Consumer Analyst / Channel Surveillance Specialist, Trudence Capital Advisors

Pranav Bhavsar

Consumer Analyst / Channel Surveillance Specialist

Trudence Capital Advisors

Trudence Capital Advisors Private Limited is a SEBI-registered Research Analyst, holding SEBI registration number INH000015747. Our firm is dedicated to providing independent and unbiased research on Indian mid to large-cap companies. Trudence Capital is known for its counter-consensus views, with a focus on forensic research and on-ground primary investigations. Our research approach is thorough, involving detailed analysis of accounting practices and governance, alongside extensive channel checks.

Independent & Unbiased Research

Equity Bottom-Up

<ul>
<li>We interact with <a href="https://www.smartkarma.com/entities/home-first-finance-company-india" target="_blank" data-smartkarma-citation="entities:28865:1" rel="noopener">Home First Finance (HOMEFIRS IN)</a>  branch managers to understand the reason behind the increase in bounce rates.</li>
<li>The overall NACH data also shows a high rejection rate in October despite being a festive month, which is surprising.</li>
<li>With 92% of <a href="https://www.smartkarma.com/entities/home-first-finance-company-india" target="_blank" data-smartkarma-citation="entities:28865:1" rel="noopener">Home First Finance (HOMEFIRS IN)</a> loans being disbursed in less than 48 hours, this focus on TAT could lead to higher than industry-average asset quality issues. </li>
</ul>


We interact with Home First Finance (HOMEFIRS IN)  branch managers to understand the reason behind the increase in bounce rates.
The overall NACH data also shows a high rejection rate in October despite being a festive month, which is surprising.
With 92% of Home First Finance (HOMEFIRS IN) loans being disbursed in less than 48 hours, this focus on TAT could lead to higher than industry-average asset quality issues. 


Home First Finance (HOMEFIRS IN) | Bounce Rate and Sales Pressure

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Five Star Business Finance / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/five-star-business-finance" target="_blank" data-smartkarma-citation="entities:35238:1" rel="noopener">Five Star Business Finance (0958461D IN)</a> is looking to raise around US$250m in its upcoming India IPO. </li>
<li>Five-Star Business is a non-banking financial company (NBFC-ND-SI) that provides secured business loans to micro-entrepreneurs and self-employed individuals.</li>
<li>We have looked at various aspects of the deal in our previous note, in this note, we talk about valuations.</li>
</ul>



Five Star Business Finance (0958461D IN) is looking to raise around US$250m in its upcoming India IPO. 
Five-Star Business is a non-banking financial company (NBFC-ND-SI) that provides secured business loans to micro-entrepreneurs and self-employed individuals.
We have looked at various aspects of the deal in our previous note, in this note, we talk about valuations.


Five-Star Business IPO - Thoughts on Valuation

<ul>
<li>
<a href="https://www.smartkarma.com/entities/five-star-business-finance" target="_blank" data-smartkarma-citation="entities:35238:1" rel="noopener">Five Star Business Finance (0958461D IN)</a> is looking to raise around US$250m in its upcoming India IPO. </li>
<li>Five-Star Business is a non-banking financial company (NBFC-ND-SI) that provides secured business loans to micro-entrepreneurs and self-employed individuals.</li>
<li>In this note, we talk about the RHP updates and undertake a peer comparison.</li>
</ul>



Five Star Business Finance (0958461D IN) is looking to raise around US$250m in its upcoming India IPO. 
Five-Star Business is a non-banking financial company (NBFC-ND-SI) that provides secured business loans to micro-entrepreneurs and self-employed individuals.
In this note, we talk about the RHP updates and undertake a peer comparison.


Five-Star Business IPO - RHP Updates and Peer Comparion

<ul>
<li>
<a href="https://www.smartkarma.com/entities/home-first-finance-company-india" target="_blank" data-smartkarma-citation="entities:28865:1" rel="noopener">Home First Finance (HOMEFIRS IN)</a> is growing fast and has a low operating cost, there is a reason why. </li>
<li>
<a href="https://www.smartkarma.com/entities/aavas-financiers-ltd" target="_blank" data-smartkarma-citation="entities:27422:1" rel="noopener">Aavas Financiers Ltd (AAVAS IN)</a> operates in its own specific domain taking only risks that it is comfortable with.  </li>
<li>Competitive feedback is positive for <a href="https://www.smartkarma.com/entities/iifl-holdings-ltd" target="_blank" data-smartkarma-citation="entities:20197:1" rel="noopener">IIFL Holdings (IIFL IN)</a> 's HF subsidiary. <a href="https://www.smartkarma.com/entities/capri-global-capital-ltd" target="_blank" data-smartkarma-citation="entities:18094:1" rel="noopener">Capri Global Capital (CGCL IN)</a> seems to be following AU Bank's footsteps, but hopefully only in underwriting.</li>
</ul>



Home First Finance (HOMEFIRS IN) is growing fast and has a low operating cost, there is a reason why. 

Aavas Financiers Ltd (AAVAS IN) operates in its own specific domain taking only risks that it is comfortable with.  
Competitive feedback is positive for IIFL Holdings (IIFL IN) 's HF subsidiary. Capri Global Capital (CGCL IN) seems to be following AU Bank's footsteps, but hopefully only in underwriting.


India Channel Insight #44 | Home First, Aavas, IIFL Home Finance, Capri Global

APAC IPOs & Placements, Aequitas Research

Clarence Chu

APAC IPOs & Placements

Tamilnad Mercantile Bank Ltd / Equity Capital Markets

<p>Tamilnad Mercantile Bank is looking to raise about US$137m in its upcoming India IPO. The deal will be run by Axis Capital, Motilal Oswal and SBI Capital.</p><p>Tamilnad Mercantile Bank is one of the oldest private sector banks in India, offering banking and financial services to micro, small and medium enterprises (MSME), agricultural and retail customers (RAM). As of Jun 21, it had 509 branches, of which 106 were in rural areas, 247 in semi-urban, 80 in urban and 76 in metropolitan centres. Its overall consumer base is approximately 4.93m and 69.96% of its customers have been associated with the bank for a period of more than five years, contributing 67.02% of deposits and 57.56% of advances.</p>

Tamilnad Mercantile Bank is looking to raise about US$137m in its upcoming India IPO. The deal will be run by Axis Capital, Motilal Oswal and SBI Capital.Tamilnad Mercantile Bank is one of the oldest private sector banks in India, offering banking and financial services to micro, small and medium enterprises (MSME), agricultural and retail customers (RAM). As of Jun 21, it had 509 branches, of which 106 were in rural areas, 247 in semi-urban, 80 in urban and 76 in metropolitan centres. Its overall consumer base is approximately 4.93m and 69.96% of its customers have been associated with the bank for a period of more than five years, contributing 67.02% of deposits and 57.56% of advances.

Tamilnad Mercantile Bank Pre-IPO Tearsheet

India

Aavas Financiers Limited provides consumer finance services. The Company offers home, land purchase, construction, home improvement, balance transfer, and business loans. Aavas Financiers serves customers in India.

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Aavas Financiers Ltd (AAVAS IN)

Home First Finance (HOMEFIRS IN) | Bounce Rate and Sales Pressure

We interact with our channels at Home First and industry professionals to understand the trend in bounce rates, demand environment and competitive...

Pranav Bhavsar

Five-Star Business IPO - Thoughts on Valuation

Five Star Business Finance is looking to raise around US$250m in its upcoming India IPO. In this note, we'll talk about valuations.

Sumeet Singh

Five-Star Business IPO - RHP Updates and Peer Comparion

Five Star Business Finance is looking to raise around US$250m in its upcoming India IPO. In this note, we talk about the RHP updates and undertake...

Sumeet Singh

India Channel Insight #44 | Home First, Aavas, IIFL Home Finance, Capri Global

We visit a tier 1 location in western India, to understand affordable housing, credit practices and the organizational culture of the key players...

Pranav Bhavsar

Tamilnad Mercantile Bank Pre-IPO Tearsheet

Tamilnad Mercantile Bank is looking to raise about US$137m in its upcoming India IPO. The deal will be run by Axis Capital, Motilal Oswal and SBI...

Clarence Chu

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