*Alkem Laboratories Ltd.* | *CMP* Rs. 5416 | *M Cap* Rs. 64761 Cr | *52 W H/L* 5933/5085
(Nirmal Bang Retail Research)
*Result is marginally below expectations*
Revenue from Operations came at Rs. 3740.2 Cr (3.8% QoQ, 10.9% YoY) vs expectation of Rs. 3805.4 Cr, QoQ Rs. 3603.3 Cr, YoY Rs. 3371.1 Cr
EBIDTA came at Rs. 766.1 Cr (48.1% QoQ, 3.7% YoY) vs expectation of Rs. 795.3 Cr, QoQ Rs. 517.4 Cr, YoY Rs. 739.1 Cr
EBITDA Margin came at 20.5% vs expectation of 20.9%, QoQ 14.4%, YoY 21.9%
Adj. PAT came at Rs. 520 Cr vs expectation of Rs. 568.1 Cr, QoQ Rs. 371.4 Cr, YoY Rs. 651.3 Cr
Quarter EPS is Rs. 43.5
Stock is trading at P/E of 23.9x FY28E EPS
*Bharat Dynamics Ltd.* | *CMP* Rs. 1368 | *M Cap* Rs. 50146 Cr | *52 W H/L* 1980/1086
(Nirmal Bang Retail Research)
*Result is above expectations*
Revenue from Operations came at Rs. 572.2 Cr (19.2% QoQ, 130.8% YoY) vs expectation of Rs. 599.2 Cr, QoQ Rs. 480.2 Cr, YoY Rs. 247.9 Cr
EBIDTA came at Rs. 83.1 Cr (50.4% QoQ, -283.1% YoY) vs expectation of Rs. 60.1 Cr, QoQ Rs. 55.2 Cr, YoY Rs. -45.4 Cr
EBITDA Margin came at 14.5% vs expectation of 10%, QoQ 11.5%, YoY -18.3%
Adj. PAT came at Rs. 118.8 Cr vs expectation of Rs. 91.1 Cr, QoQ Rs. 113.2 Cr, YoY Rs. 18.4 Cr
Quarter EPS is Rs. 3.2
Stock is trading at P/E of 43.7x FY28E EPS
*Diamond Power Infrastructure Ltd Q1FY2027 Concall Update*
(Nirmal Bang Retail Research)
*Outlook: Positive*
*Future Guidance & Outlook*
• Management reiterated its FY27 revenue guidance of ₹4,300–4,500 cr and expressed confidence in achieving the target despite Q1 being impacted by an early and heavy monsoon. The company expects a gradual ramp-up in Q2 and stronger growth in H2 as project execution improves and newly added capacities start contributing.
• EBITDA margin guidance for FY27 has been maintained at 11%–13%, with management expecting margins to improve in the coming quarters due to a better product mix, higher contribution from medium-voltage and extra-high-voltage cables, and operating leverage benefits.
• The company expects the benefits of the recently completed ₹1,614 cr QIP to start reflecting meaningfully from Q3 and Q4 FY27 as the funds are deployed into capacity expansion and working capital.
• Diamond Power is strategically shifting towards higher-margin medium-voltage (11–66 kV) and extra-high-voltage cable segments, where competition is lower and realizations are superior. The company aims to become a leading player in these categories.
• The company is in the final stages of ordering its sixth CCV line, which is expected to be commissioned by December 2027. Since existing infrastructure can accommodate the new line, no major civil or utility capex will be required.
• Two additional medium-voltage cable lines are under installation and remain on schedule. These lines are critical for meeting growing demand in the 11–220 kV segment, which constitutes the largest share of the company’s order book.
• The company is converting its legacy rod mill and conductor facility into a modern LV and control cable plant focused on copper and aluminum products. Commercial production is expected before March 2027, with meaningful revenue contribution beginning in FY28. The project has revenue potential of around ₹1,880 cr at full utilization.
• Export business remains at an early stage, but management expects certifications and team expansion to help secure export orders in Europe and the US. The company has targeted ₹500 cr export order inflow before FY27-end.
• Management has reaffirmed its aspiration to achieve approximately ₹7,500 cr revenue in FY28, supported by capacity additions, stronger utilization levels, and sustained demand from power infrastructure, renewable energy, urbanization, data centers, railways and underground cabling projects.
• Data center infrastructure is emerging as a major growth driver. Management expects around ₹750 cr data center revenue in FY27 and has internally targeted ₹1,000 cr of fresh data center orders before March 2027. The long-term goal is to derive roughly 20% of revenue from the data center segment.
• Gujarat’s disaster management and underground cabling program is expected to generate approximately ₹22,000 cr of opportunities over the next three years, while similar projects are emerging across several coastal states, creating a large addressable market for medium-voltage cables.
• FY27 utilization is expected to reach around 40% for conductors and 50–52% for cables, while FY28 utilization could rise to approximately 60% for both segments as new capacities become operational.
*Other Highlights*
• Order book stood at ₹3,688 cr as of 11 August 2026, up from ₹2,555 cr YoY, equivalent to nearly 2x FY26 revenue. The company has secured over ₹1,000 cr of new orders since April.
• Around ₹2,800 cr of the current order book is scheduled for execution before March 2027, providing strong revenue visibility for the current year.
• Adani Group currently accounts for approximately 40% of the order book, but management intends to reduce this exposure to around 20% by FY27-end through customer diversification.
• Stock is trading at P/E of 97.3x TTM EPS
*Natco Pharma Ltd.* | *CMP* Rs. 894 | *M Cap* Rs. 16014 Cr | *52 W H/L* 1227/789
(Nirmal Bang Retail Research)
*Result is ahead of expectations*
Revenue from Operations came at Rs. 735.2 Cr (-0.5% QoQ, -44.7% YoY) vs expectation of Rs. 786.5 Cr, QoQ Rs. 739.1 Cr, YoY Rs. 1328.9 Cr
EBIDTA came at Rs. 186.5 Cr (46.2% QoQ, -67.3% YoY) vs expectation of Rs. 156.3 Cr, QoQ Rs. 127.6 Cr, YoY Rs. 571 Cr
EBITDA Margin came at 25.4% vs expectation of 19.9%, QoQ 17.3%, YoY 43%
Adj. PAT came at Rs. 206.5 Cr vs expectation of Rs. 159.8 Cr, QoQ Rs. 267.9 Cr, YoY Rs. 480.7 Cr
Quarter EPS is Rs. 11.5
Stock is trading at P/E of 19x FY28E EPS