Asia Consumer Research, Investory

Devi Subhakesan

Asia Consumer Research

ASIA CONSUMER: INSIGHTS AND INVESTMENT IDEAS

Investory

Investory is a Singapore-based boutique independent equity research firm founded in January 2017 with a primary focus on consumption themes across Asia-Pacific.

We aim to generate investible ideas based on consumption trends and outlook. We screen our ideas on several parameters - product potential, long-term growth and management commitment being the most critical.  We follow a fundamental analysis approach in our stock selection process and are not restricted by market cap.

We aspire to grow into a leading source of unbiased research, free of conflict of interest, for investors yearning for independent and disciplined analysis. 

We also undertake bespoke research mandates to support our Institutional clients’ investment needs.

Our team comprises of professionals with extensive experience in the Asian equity markets, in areas ranging from research, servicing institutional clients and investment management.

Equity Capital Markets

FSN E-Commerce Ventures (Nykaa) / Equity Capital Markets

In this insight, we analyze <a href="https://www.smartkarma.com/entities/fsn-e-commerce-ventures-nykaa" target="_blank" data-smartkarma-citation="entities:33796:1" rel="noopener">FSN E-Commerce Ventures (Nykaa)</a> 's IPO by valuing its two distinctly different businesses - Beauty &amp; Personal care (BPC) and Fashion - separately, based on two sets of peer valuation. We also share our GMV (Gross Merchandise Value) projections for <a href="https://www.smartkarma.com/entities/fsn-e-commerce-ventures-nykaa" target="_blank" data-smartkarma-citation="entities:33796:1" rel="noopener">FSN E-Commerce Ventures (Nykaa)</a> based on a bottom-up analysis using key operational metrics of Beauty &amp; Personal care (BPC) and Fashion retail. We also ran a rationality check on our projections by comparing them with top-down analysis. See detailed tables in the report below.A key challenge that investors face in valuing Nykaa is the lack of listed comparable peers. We note that Nykaa's established BPC business is comparable to any high growth-high margin branded consumer, retail play in India given a similar operating structure. However, its emerging fashion retail is run as a marketplace with much stronger growth potential but at lower margins. Hence online consumer marketplace operators like <a href="https://www.smartkarma.com/entities/zomato-media-pvt" target="_blank" data-smartkarma-citation="entities:28820:1" rel="noopener">Zomato (ZOMATO IN)</a> could be a better fit for its peer comparison.For background read on the company's key strengths, concerns, and competitive landscape, please refer to our earlier insight <a href="https://www.smartkarma.com/insights/fsn-ecommerce-nykaa-ipo-glowing-beauty-growing-fashion-a-primer" target="_blank" data-smartkarma-citation="insights:55547" rel="noopener">FSN ECommerce (Nykaa) IPO: Glowing Beauty, Growing Fashion. A Primer.</a>

In this insight, we analyze FSN E-Commerce Ventures (Nykaa) 's IPO by valuing its two distinctly different businesses - Beauty &amp; Personal care (BPC) and Fashion - separately, based on two sets of peer valuation. We also share our GMV (Gross Merchandise Value) projections for FSN E-Commerce Ventures (Nykaa) based on a bottom-up analysis using key operational metrics of Beauty &amp; Personal care (BPC) and Fashion retail. We also ran a rationality check on our projections by comparing them with top-down analysis. See detailed tables in the report below.A key challenge that investors face in valuing Nykaa is the lack of listed comparable peers. We note that Nykaa's established BPC business is comparable to any high growth-high margin branded consumer, retail play in India given a similar operating structure. However, its emerging fashion retail is run as a marketplace with much stronger growth potential but at lower margins. Hence online consumer marketplace operators like Zomato (ZOMATO IN) could be a better fit for its peer comparison.For background read on the company's key strengths, concerns, and competitive landscape, please refer to our earlier insight FSN ECommerce (Nykaa) IPO: Glowing Beauty, Growing Fashion. A Primer.

FSN Ecommerce IPO Valuation: Nykaa Can Be Appetizing if You Liked Zomato

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

For this insight, we present our takeaways from interaction with channels associated with <a href="https://www.smartkarma.com/entities/havells-india-ltd" target="_blank" data-smartkarma-citation="entities:9158:1" rel="noopener">Havells India (HAVL IN)</a> , <a href="https://www.smartkarma.com/entities/symphony-ltd" target="_blank" data-smartkarma-citation="entities:17047:1" rel="noopener">Symphony Ltd (SYML IN)</a> , <a href="https://www.smartkarma.com/entities/ttk-prestige-ltd" target="_blank" data-smartkarma-citation="entities:9779:1" rel="noopener">TTK Prestige (TTKPT IN)</a> , <a href="https://www.smartkarma.com/entities/indigo-paints" target="_blank" data-smartkarma-citation="entities:31308:1" rel="noopener">Indigo Paints (INDIGOPN IN)</a> , <a href="https://www.smartkarma.com/entities/reliance-industries-ltd" target="_blank" data-smartkarma-citation="entities:198:1" rel="noopener">Reliance Industries (RIL IN)</a> , <a href="https://www.smartkarma.com/entities/apl-apollo-tubes-ltd" target="_blank" data-smartkarma-citation="entities:16132:1" rel="noopener">Apl Apollo Tubes (APAT IN)</a> , <a href="https://www.smartkarma.com/entities/aptus-value-housing-finance-india" target="_blank" data-smartkarma-citation="entities:33502:1" rel="noopener">Aptus Value Housing Finance India (APTUS IN)</a> <h3>About India Channel Insight</h3>Our objective with India Channel Insight is to share snippets from our channel interactions that are part of our research process. These snippets can potentially be signals for larger themes/ideas emerging out of these interactions.

For this insight, we present our takeaways from interaction with channels associated with Havells India (HAVL IN) , Symphony Ltd (SYML IN) , TTK Prestige (TTKPT IN) , Indigo Paints (INDIGOPN IN) , Reliance Industries (RIL IN) , Apl Apollo Tubes (APAT IN) , Aptus Value Housing Finance India (APTUS IN) About India Channel InsightOur objective with India Channel Insight is to share snippets from our channel interactions that are part of our research process. These snippets can potentially be signals for larger themes/ideas emerging out of these interactions.  

India Channel Insight | Havells, Symphony, TTK Prestige, Indigo Paints, Reliance, APL Apollo, Aptus

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.

PB Fintech (PBF), India’s largest online platform for insurance and lending products, aims to raise up to US$800m via selling a mix of primary and secondary shares in its India IPO. The company is backed by a strong set of investors including Info Edge, Tencent, Temasek, Tiger Global and Softbank.The company operates two platforms: Policybazaar operates in India’s online insurance product and service industry; and Paisabazaar platform operates in India’s online credit industry. As per Frost &amp; Sullivan, the company is a leader in the online sphere in both segments. In our previous note, we spoke about the positive aspects of the deal, <a href="https://www.smartkarma.com/insights/pb-fintech-policybazaar-pre-ipo-the-positives-fast-growth" target="_blank" rel="noopener">PB Fintech (Policybazaar) Pre-IPO - The Positives - Fast Growth</a>.In this note, we will talk about the not so positive aspects.

PB Fintech (PBF), India’s largest online platform for insurance and lending products, aims to raise up to US$800m via selling a mix of primary and secondary shares in its India IPO. The company is backed by a strong set of investors including Info Edge, Tencent, Temasek, Tiger Global and Softbank.The company operates two platforms: Policybazaar operates in India’s online insurance product and service industry; and Paisabazaar platform operates in India’s online credit industry. As per Frost &amp; Sullivan, the company is a leader in the online sphere in both segments. In our previous note, we spoke about the positive aspects of the deal, PB Fintech (Policybazaar) Pre-IPO - The Positives - Fast Growth.In this note, we will talk about the not so positive aspects.

PB Fintech (Policybazaar) Pre-IPO - The Negatives - Patchy Data, Strategy Missteps

<a href="https://www.smartkarma.com/entities/fsn-e-commerce-ventures-nykaa" target="_blank" data-smartkarma-citation="entities:33796:1" rel="noopener">FSN E-Commerce Ventures (Nykaa)</a> that owns Nykaa, India's leading specialty Beauty Personal care retail platform is expected to sell shares worth USD700 Mn in its upcoming IPO that will open from October 28th to November 1st. It is expected to list on November 11th.In this Insight, we present investors a quick primer on Nykaa's business basics and what sets it apart as well as key operating metrics &amp; reported financials and issues to note alongside its latest IPO update. We will follow this up with our view on Nykaa's seemingly Zomato-esque IPO pricing/valuation, in a later report.

FSN E-Commerce Ventures (Nykaa) that owns Nykaa, India's leading specialty Beauty Personal care retail platform is expected to sell shares worth USD700 Mn in its upcoming IPO that will open from October 28th to November 1st. It is expected to list on November 11th.In this Insight, we present investors a quick primer on Nykaa's business basics and what sets it apart as well as key operating metrics &amp; reported financials and issues to note alongside its latest IPO update. We will follow this up with our view on Nykaa's seemingly Zomato-esque IPO pricing/valuation, in a later report. 

FSN ECommerce (Nykaa) IPO: Glowing Beauty, Growing Fashion. A Primer.

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<a href="https://www.smartkarma.com/entities/fsn-e-commerce-ventures-nykaa" target="_blank" data-smartkarma-citation="entities:33796:1" rel="noopener">FSN E-Commerce Ventures (Nykaa) (1003622D IN)</a> provides e-retailing of beauty and fashion products through two verticals Nykaa (beauty and personal care) and Nykaa Fashion (apparel and accessories). Nykaa is the largest speciality beauty and personal care platform in India as measured by the value of products sold in the FY21, according to RedSeer. Nykaa is looking to raise $500 million through an IPO in India, according to press reports. The IPO comprises a primary raise of Rs5,250 million ($70 million) and 43.1 million secondary shares. Nykaa has a large addressable market opportunity with the beauty and personal care opportunity currently worth $16 billion and the fashion opportunity currently worth $54 billion, according to RedSeer. At 8% penetration in FY21, beauty and personal care are one of the more underpenetrated e-commerce categories in India. Online penetration in fashion in India is slightly higher at 12% in FY21 but is still relatively low compared to mature e-tailing categories such as mobiles and electronics. <div class="content-highlight">Nykaa has a strong positioning in India’s e-commerce beauty products industry, underpinned by the strong brand recognition of the ‘Nykaa’ brand. It has been able to retain a large customer base, leading to repeat orders such that existing consumers accounted for 70% of GMV in FY21. Nykaa also has relationships with 2,476 brands but with no dependence on any brand or product. The financial performance is solid with strong growth, rising margins and cash generation. These characteristics should enable Nykaa to hold its own against intensifying competition. Overall, we think that Nykaa has attractive fundamentals.</div>

FSN E-Commerce Ventures (Nykaa) (1003622D IN) provides e-retailing of beauty and fashion products through two verticals Nykaa (beauty and personal care) and Nykaa Fashion (apparel and accessories). Nykaa is the largest speciality beauty and personal care platform in India as measured by the value of products sold in the FY21, according to RedSeer. Nykaa is looking to raise $500 million through an IPO in India, according to press reports. The IPO comprises a primary raise of Rs5,250 million ($70 million) and 43.1 million secondary shares. Nykaa has a large addressable market opportunity with the beauty and personal care opportunity currently worth $16 billion and the fashion opportunity currently worth $54 billion, according to RedSeer. At 8% penetration in FY21, beauty and personal care are one of the more underpenetrated e-commerce categories in India. Online penetration in fashion in India is slightly higher at 12% in FY21 but is still relatively low compared to mature e-tailing categories such as mobiles and electronics. Nykaa has a strong positioning in India’s e-commerce beauty products industry, underpinned by the strong brand recognition of the ‘Nykaa’ brand. It has been able to retain a large customer base, leading to repeat orders such that existing consumers accounted for 70% of GMV in FY21. Nykaa also has relationships with 2,476 brands but with no dependence on any brand or product. The financial performance is solid with strong growth, rising margins and cash generation. These characteristics should enable Nykaa to hold its own against intensifying competition. Overall, we think that Nykaa has attractive fundamentals.

India

Flipkart Online Services Private Limited owns and operates e-commerce website. The Company provides books, movies, music, games, consoles, televisions, mobiles, digital cameras, computers, network components, software, peripherals, apparel, shoes, and kitchen appliances. Flipkart Online Services serves customers in India.

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Flipkart Online Services (1398508D IN)

FSN Ecommerce IPO Valuation: Nykaa Can Be Appetizing if You Liked Zomato

Segment-wise valuation analysis based on separate peer set to better reflect the distinct operating structures and margin/growth profiles of...

Devi Subhakesan

India Channel Insight | Havells, Symphony, TTK Prestige, Indigo Paints, Reliance, APL Apollo, Aptus

For this insight, we present our takeaways from interaction with channels associated with Havells, Symphony, TTK Prestige, Indigo Paints, Reliance,...

Pranav Bhavsar

PB Fintech (Policybazaar) Pre-IPO - The Negatives - Patchy Data, Strategy Missteps

PB Fintech (PBF), India’s largest online platform for insurance and lending products, aims to raise up to US$800m via selling a mix of primary and...

Sumeet Singh

FSN ECommerce (Nykaa) IPO: Glowing Beauty, Growing Fashion. A Primer.

Nykaa has scripted a glowing story in online beauty retail, but the pace of growth ahead will largely depend on how it plays its cards in a far...

Devi Subhakesan

Nykaa IPO Initiation: Beauty Parade

Nykaa is looking to raise $500 m through an IPO in India. The financial performance is solid with strong growth, rising margins and cash...

Arun George

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