Aurionpro held their first ever Investor Day led by Ashish Rai who has been instrumental in pivoting co’s strategy and vision.
Key highlights:
1) 30% rev growth for the next 3-5 yrs
2) OPM between 20-22% - anything higher goes into R&D, NPM ~15%
3) Spend 7-8% on R&D
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Key highlights:
1) 30% rev growth for the next 3-5 yrs
2) OPM between 20-22% - anything higher goes into R&D, NPM ~15%
3) Spend 7-8% on R&D
1/6
4) 25% ROCE bar for all present & new businesses
5) 75% growth of in-year growth to come from existing base
These will be achieved by
- moving from services based to IP based products
- moving from single sector to un-correlated sector
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5) 75% growth of in-year growth to come from existing base
These will be achieved by
- moving from services based to IP based products
- moving from single sector to un-correlated sector
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- moving from expanding across value chain to vertical integration across the value chain
Essentially build business around IP and hit as many point vertically across the supply chain
Next 3-5 yrs: Co will focus on consolidation & growth
Vision 2030: A global contender
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Essentially build business around IP and hit as many point vertically across the supply chain
Next 3-5 yrs: Co will focus on consolidation & growth
Vision 2030: A global contender
3/6
Next 3-5 years
1) Platformise IP
2) Scale talent and capacity
3) Market expansion & key partnerships
For 2030
1) Top 3 in all segments
2) Demonstrably superior IP
3) Industry leading economics
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1) Platformise IP
2) Scale talent and capacity
3) Market expansion & key partnerships
For 2030
1) Top 3 in all segments
2) Demonstrably superior IP
3) Industry leading economics
4/6
Co plans to make 4 strategic bets to achieve the above:
1) Transformation of corporate banking
2) Smartification of mobility
3) Digitisation of India
4) Co-engineering IP with global ISVs
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1) Transformation of corporate banking
2) Smartification of mobility
3) Digitisation of India
4) Co-engineering IP with global ISVs
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Our view:
Albeit past mishaps & execution issues, co seems to be at the cusp of strong growth & earnings inflection. Co is trading at ~10-12x FY25E earnings. This could re rate significantly to 20x implying a strong CAGR potential.
***DO YOUR DUE DILIGENCE***
6/6
Albeit past mishaps & execution issues, co seems to be at the cusp of strong growth & earnings inflection. Co is trading at ~10-12x FY25E earnings. This could re rate significantly to 20x implying a strong CAGR potential.
***DO YOUR DUE DILIGENCE***
6/6
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