Ratnaveer Precision Engineering Ltd

- Phase 1 CAPEX: Around Rs. 45-48 crores, targeting 50-60% utilization in FY'26, expected to generate Rs. 180-200 crores revenue at 80-85% utilization, with valuable product margins of 15-20%. - Phase 2 CAPEX: Planned to start by November/December 2025, targeted for completion by July 2026, including a copper-cladded laminates project alongside finishing line; total CAPEX expected to exceed Rs. 400 crores. - Total CAPEX: Over Rs. 400 crores expected to support revenue growth from Rs. 1,100 crores to Rs. 1,800 crores in two years. - Future acquisition: Plans to acquire a company with Rs. 600-700 crores topline; acquisition size around Rs. 150 crores with 51% stake initially. - Funding: Rs. 211 crores targeted through QIP for working capital and CAPEX; internal accruals and earn-out models to fund acquisition payments.

- Targeted sales growth from approx. Rs. 1,050-1,100 crore in the current year to Rs. 1,500 crore in FY'27 and Rs. 1,800 crore in FY'28. - Growth driven primarily through organic means via greenfield projects; no acquisitions considered within this revenue guidance. - Capacity expansion underway with Phase 1 CAPEX of around Rs. 45 crore targeting 50-55% utilization in first year, increasing to 80-85% in the next. - Additional Phase 2 CAPEX planned by end of 2025, aiming for combined revenue capacity of Rs. 400 crore from new capacities. - Value-added products expected to grow from 8% to approx. Rs. 200 crore out of Rs. 1,500 crore topline in two years, potentially reaching Rs. 400 crore further ahead. - Export contribution maintained at 15-20%, with focus on growing high-margin export markets. - EBITDA margin expected to improve to around 13-13.5%, supported by increased value addition and capacity utilization.

- Targeted topline growth to Rs. 1,500 crores in FY'27 and Rs. 1,800 crores in FY'28 driven by organic growth through CAPEX and greenfield projects. - EBITDA margin expected to improve from 10.5%-10.8% in FY'26 to approximately 13.5% in FY'27, aided by solar power cost savings and operational efficiencies. - PAT margin targeted above 6% for FY'26, with expected improvement alongside EBITDA growth. - EPS currently stable; basic and diluted EPS expected to reflect dilution only after full warrant conversion (remaining 75% by March 2026). - QIP planned to fund expansions and possible acquisitions, which could cause short-term dilution but long-term EPS accretion through growth. - Acquisition discussions underway for companies with Rs. 600-700 crore revenue, expected post-FY'28 and funded partly by internal accruals and QIP, potentially boosting profits and margins. - Promoters infusing around Rs. 70-80 crores via warrants to maintain equity share and support growth.

- Ratnaveer Precision Engineering Limited maintains a consistent order book of approximately 3 to 4 months. - Currently, the company has visibility and confirmed orders covering the next 3 to 4 months. - This order book includes a variety of products and reflects steady demand and business continuity. - The company has clear visibility for Quarter 3 orders, indicating strong ongoing business momentum. - The order book provides a reliable outlook for near-term revenue and production planning.

- The company is planning a Qualified Institutional Placement (QIP) to raise up to Rs. 211 crores, primarily for working capital requirements linked to growth from Rs. 880 crores to Rs. 1,500 crores topline and for ongoing CAPEX. - Promoters have issued warrants due by March 2026, with initial 25% subscription done and remaining 75% expected by March 2026, aimed at maintaining promoter equity stake (~54%-55%). - The QIP is expected to cause some equity dilution (~6%-7%), but promoter warrants will somewhat offset dilution to maintain stake above 50%. - The company prefers raising funds through equity (QIP and warrants) over bank borrowings due to mortgage, stamp duty costs, and long-term investor confidence benefits. - Debt levels might be used to cover any shortfalls but are planned to be optimized with a target debt-to-equity ratio improvement over the coming years.