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 Capital Markets

<ul><li>Cummins had a successful first quarter, marked by a 12% increase in organic revenue growth, as well as higher-than-anticipated quarterly earnings before interest, taxes, depreciation, and amortization, net income, and earnings per share.</li><li>The higher EBITDA percentage was mainly driven by higher volumes and improved pricing, despite increased investment in new products and capabilities.</li><li>Operating cash flow was an inflow of $495 million, $331 million higher than the first quarter of last year, essentially due to higher earnings.</li></ul>

Cummins had a successful first quarter, marked by a 12% increase in organic revenue growth, as well as higher-than-anticipated quarterly earnings before interest, taxes, depreciation, and amortization, net income, and earnings per share.The higher EBITDA percentage was mainly driven by higher volumes and improved pricing, despite increased investment in new products and capabilities.Operating cash flow was an inflow of $495 million, $331 million higher than the first quarter of last year, essentially due to higher earnings.

Cummins Inc.: What Is Their Core Business Strategy? – Key Drivers

<ul><li>Cummins delivered a mixed set of results for the quarter, surpassing the revenue expectations of Wall Street but missing out on earnings.</li><li>Also, through its subsidiary Meritor, Cummins announced the completion of its acquisition of the commercial vehicles business of Siemens.</li><li>Demand for the products of the company remained quite strong across its key regions and markets, which resulted in strong revenue in this quarter.</li></ul>

Cummins delivered a mixed set of results for the quarter, surpassing the revenue expectations of Wall Street but missing out on earnings.Also, through its subsidiary Meritor, Cummins announced the completion of its acquisition of the commercial vehicles business of Siemens.Demand for the products of the company remained quite strong across its key regions and markets, which resulted in strong revenue in this quarter.

Cummins Inc: Acquisition Of Siemens’ Commercial Vehicles Business & Other Drivers

Equity Bottom-Up

<ul><li>Cummins delivered a third consecutive all-around beat in a quarter that was marked by a number of significant developments including many ke partnerships.</li><li>The company announced partnerships with Daimler Truck, Scania, and North America for delivering fuel cell electric powertrains for heavy-duty truck applications, with Komatsu on developing haulage equipment zero-emission which includes hydrogen fuel cell solutions for the large mining haul truck applications.</li><li>It also achieved a significant milestone in the quarter related to two acquisitions, namely Meritor and Jacobs Vehicle Systems.</li></ul>

Cummins delivered a third consecutive all-around beat in a quarter that was marked by a number of significant developments including many ke partnerships.The company announced partnerships with Daimler Truck, Scania, and North America for delivering fuel cell electric powertrains for heavy-duty truck applications, with Komatsu on developing haulage equipment zero-emission which includes hydrogen fuel cell solutions for the large mining haul truck applications.It also achieved a significant milestone in the quarter related to two acquisitions, namely Meritor and Jacobs Vehicle Systems.

Cummins Inc: The Meritor Acquisition & Other Drivers

<ul><li>Cummins continued its steady, mid-single-digit growth trajectory since the start of 2022 and reported a revenue of $6.4 billion, up 5% from the previous year.</li><li>Due to a sharp slowdown in China, the company’s international revenues fell by 3% but sales in North America increased by 12%.</li><li>The company’s international top-line was negatively impacted by 2% due to unfavourable currency movements.</li></ul>

Cummins continued its steady, mid-single-digit growth trajectory since the start of 2022 and reported a revenue of $6.4 billion, up 5% from the previous year.Due to a sharp slowdown in China, the company’s international revenues fell by 3% but sales in North America increased by 12%.The company’s international top-line was negatively impacted by 2% due to unfavourable currency movements.

Cummins Inc.: The Daimler Collaboration & Other Developments

AlphaSituations-Event/Catalyst Driven Research, AlphaSituations

Robert Sassoon

AlphaSituations-Event/Catalyst Driven Research

AlphaSituations

Since its establishment, AlphaSituations has delivered a track record of outperformance with a hit rate of winners of more than 70% of its portfolio of ideas generating annualized average returns of 20%. In January 2022, AlphaSituations was contracted by Water Tower Research, an investor engagement and stakeholder communication platform to provide coverage of Special Situations

Event-Driven

<ul>
<li>The 18% spread suggests there the <a href="https://www.smartkarma.com/entities/apollo-global-management-inc" target="_blank" data-smartkarma-citation="entities:28770:1" rel="noopener">Apollo Global Management Inc (APO US)</a> / <a href="https://www.smartkarma.com/entities/tenneco-inc" target="_blank" data-smartkarma-citation="entities:6260:1" rel="noopener">Tenneco Inc (TEN US)</a> transaction is fraught with risks which, we believe, are more imaginary than real</li>
<li>With TEN shareholders expected to approve the merger next week, we assess regulatory obstacles low and the risk of APO reconsidering the transaction unlikely except in the most unexpected circumstances   </li>
<li>Overall we believe the risk-reward for arbs skews to the attractive with the opportunity to game IRRs in excess of 30%</li>
</ul>


The 18% spread suggests there the Apollo Global Management Inc (APO US) / Tenneco Inc (TEN US) transaction is fraught with risks which, we believe, are more imaginary than real
With TEN shareholders expected to approve the merger next week, we assess regulatory obstacles low and the risk of APO reconsidering the transaction unlikely except in the most unexpected circumstances   
Overall we believe the risk-reward for arbs skews to the attractive with the opportunity to game IRRs in excess of 30%


MergerTalk: Why We Think The Risk In Apollo's Tenneco Buy Out Is Overpriced

United States

Cummins Inc. designs, manufactures, distributes and services diesel and natural gas engines. The Company also manufactures electric power generation systems and engine-related component products, including filtration and exhaust aftertreatment, fuel systems, controls, and air handling systems.

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Cummins Inc (CMI US)

Cummins Inc.: What Is Their Core Business Strategy? – Key Drivers

Cummins had a successful first quarter, marked by a 12% increase in organic revenue growth, as well as higher-than-anticipated quarterly earnings...

Baptista Research

Cummins Inc: Acquisition Of Siemens’ Commercial Vehicles Business & Other Drivers

Cummins delivered a mixed set of results for the quarter, surpassing the revenue expectations of Wall Street but missing out on earnings. Also,...

Baptista Research

Cummins Inc: The Meritor Acquisition & Other Drivers

Cummins delivered a third consecutive all-around beat in a quarter that was marked by a number of significant developments including many ke...

Baptista Research

Cummins Inc.: The Daimler Collaboration & Other Developments

Cummins continued its steady, mid-single-digit growth trajectory since the start of 2022 and reported a revenue of $6.4 billion, up 5% from the...

Baptista Research

MergerTalk: Why We Think The Risk In Apollo's Tenneco Buy Out Is Overpriced

Whether the oversized spread underestimates Apollo's commitment to the transaction terms or overestimates the deal's regulatory obstacles, either...

Robert Sassoon

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