Satin Creditcare Network Business Update, RateGain Trave Partnership And KPI Green Energy Credit Ratings Upgrades

Satin Creditcare Network Ltd.

Recent filing: (BUSINESS UPDATE) Satin Creditcare Network has successfully closed its first Pass-Through Certificate (PTC) transaction with HSBC India, valued at INR 119 Cr with a 9.30% coupon rate. This transaction aligns with SCNL's strategy to expand its funding base and enhance financial inclusion. The Series A1 PTCs were issued on August 30, 2024, with a maturity date of August 12, 2026. The deal involves a par structure where 87.5% of the pool principal is issued, with the remaining 12.5% acting as overcollateralization, and is rated Provisional CRISIL AA+ (SO).

SUMMARY: 2y Operating Profit uptrend | PE 5.1x (Sector PE range 10-20) | Geographical expansion | Institutional entry | Fund raise | Promoter Buying | Subsidiary | Microfinance

FUTURE OUTLOOK: As per Q1FY25 Concall, Company revised guidance on AUM growth to 20% for FY25.

• MCap of INR 2,325 Crore (share price = INR 210 / share) (as on 5th Sep ‘24)
• TTM PE of 5.1x (as on 5th Sep ‘24) Retail float = 12.7% (Jun-24)

FOOD FOR THOUGHT: Microfinance industry susceptible to socio-political issues and regulatory changes, especially given the unsecured nature of microfinance loans.

Q1. What are the Products and Services offered by Satin Creditcare?

Satin Creditcare launched its operations as a provider of individual and small business loans and savings services to urban lenders in 1990, going on to be registered as an NBFC with the RBI in 1998 and converting into an NBFC-MFI in November 2013. Its business is primarily based on the Joint Liability Group model, which allows it to provide collateral-free, microcredit facilities to economically active women in both rural and semi-urban areas, who otherwise have limited access to mainstream financial service providers. 

It also offers loans to individual businesses and Micro, Small & Medium Enterprises (MSMEs); product financing for the purchase of solar lamps, as well as loans for the development of water connections and sanitation facilities.

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RateGain Travel Technologies Ltd.

Recent filing: (PARTNERSHIP) Rategain announced TAAG Angola Airlines E.P., Africa’s premier airline with 70 years of operation, has chosen AirGain, an airline revenue management product by RateGain, to gain real-time competitive insights. This partnership enables TAAG Airlines to make informed pricing decisions for both domestic and international markets. 

The partnership with RateGain is a strategic leap for TAAG Angola Airlines E.P., underlining its dedication to leveraging cutting-edge technology to enhance its market responsiveness.

SUMMARY: 5y Operating Profit uptrend | PE 54.7x (Sector PE range 50-100) | Fund Raise | Partnerships | Institutional Entry | Tech Platform

FUTURE OUTLOOK: As per Q1FY25 Concall, Company management reiterated a revenue growth target of 20% for FY25, and expected margin improvement of 150 to 200 basis points YoY.

As per Q1FY25 Investor Presentation, Company has Healthy pipeline growth INR 555 Cr with traction across segments.

• MCap of INR 9,061 Crore (share price = INR 768 / share) (as on 5th Sep '24)
• TTM PE of 54.7x (as on 5th Sep '24) Retail float = 10.5% (Jun-24)

FOOD FOR THOUGHT: Megha Chopra (Promoter) reduced her stake from 12.1% in Mar -24 to 9.5% in Jun-24. Some of this were picked up by funds.

Q1. What are the Products and Services offered by RateGain Travel ?

Founded in 2004, RateGain Travel is a global provider of SaaS solutions for travel and hospitality that works with 2800+ customers and 700+ partners in 100+ countries, helping them accelerate revenue generation through acquisition, retention, and wallet share expansion.

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KPI Green Energy Ltd.

Recent filing: (CREDIT RATING UPGRADE) ICRA has upgraded KPI Green Energy long-term rating from [ICRA]A- stable outlook to [ICRA]A positive outlook and the short-term rating has been reaffirmed. The ratings upgrade considers an improvement in the Group’s capital structure, post the fund-raising of INR 1,000 Cr by KPI Green through the qualified institutional placement (QIP) route in August 2024, which has been mainly utilised to prepay the entire outstanding debt under KPI Green.

SUMMARY: 6y Operating Profit uptrend | 1q Operating Profit uptrend | PE 59.7x (Sector PE range 50-90) | Excellent Jun-24 results | Fund raise | Large Order | Geographical Expansion | Institutional entry | Promoter buying | Solar | Clean Energy

FUTURE OUTLOOK: As per Q1FY25 Investor Presentation, Company has 2.3+GW of orders in hand, and has ambitious target of 10+GW IN 2030.

• MCap of INR 11,676 Crore (share price = INR 890 / share) (as on 5th Sep ‘24)
• TTM PE 59.7x (as on 5th Sep ‘24) Retail float = 21.4% (Jul-24)

FOOF FOR THOUGHT: Negative operating cash flow for FY24.

Q1. What are the Products and Services offered by KPI Green Energy?

Incorporated in 2002, KPI Green develops, builds, owns, operates, and maintains solar power plants through Independent Power Producer (IPP) and as service provider to Captive Power Producer (CPP) under the brand name of 'Solarism'.

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