Latest news with #Wavin
Business Upturn
5 days ago
- Business
- Business Upturn
Supreme Industries signs Business Transfer Agreements to acquire Wavin's Indian piping business for Rs 310 crore
Supreme Industries has taken a major step toward expanding its footprint in the infrastructure segment by officially entering into Business Transfer Agreements (BTAs) with Wavin Industries Limited and its two wholly owned subsidiaries—Wavin India Pipes and Fittings Manufacturing Pvt Ltd and Wavin India Holding Pvt Ltd. The deal follows the initial Memorandum of Understanding (MoU) signed in March 2025 and involves the acquisition of Wavin's Indian piping business (building and infrastructure segment) for a total value of approximately ₹310 crore, which includes adjustments for net working capital. The transaction is structured as a slump sale, with the entire business being acquired on a going concern basis. The acquisition is expected to be completed by July 31, 2025, subject to the fulfillment of certain agreed conditions. This strategic move will bolster Supreme's presence in the Indian piping market and is aligned with its long-term growth plans in infrastructure and building solutions. With this acquisition, Supreme aims to strengthen its product portfolio and distribution network across India, tapping into Wavin's established presence and capabilities. Ahmedabad Plane Crash Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at
Mint
09-07-2025
- Business
- Mint
These five mid cap stocks deserve a place on your long-term watch list
Mid-cap stocks offer huge opportunities for wealth creation, striking a balance between the high growth and volatility of small caps and the stability of large caps. These companies are typically in the growth phase of their business cycle, scaling up operations, expanding margins and gaining market share, which positions them well to deliver excellent long-term returns. In India's fast-growing economy, many mid cap companies are emerging as tomorrow's blue chips. With strong tailwinds from domestic consumption, manufacturing reforms, and digital transformation, the mid cap segment offers fertile ground for long-term investors. With that in mind, we've shortlisted five fundamentally strong mid cap stocks for 2025 that offer compelling growth potential. #1 Supreme Industries Supreme Industries is India's largest plastic manufacturing and processing company. It operates 30 manufacturing plants across India and exports to 54 countries. Its business is diversified across eight verticals in plastics and related products. These include plastic piping systems, which offer a wide range of applications such as plumbing, water tanks, bath fittings, fire protection, rainwater harvesting, drainage, waste treatment & sanitation, agriculture, borewell, and sewage treatment plants. Supreme Industries also makes consumer products such as seating, storage, tables, kids' range, sets, multipurpose items, stools and beds. Its packaging products division covers specialty films, protective packaging products, cross-laminated films, and insulation & acoustics products, including edible oil film, smart peel lidding films, pre-post harvest sheets, barrier films, and various civil engineering applications. The company also makes industrial products, including components, material handling products, and composite products such as LPG and CNG cylinders. As of March 2025, it had a total installed capacity of 1,091,752 metric tons (MT) across all segments. The company has increased revenue at a 14% compound annual growth rate (CAGR) and net profit at 15% CAGR over a five years. The return on equity over this period was 23%. The company expects sales of ₹12,000 crore in FY26. It aims to maintain a healthy operating profit margin of 14.5% to 15.5% for its entire portfolio. Supreme plans to invest about ₹1,100 crore on capex during FY26, which includes carry-forward commitments and the acquisition of Wavin's building and infrastructure business in India. This capex will be entirely funded by internal accruals. The Wavin acquisition is expected to be finalised this month, contributing for about nine months in FY26. It will add 73,000 metric tons per annum to the piping division's capacity across three manufacturing sites. The acquisition will also grant Supreme exclusive access to Wavin's leading piping technologies for India and SAARC countries, allowing for the addition of new technologies to its product profile. #2 APL Apollo Tubes APL Apollo Tubes is India's leading branded structural steel tube company and the largest electric resistance welded (ERW) pipe/structural steel tube manufacturer in the country. Its core business is manufacturing a vast range of steel tubes and pipes – over 3,000 varieties – for diverse building material and structural steel applications. APL Apollo operates 11 manufacturing facilities in India and one in Dubai, with an installed capacity of 4.5 million tons per annum (MTPA). It also has an extensive three-tier distribution network comprising over 800 distributors and 50,000 retailers in more than 300 towns and cities across India. The company has grown its top line at a 17% CAGR over five years and a net profit at a 26% CAGR. The ROE averaged 23% over this period. Management is confident of achieving 20% year-on-year volume growth over the next three to four years. It plans to expand its existing installed capacity of 4.5 MTPA to increase to 6.8 MTPA by FY28. A total capex of ₹15 bn is planned over the next three years for this expansion, which is expected to be entirely funded from internal cash flows. This translates to roughly ₹500 crore a year from FY26 to FY28. An additional ₹1,000 crore of capex by 2030 has been earmarked to build four new 250,000-ton plants for super-specialty tubes such as seamless pipes, API pipes, automated tubes, and stainless steel (SS) pipes. An expansion in Dubai is also on the cards, which could increase the total capacity there to 500,000 tons and open up markets in Europe, the US, and Canada. The company aims to increase the proportion of exports from 6% to more than 10%. The company aims for a significant improvement in profits and margin trajectory. It is confident that Ebitda spreads will return to about ₹5,000 per ton in FY26, especially after Q2 FY25 saw interim pressure due to inventory losses. Management expects Ebitda spreads will continue to improve beyond ₹5,000 per ton over the next three to four years. The company aims to increase its return on capital employed (ROCE) to 35% in FY26 (from 25% in FY25) and raise it to above 50% in the next two to three years. #3 Jubilant Foodworks Jubilant Foodworks is a leading quick service restaurant (QSR) that operates in all the major emerging markets. Established in 1995, it manages a network of 3,316 stores in six countries: India, Turkey, Bangladesh, Sri Lanka, Azerbaijan, and Georgia. It holds the franchise rights for three prominent global brands: Domino's, Popeyes, and Dunkin'. It has also developed its own brands: Hong's Kitchen, an Indo-Chinese brand in India, and COFFY, a café brand in Turkey. The company increased its top line at a 16% CAGR over five years but saw net profit drop at -5% CAGR. The ROE averaged 17% over this period. In FY26 the company plans to open 280 new Domino's stores (250 in India and 30 in Turkey), 50 COFFY cafes and 30 Popeyes stores. Management aims for a minimum 2% improvement in overall Ebitda margin by FY28, which is expected to flow through to PAT. Management has also decided to curtail expansion in Dunkin' and Hong's Kitchen and to focus primarily on Popeyes, expecting the financial drag from these emerging brands to drop by half in a couple of years. A notable technological update is the launch of Elate, India's first Android-based point-of-sale (POS) system, developed in-house to streamline operations, personalise customer journeys, reduce training time, and boost employee productivity. #4 Godrej Industries Godrej Industries primarily functions as a holding company for the Godrej Group. Its core business is in the chemicals industry and it's a market leader in oleochemicals, producing a range of products including fatty acids, fatty alcohols, glycerine and surfactants, which serve various industries such as FMCG, oil & gas, and pharmaceuticals. Its businesses include: Godrej Industries also holds a substantial stake in Godrej Capital, its financial services arm, which includes non-banking financial company (NBFC) and housing finance operations. The company increased its top line at a 12% CAGR over five years and net profit at a 14% CAGR. The ROE averaged 7% over this period. Significant capacity expansion is expected in Godrej Industries' chemicals business, with a total capital outlay exceeding ₹750 crore over the next few years. Specific expansions include doubling fatty alcohol (35,000 tons/annum) and euric acid (20,000 tons/annum) capacities, tripling specialities capacity (21,000 tons/annum), doubling glycerine capacity (24,000 tons/annum), a threefold increase in fermentation capacity (1,500 tons/annum), and an addition of 30,000 tons per annum to primary surfactants capacity. The company plans to invest another ₹1,800-2,200 crore in Godrej Capital over the next two to three years to support its growth. #5 KEI Industries KEI Industries is a leading manufacturer of wires and cables with a diverse product portfolio that includes extra-high voltage (EHV) cables up to 400 KV, high and medium voltage (HT & MV) cables, low tension (LT) power cables, house wires, and stainless steel wires. The company is also forward integrated into engineering, procurement and construction (EPC) services for power, distribution, transmission, and sub-station projects. It has a diversified revenue profile, serving over 2,000 institutional customers and engaging in retail sales through a network of more than 2,050 dealers and distributors across India. In FY25, retail sales accounted for 52% of total sales, with domestic institutional clients making up 35% and exports contributing 13%. The company has grown its top line at a 15% CAGR over five years and net profit at a 22% CAGR. The ROE averaged 18% over this period. Management projects revenue growth of 17-18% for FY26 and upwards of 20% from FY27 onwards, driven by continued strong demand in both domestic and overseas markets and increased capacity from new projects. Management expects Ebitda margins to remain around 10.5-11% for FY26, similar to the 10.9% achieved in FY25. While the operating margin was slightly affected in Q4 FY25 due to a decline in EPC sales and EHV cable sales, an expected full utilisation of EHV capacity in the current year is projected to improve the operating margin by about 0.5%. A more significant Ebitda margin improvement of 0.5-1% is anticipated from FY28 onwards, primarily due to economies of scale once the new Sanand facility is fully established and optimised. The company emphasises a "cost-plus" model, ensuring fluctuations in raw material prices are generally passed on to customers, thereby protecting margins. The order book remains healthy, with a total pending order value of ₹3,839 crore as of 30 April. The new plant's proximity to the port and technologically advanced machinery is expected to enable a substantial jump in EHV cable exports, where it faces technical constraints due to freight and long drum lengths from its existing north India facility. The company continues to expand its distribution network, with the number of active dealers touching 2,082 in March. Conclusion Mid cap stocks, with their blend of growth potential and maturity, are ideal candidates for long-term investing, especially in a vibrant economy like India's. That said, prudent investing is crucial. It's important to conduct thorough research on financials and corporate governance before making investment decisions, ensuring they align with your financial goals and risk tolerance. Happy investing! Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. This article is syndicated from
