Naman In-Store (India) Limited — Investor Meet, 26-11-2024: Analysts/Institutional Investor Meet/Con. Call Updates

1. **Financial Performance**: Naman In-Store reported a total revenue of INR 67.15 crore for the first half of FY 2024-25, reflecting a year-over-year improvement. The company achieved a Profit After Tax (PAT) margin of 7.15%, up from 6.4% in the previous fiscal year, while the EBITDA margin stood at 15.28%. This growth underscores their commitment to operational excellence and gains from key domestic partnerships, combined with initial success in exports.

2. **Future Outlook and Growth Drivers**: Management projects growth driven by expanding into international markets and new business verticals, including entry into B2C segments and the jewellery retail space. They aim for year-on-year growth of 15%-20%, expecting significant revenue increases as new initiatives take hold.

3. **Order Book and Operational Updates**: Naman highlighted progress on their new facility in Wada, Maharashtra, anticipating enhanced manufacturing capacity of up to INR 270-300 crore upon completion. They also have executed over 18 projects in expanding domains like airport smoking lounges.

4. **Analyst Q&A Insights**: Analysts raised questions regarding revenue projections amid domestic market fluctuations, particularly following Diwali. Management acknowledged the lower offtake stemming from reduced retail openings but remained optimistic about recovery post-elections. Analysts expressed concerns over high working capital days, which are currently around 110-120 days.

5. **Market or Regulatory Updates**: Management noted ongoing domestic economic challenges, emphasizing sustained growth despite these hurdles, particularly as the government business is expected to recover post-election cycles.

6. **Strategic Focus Areas**: The call reflected a strong focus on innovation and customer customization, with a persistent effort to adapt to evolving market demands. Management exuded confidence in maintaining their market position through strategic client relationships.

7. **Investor Insight**: The financial improvements, coupled with proactive expansion strategies and strong margins, suggest a ‘buy’ position for retail investors. The focus on increasing operational capacity and entering new markets presents promising growth avenues, although upcoming operating challenges require monitoring.