KRBL

Numero uno in Basmati rice

With its corporate office in Noida (UP) and registered office in New Delhi, KRBL has by now emerged as the world’s leading Basmati rice producer and rice miller. With a history of over a century behind it, the company has fully integrated operations in every aspect of the Basmati value chain. Starting from the seed development, process, contract farming, paddy procurement and safe storage to processing the rice products for packaging, branding, branding and marketing, the company takes care of everything with an integrated process. It produces the best quality of Basmati rice, white rice, sella rice, brown rice, Pusa Basmati rice and other varieties.

The company has two manufacturing facilities spread across Uttar Pradesh (Gautam Buddh Nagar) and Punjab (Dhuri). It has four state-ofthe-art grading, sorting and packaging facilities located at Sonepat, Gautam Buddh Nagar, Dhuri and Alipur. KRBL is a leader in the segment of branded rice. It offers rice under a range of brands, including India Gate, Nurjehan, Telephone, Lotus, Lion, Southern Girl, Taj Mahal, and Indian Farm among others.

The company is doing extremely well on the financial front. During the last 12 years, its sales have expanded from Rs 2,051 crore in fiscal 2013 to Rs 5,385 crore in fiscal 2024, with net profit shooting up more than five and a half times from Rs 130 crore to Rs 701 crore. What is more, its prospects going ahead are all the more promising. Conside:

• KRBL, a fully integrated rice company, is a leading player in the Indian Basmati rice sector. In the competitive Indian branded Basmati rice segment, it leads with a marketshare of 35 per cent in general and 42 per cent in modern trade.

GLOBAL REACH

• Besides obtaining leadership in the domestic market, KRBL has spread its footprint throughout the globe, ing as the largest exporter of branded Basmati rice from India. In fact, its premium brand, ‘India Gate’ Basmati rice, is recognised as the world’s No. 1 Basmati brand. The company’s branded rice is doing very well in over 90 countries. Today, the company commands an approximately 40 per cent marketshare in five of the 150 countries importing Indian Basmati rice.
• To further enhance consumer experience, the company launched Biryani Masala in FY24, allowing consumers to enjoy the perfect taste of biryani from KRBL’s Basmati rice and masala. It plans to introduce a range of healthy edible oils in the upcoming year, broadening its product portfolio.
• The Middle East, representing 74% of India’s Basmati rice exports, remains a pivotal market. KRBL derives approximately 58% of its Basmati export revenue from this region, with notable growth in Kuwait, Bahrain and Oman. The company is appointing a distributor in Saudi Arabia to penetrate that market.

TESCO DEAL

• KRBL, the world’s largest Basmati rice miller and exporter, recently expanded into the UK market by introducing its India Gate Basmati rice to Tesco stores. The partnership with Tesco, which is the most well-known supermarket chain in the UK with 2,904 stores in that country, is expected to help KRBL increase sales in the European region and establish itself as a household name in the global market. KRBL plans to continue expanding in Europe and North America through collaborations and new products, with the goal of becoming a global leader in the Basmati rice market. With a view to meeting the rising demand at home as well as abroad for its rice, the company has planned an ambitious expansion. Today, it has two plants, one each in UP and Punjab. It now plans three new plants, one each in Gujarat, Karnataka and Madhya Pradesh. The company plans to spend Rs 250 crore to finance these plants within the next two years. In FY 2025, we expect the company to register sales EPS of Rs 21.6, which is expected to rise to Rs 30.2 in FY 2026. The scrip trades at Rs 298. P/E on the FY 2026 projected EPS works out to just 9.9.

PERFORMANCE INDICATORS (Rs. in crore)

INTENSE TECHNOLOGIES

Indian IT expertise for the world

Intense Technologies is a global Enterprise Platform and IP-enabled services company, headquartered in India and making its mark across EMEA, the UAE, the UK, Singapore and the US. Trusted by Fortune 500s and boasting over three decades of industry experience and 70+ global implementations, the company specializes in industries across banking, financial services, insurance, education, and energy & utilities, including leading in e-governance projects in South Asia. It serves customers across 4 continents, handling $ 25 billion+ worth of client revenue data, and successfully onboarding 1 billion+ subscribers across its engagements. Delivering agility at a global scale, it continues to empower enterprises with best-in-class IPenabled services to achieve their digital-first goals.

The company is slowly improving its financial performance. During the last 12 years, sales have increased from Rs 46 crore in fiscal 2013 to Rs 144 crore in fiscal 2024, with operating profit improving from Rs 4 crore to Rs 21 crore and the net profit inching up from Rs 4 crore to Rs 16 crore. Prospects ahead are all the more encouraging. Consider:

Performance trends remained strong in Q1, with the company surpassing Rs 40 crore in quarterly revenue for the first time and achieving a PAT of Rs 5.5 crore with healthy margins. It continues to broaden its geographical footprint, entering new markets and forging strategic partnerships, while also expanding its focus on government contracts. The management sees significant growth in Communication Governance and Al-enabled data management, signaling expansion in these areas.

Clients are increasingly prioritizing AI-powered processes to augment productivity and profitability. Its platforms are powered by AI, helping organizations achieve their business objectives. As a BFSI specialist, it continues to engage large enterprises for their mission-critical requirements, often handling large volumes of data and heavy computation in order to produce actionable output.

GOVT VERTICAL

The Government vertical has also gained traction and is shaping up well, in line with its capabilities to service their needs. The company has marquee names as clients and enjoys deep engagement relationships.

Its initiatives to up-sell and cross-sell its IP-rich solutions are yielding traction, and the management is confident that it will gradually show up in performance in the form of stickier engagements. The company specializes in mission-critical assignments, helping customers see results and outcomes rather than getting them to commit to incremental investments in software/hardware.

The strategic decisions taken by the management under Project Butterfly have allowed it to cross Rs 100 crore in revenue in FY24, underlining the success of the approach. In the coming quarters, this initiative has enabled it to diversify revenue streams to serve enterprise customers better. The Government vertical has also seen healthy growth.

BIZ IN AMERICAS

Business development initiatives are gaining a foothold and translating into higher engagements within client relationships, as planned. The company has added two new clients in the Americas and has executed a new implementation for transmission services during the quarter. While discretionary spending continues to stay under pressure, in order to maintain the momentum, the company is taking steps to use cash reserves to invest in sale efforts. The quarter saw it adding a senior resource in the US, who will be engaging with clients in the Americas.

• Its highly differentiated offerings around driving efficiencies through data management at scale, and its transformation capabilities, have positioned it well in this market to grow. In FY 2025, we expect the company to register a sales EPS of Rs 8.8, which is expected to rise to Rs 11.2 in FY 2026. The scrip trades at Rs 144. P/E on the FY 2026 projected EPS works out to just 13.8.

PERFORMANCE INDICATORS (Rs. in crore)