26 Axiscades Engineering Technologies 
Bengaluru-based Axiscades Technologies is a key player in aerospace, automotive and industrial technologies. In the aero engineering space, the company has three major global OEMs as its clients. The management is aiming for a near four-fold jump in revenue, driven by the engineering designing and defence business. In FY15, defence and engineering design businesses accounted for 39% and 61% of overall revenue. Analysts believe the recent amalgamation of the aerospace business will boost the company’s chances of making the most of the growing defence offset opportunity in the coming years.
25 Jubilant Foodworks
Jubilant, which owns the franchisee for Domino’s Pizza and Dunkin’ Donuts, has been facing headwinds for a while now. As the market leader in the pizza segment, it holds a 70% market share and has 959 Domino’s outlets and 67 Dunkin’ Donuts outlets. While the company undertook several measures to shore up growth in an environment of weak demand, it has found little success. Same-store sales growth was just 3.2% Y-o-Y in the September quarter. Given that demand is unlikely to recover anytime soon, and growth continues to be a challenge, its valuation looks stretched at 48x FY17 EPS.
24 PI Industries
With over 50 years of experience working with farmers and a vast marketing and distribution set-up in India, PI Industries is a recognised agri-chemicals brand that operates in the custom synthesis and manufacturing segments. Its revenue is evenly split between the two businesses. The company’s domestic formulations (agri chemicals) business fared better than the industry for the same period, thanks to strong demand for its in-licenced products. The management has given a revenue guidance of 18-20% for the CSM business in FY16, citing a strong order-book, which stood at a 13-quarter high in the September quarter. However, it has pared its revenue growth for the agri chemicals inputs business to 15% due to slow industry growth in the Rabi season. Additional capex, de-bottlenecking and a better product mix are likely to drive earnings growth over the next two years.
23 BS Ltd
The Hyderabad-based BS Ltd (formerly BS Transcomm) is an integrated services provider in the power transmission and distribution sector. With a diversified portfolio mix of EPC in transmission and distribution, tower manufacturing, turnkey services and projects in the power sector, the company is now foraying into railway electrification. To beef up its tower manufacturing and EPC execution capabilities, BS recently acquired operative assets of four companies for Rs 937 crore. With the Indian Railways planning to add 25,000 km of new lines by 2020, the management sees a bigger opportunity for the company opening up. Not surprising that it has set an ambitious target of growing its revenues 4-fold over the next three years.
22 Tech Mahindra
Over the past five years, the company has managed to grow its revenue by 37% and profit by 30% on average thanks to a combination of organic and inorganic initiatives. However, its performance came under pressure in the past couple of quarters as consolidation in the telecom sector meant decision-making turned slow and projects took longer to close. Though revenue growth stabilised in the September quarter, organic growth is likely to remain muted in FY16. With the company acquiring nine companies since FY12, its inorganic initiatives will help make up for muted organic growth. It has set up a fund with a corpus of $150 million to invest in start-ups in Silicon Valley, Israel and India. Analysts expect the tech maker to post a revenue CAGR of 13% between FY15 and FY17.
Note: Financial year as stated. Market-related data as on December 14, 2015; M-cap, PAT, sales, assets, cash and dividend in Rs.cr; CMP in ₹; PE and D/E in x; return and CAGR in %. Source: Ace Equity
