India Equity Analyst - Fundamental & Thematic, Beat the Street

Sudarshan Bhandari

India Equity Analyst - Fundamental & Thematic

Beat the Street

Beat The Street was founded by Nimish Maheshwari and Sudarshan Bhandari, both of whom are Chartered Accountants by Profession, known for their expert analysis in the fields of Business, Sectoral analysis, and Corporate governance.

With a strong social media presence of 45,000+ Subscribers across various platforms, they are considered trusted voices in the industry. Their insights and analysis have been featured in some of India’s most prominent publications, including the Economic Times, Dalal Street Investment Journal, The Morning Context, and The Ken.

Their analysis on Bankrupt & Insolvent companies has been instrumental in saving investors from significant losses. They have a keen eye for identifying red flags and has identified exclusive redflags earlier in Vedanta, Nykaa, Dhani Services, Adani and many more.

Read Business Not Stock Prices

Thematic (Sector/Industry)

<ul>
<li>Big Tech companies are already generating significant revenue from AI. Microsoft expects to reach $10 billion in AI revenue by the next quarter, making it their fastest-growing area.</li>
<li>In the third quarter of 2024 alone Microsoft, Google, and Meta collectively spent over $42 billion on AI infrastructure, primarily on building data centers and purchasing computing equipment.</li>
<li>Companies are projecting continued high spending on AI into 2025 to meet growing demand. However, challenges remain, including supply constraints for AI chips</li>
</ul>


Big Tech companies are already generating significant revenue from AI. Microsoft expects to reach $10 billion in AI revenue by the next quarter, making it their fastest-growing area.
In the third quarter of 2024 alone Microsoft, Google, and Meta collectively spent over $42 billion on AI infrastructure, primarily on building data centers and purchasing computing equipment.
Companies are projecting continued high spending on AI into 2025 to meet growing demand. However, challenges remain, including supply constraints for AI chips


Thematic Report: AI Wave- Big Tech's Spending Spree

Market & Forensics Analyst, Beat the Street

Nimish Maheshwari

Market & Forensics Analyst

<ul>
<li>India is experiencing a slowdown in capital expenditure (capex), both in the government and private sectors. This slowdown, largely attributed to the general elections in the Q1 of FY25.</li>
<li>The central government has set an ambitious target of 50.5% capex growth in the second half of FY25 to compensate for the sluggish first half.</li>
<li>The capex slowdown has resulted in reduced investment in crucial infrastructure projects, impacting key sectors such as defense, roads, and railways.</li>
</ul>


India is experiencing a slowdown in capital expenditure (capex), both in the government and private sectors. This slowdown, largely attributed to the general elections in the Q1 of FY25.
The central government has set an ambitious target of 50.5% capex growth in the second half of FY25 to compensate for the sluggish first half.
The capex slowdown has resulted in reduced investment in crucial infrastructure projects, impacting key sectors such as defense, roads, and railways.


Thematic Report: India's Capex Growth Ambitions Vs. Reality

External broker reports(aggregated public sources), BRI Danareksa Research

BRI Danareksa Research

External broker reports(aggregated public sources)

As a one-stop financial solution with the vision to be the most valuable securities house, BRI Danareksa Sekuritas (BRIDS) has maintained an excellent track record and extensive experience in the capital market as an underwriter, broker, and financial advisor for individual, institutional, foreign and domestic, private and government clients. Established in 1992, PT Danareksa Sekuritas is a securities company that performs activities as a securities broker, underwriter, or arranger and financial advisor.

Equity Bottom-Up

PT Mitra Adiperkasa Tbk operates department stores and specialty stores selling a broad range of goods including clothing, toys, food, and other merchandise.

<ul><li>Mitra Adiperkasa (MAPI IJ)Share price underperformance has priced in pessimistic growth expectation; Maintain Buy rating3Q24 performance was driven by Active in both margins and revenue, while Fashion and F&amp;B faced margin pressures.</li><li>We trimmed our FY24/ 25F net profit est. by 2.3%/5.8%, leading to FY25F EPS growth est of 16.8%, driven by Active and Fashion expansion.</li><li>We expect MAPI to sustain revenue and net profit growth and thus see 9.5% YTD share price correction to be unwarranted. Maintain Buy.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Mitra Adiperkasa (MAPI IJ)Share price underperformance has priced in pessimistic growth expectation; Maintain Buy rating3Q24 performance was driven by Active in both margins and revenue, while Fashion and F&amp;B faced margin pressures.We trimmed our FY24/ 25F net profit est. by 2.3%/5.8%, leading to FY25F EPS growth est of 16.8%, driven by Active and Fashion expansion.We expect MAPI to sustain revenue and net profit growth and thus see 9.5% YTD share price correction to be unwarranted. Maintain Buy.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Mitra Adiperkasa - Share Price Underperformance Has Priced in Pessimistic Growth Expectation

MAP Aktif Adiperkasa PT / Equity Bottom-Up

PT MAP Aktif Adiperkasa Tbk retails sporting goods. The Company operates an online portal that offers a wide range boots, shoes, sandals, shorts, caps, hoodies, and accessories. Map Aktif Adiperkasa serves customers in Indonesia.

<ul><li>New store openings and cost management initiatives drove solid 9M24 net profit growth of 8.4% yoy. </li><li>We increased our FY24/25F net profit estimates by 12.4% and 10.2%, reflecting solid 9M24 results and expectations of more store openings. </li><li>We expect the upcoming festive events to sustain growth momentum for MAPA. Maintain Buy rating with a higher TP of Rp1,250.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

New store openings and cost management initiatives drove solid 9M24 net profit growth of 8.4% yoy. We increased our FY24/25F net profit estimates by 12.4% and 10.2%, reflecting solid 9M24 results and expectations of more store openings. We expect the upcoming festive events to sustain growth momentum for MAPA. Maintain Buy rating with a higher TP of Rp1,250.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

MAP Aktif - Store Expansions and Cost Efficiency Drive FY24-26F Est. And TP Upgrade

Chief Executive Officer, Emmer Capital Partners Limited

Manishi Raychaudhuri

Chief Executive Officer

Emmer Capital Partners Limited

Emmer Capital Partners is an Asia Pacific focused financial advisory firm engaging in strategic financial asset allocation advice, bespoke thematic research and advising early-stage companies and connecting them to investors. Emmer Capital provides macro-economic and multi-asset investment strategy inputs to institutions, family offices, private wealth managers, private equity, and corporate boards directly and through independent research platforms. Emmer Capital also advises a wide range of startup companies on fund raising and business strategy. Emmer Capital's active engagement with the print and electronic media reaches a broad spectrum of investors across the globe.

Cross Asset Strategy

<ul>
<li>A key medium-term driver of share price is earnings estimate trajectory - in particular, "earnings inflections" - i.e. the trajectory of earnings estimates changing directions. </li>
<li>Different Asian markets have had different estimate trajectories. But most suffered estimate cuts since August/September 2024, coinciding with the US Dollar appreciation and the spike in US yields.</li>
<li>We argue that investors need to watch out for Taiwan, Indonesia, Malaysia and India for earnings estimate increases. India's could decline in the near term and commence an uptrend later. </li>
</ul>


A key medium-term driver of share price is earnings estimate trajectory - in particular, "earnings inflections" - i.e. the trajectory of earnings estimates changing directions. 
Different Asian markets have had different estimate trajectories. But most suffered estimate cuts since August/September 2024, coinciding with the US Dollar appreciation and the spike in US yields.
We argue that investors need to watch out for Taiwan, Indonesia, Malaysia and India for earnings estimate increases. India's could decline in the near term and commence an uptrend later. 


Asian Equities: In Search of Earnings Estimate Uptrends

Indonesia Selamat Pagi!
Bottom-up Indonesia Insights

Thematic Report: AI Wave- Big Tech's Spending Spree

Big Tech companies like Microsoft are seeing massive revenue growth from AI, with projections of $10 billion in AI revenue by next quarter.

Sudarshan Bhandari

Thematic Report: India's Capex Growth Ambitions Vs. Reality

India's capital expenditure is slowing down due to elections, prompting the government to aim for 50.5% growth in the second half of FY25 to make...

Nimish Maheshwari

MAP Aktif - Store Expansions and Cost Efficiency Drive FY24-26F Est. And TP Upgrade

New store openings and cost management initiatives drove solid 9M24 net profit growth of 8.4% yoy. We increased our FY24/25F net profit estimates...

BRI Danareksa Research

Asian Equities: In Search of Earnings Estimate Uptrends

Earnings estimate trajectory, especially "earnings inflection," are key drivers of share price in Asian markets. We see potential uptrends in...

Manishi Raychaudhuri

Thematic Report: AI Wave- Big Tech's Spending Spree

​Big Tech companies like Microsoft are seeing massive revenue growth from AI, with projections of $10 billion in AI revenue by next quarter.

Sudarshan Bhandari

Thematic Report: India's Capex Growth Ambitions Vs. Reality

​India's capital expenditure is slowing down due to elections, prompting the government to aim for 50.5% growth in the second half of FY25 to make...

Nimish Maheshwari

Mitra Adiperkasa - Share Price Underperformance Has Priced in Pessimistic Growth Expectation

We expect MAPI to sustain revenue and net profit growth and thus see 9.5% YTD share price correction to be unwarranted. Maintain Buy.

BRI Danareksa Research

MAP Aktif - Store Expansions and Cost Efficiency Drive FY24-26F Est. And TP Upgrade

New store openings and cost management initiatives drove solid 9M24 net profit growth of 8.4% yoy. We increased our FY24/25F net profit estimates...

BRI Danareksa Research

Asian Equities: In Search of Earnings Estimate Uptrends

​Earnings estimate trajectory, especially "earnings inflection," are key drivers of share price in Asian markets. We see potential uptrends in...

Manishi Raychaudhuri

Big Tech companies like Microsoft are seeing massive revenue growth from AI, with projections of $10 billion in AI revenue by next quarter.

India's capital expenditure is slowing down due to elections, prompting the government to aim for 50.5% growth in the second half of FY25 to make...

Earnings estimate trajectory, especially "earnings inflection," are key drivers of share price in Asian markets. We see potential uptrends in...