Value Investing

Vladimir Dimitrov, CFA

Equity Bottom-Up

Estee Lauder Companies Cl A / Equity Bottom-Up

<ul>
<li>Estée Lauder continues to make new lows as risks related to its premium valuation and business concentration materialize.</li>
<li>Estée Lauder's return on capital is also facing long-lasting headwinds.</li>
<li>The company will remain too richly priced for the time being, according to the company's CEO.</li>
</ul>


Estée Lauder continues to make new lows as risks related to its premium valuation and business concentration materialize.
Estée Lauder's return on capital is also facing long-lasting headwinds.
The company will remain too richly priced for the time being, according to the company's CEO.


Estee Lauder: Premium Valuations Are Not Always Justified

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.

<ul><li>Estee Lauder had a mixed quarter.</li><li>Its organic net sales fell by 8% but its retail sales growth outpaced organic sales growth in numerous areas resulting in the company surpassing the revenue expectations of analysts.</li><li>Encouragingly, retail sales performance in global travel retail is far ahead of organic sales results.</li></ul>

Estee Lauder had a mixed quarter.Its organic net sales fell by 8% but its retail sales growth outpaced organic sales growth in numerous areas resulting in the company surpassing the revenue expectations of analysts.Encouragingly, retail sales performance in global travel retail is far ahead of organic sales results.

The Estee Lauder Companies Inc.: Retail Sales in Global Travel Retail

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

Honasa Consumer  / Equity Capital Markets

<ul>
<li>Honasa Consumer (HC) is looking to raise about US$350m in its upcoming India IPO.</li>
<li>HC’s product portfolio includes products in the baby care, face care, body care, hair care, color cosmetics and fragrances segments.</li>
<li>In this note, we will talk about the not-so-positive aspects of the deal.</li>
</ul>


Honasa Consumer (HC) is looking to raise about US$350m in its upcoming India IPO.
HC’s product portfolio includes products in the baby care, face care, body care, hair care, color cosmetics and fragrances segments.
In this note, we will talk about the not-so-positive aspects of the deal.


Honasa Consumer Pre-IPO - The Negatives - Ad Spending Keeping Profits Low

<ul><li>Estee Lauder delivered a highly disappointing result despite surpassing Wall Street expectations in terms of revenues as well as earnings.</li><li>With its business continuing to be pressured by external headwinds resulting from the pandemic, the organic net sales and the earnings per share decreased in the quarter for Estee Lauder.</li><li>Estee Lauder should also benefit from the acquisition of Tom Ford in competing with L’Oréal.</li></ul>

Estee Lauder delivered a highly disappointing result despite surpassing Wall Street expectations in terms of revenues as well as earnings.With its business continuing to be pressured by external headwinds resulting from the pandemic, the organic net sales and the earnings per share decreased in the quarter for Estee Lauder.Estee Lauder should also benefit from the acquisition of Tom Ford in competing with L’Oréal.

The Estee Lauder Companies Inc.: Major Drivers

<ul><li>Estee Lauder has shown some reversal in the past few days despite delivering a mixed set of results.</li><li>Besides, 13 brands had organic growth, growing by high single digits to account for more than half of their organic sales.</li><li>Overall, we remain neutral on Estee Lauder and maintain our ‘Hold’ rating with a revised target price.</li></ul>

Estee Lauder has shown some reversal in the past few days despite delivering a mixed set of results.Besides, 13 brands had organic growth, growing by high single digits to account for more than half of their organic sales.Overall, we remain neutral on Estee Lauder and maintain our ‘Hold’ rating with a revised target price.

Estee Lauder: The Balmain Partnership & Other Drivers

United States

The Estee Lauder Companies Inc. manufactures and markets a wide range of skin care, makeup, fragrance, and hair care products.  The Company's products are sold in countries and territories around the world.

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Estee Lauder Companies Cl A (EL US)

Estee Lauder: Premium Valuations Are Not Always Justified

Estée Lauder continues to make new lows as risks related to its premium valuation and business concentration materialize. Estée Lauder's return on...

Vladimir Dimitrov, CFA

The Estee Lauder Companies Inc.: Retail Sales in Global Travel Retail

Estee Lauder had a mixed quarter. Its organic net sales fell by 8% but its retail sales growth outpaced organic sales growth in numerous areas...

Baptista Research

Honasa Consumer Pre-IPO - The Negatives - Ad Spending Keeping Profits Low

Honasa Consumer (HC) is looking to raise about US$350m in its upcoming India IPO. In this note, we talk about the not-so-positive aspects of the deal.

Sumeet Singh

The Estee Lauder Companies Inc.: Major Drivers

Estee Lauder delivered a highly disappointing result despite surpassing Wall Street expectations in terms of revenues as well as earnings. With...

Baptista Research

Estee Lauder: The Balmain Partnership & Other Drivers

Estee Lauder has shown some reversal in the past few days despite delivering a mixed set of results. Besides, 13 brands had organic growth,...

Baptista Research

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