Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

NewMarket Corporation develops, manufactures, and blends fuel and lubricant additives marketed worldwide to refiners and others who sell petroleum products. The Company's products are used in transportation and industrial equipment.

<ul><li>NewMarket Corporation reported a solid performance in the first quarter of 2024, with notable developments in financial results and strategic actions aimed at expanding its business operations.</li><li>The company reported a net income of $108 million or $11.23 per share, reflecting an increase from $98 million or $10.09 per share in the same period the previous year.</li><li>The primary revenue generator, the petroleum additives segment, demonstrated a robust operating profit of $151 million up from $132 million in the first quarter of 2023, though it experienced a slight decline in sales from $700 million in the previous year to $677 million.</li></ul>

NewMarket Corporation reported a solid performance in the first quarter of 2024, with notable developments in financial results and strategic actions aimed at expanding its business operations.The company reported a net income of $108 million or $11.23 per share, reflecting an increase from $98 million or $10.09 per share in the same period the previous year.The primary revenue generator, the petroleum additives segment, demonstrated a robust operating profit of $151 million up from $132 million in the first quarter of 2023, though it experienced a slight decline in sales from $700 million in the previous year to $677 million.

NewMarket Corporation: The AMPAC Acquisition & Strengthening of Petroleum Additives Makes Us Bullish! - Major Drivers

Axalta Coating Systems / Equity Bottom-Up

Axalta Coating Systems Ltd. manufactures, markets and distributes coatings systems. The Company offers products and services which includes paint, color matching tools, application technologies, and customer  training and business management systems. Axalta Coating Systems serves automotive, transportation,  general industrial, and architectural and decorative sectors.

<ul><li>Axalta Coating Systems reported a stable set of results for the first quarter of 2024.</li><li>The company demonstrated resilience through flat year-over-year net sales and a significant increase in Adjusted EBITDA, which was reported as a record for any first quarter in the history of Axalta Coating Systems.</li><li>The margins have shown a notable improvement, providing optimism for further growth potential.</li></ul>

Axalta Coating Systems reported a stable set of results for the first quarter of 2024.The company demonstrated resilience through flat year-over-year net sales and a significant increase in Adjusted EBITDA, which was reported as a record for any first quarter in the history of Axalta Coating Systems.The margins have shown a notable improvement, providing optimism for further growth potential.

Axalta Coating Systems Ltd.: Its Asia Expansion & Strategic Market Positioning Is Driving Our Optimism! - Major Drivers

Valvoline Inc. manufactures and distributes automotive lubricants and chemicals. The Company offers motor oil, additives, antifreeze, brake fluid, and grease products. Valvoline also owns the oil change and express care chains of car repair centers.

<ul><li>Valvoline's performance in the second quarter of fiscal 2024 demonstrates robust growth and operational efficiency.</li><li>The company showed an impressive growth trajectory with system-wide store sales increasing by 13% to $746 million.</li><li>The expansion was complemented by a significant rise in profitability, evidenced by a 21% increase in adjusted EBITDA to $105 million and a notable jump in adjusted earnings per share (EPS), which increased over 60% to $0.37 per share.</li></ul>

Valvoline's performance in the second quarter of fiscal 2024 demonstrates robust growth and operational efficiency.The company showed an impressive growth trajectory with system-wide store sales increasing by 13% to $746 million.The expansion was complemented by a significant rise in profitability, evidenced by a 21% increase in adjusted EBITDA to $105 million and a notable jump in adjusted earnings per share (EPS), which increased over 60% to $0.37 per share.

Valvoline Inc.: A Tale Of Enhanced Service Portfolio and Innovation! - Major Drivers

Element Solutions Inc operates as a specialty chemicals company. The Company manufactures and supplies specialty chemicals used by the electronics, metal and plastic plating, graphic arts, and offshore oil production and drilling industries. Element Solutions serves customers worldwide.

<ul><li>Element Solutions Inc reported a positive start to 2024 with its Q1 results reflecting a mixed macroeconomic environment.</li><li>The company saw a modest organic sales growth of 1% year-over year, while the constant currency adjusted EBITDA grew by a robust 17%, demonstrating substantial margin expansion.</li><li>The Electronics segment appeared resilient, benefiting notably from recovery in high-margin semiconductor and circuitry businesses in Asia.</li></ul>

Element Solutions Inc reported a positive start to 2024 with its Q1 results reflecting a mixed macroeconomic environment.The company saw a modest organic sales growth of 1% year-over year, while the constant currency adjusted EBITDA grew by a robust 17%, demonstrating substantial margin expansion.The Electronics segment appeared resilient, benefiting notably from recovery in high-margin semiconductor and circuitry businesses in Asia.

Element Solutions Inc: The Story Behind The Innovative Product Initiatives and Kuprion Integration! - Major Drivers

External broker reports(aggregated public sources), Topline Securities

Topline Securities

External broker reports(aggregated public sources)

Topline Securities is one of the fastest growing brokerage houses in Pakistan. It has strong equity brokerage, economic / equity research, mutual fund distribution, commodity trading and corporate finance & advisory functions. Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Lucky Cement Limited manufactures and sells cement.  The Company's cement brands include Lucky Gold Brand, Lucky Brand, Lucky Star Brand. Lucky Cement's main plant site is located at the District Lucky Marwat in the North West Frontier province of Pakistan.

<ul><li>We reiterate our "BUY" stance on Lucky Cement (LUCK) with a revised June 2025 Sum of the Parts (SOTP) based Target Price (TP) of Rs1,561/share, offering a potential upside of 73% (total return: 77%).</li><li>LUCK is our preferred pick due to; (1) Cement: Superior cement margins and profitability because of efficiency and timely expansion of a new cement plant, (2) Autos: Reduction in policy rate and likely launch of new model/variant to drive auto/mobile sales, (3) LCI: Soda Ash Expansion and multiple favorable stories in Pharma sector i.e. deregulation of non essential, Pfizer acquisition, (4) Coal Power Plant: Improving recoveries in coal power plant, (5) Foreign Operations: Strong margins and profitability of foreign cement operations due to change in fuel mix and expansion announcement in Iraq, and (6) Strong Cash Generation: Strong annual cash flows due to exceptional EBITDA margins from cement business and dividends from subsidiaries/associates.</li><li>We estimate a consolidated EPS forecast of Rs260.8 and Rs294.2 for FY25F and FY26F, respectively. We expect 3-Year (FY24-26) earning CAGR of 21% on a consolidated basis.</li></ul><p><em>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.</em></p>

We reiterate our "BUY" stance on Lucky Cement (LUCK) with a revised June 2025 Sum of the Parts (SOTP) based Target Price (TP) of Rs1,561/share, offering a potential upside of 73% (total return: 77%).LUCK is our preferred pick due to; (1) Cement: Superior cement margins and profitability because of efficiency and timely expansion of a new cement plant, (2) Autos: Reduction in policy rate and likely launch of new model/variant to drive auto/mobile sales, (3) LCI: Soda Ash Expansion and multiple favorable stories in Pharma sector i.e. deregulation of non essential, Pfizer acquisition, (4) Coal Power Plant: Improving recoveries in coal power plant, (5) Foreign Operations: Strong margins and profitability of foreign cement operations due to change in fuel mix and expansion announcement in Iraq, and (6) Strong Cash Generation: Strong annual cash flows due to exceptional EBITDA margins from cement business and dividends from subsidiaries/associates.We estimate a consolidated EPS forecast of Rs260.8 and Rs294.2 for FY25F and FY26F, respectively. We expect 3-Year (FY24-26) earning CAGR of 21% on a consolidated basis.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.

Lucky Cement (LUCK): Growth through business diversification; Reiterate Buy!

Materials
Insights in the Materials Space

NewMarket Corporation: The AMPAC Acquisition & Strengthening of Petroleum Additives Makes Us Bullish! - Major Drivers

NewMarket Corporation reported a solid performance in the first quarter of 2024, with notable developments in financial results and strategic...

Baptista Research

Axalta Coating Systems Ltd.: Its Asia Expansion & Strategic Market Positioning Is Driving Our Optimism! - Major Drivers

Axalta Coating Systems reported a stable set of results for the first quarter of 2024. The company demonstrated resilience through flat...

Baptista Research

Valvoline Inc.: A Tale Of Enhanced Service Portfolio and Innovation! - Major Drivers

Valvoline's performance in the second quarter of fiscal 2024 demonstrates robust growth and operational efficiency. The company showed an...

Baptista Research

Element Solutions Inc: The Story Behind The Innovative Product Initiatives and Kuprion Integration! - Major Drivers

Element Solutions Inc reported a positive start to 2024 with its Q1 results reflecting a mixed macroeconomic environment. The company saw a modest...

Baptista Research

Lucky Cement (LUCK): Growth through business diversification; Reiterate Buy!

We reiterate our "BUY" stance on Lucky Cement (LUCK) with a revised June 2025 Sum of the Parts (SOTP) based Target Price (TP) of...

Topline Securities