OMKARA CAPITAL - DAILY NEWSLETTER 12th August 2026

MARKETS GUP-SHUP

Every morning, newspapers are full of IPO headlines, and there are four or five block deals happening almost every day. There are also 10-20 new stock ideas coming to the desk daily. This is the story of a bull market: supply, supply and more supply. Investors get so busy chasing new ideas that they often forget the old ideas already working in their portfolios.

We do not want to get trapped in untested waters. While we keep searching for new ideas with our heads down, we remain very vigilant on risk management. There is a lot of supply coming to the market and the much-awaited US-Iran deal is still not seeing any light of day.

Two macro points are important today:

1. SBI Research estimates Q1 GDP growth could hit 8%, versus the RBI forecast of 7%. If GDP touches 8%, everyone will take notice.
2. Gross direct-tax collection as of 10 August was up nearly 20%, while net direct-tax collection was up 23%. This is very good news from the macro front.

We remain super bullish on India, but very stock-specific and disciplined on risk. We do not want impulsive short-term bets or trades that can hurt later. We are initiating coverage on a company and hope to release the report in a day or two.

MANAPPURAM VS MUTHOOT: MANAPPURAM IS THE CLEAR Q1FY27 WINNER

Muthoot's gold tonnage declined 6% YoY, from 209 tonnes to 197 tonnes, indicating that its AUM growth was almost entirely gold-price-led. In contrast, Manappuram's gold tonnage increased 18% YoY, from 57 tonnes to 67 tonnes, reflecting genuine volume-led expansion and market-share gains. Manappuram's gold AUM growth was also superior both QoQ and YoY.

ACCIDENT OF THE DAY: GODREJ CONSUMER

The sudden departure of MD and CEO Sudhir Sitapati, despite his extension until 2031 announced earlier, is an important development. When he was appointed CEO in May 2021, GCPL stock rose nearly 22% in a single session.

EARNINGS SNAPSHOT

Manappuram was the standout result, with gold AUM nearly doubling, NIM expanding and credit costs improving in a seasonally soft quarter. TD Power delivered record sales and upgraded FY27 guidance on strong exports, while Divgi reported its best-ever quarter, led by transfer-case volumes and margin expansion. Viyash Scientific, Innova Captab and TCPL Packaging delivered healthy growth; Man Industries saw sharp operating leverage, while Polyplex reported a strong sequential recovery.

Gokaldas Exports reported a strong standalone beat but saw consolidated margins affected by raw-material costs. Siemens delivered healthy revenue and order-inflow growth, but commodity costs and rupee depreciation hurt margins; RHI Magnesita protected profitability through price hikes despite lower volumes. Skipper performed well versus peers with a record order book, while SKF delivered in-line sales and sequential margin recovery.

PI Industries reported a weak quarter on lower agchem exports and PIHS losses. Shilchar Technologies saw a sharp top-line and margin miss due to higher inputs, while Senco Gold's strong revenue growth was offset by gold-price-led gross-margin compression and higher financing costs.

🟢 GREEN | STRONG EARNINGS

1. MANAPPURAM FINANCE: Gold-volume growth, NIM expansion and asset-quality improvement drive a major beat

M-cap: Rs 33,816 crore | CMP: Rs 360 | 52-week range: Rs 245-382 | P/E: 20.1x

Manappuram delivered a strong beat in a seasonally soft quarter, led by gold-volume expansion, sequential yield improvement and better asset quality across the MGFL franchise. PAT rose 343% YoY and 44% QoQ to Rs 585 crore, while gold AUM nearly doubled YoY to Rs 57,006 crore, up 98% YoY and 12% QoQ. NIM expanded 70 bps QoQ to 10.5%, credit cost improved to 1.6% from 1.8% QoQ and consolidated ROA improved to 3.54% from 1.1% YoY. Ashish Singh, previously with IDFC First, ICICI and Fullerton, takes over as MD, succeeding V.P. Nandakumar - the first non-promoter MD and CEO.

Guidance: FY27 gold-loan AUM growth of 25-30%; standalone gold yield of around 18%, plus or minus 25 bps; gold mix at 75-80% of AUM; ROE of around 18% in three years; MFI share capped at 8-10%; vehicle lending paused through FY27.

Branch expansion and concall: Around 500 gold branches are targeted in FY27, with rollout accelerating in Q2; 60% of additions will be in South/Central India and 20% in East India. Vehicle GNPA increased to 13.3% from 10.4% QoQ, fresh disbursals are zero and a restart is deferred to FY28 assessment. Asirvad returned to profitability, reporting PAT of Rs 21 crore versus a loss of Rs 269 crore in Q1FY26.

1. TD POWER SYSTEMS: Record sales and export-led order inflows prompt FY27 guidance upgrade

M-cap: Rs 19,928 crore | CMP: Rs 1,276 | 52-week range: Rs 489-1,380 | P/E: 77.5x

TD Power reported its highest-ever quarterly sales of Rs 640 crore, up 72% YoY, while EBITDA rose 75% to Rs 121 crore with margin maintained at 18.9%. Order inflow increased 87% YoY to Rs 734 crore, with exports contributing 93%; total order book stands at Rs 2,207.3 crore. Strong export demand prompted the company to raise its quarterly order-inflow run rate to over Rs 700 crore from Rs 650 crore earlier.

Guidance: FY27 revenue guidance has been upgraded to Rs 2,600 crore from the earlier implied run rate of around Rs 2,400 crore. Management expects to deliver revenue close to the order-inflow run rate, although execution capacity is now the key constraint.

Concall: Export order inflow surged to Rs 684 crore in Q1FY27 from Rs 257 crore in Q1FY26. A second large global gas-turbine OEM pipeline across 12-19 MW ratings for US programmes is expected in CY2027. It remains a stock we would like to own, but rich valuation remains the key hurdle.

1. DIVGI TORQTRANSFER SYSTEMS: Record quarter led by transfer cases; Sigma EV launch adds growth visibility

M-cap: Rs 3,292 crore | CMP: Rs 1,076 | 52-week range: Rs 570-1,082 | P/E: 52x

Divgi delivered its highest-ever quarterly performance, led by strong transfer-case volumes and healthy traction in components and exports. Total income rose 85% YoY and 25% QoQ to Rs 142 crore; EBITDA was Rs 42 crore, with margin expanding 450 bps QoQ to 29.4%; and PAT increased 183% YoY and 63% QoQ to Rs 25 crore. Transfer-case revenue grew 93% YoY to Rs 76 crore, accounting for 53% of the revenue mix and driving margin expansion.

Guidance and capex: Q2FY27 revenue is guided at around Rs 90 crore plus as Sigma EV SOP begins. FY27 component exports are targeted at around Rs 80 crore, while long-term annual revenue potential across all segments is estimated at more than Rs 2,000 crore. Of the Rs 170 crore IPO capex allocation, Rs 97 crore had been deployed as of March 2026.

Concall/PPT: Sigma EV transmission SOP is expected from Q2FY27 after customer approval. Project Mayflower, the US subsidiary, has been incorporated in South Carolina. Export-parts final production approval has been received, offering incremental revenue potential of around Rs 10-12 crore per month.

1. VIYASH SCIENTIFIC: Animal and human-health businesses drive sharp earnings growth

M-cap: Rs 11,422 crore | CMP: Rs 261 | 52-week range: Rs 168-298 | P/E: 134x

Viyash reported revenue growth of 19% YoY to Rs 946 crore, EBITDA growth of 50% YoY to Rs 178 crore and PAT growth of 114% YoY to Rs 79 crore. EBITDA margin expanded to 18.82%. Growth was driven by animal-health APIs, companion-pet products and vaccines, alongside human-health generic APIs and CDMO.

Strategic update: The Bio For Life acquisition in Italy provides European market access for the animal-health portfolio. No formal guidance was provided in the available sources.

1. INNOVA CAPTAB: CDMO-led growth continues; capacity headroom supports future scale-up

M-cap: Rs 5,831 crore | CMP: Rs 1,019 | 52-week range: Rs 608-1,035 | P/E: 61.1x

Innova reported a strong start to FY27, with revenue rising 34% YoY and 5% QoQ to Rs 471 crore. EBITDA increased 32% YoY and 12% QoQ to Rs 75 crore, with margin at 15.9%, while PAT rose 42% YoY and 16% QoQ to Rs 44 crore. CDMO revenue increased 32% YoY to Rs 329 crore and contributed around 70% of sales.

Guidance and capacity: Management expects utilisation to rise across facilities. The Jammu plant is currently operating at 10-15% utilisation and is expected to reach optimum utilisation over five to six years.

PPT: UK-MHRA GMP compliance was received for the Baddi Cephalosporin block and a PIC/S GMP certificate for the Kathua, Jammu facility, supporting new-client onboarding. Baddi utilisation is 70-75%, while Dehradun and Taloja are at 60-70%, providing growth headroom without near-term capex.

1. TCPL PACKAGING: Healthy growth with sequential margin expansion drives sharp PAT growth

M-cap: Rs 3,345 crore | CMP: Rs 3,676 | 52-week range: Rs 2,200-3,960 | P/E: 27.7x

TCPL reported sales of Rs 493 crore, up 16% YoY and 8.6% QoQ. EBITDA rose 17.8% YoY and 24.6% QoQ to Rs 86 crore, with margin at 17.44%, up 26 bps YoY and 224 bps QoQ. PAT increased 81.8% YoY and 81.8% QoQ to Rs 40 crore.

1. MAN INDUSTRIES: Strong operating leverage drives sharp EBITDA and PAT growth

M-cap: Rs 4,194 crore | CMP: Rs 559 | 52-week range: Rs 302-625 | P/E: 17.1x

Man Industries reported sales of Rs 1,053 crore, up 41.9% YoY but down 9% QoQ. EBITDA surged 191.8% YoY and 2.1% QoQ to Rs 143 crore, with margin expanding 698 bps YoY and 148 bps QoQ to 13.58%. PAT increased 117.9% YoY and 19.6% QoQ to Rs 61 crore.

1. POLYPLEX CORPORATION: Strong sequential recovery and sharp margin expansion

M-cap: Rs 3,860 crore | CMP: Rs 1,230 | 52-week range: Rs 740-1,235 | P/E: 77.8x

Polyplex reported sales of Rs 2,254 crore, up 29.6% YoY and 20.5% QoQ. EBITDA stood at Rs 296 crore, up 236.4% QoQ, while EBITDA margin expanded 1,319 bps YoY and 843 bps QoQ to 13.13%. PAT was Rs 171 crore, up 350% QoQ, reflecting a sharp recovery from the weak year-ago base.

🟡 AMBER | IN-LINE EARNINGS

1. GOKALDAS EXPORTS: Standalone beat, but raw-material pressure weighs on consolidated margins

M-cap: Rs 5,781 crore | CMP: Rs 789 | 52-week range: Rs 531-955 | P/E: 25.7x

Gokaldas reported robust standalone performance, with revenue rising 18% YoY to Rs 750 crore. Standalone operating margin expanded 250 bps YoY but contracted 155 bps QoQ to 12.2%, while PAT rose 43.1% YoY and 8.2% QoQ to Rs 69 crore, 18% above estimates.

At the consolidated level, raw-material pressure resulted in a miss, with EBITDA margin contracting 107 bps YoY to 9.78%; PAT increased only 5% YoY to Rs 44 crore. No formal guidance was provided and the concall is scheduled for today.

1. SIEMENS: Revenue and order inflows remain healthy, but commodity and forex pressure hit margins

M-cap: Rs 1,42,840 crore | CMP: Rs 4,011 | 52-week range: Rs 2,826-4,074 | P/E: 111x

Siemens reported revenue growth of 14.8% YoY to Rs 4,710 crore, in line with or above consensus. Order inflow rose 16.5% YoY to Rs 6,300-6,700 crore; excluding the large HSR base, it grew 44% YoY. Backlog remains healthy at Rs 46,700 crore, or 2.5-2.7x book-to-bill.

However, adjusted EBITDA declined 25% YoY and was around 18% below estimates, according to Kotak. Commodity costs and rupee depreciation pulled EBITDA margin down 350 bps YoY to 9.1%. No formal guidance was issued; management flagged these as near-term margin headwinds.

1. RHI MAGNESITA: Price hikes and operating efficiency offset lower volumes

M-cap: Rs 8,581 crore | CMP: Rs 416 | 52-week range: Rs 323-516 | P/E: 41x

RHI Magnesita reported a revenue miss, but EBITDA and PAT were in line with estimates. Sales realisation increased 7.6% YoY to Rs 79,948 per MT, which mitigated a 6% volume decline to 122 KT. EBITDA was Rs 138-147 crore, up 35-42% YoY and 30-58% QoQ, with margin improving to 13.6-14.5% from 10.6% YoY. PAT rose 83% YoY to Rs 65 crore.

Guidance and strategic update: No formal guidance was provided. Management highlighted a 6-8% CAGR outlook for the Indian refractory industry and positive customer sentiment around the scaling of the 4PRO contract. The company has launched a 51:49 JV, RHIM Khemka MINPRO, for greenfield refractory mineral processing in Dhenkanal, Odisha; capex quantum was not disclosed.

1. SKIPPER: Strong peer-relative performance and record order book support FY27 outlook

M-cap: Rs 5,943 crore | CMP: Rs 526 | 52-week range: Rs 300-593 | P/E: 26.2x

Skipper reported revenue of Rs 1,310 crore, up 4.5% YoY but down 21% QoQ on a seasonal base. EBITDA rose 10.2% YoY to Rs 140 crore, with margin improving 60 bps YoY to 10.7%. Exports declined 50% YoY, but Infrastructure Projects grew 148% YoY; the company reported its highest-ever order book of Rs 9,217 crore, with Q1 inflows of Rs 1,674 crore including two 765 kV wins.

Guidance and capex: Management retained FY27 guidance of around 15% revenue growth and 30% PAT growth, with a long-term EBITDA-margin aspiration of more than 12%. Engineering capacity expansion from 3,75,000 MTPA to 4,50,000 MTPA has been delayed to Q2FY27, with a roadmap to 6,00,000 MTPA by FY29.

Concall: Exports are targeted to grow more than 50% in inflows as West Asia headwinds ease. The Rs 433.5 crore preferential equity raise at Rs 470 per share, involving Capital Group, Bandhan and Cohesion, will be used mainly for debt reduction. Finance cost has already declined to 3.6% of revenue from 4.2%, while CRISIL upgraded the company to A+/Stable.

1. SKF INDIA: In-line top line and sequential margin recovery; leadership transition announced

M-cap: Rs 13,497 crore | CMP: Rs 2,730 | 52-week range: Rs 1,994-3,041 | P/E: 35.1x

SKF reported sales of Rs 970.77 crore, up 18.30% YoY and 2.65% QoQ. EBITDA margin improved 52 bps QoQ to 9.09% from 8.57%, though it remained 235 bps below the high base of Q1FY26 due to a high traded-goods mix of 64.6%. PAT stood at Rs 61.92 crore, lower YoY, as Q1FY26 PAT of Rs 71.87 crore included one-off items.

Mukund Vasudevan has resigned as MD and Sujeet Pai will take over. No formal guidance, concall or management commentary was available.

🔴 RED | WEAK EARNINGS

1. PI INDUSTRIES: Lower agchem exports and PIHS losses drive a weak quarter

M-cap: Rs 41,419 crore | CMP: Rs 2,730 | 52-week range: Rs 2,527-3,918 | P/E: 29.3x

PI Industries reported revenue of Rs 1,702 crore, down 10% YoY. EBITDA declined 29% YoY to Rs 369 crore, with margin contracting 577 bps to 22%, while PAT fell 39% YoY to Rs 244 crore. Agchem export volumes declined 8% YoY and PIHS reported a PBT loss of Rs 62 crore. No broker estimates were available to quantify the miss.

Guidance and capex: Management expects more than five new product launches in FY27 to accelerate growth and said the order book continues to support the FY27 growth outlook. Q1FY27 capex was Rs 269 crore across manufacturing and R&D; PIHS capex was Rs 23 crore for CDMO capacity, QC/Kilolab at Lodi and the Biology Lab in Hyderabad.

PPT: PIHS revenue declined 25% YoY to Rs 54 crore due to customer-order phasing, which management does not consider structural. Four marquee customers were onboarded in Q1FY27. Net working-capital days improved by 19 days QoQ to 120 days; operating cash flow was Rs 640 crore and net cash surplus stood at Rs 3,794 crore.

1. SHILCHAR TECHNOLOGIES: Higher input costs lead to a sharp top-line and margin miss

M-cap: Rs 5,242 crore | CMP: Rs 4,582 | 52-week range: Rs 2,851-5,399 | P/E: 38.1x

Shilchar reported revenue of Rs 135 crore, down 15% YoY and 11% QoQ. EBITDA declined 61% YoY and 31% QoQ to Rs 22 crore, while EBITDA margin collapsed to 16.3% from 35% YoY and 21.1% QoQ. Higher input costs were the primary drag.

No formal guidance, concall or investor presentation was available.

1. SENCO GOLD: Strong demand and revenue growth, but gold-price inflation compresses margins

M-cap: Rs 6,577 crore | CMP: Rs 401 | 52-week range: Rs 276-430 | P/E: 11.1x

Senco reported revenue growth of 67% YoY to Rs 3,056 crore, but PAT declined 3% YoY and 36% QoQ to Rs 101 crore. EBITDA margin compressed 308 bps YoY to 7%, as average gold prices rose 61% YoY to Rs 15,280 per gram and gross margin declined to 16.1% from 19.1%. Higher old-gold exchange mix, at 43% of quantity, also affected margins.

Guidance: FY27 value-growth guidance was retained at more than 20%, EBITDA-margin guidance at 7.5-7.8% and PAT-margin guidance at 4-4.5%.

Concall: SSSG grew 39% YoY and diamond-jewellery value grew 43% YoY, demonstrating healthy underlying demand. Inventory was reduced by Rs 300 crore, with inventory days falling to 152 from 166. Finance cost rose 58% YoY to Rs 679 crore on working-capital borrowings of around Rs 22,800 crore, remaining a key drag on PAT.

Warm regards,
Omkara Capital Private Limited
www.omkaracapital.in

Disclaimer: This newsletter is for informational purposes only and should not be construed as investment advice. Please consult your financial advisor before making any investment decisions.