA Corporate Agent – CA0579. Motilal Oswal Financial Services Ltd. is a distributor of Mutual Funds, PMS, Fixed Deposit, Insurance, Bond, NCDs and IPO products.
Customer having any query/feedback/ clarification may write to query@motilaloswal.com. In case of grievances for any of the services rendered by Motilal Oswal Financial Services Limited (MOFSL) write to
grievances@motilaloswal.com, for DP to dpgrievances@motilaloswal.com.
20 February 2024
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