Time Technoplast Ltd. (“TTL”) is a multinational conglomerate with a robust presence in 11 countries and an industry leader in the manufacturing of polymer products. Established in 1989, TTL’s business is characterized by the legacy cash-generative engine of industrial packaging and the high-growth, high-margin frontier of composite pressure vessels and clean energy storage.

Product Portfolio:

The company’s portfolio is broadly categorized into Polymer Products and Composite Products, serving industry segments such as industrial packaging, infrastructure, automotive, and high-tech energy storage.

Industrial Packaging: The Core Revenue Engine

The industrial packaging segment serves as TTL’s “bread-and-butter,” contributing approximately 73-75% of total consolidated revenue.

● Polymer Drums and Containers: TTL is the world’s largest manufacturer of large-size plastic drums. The shift from steel drums to polymer drums is a secular trend driven by the latter’s superior corrosion resistance, lighter weight, and lower total cost of ownership.

● Intermediate Bulk Containers (IBC): TTL was the first to launch IBCs in India and is now the 3rd largest manufacturer globally. These containers, provide significant space-saving advantages and bulk handling efficiencies for chemical and food processing giants.

● Jerry Cans and Pails: These cater to the FMCG and construction chemical sectors, where precision in dispensing and spill-proof integrity are paramount

Infrastructure and Lifestyle Solutions:

TTL utilizes its polymer expertise to address large-scale infrastructure projects and consumer applications.

● PE Pipes: The company is a major player in the manufacturing of High-Density Polyethylene (HDPE) and Double Wall Corrugated (DWC) pipes in India critical for water management, sewage systems, and the government’s ambitious “Smart Cities” and “Nal se Jal” initiatives.

● Technical and Lifestyle Products: This includes specialized products like turf and matting (Duro brand), disposable bins, and automotive rain flaps. The automotive sub-segment also produces plastic fuel tanks for commercial vehicles, another area where polymer is replacing metal due to weight reduction requirements

Value-Added Products (VAP): The Growth Frontier

The VAP segment, comprising IBCs, composite cylinders, and MOX films, represents the future of TTL’s margin expansion strategy.

● Composite LPG Cylinders: These are 70% lighter than traditional steel cylinders and offer explosion-proof safety features. TTL is currently supplying 10kg cylinders and has submitted designs for 14.2kg cylinders to domestic Public Sector Oil Marketing Companies (PSU OMCs).

● Type-IV CNG Cylinders: These carbon-wrapped, metal-free vessels are used in CNG cascades for gas transportation from mother stations to daughter stations. They offer 2.2x more gas carrying capacity per trip compared to steel, leading to a payback period of less than 12 months for gas distributors.

● MOX Films (Techpaulin): TTL is the 2nd largest manufacturer of these multilayer, multi-axial oriented cross-laminated films in India. MOX films provide superior strength-to-weight ratios and are essential for industrial waterproofing, agricultural covers, and protective gear.

Segmental Analysis and Margin dynamics:

TTL’s financial performance is increasingly driven by its transition toward a more profitable product mix. The management’s focus on increasing the share of Value-Added Products (VAP) is the primary lever for consolidated EBITDA margin expansion.

Established vs. VAP comparsion (9MFY26)

The data indicates that while established products provide the scale and a steady EBITDA margin of ~13.2%, the VAP segment is the high-octane growth engine, yielding margins of 18.6%. highlighting the accelerating shift in business composition.

Geographical footprint:

TTL’s operational philosophy works on the principle of maintaining its manufacturing units in proximity to chemical and industrial hubs to remain cost-competitive since industrial packaging is freight-intensive.

● India: Contributes 64% of total revenue with an EBITDA margin of 15.0%. The domestic market is fuelled by infrastructure spending and the burgeoning clean energy transition.

● Overseas: Contributes 36% of revenue with an EBITDA margin of 14.5%. The overseas segment is primarily industrial packaging-centric, with high growth observed in the US and Southeast Asian markets.

Growth Triggers, Industry trends and Moats:

The composite packaging market is experiencing rapid growth, valued at $13.74 billion in 2025 and projected to grow at a CAGR of 13.49% to reach $37.82 billion by 2033. Driven by the need for lightweight, durable, and sustainable solutions, growth is accelerating in industrial applications, specifically through advanced polymer composites, multi-layer films, and high-strength, low-waste materials.

The convergence of global environmental mandates and India’s infrastructure modernization is creating significant growth triggers for TTL’s product lines.

1. The “Type-IV” Revolution in Gas Transportation:

The shift from steel to composite cascades is perhaps the most significant growth trigger for the next five years.

• CNG Cascade Potential: India is witnessing a rapid expansion of CNG refueling stations. TTL’s composite cascades are 50% lighter and carry 2.2x more gas per trip than steel, significantly reducing the carbon footprint of transportation.

• CBG and Bio-Gas: The expansion of Compressed Bio-Gas (CBG) under the SATAT scheme presents a ₹2,000 Cr per year market opportunity for composite storage solutions.

• Replacement Cycle: The domestic LPG market in India has an installed base of 360 million steel cylinders, with 25 million requiring replacement annually. TTL aims to capture a significant portion of this ₹6,000-8,000 Cr replacement market as consumers and OMCs prioritize safety and weight reduction.

2. Hydrgen economy: Future-ready storage:

As India pushes toward becoming a global hub for Green Hydrogen, TTL is the early leader in high-pressure hydrogen storage.

• Mobility Applications: TTL has developed Type-IV carbon-wrapped cylinders for hydrogen-powered cars and buses, which offer a 90% weight reduction compared to metal.

• Drone Ecosystem: TTL successfully developed India’s first hydrogen-powered drone with an integrated Type-III composite cylinder. This drone offers 3-5x the endurance of battery-powered drones, making it ideal for mapping and long-duration surveillance in the $30B global drone market.

Earlier in this week, TTL obtained Hydrogen Cylinder approval for use in Buses, Trucks and Trailers from PESO.

3. Sustainability and Circular Economy:

• Time Ecotech: TTL is setting up three recycling facilities in India with a 12,000 MT annual capacity for captive consumption. This ensures a steady supply of recycled raw materials, supporting PCR compliance for TTL’s global institutional clients who have pledged to meet aggressive ESG targets.

4. Technological and Regulatory Moats:

• PESO Exclusivity: TTL is currently the only company in India to receive PESO approval for Type-IV high-pressure composite cylinders for Hydrogen and CNG cascades. These approvals involve rigorous validation cycles that act as a massive barrier to entry for domestic competitors.

• Vertical Integration: TTL produces its own HDPE liners and manages the entire carbon-fiber wrapping and filament winding process in-house. This vertical integration allows for superior cost control and quality consistency.

• Proprietary Multi-Layer Tech: TTL holds an extensive patent portfolio covering multi-layer films and blow-moulding processes, enabling it to offer superior barrier properties compared to standard plastic containers.

Strategic Growth Initiatives and Financial Roadmap:

TTL is currently executing “Project Vistriaa,” a comprehensive strategic initiative aimed at de-leveraging the balance sheet and funding high-margin expansion.

• Qualified Institutional Placement (QIP): In November 2025, TTL raised ₹800 Cr through a QIP, issuing shares at ₹201.12 per share. Bulk of this QIP was meant for borrowing repayment and funding strategic acquisitions while the remaining proceeds were meant for automation & re-engineering, recycling plants and de-odorizing equipments.

• Inorganic growth and synergies: TTL is in the process of acquiring Ebullient Packaging, an unlisted FIBC (Flexible Intermediate Bulk Container) manufacturer with an annual turnover of ~₹250 Cr. This acquisition will allow TTL to offer a comprehensive “one-stop shop” for industrial packaging, combining rigid drums and IBCs with flexible solutions.

• Debt Reduction and Finance Costs: TTL has utilized a substantial portion of QIP proceeds to pare down high-interest borrowings.

  • Debt Trajectory: Total debt was reduced by ₹380 Cr in 9M FY26, bringing the total debt down to ₹266 Cr as of December 31, 2025, compared to ₹646 Cr in FY25.

  • Debt-Free Target: Management has provided “very clear visibility” to becoming a completely debt-free company within the next six months (by mid-FY27).

  • Interest Savings: Annualized finance costs, which were historically around ₹100 Cr, are expected to fall to ₹25-30 Cr, which will primarily represent documentation and non-fund-based facility charges.

• Return on Capital (ROCE) Targets:

  

  • TTL has a history of disciplined ROCE improvement, moving from 14% to 18% over the last four years. As of 9M FY26, the company achieved 18.6% against a FY26 target of 20%

  • Long-Term Goal: o Management targets 22-26% ROCE by FY28, driven by higher asset utilization (Sales/Gross Block moving from 1.6x to 2.1x) and the ramp-up of the VAP segment.

Forward Looking Valuations:

TTL is currently trading at a P/E multiple that is significantly lower than its industrial peers like Supreme Industries, despite having a superior growth profile in the clean energy segment. With enough tailwinds in the sector, being a market leader supported by innovation assisting VAP mix expansion and the company achieves net-cash status, a re-rating is imminent in the near term. The table below assumes a 15% revenue growth while cautiously increase its EBITDA % given its increased concentration in VAP.

The base case assumes TTL continues its steady growth in packaging while successfully ramping up its CNG cascade business to meet current station expansion targets while the bull case factors in an acceleration of the Hydrogen drone market and a breakthrough order from OMCs for 14.2kg composite LPG cylinders.

Promoters of TTL have been actively increasing their stake of late, with recent open market purchases by entities like Time Exports Private Limited and Time Securities Services Private Limited. These actions, such as acquiring 1.44 lakh shares at ~₹198, signal confidence in the company’s growth by the promoters.

Risk/Anti-thesis:

Summary:

TTL is uniquely positioned with its mastery of polymer engineering serving a formidable “moat” in industrial packaging and a self-sustaining cash generator for its high-tech composite ambitions. The successful execution of “Project Vistriaa” and the subsequent QIP fund raise has helped in paring down debt, focusing capital on automation and clearing the path for significant expansion in ROCE and EPS through Time Ecotech recycling initiative The upcoming commercialization of composite fire extinguishers and 250L CNG cylinders, alongside the pilot-stage hydrogen drone applications, provides a long-term growth visibility.

While investors must remain cognizant of raw material price sensitivities and the pace of regulatory approvals, the risk-reward profile for TTL remains highly attractive. As VAP mix rises toward the 35% target, the resulting margin expansion and debt-free balance sheet are likely to drive a sustained re-rating of the stock. TTL is no longer just a packaging company; but a Polymer giant in the high-stakes arena of the global energy transition.

SAHMI is one of India’s largest owners of multi-branded hotel rooms in India with a portfolio of 32 operating hotels and 4,948 keys across 14 key cities. SAMHI’s operating model focuses on acquiring and transforming existing underutilized hotel assets and creating value enhancements through renovation, repositioning and operational improvement. SAMHI’s circle of competence focuses predominantly on business hotels.

SAMHI Hotels operates an asset-heavy model focused on acquiring, renovating, and owning distressed or underperforming hotels in prime Indian locations. They outsource daily operations to international brands like Marriott and Hyatt, allowing SAMHI to retain 95% of revenue while paying a 4-5% management fee.

SAMHI uses a hybrid portfolio of freehold (owned) and leasehold (rented) assets, increasingly prioritizing leasehold to boost capital efficiency. In a freehold model, the organization must fund the land, building structure, and approvals, resulting in a capital-intensive development cycle of roughly four years. In contrast, the leasehold model involves the lessor providing the building shell and high-side services, while SAMHI invests only in the fit-outs and operationalization

Segmental Characteristics:

SAMHI’s operational model is built upon three distinct pillars: Upper Upscale and Upscale, Upper Mid-Scale, and Mid-Scale. Each segment serves a specific node in the business travel ecosystem, providing the organization with a natural hedge against volatility in any single price point. The overarching strategy is to maximize the yield of these assets by leveraging the distribution power of international brands while maintaining a lean and centralized operational core.

Key Operational/Financial Metrics:

SAMHI’s consolidated EBITDA margins have demonstrated a strong upward trend, reaching 37.0% in FY2025. At the asset level, the organization achieved a margin of 40.4% for its same-store portfolio. The integration of the ACIC portfolio, acquired in 2023, provides the most compelling evidence of this margin expansion playbook. Within a single fiscal year, the ACIC assets saw their margins rise from 35% to 39% following their conversion to Marriott-managed properties and their integration into SAMHI’s shared service clusters.

In the third quarter of FY2026, the organization encountered a short-term margin contraction due to shifts in GST regulations. Management views the GST shift as a temporary reporting anomaly and the reduction in tax rates across construction items and the increased affordability for customers will ultimately drive higher occupancy and sales volumes, offsetting the Input Tax Credit loss in the medium-to-long term.

Growth Triggers:

Indian travel has grown considerably with a booming middle class that is increasing becoming a higher spending traveller. Rapid urbanization promoting migration of people from districts & villages to cities aided through growing road connectivity, enhanced rail networks including high-speed rails and a booming aviation traffic. Supply of hotel spaces is unable to match up to the demand requirements. Demand is not restricted to big cities; Tier II and Tier III cities are growing in demand by 13%. Supply growth in such markets is slower at 10%.

The MICE (Meetings, Incentives, Conferences, and Exhibitions Industry) is growing significantly driven by ascending business travel and corporate event planning. The Indian MICE industry is expected to touch $10.52 Bn by the year 2030 with the CAGR of 18% as per Coherent Market Insights. Assuming 10% of this revenue goes to room revenues and F&B in the hospitality sector, it would add ~$330 Mn (Rs 2,739 Cr). This growth is expected to sustain the ARRs of the major players in the hospitality sector.

SAMHI’s Growth plans:

FY 2025 marked a watershed moment for SAMHI, characterized by a fundamental transformation of its balance sheet post IPO and a pivot toward higher-margin upscale assets. The entry of sovereign-linked capital through the GIC partnership and the strategic foray into the experiential leisure segment via RARE India underscore a maturation of the platform’s capital allocation strategy.

1. The GIC Partnership and RARE India acquisition:

GIC - SAMHI’s strategic alliances with GIC and RARE India represent two different facets of its growth model: the deepening of institutional capital ties for upscale expansion and the foray into the high-margin experiential leisure market.

The strategic partnership with GIC involved an investment of ~INR 750 crores into three of SAMHI’s subsidiaries that own key assets in Bangalore and Pune. This partnership was meant to a) strategically benefit a Balance sheet transformation where approximately INR 60 crores of the infusion was deployed toward debt reduction across the SAMHI portfolio, facilitating the rapid drop in leverage seen in FY2026, b) fund capital expenditure of the Westin and Tribute Portfolio dual-branded hotel in Bangalore and c) bring in a sovereign-linked investor like GIC to enhance SAMHI’s credibility with debt markets and provides a stable partner for future “Upper Upscale” acquisitions.

RARE INDIA (Asset Light Expansion Plan) - In early 2026, SAMHI announced the acquisition of a 70% stake in RARE India for approximately INR 47 crores. RARE is a curated platform for boutique, experience-led leisure hotels across India, Nepal, and Bhutan. The deal allows SAMHI to enter the experiential leisure segment—one of the fastest-growing niches in Indian travel—without the capital intensity of asset ownership.

2. Variable Leases:

Perhaps the most significant strategic shift in SAMHI’s expansion is the move away from freehold ownership toward long-term variable leases. The implications of this shift for ROCE are profound. Leasehold assets typically deliver returns in the 18% range, compared to 11% for freehold assets, due to the significantly lower capital employed per key. Furthermore, the leasehold model reduces the "lag" between cash outflow and revenue generation, as the construction phase is largely outsourced. SAMHI aims to grow its leasehold revenue contribution from the current 13% to over 20% in the medium term, utilizing this model for high-density business districts like the Hyderabad Financial District.

3. Big Box Projects and the Rs.3000 crore revenue target by 2030:

SAMHI’s 2030 vision is anchored in a target revenue of INR 3,000 crores, a goal that requires the organization to roughly triple its current top line. This growth is not speculative; it is supported by a committed pipeline of “Big Box” assets that will add massive room inventory in India’s deepest commercial markets.

Navi Mumbai: The Entry into India’s Financial Capital - The most significant growth project announced post-IPO is the dual-branded Westin and Fairfield development in Navi Mumbai. This project is strategic due to its proximity to the upcoming Navi Mumbai International Airport, the Atal Setu (MTHL), and the burgeoning data center and commercial developments in the region. The cost per key for this project is highly attractive at INR 1.65-1.7 crores, which is a significant discount to the replacement cost of similar upscale developments in the Mumbai Metropolitan Region. By securing this site through the ACIC acquisition (where the land was valued at a deep discount), SAMHI has created a high-conviction growth engine that will materially contribute to its 2030 revenue targets.

Hyderabad and the Financial District Play: Hyderabad has emerged as one of SAMHI’s strongest performing markets. The organization is expanding its footprint in the Financial District by securing a 260-room mid-scale hotel under a long-term variable lease. This property, combined with the existing Sheraton and Fairfield properties, gives SAMHI a unique dominance across all three price points in a precinct where tech giants like Google and Amazon are expanding aggressively. Furthermore, the W Hyderabad in HITEC City—a 170-room luxury lifestyle hotel—is targeted for a December 2026 opening. As a “marquee” asset, the W is expected to command the highest ARRs in the SAMHI portfolio, serving as a catalyst for the organization’s upscale transformation.

Bangalore and the Whitefield Transformation: In Bangalore Whitefield, SAMHI is executing a transformational expansion of the Trinity Hotel (acquired in 2024). The property is being renovated and expanded into a 360+ room dual-branded hotel under the Westin and Tribute Portfolio brands. By increasing the inventory and repositioning the brand, SAMHI expects to drive a 50% growth in revenue for this specific asset, with ARRs already trending toward INR 10,000 post-Marriott management.

4. Data driven Productivity/Operational Excellence:

Operational excellence is underpinned by “SiD” – SAHMI’s inhouse and proprietary asset management tool. This tool allows the management team to monitor performance indicators—such as weekday vs. weekend occupancy trends and revenue contribution from specific IT clusters—on a granular, day-by-day basis. By integrating financial and operational data, SiD enables “predictive” asset management, allowing the organization to identify underperforming cost lines or missed revenue opportunities in real time. This technological edge is a key driver of the margin improvements and ROCE expansion seen in the mature portfolio.

5. Labor Management:

The hospitality sector in India faces a chronic shortage of skilled labor, which can hamper service standards and drive-up wages. SAMHI addresses this through its Bespoke Management Development Program (MDP) in partnership with the Indian School of Hospitality (ISH). By investing in talent development and maintaining a centralized HR and payroll cluster, the organization plans to keep its total payroll expense at approximately 16% of revenue, significantly lower than the industry average for full-service hotels.

Key Factors to watch:

The hotel stocks have underperformed recently due to the geopolitical climate and the recent travel disruptions from India’s largest airliner. SAMHI’s performance was no exception.

The larger investment community is focussed on 3 important parameters for a potential re rating. SAMHI’s adherence to these factors could turn the tide in its favor.

• Deleveraging Roadmap and Net Debt Reduction: As of September 2025, SAMHI’s net debt-to-EBITDA ratio reached 2.9x, a significant improvement from the 8.7x recorded in FY2023. The total net debt stood at INR 1,370 crores in H1 FY2026, but the organization has set a clear goal of reducing debt by a further INR 300 crores through internal cash flows by 2030.

SAMHI’s roadmap for debt reduction is supported by three primary pillars:

a) Investible Surplus: The organization expects to generate over INR 900 crores in investible surplus over the next five years, assuming a 13-15% revenue CAGR. This surplus is calculated after fulfilling all committed capex, interest payments, and mandatory debt repayments.

b) Asset Recycling: SAMHI has demonstrated a willingness to recycle capital by selling non-core or “unbranded” assets. The organization has a total target of INR 200 crores from such initiatives.

c) Refinancing and Maturity Profiling: The average tenure of SAMHI’s debt facilities is approximately 12 years, with over 75% of the principal amortization scheduled after the seventh year. This “back-ended” repayment structure allows the organization to allocate current cash flows toward growth projects during the upcycle, ensuring that liquidity is preserved for value-accretive initiatives.

• ROCE Enhancement:

  

  For institutional investors, the most critical metric in the SAMHI story is the Return on Capital Employed (ROCE). The organization has established a clear trajectory to move its portfolio-wide ROCE from the current 10-11% range to a target of over 15%. This improvement is predicated on the transition of “Growth” and “Turnaround” assets into “Mature” assets, alongside an increased reliance on capital-efficient leasehold structures.

• Execution: SAMHI’s management team has strong domain expertise, successful project implementation, management capabilities and long-standing global relationships in the hotel industry but the crux of the rerating remains with the management’s capability to execute its plans.

Risks/Ant- Thesis:

Other than the risks mentioned in the slide, here are few issues that may be issues to consider in SAMHI’s journey.

• The GIC deal necessitates a 65-35 joint venture ratio that may complicate future exit strategies for individual assets. While the platform allows for scale, GIC partnership relates to the complexity of shared ownership.

• The transition of RARE from a B2B representation platform into a B2C brand involves significant execution risk. Management acknowledged that not all properties currently under the RARE umbrella may transition to the Marriott platform, especially if they have conflicting affiliations.

• As mentioned earlier, management’s efficiency in execution for their stated targets is critical. Any changes in key management positions may pose significant risk to the rerating chances.

Valuations:

SAMHI’s current EV/EBITDA (approx. 11 times) currently is the lowest amongst the peers in the Hospitality sector in India. While Chalet Hotels and Juniper Hotels are predominantly comparable to SAMHI in their operating model, other listed hotels that utilize a managed or hybrid model (combining owned and managed assets) and focused on reducing capital intensity through third-party management or partnering with global brands enjoy higher multiples.

There is no specific guidance from management on future revenue growth other than the Rs 3000 crore target by FY30, other than an assumption of 9 to 11% CAGR in same store revenue. With SAMHI clocking a 9M revenue for FY 25-26 of Rs 903 crores, one can make a reasonable assumption for them to end up FY25-26 revenue at approx. Rs 1250-1300 crores. The FY30 target therefore assumes an approx. CAGR of 24% which implies that management expects significant growth from their big box projects with the operational leverage playing out from FY27-30.

Given their pipeline of 1900 rooms under development with a focus on upscale and upper-upscale projects, one can expect to see a revenue shift towards higher-margin upscale segments improving quality of long-term earnings.

Even at conservative 12% growth rate and a 35% EBITDA due to the focus given the expected focus on the Upper Upscale and Upscale segment whose contribution is expected to reach 60% of total revenue, FY 27-28 revenue would approx. touch Rs 1630 crore. Expected EBITDA would therefore be around 575 crores. Given the focus initiatives on big box projects, ROCE improvements including deleveraging, one can probably assume a slightly higher EV/EBITDA multiple, but at a conservative 12 times multiple, expected market cap would be 6900 which is almost a 2x from the current market cap of Rs 3660 crores. If SAMHI’s management is able to match its guidance, the rerating from the current level would be significant.

Summary:

The “SAMHI Playbook”—acquiring underperforming assets at a discount and transforming them through global brand partnerships and data-led management—is now operating at scale. While short-term challenges such as GST adjustments and labor shortages persist, operational leverage play out with increasing ROCEs, deleveraging, long-term structural drivers of office leasing, infrastructure investment, and rising disposable incomes remain overwhelmingly positive. For investors, SAMHI offers a high-conviction play on the modernization of the Indian services economy, supported by a management team that has demonstrated an ability to execute turnarounds even in the most volatile conditions.

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Godawari Power and Ispat Ltd (GPIL) has solidified its position as a top-tier vertically integrated producer within the Indian metals sector. Its “Iron Ore to Finished Steel” model serves as a critical structural hedge against the volatility inherent in the commodity cycle.

By controlling the entire value chain, GPIL captures the mining margin internally, resulting in a profound “Landed Cost” advantage. As of FY25, GPIL’s captive ore landed cost stood at approximately Rs 3,000/ton, compared to a market price of roughly Rs 6,200/ton—a delta that provides a robust buffer for EBITDA margins even during periods of softening steel realizations.

Current vs. Proposed Operational Capacities

The move toward total self-sufficiency in iron ore and power is a deliberate capital allocation strategy. By expanding beneficiation capacity tenfold (0.6 to 6 MTPA), GPIL can utilize lower-grade captive ores, effectively insulating the cost structure from global supply shocks.

2. Value Chain Integration & Product Ecosystem

GPIL’s evolution from a merchant pellet supplier to a diversified high-margin steel and energy player is centered on downstream value capture. This transition is marked by two critical strategic pivots: the foray into non-ferrous recycling and the deepening of steel processing capabilities.

The Value Chain Map

• Upstream: Mining & Processing Excellence

  • Expansion of Ari Dongri mines to 6 MTPA with Environmental Clearance (EC) secured; Consent to Operate (CTO) at enhanced capacity approved in Mar 2026.

  • Beneficiation upgrade to 6 MTPA to enhance iron content and realize higher internal value.

• Midstream: Premium Intermediaries

  • Production of high-grade pellets which consistently command a Rs 1,000–1,500/ton premium over standard market rates.

• Downstream: Infrastructure & Specialized Steel

  • Cold Rolling Mill (CRM) Complex (0.7 MTPA): Manufacturing Cold Rolled and Zinc-Aluminium-Magnesium (ZAM) steel for high-end industrial use.

  • PGCIL Approval: All structural products are approved by the Power Grid Corporation of India, enabling participation in high-realization utility infrastructure projects.

• New Initiatives: Circular Integration

  • Jammu Pigments Ltd (43.96% stake): Strategic entry into non-ferrous metal recycling (Lead, Zinc, Copper).

  • Synergy: This acquisition allows GPIL to recycle zinc residue generated during its own galvanizing processes, creating a closed-loop value chain.

3. Structural Tailwinds & Key Growth Triggers:

The company is positioned to benefit from the macro tailwinds of India’s infrastructure push, while internal synergies maximize the efficiency of its capital expenditure.

Strategic Growth Triggers

• Mining Scale-Up: Doubling mining capacity to 6 MTPA is the primary earnings catalyst post the environmental clearence obtained.

  

• The CRM-BESS Synergy: In a significant move for industrial circularity, the 0.7 MTPA CRM Complex will act as the primary supplier of raw materials for the containers used in the 20 GWh Battery Energy Storage System (BESS) project. This reduces external sourcing for the BESS segment and enhances the margin profile of the CRM output.

• Green Energy Transition: Expanding solar capacity to 540 MW (with 250 MW dedicated to the ISP and CRM complex) provides a structural cost advantage and ensures ESG compliance for future “Green Steel” procurement mandates.

• ISP Expansion: A proposed 1 MTPA Integrated Steel Plant is planned to follow the mining ramp-up, further absorbing captive ore and scaling finished product output.

4. Financial Projections & Growth Outlook (FY26-FY28)

• Based on the Q3 FY26 earnings call, Godawari Power & Ispat Ltd (GPIL) management indicated a long-term vision to achieve a turnover of approximately INR 25,000 crores by 2030.

• Capex Plan: The Rs 3,500 Crore capex plan for FY26-FY27 is heavily front-loaded toward the CRM complex (Rs 900 Cr) and BESS (Rs 1,025 Cr). Execution certainty is high, as bank funding for the CRM complex is already sanctioned, with the remaining balance to be covered by robust internal accruals.

• Promoter infused funds recently via Preferential Issue priced at INR 245 per share with a statement in concalls that the business is best understood by the promoters.

• CRISIL has revised GPIL’s outlook to “Positive” while reaffirming its AA- rating, citing a significantly strengthened business risk profile.

  Share

  As of early 2026, the company holds a strong, net debt-free position, supporting these aggressive growth plans.

5. Risk assessment and Mitigation:

The aggressive expansion into BESS and CRM requires a disciplined risk management approach to navigate the cyclicality of the steel sector and the execution risks of new technologies.

6. Summary:

GPIL acts as a strong proxy for India's infrastructure growth, driven by its fully integrated operations in steel (pellets, iron ore) and power, which are vital for construction and industrial expansion. With its focus on expanding its steel, power, and storage capacity, GPIL with captive mines and a significant push toward green energy, is well-positioned to benefit from India's ongoing infrastructure and energy-driven growth. Tailwinds and strategic growth plans align towards a perfect compounding growth in a typical commoditized and cyclical industry.

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RPSG Ventures (‘RPSGVENT”) is part of the RP Sanjiv Goenka Group, a prominent business conglomerate in India which as a standalone and through its subsidiaries manages a diverse portfolio of businesses from Information Technology (IT) services, Business process services, Fast-moving consumer goods (FMCG) such as Ayurvedic formulations, Real estate and Sports.

Standalone Operations: Provides IT consultancy and support services in power generation and distribution sectors and possesses intellectual property rights over more than 350 applications. These IT applications focus on the entire range of activities carried out by power utilities: electricity billing, online consumer services, monitoring, MIS reporting and the management of generation and distribution assets. These IT services are provided to various group entities including CESC Limited, Haldia Energy Limited, Dhariwal Infrastructure Limited and the Group’s distribution franchisees in Rajasthan and Maharashtra. RPSEGVENT also leverages emerging opportunities in India through incubation of new businesses and investments in venture capital funds.

Subsidiaries:

IT - First Source Solutions (FSS):

A leading customized business process service provider, with a robust presence in the US, the UK, Mexico, India, Australia and the Philippines. RPSGVENT holds 53.66% stake in Firstsource Solutions, a publicly listed entity in Indian stock exchanges.

FMCG - Guiltfree Industries Limited (GIL):

GIL operates with its step-down subsidiary Apricot Foods Private Limited (“AFPL”) through their brands ‘Too Yumm’, ‘Naturali,’ and ‘Within Beauty’. GIL is a wholly owned subsidiary of RPSGVENT. GIL also has a 70% stake in Rajkot-based Apricot Foods Private Limited, which markets snacks under the brand name ‘Evita’. The company has also ventured into the QSR space and looks to foray into the quick commerce space soon.

Sports - RPSG Sports Private Limited

RPSGVENT holds 51% stake RPSG Sports Private Limited, which holds the right to own and operate Lucknow Super Giants — the Lucknow franchise of the IPL. The remaining 49% stake is held by an unlisted company of the Group.

RPSGVENT holds 51% stake RPSG Ventures Private, which holds 100% stake in RPSG Sports South Africa PTY Limited (RPSG SA). RPSG SA holds the right to own and operate Durban Super Giants — the Durban franchise of the South Africa T20 League (SA20). The remaining 49% stake is held by an unlisted company of the Group.

RPSGVENT’s other sports subsidiary - APA Services Private Limited holds 80% stake in ATK Mohun Bagan Private Limited, which operates and manages the iconic football club Mohun Bagan Super Giant. This holding is through APA’s subsidiary Kolkata Games and Sports Private Limited.

Real Estate - Quest Properties India Limited (QPIL), a wholly owned subsidiary of RPSGVENT, launched Kolkata’s first upscale shopping mall, ‘Quest’, in November 2013. In 2023-24, Quest forayed into beauty retail with launch of an exclusive ‘Beauty Zone’ with modern design and state of-the art shops covering around 9,000 square feet. Quest is also developing a residential project in Haldia spread over 3.5 acre of land.

Ayurveda - Herbolab India Private Limited, a wholly owned subsidiary of RPSGVENT has over 100 proprietary Ayurveda formulations across categories such as immunity, weight management, respiratory, women’s health and men’s health — all approved by the Ministry of AYUSH. Herbolab a state-of-the-art manufacturing facility at Silvassa (Dadra and Nagar Haveli). It also has an R&D centre in Thane, Maharashtra. Herbolab’s products are marketed under the brand ‘Dr. Vaidya’s’.

Growth & Value triggers:

• FSS predominantly operates in three major business verticals: Banking and Financial services (BFS), Healthcare, and Communication Media and Technology. During Q1 2025, revenues grew by a healthy 17% on-year, primarily driven by growth in business from the US market. In 2023, FSS also acquired Ascensos Limited - a UK based provider of BPM services for the retail, consumer, and e-commerce verticals with a turnover size of ~Rs 715 crore in FY23. Last week, the company announced its commencement of operations in Australia & NZ by partnering with Victorian education institutions to set up an “innovation lab” focused on generative AI, engineering, robotics and digital experimentation. The company also announced a partnership last week with Microsoft to provide Azure suite of technologies. Revenues are expected to grow by 12-14% in fiscal 2025 through an expected pick up in deal wins and new customer additions.

• The FMCG business continues to make losses although the losses are trending lower as exhibited below

  

  The company expects breakeven to be achieved at a sale target of 1000 crores which they expect to achieve in 2 years. RPSGVENT will continue to invest in the FMCG business to expand capacity and introduce new products.

• The Lucknow Super Giants (“LSG”) franchise was acquired for approx. Rs 7000 crore in 2022 . The franchise is yet to gain significant grounds in the marquee Indian Premier League (“IPL”) in comparison to the other team - Gujarat Titans (“GT”) which was the other entrant in the league around the same time of its acquisition. Of the 10 teams in the league, LSG currently ranks last in terms of brand and business value rank as per the Houhikan Lokey IPL Valuation study of 2024. The South African T20 league and the Indian Super League are nascent in their sporting journey and dwarf in comparison to the IPL whose value is estimated to be around ₹1,35,000 crore in 2024, as per Houlihan Lokey, Inc.

Anti-thesis/Risks:

• With the bulk of the company’s revenues expected from FSS, the larger question of revival of the IT sector remains a key question. The slowing down of the US and UK economy and the cautious client spending despite the cuts in the central bank rates remains a significant challenge for the sector. The Chairman of the group is projecting a 2.5x increase in profit over the next 3 years through organic and inorganic growth opportunities across the globe. Deal wins, acquisition strategies and execution will remain the key to achieve the goals.

• One sector that has been a drag for the group’s performance is its FMCG Business. The company has been closing about 50 of its iconic hypermarket stores - SPENCERs in several states which were loss making. While these shut downs will impact the top line, the company plans to focus only on regions such as Eastern India and Uttar Pradesh with stronger brand presence and operational performance and optimize its distribution and support structures, targeting a 20 per cent reduction in overhead costs. The revival of the loss making FMCG business will remain a key challenge for the growth prospects. The company is betting on quick commerce business through its premium gourmet shopping platform - Nature’s Basket, that sells a wide variety of international and national brands of high-end food products but this space is extremely competitive with so many players trying to take a share of the pie. Its snack brand - Too Yumm also faces intense competition from other leading players. The revival and growth of the FMCG business will remain for re rating of the overall business. Might also be worth pondering if the value of RPSGVENT would be more accretive if the FMCG business is demerged.

• In IPL, Broadcasting rights remains the key sources of revenue (70%) for every franchise. The broadcasting rights grew 3x from the cycle of 2018-2022 to the current cycle where Star India procured the rights for a period of 5 years till 2027 for Rs. 235.75 billion. The title sponsorship share won by the Tata Group for 2,500 crores in 2024 is valid till 2028 and there is no significant trigger for the near term. Can such high broadcasting growth be exhibited in the next cycle remains to be seen. The franchise needs to be in top 3 positions in the coming year to command a significant brand value and valuation. There always remains the risk of more franchises entering in the marquee league which may dilute the value of existing franchises.

• With a significant increase in debt over the last 2 years (probably for its sports investments), the company raised approx. 284 Crores through preferential allotment at 795 price to existing investors earlier in the year. The group’s plans and strategy on its key businesses have to play out in the coming years to justify the borrowings.

Summary:

FSS’s current market cap is approx. Rs 22,500 crores. RPSGVENT’s 53 % share would equate its holdings to approx. Rs12,000 crores. The successful teams in IPL - CSK, MI and KKR are currently estimated to command valuations of approx. Rs 8,000-9,000 crores. While the Chairman of RSPGVENT in a recent interview indicated the valuations of GT as approx. Rs 12,500 crores, those numbers may appear a bit far fetched. A conservative estimate of its LSG valuations may be estimated to be around 5,000 crores. Without reasonable data on its other businesses, a guestimate value of the overall business could best be approx. 20,000 crores. The current market cap of RPSGVENT is Rs 3,460 crores. This translates to a holding company discount of approx. 80%. Is the business really undervalued? With not much of near term growth triggers, the strategic plans of the mgt of each its businesses have to really favor narrowing of the holding period discount.

Disclosure: Not invested but tracking closely.