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Marine Electricals

Read Pick1, Pick2, Pick3, Pick4, Pick5, Pick6, Pick7, Pick8, Pick9, Pick10, Pick11, Pick12, Pick13, Pick14, Pick15, Pick16

I also talked about the same company in my YT channel in ALPHA LEARNER DAY 28Oct 23

About the Company and Business —

Marine Electricals is an integrated technical services provider in the fields of electrical automation and information and communication technology solutions.

Marine Electricals offers integrated and multidisciplinary total solutions that lead to better business processes and more efficiency for customers and the customers they, in their turn, serve.

Established in 1978, Marine Electricals serves the market for about 34 years in diversified areas like Ship Building / Navy / Industries / Commercial Establishments. We are one of the largest supplier of Electrical & Automation Equipment for Marine Applications in India and Middle East Markets

In electrical engineering Marine Electricals covers the entire range of electrical engineering solutions of every size, such as low and medium voltage, energy distribution, measuring and control technology, instrumentation, infrastructure technology, electrical propulsion, integrated security, building management, access technology, system technology, and power electronics.

Buildings: All types of buildings including data centres, distribution centres, offices, government buildings, high rise building, laboratories, airports, penal institutions, leisure centres, stadiums, stations, universities and colleges, shopping centres, hospitals and care institutions.

Industry: A focus on power plants, the automotive industry, pharmaceuticals, chemicals and petrochemicals, the energy and environment market, pharmaceuticals, machine building, oil & gas, and the aircraft industry.

Marine: Naval vessels (logistic support ships, frigates, corvettes, patrol vessels and submarines), special ships (dredgers, offshore support ships, diving support vessels, crane ships) offshore platforms, cargo vessels (container ships, bulk carriers and other cargo ships), passenger liners and inland waterways vessels.

Company provide innovative state-of-the-art system solutions and products designed to meet the most exacting requirements for ships of all types and sizes through the entire life cycle. These range from coastal and inland shipping vessels, ocean-going passenger vessels, bulk carriers, tankers, container vessels, luxury yachts, tankers to specialist offshore, environmental and research ships as well as naval vessels.

One of the few companies in the world capable of supplying from a single in-house source the following:

• Electrical Power Packages
• Electrical Drive Systems
• Automation Systems
• Maritime Services
• Navigation and Communication Equipment

Employee –1000+

Manufacturing plants -6 across Goa, Mumbai, Chennai and UAE & Italy

Service centers – 14 Service Centers across Coastal locations in India ensures shorter Service Time for Clients

Subsidiary and Group companies

Evigo Charge Pvt. Ltd a subsidiary of Marine Electricals India Limited established in 2018, is an e- mobility venture, operating across the country and is visible through its brand Bijlify®. The company is one of the vertically integrated companies in the EV charging space, with its core activity being Design, manufacture and supply of various types of Electric Vehicle Chargers and powering up sustainable mobility through its mobile application under the Bijlify Brand. The company offers the complete eco-system including software, hardware and service for the same. The software set comprises of a next generation CPMS Terminal that is scalable and can be customized based on needs of our customers. The hardware boasts of AC and DC types of fast chargers that can accommodate the needs of most electric vehicles. All of these are designed in-house and completely tailored to offer maximum convenience to the end-user and manufactured in state-of-the-art facilities in Goa of Marine Electricals India Ltd.

STI is a group company of Marine Electricals, which is recognized as ‘Global Expert’ when it comes to renewable energy, energy efficiency and energy management.

Based in Italy, STI has its own production facility to design and engineer suitable renewable energy solutions as per the clients’ requirements.

As a leading EPC (Engineering, Procurement and Construction) company, STI provides outstanding design and engineering services, onsite project management, execution, installation, testing and commissioning as well as maintenance services across the world.

Different Segments (Industrial, Data centers, Marine, Solar, EV chargers)

Electric power generation, management and distribution is becoming increasingly important on modern day vessels. Marine Electricals can offer the entire power systems starting from the generators right up the lighting distribution panels and sockets thus offering a complete system responsibility, using the latest engineering tools Marine Electricals is able to ensure that individual components forming part of the complete system comply with the requirements( short circuit levels, discrimination, cascading, harmonic distortion, failure mode effect analysis, vibration etc.)

Marine Electricals provides solar power solutions to the industrial, institutional and commercial sectors. Right from design, engineering to project development and maintenance, we provide a comprehensive range of services to the clients looking for a reliable and environmental friendly source of electricity.

Strength, Triggers, Order books, opportunities

Strong Management team with extensive experience

CDR RAJEEV MALHOTRA

Chief Operating Officer Cdr. Rajeev Malhotra has worked in the Electrical department of Indian Navy from 1984 to Mar 2006 in various capacities at varied units of the Indian Navy, which included serving onboard warships, Warship Design directorates, Naval dockyards and ship repair yards, Quality assurance departments of MoD and Head Quarters . Thereafter joined Marine Electricals in Apr 2006 as a General Manager, Marine division. Besides steering the Planning, production, inspection and after sale service of varied customized Electrical Panels, he expanded the scope of offerings to providing solutions for Navigation & Communication for both Defense and Commercial Marine by creating required partnerships with leading manufacturers of these specialized systems, thereby providing a complete turn-key solution for new ship build programs of Defense and Commercial Marine.

CDR SHAMMI PUJJI

GM – R&D and Product Development Cdr. Shammi Pujji is management graduate engineer with more than 40 years of rich professional experience in Defence, Marine & Telecom. He heads the R & D division in addition to providing management support in business solutions. Before joining Marine Electronics family, he was Managing Director & owner of Oriole Technical Solutions Pvt Ltd ‘OTS’ specializing in indigenous solutions like WSDS (Wind Speed & Direction System), AFAS (Addressable Flood Alarm System), Ops Room Trainer (simulator for Navigation Training School, Navy), Missile & Sonar Recording Systems, and a host of software & embedded software solutions for Indian Navy. OTS is now one of the group companies of Marine Electricals.

Mr. Shammi started his career in Jan 1975 with Indian Navy as a commissioned Officer. In his 20 years of naval service, he received commendations from Chief of Naval Staff & Flag Officer Commanding-in-Chief for his out of box & innovations solutions complementing meritorious service rendered to the nation. After taking premature retirement in 1995, he served with a number of professional organizations.

As a topper in B.E. (Elec & Telecom), he pursued MBA with IGNOU, and he is a certified Lead Assessor for ISO 9001:1994 QMS. Apart from the commendations in Indian Navy, he received Bronze Medal at National Defence Academy as well.
MR. SRIRAM KRISHNAMURTHI

Solar Business Consultant Sriram Krishnamurthi has been working in Electrical and renewable industry for over 30 years. He has a PGDMM degree, and has vast experience in strategic planning, profit centre operations, business development, key account management, project management, techno commercial functions, and management in the electrical and renewable space. Adaptation to any new business and delivering results with effective peer management is one of his core competencies. He is also an expert in managing sales and distribution of B2B and B2C products, key accounts management, and effective policy management on a strategic and operation levels.

Milind Dalvi, CTO (Chief Technology Officer)

30+ years of experience into Medium Voltage and Low Voltage Switchgear Design, Instrumental in R&D, testing of equipment with certifying laboratories like ASTA, KEMA, ASEFA and CPRI. Previously worked with companies like Schneider Electric & Crompton Greaves

Esteemed clientele with strong relationships

Order book size

From Dec22 to Sep23

Current order book position standing at Rs. 482cr approximately at end of FY 2022- 2023. Considering below orders from Mar23 onwards minus the Q1Fy24–Order book looks to be around 482+102-101= ~482 Cr at 24Sep23. Few more orders came after that —so around 500cr order book is expected

From Sep23 to Jun24

To Expand Capabilities in

• IPMS for Navy
• Complete Installation Package for Naval
• Service Contract for Weapon System

Defense Tailwinds + Shipping ecosystem emerging + Increasing order book of Shipyards

Exploring new opportunities in Metro, Railways, Ports, EV Charging

Expanding Solution Offerings in Marine

• Providing IPMS for commercial ships, working on expanding it to Naval Ships
• Focusing on complete installation package for Naval Ships
• Targeting to receive Service Contract for Weapon Systems Geographical Expansion in Industrials

Geographical expansion in Industrial segment

• Entering South India with acquisition of Eltech Engineers
• Exploring acquisition opportunities to enter North & Eastern India

Evigo charge, a subsidiary, is eyeing a rapid expansion in the next couple of years. It is aiming to contribute to the country’s fascinating growth story by taking this charging ecosystem to the last mile. Over the next two fiscals it is eyeing a double digit growth.

EVIGO offers featurerich EV charging software solution

• Manage EV charging network via OCPP, handle management of charging station, partnership relations, tariffs, billing & payments, CRM & Statistics
• Provide convenient way to access charging stations through a mobile app

Certifications and Awards

Quality Management System, compliant with the international ISO 9001:2015, ISO 14001:2015 & OHSAS 18001:2007 Quality Management Standard, is certified by Indian Registrar of Quality Systems.

Financials

Time when I started buying Marine electricals

Improving sales , Stable OPM, Improving Cash conversion and Working capital cycle, Improving ROCE

Valuations

Looking reasonable considering the tailwinds in Navy and Ship building sector and upcoming Metros, Data center and EV charger industries

Technical Chart

Technical chart on 29-jun-24

Technical chart on 23Sep23 and Oct23

RISKS

Ongoing NCLT case — MEIL has purchased the property by making payment of sale consideration of Rs. 11.60 crore and stamp duty & registration fees of Rs. 1.11 crore towards registration of Sale certificate (ciemme jewels ltd liquidation)

Electrical business has high competition though their strong relationship should sail them through.

EV chargers business- Need to track this business carefully on how the margins, orders turn up in near future.

Solar panels business could be deworsification.

There is a GST notice which came in oct23 –which is also explained by company –that they have paid the GST earlier and its a mistake from Tax dept for the state in which they accounted it.

Update on NCLT case –Notification 4th oct23

Case is dismissed, Company expecting 11.6cr refund and it will be used for company own purposes, no acquistions planned in near future

Disclaimer – Analysis is NOT a BUY/SELL/HOLD Recommendation. It can be used for educational purposes. There can be lot of things which have been missed in analysis either due to lack of information or oversight etc.. Do your own diligence & contact your expert financial adviser before making any investment decision.

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