Financials & FinTech research, Galliano’s Financials Research

Victor Galliano

Financials & FinTech research

Financials & FinTech, EM & Developed Markets

Galliano’s Financials Research

Galliano's Financials Research provides fundamental research in Emerging Markets financials, including FinTech, as well as financials in select Developed Markets.

The investment style applied is generally value oriented, although Growth At Reasonable Price (GARP) strategies can also be used where appropriate. 

Our investment research approach aim is often contrarian, looking to capitalise on overly sceptical or optimistic consensus views. In terms of valuation techniques, the focus is on PBV ratio to ROE, PE multiples and dividend yield, as well as the application of PEG ratios and, where appropriate, Sum of the Parts (SOTP) valuations.

Equity Bottom-Up

<ul>
<li>Our profitability and credit quality screens were generally, in terms of credit quality metrics to end-December 2021, more constructive than the prior quarter, whilst core profitability signals improved slightly</li>
<li>The threat of worsening credit quality in the coming quarters is still real, in our view, with the financial difficulties of Future Retail indicating potential corporate credit quality deterioration</li>
<li>We like quality play HDFC Bank, turn constructive on State Bank of India and we remain negative on Canara Bank and Bandhan Bank; neutral on Kotak Mahindra and ICICI Bank</li>
</ul>


Our profitability and credit quality screens were generally, in terms of credit quality metrics to end-December 2021, more constructive than the prior quarter, whilst core profitability signals improved slightly
The threat of worsening credit quality in the coming quarters is still real, in our view, with the financial difficulties of Future Retail indicating potential corporate credit quality deterioration
We like quality play HDFC Bank, turn constructive on State Bank of India and we remain negative on Canara Bank and Bandhan Bank; neutral on Kotak Mahindra and ICICI Bank


Indian Banks; Further Question Marks on Credit Quality

External broker reports(aggregated public sources), Edelweiss Broking Limited

Edelweiss

External broker reports(aggregated public sources)

Edelweiss Broking Limited

Edelweiss Broking Limited is an Indian Financial services company based in Mumbai, India. The company is a subsidiary of Edelweiss Group. 

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.

Improvement in all parameters<div class="content-highlight">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.</div>

Improvement in all parametersContent 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.

Silver Point

Thomas J. Monaco

Independent Insight Provider

Silver Point is a boutique research firm that focuses on the broader financial services sector, with a particular focus on troubled institutions globally. 

Asia Ex Japan

<ul>
<li>
Axis Bank (AXSB.IN) [Axis] has become the frontrunner to purchase Citigroup’s (C.US) India [Citi India] consumer business; </li>
<li>The Citi India transaction would represent a negative adjusted net spread of 41 bp for Axis – intimating a negative return on investment of 1.0%; and </li>
<li>As many customers have hit the exit button, we have already witnessed Citi India's retail loan portfolio decline 6.7% YOY prior to FY 2022 COVID-19 protocols. </li>
</ul>



Axis Bank (AXSB.IN) [Axis] has become the frontrunner to purchase Citigroup’s (C.US) India [Citi India] consumer business; 
The Citi India transaction would represent a negative adjusted net spread of 41 bp for Axis – intimating a negative return on investment of 1.0%; and 
As many customers have hit the exit button, we have already witnessed Citi India's retail loan portfolio decline 6.7% YOY prior to FY 2022 COVID-19 protocols. 


Specialist in Indian Banking and Economic Research

Hemindra Hazari

<ul>
<li>Toxity in Axis Bank's work culture confirmed by Ravi Narayanan - Group Executive, retail liabilities and branches</li>
<li>Senior executive at town hall meeting allegedly stated “employees should fight, abuse and complain amongst them [sic] for business, this is the attitude what [sic] I like”</li>
<li>Strategy of abuse so far has failed but with board's endorsement, more of the same is being implemented which may have adverse impact on performance </li>
</ul>


Toxity in Axis Bank's work culture confirmed by Ravi Narayanan - Group Executive, retail liabilities and branches
Senior executive at town hall meeting allegedly stated “employees should fight, abuse and complain amongst them [sic] for business, this is the attitude what [sic] I like”
Strategy of abuse so far has failed but with board's endorsement, more of the same is being implemented which may have adverse impact on performance 


Axis Bank’s Toxic Call to Staff to Fight, Abuse, and Undermine One Another in Pursuit of Business

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

<ul>
<li>Paytm raised around US$2.2bn via selling a mix of primary and secondary shares in its IPO.</li>
<li>We have covered various aspects of the deal in our previous notes links to which are below.</li>
<li>In this note, we will talk about the upcoming anchor book lock-up expiry and look at how past IPOs have done around this time period.</li>
</ul>


Paytm raised around US$2.2bn via selling a mix of primary and secondary shares in its IPO.
We have covered various aspects of the deal in our previous notes links to which are below.
In this note, we will talk about the upcoming anchor book lock-up expiry and look at how past IPOs have done around this time period.


Paytm (One 97) - Large Anchor Book Expiry, Prior Listings Have Corrected a Few Days Ahead

India

Axis Bank Limited provides a full range of banking services throughout India. The Group's activities include retail banking, investment management, merchant banking, treasury and NRI services, cash and credit management services, and ATM facilities.

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Axis Bank Ltd (AXSB IN)

Indian Banks; Further Question Marks on Credit Quality

We still have NPL concerns on Indian banks; yet we like quality play HDFC Bank, turn positive on State Bank of India & we stay negative on Canara &...

Victor Galliano

Axis Bank Ltd | Q3FY22 Result Update

Improvement in all parameters

Edelweiss

Axis Bank – Lost In The Citi

AXIS: Axis has become the frontrunner to purchase Citi India's consumer business. This deal would result in a negative ROI of 1.0% to Axis.

Thomas J. Monaco

Axis Bank’s Toxic Call to Staff to Fight, Abuse, and Undermine One Another in Pursuit of Business

Strategy of abusing staff so far has failed but with board of directors' endorsement, more of the same is being implemented which may have adverse...

Hemindra Hazari

Paytm (One 97) - Large Anchor Book Expiry, Prior Listings Have Corrected a Few Days Ahead

Paytm raised around US$2.2bn in its IPO. In this note, we look at the upcoming anchor book lock-up expiry and how other IPOs have done around that...

Sumeet Singh

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