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

PB Fintech (PBF), India’s largest online platform for insurance and lending products, aims to raise up to US$793m 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. Despite Paisabazaar having taken a hit due to COVID-19, the company has managed to grow its revenue by 80% over FY19-21. In addition, it has been able to rein in expenses as well leading to an improvement in margins. Although, it was still making losses in FY21. On the flip side, its growth has come on the back of large ad spending and given the transactional nature of both of its platforms combined with the increase in competition, its ad spending will probably remain high. We have covered most aspects of the deal in our previous notes,  <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> and <a href="https://www.smartkarma.com/insights/pb-fintech-policybazaar-pre-ipo-the-negatives-patchy-data-strategy-missteps" target="_blank" rel="noopener">PB Fintech (Policybazaar) Pre-IPO - The Negatives - Patchy Data, Strategy Missteps</a>.In this note, we will talk about updates since our last note and valuations.

PB Fintech (PBF), India’s largest online platform for insurance and lending products, aims to raise up to US$793m 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. Despite Paisabazaar having taken a hit due to COVID-19, the company has managed to grow its revenue by 80% over FY19-21. In addition, it has been able to rein in expenses as well leading to an improvement in margins. Although, it was still making losses in FY21. On the flip side, its growth has come on the back of large ad spending and given the transactional nature of both of its platforms combined with the increase in competition, its ad spending will probably remain high. We have covered most aspects of the deal in our previous notes,  PB Fintech (Policybazaar) Pre-IPO - The Positives - Fast Growth and PB Fintech (Policybazaar) Pre-IPO - The Negatives - Patchy Data, Strategy Missteps.In this note, we will talk about updates since our last note and valuations.

PB Fintech (Policybazaar) IPO - Increasing Competition Will Keep Ad Spending High

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

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

RHP overviews and information about <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>'s business is widely covered both on this platform as well as across the internet (Twitter/Youtube). 
This Insight assumes that Nykaa's broader business and IPO specific details are well known and hence focus is on earning power of the business, forecasts and valuations. 
The inspiration for this insight is Naval's legendary thread - How to Get Rich (without getting lucky)
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/237/928/original/image_31811942261635356542811.png?1635356545" class="editor-image img-responsive" data-smartkarma-image-id="237928"></figure>

RHP overviews and information about FSN E-Commerce Ventures (Nykaa) (1003622D IN)'s business is widely covered both on this platform as well as across the internet (Twitter/Youtube). 
This Insight assumes that Nykaa's broader business and IPO specific details are well known and hence focus is on earning power of the business, forecasts and valuations. 
The inspiration for this insight is Naval's legendary thread - How to Get Rich (without getting lucky)


Nykaa IPO | Can It Make You Rich? (Without Getting Lucky)

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.

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

Equity Analyst, LightStream Research

Oshadhi Kumarasiri

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

<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> which runs Nykaa and Nykaa Fashion is expected to launch its $700m IPO on 28th October 2021 at an indicative price range of INR 1,085-1,125 per share.Nykaa is the largest beauty care e-commerce platform in India with 6.7m annual unique transacting customers as of June 2021. In addition to the Beauty Care business, Nykaa launched Nykaa Fashion in 2018 to leverage additional business opportunities within Nykaa’s existing beauty care customers.

FSN E-Commerce Ventures (Nykaa) (1003622D IN) which runs Nykaa and Nykaa Fashion is expected to launch its $700m IPO on 28th October 2021 at an indicative price range of INR 1,085-1,125 per share.Nykaa is the largest beauty care e-commerce platform in India with 6.7m annual unique transacting customers as of June 2021. In addition to the Beauty Care business, Nykaa launched Nykaa Fashion in 2018 to leverage additional business opportunities within Nykaa’s existing beauty care customers.

FSN E-commerce (Nykaa) aims to raise around US$720m, via selling a mix of primary and secondary shares in its Indian IPO. Nykaa is a lifestyle focussed e-commerce platform and consumer brand offering a portfolio of beauty, personal care and fashion products, including its own branded products. As per RedSeer, it was the largest Specialty Beauty and Personal Care Platform in India in terms of value of products sold in FY21.As of March 21, it had 43.7m cumulative downloads across all its mobile applications. Its offline channel comprises 73 physical stores across 38 cities in India. It reported a gross merchandise value (GMV) of INR40,459.8m (around US$550m) in FY21. Nykaa’s GMV, revenue and gross profit have more than doubled over FY19-21, even though the company suffered from a drop in orders due to COVID-19 in 4Q20 and 1Q21. Overall, GMV grew by 62.7% in FY20 and 50.7% in FY21. Revenue growth has broadly kept pace with GMV growth while the company has managed to turn a profit in FY21. We have looked at various aspects of the deal in our previous note,<a href="https://www.smartkarma.com/insights/fsn-e-commerce-nykaa-pre-ipo-mixed-bag-fashion-growing-beauty-slowing" target="_blank" rel="noopener"> FSN E-Commerce (Nykaa) Pre-IPO - Mixed bag - Fashion growing, beauty slowing</a>. In this note, we will talk about valuations.

FSN E-commerce (Nykaa) aims to raise around US$720m, via selling a mix of primary and secondary shares in its Indian IPO. Nykaa is a lifestyle focussed e-commerce platform and consumer brand offering a portfolio of beauty, personal care and fashion products, including its own branded products. As per RedSeer, it was the largest Specialty Beauty and Personal Care Platform in India in terms of value of products sold in FY21.As of March 21, it had 43.7m cumulative downloads across all its mobile applications. Its offline channel comprises 73 physical stores across 38 cities in India. It reported a gross merchandise value (GMV) of INR40,459.8m (around US$550m) in FY21. Nykaa’s GMV, revenue and gross profit have more than doubled over FY19-21, even though the company suffered from a drop in orders due to COVID-19 in 4Q20 and 1Q21. Overall, GMV grew by 62.7% in FY20 and 50.7% in FY21. Revenue growth has broadly kept pace with GMV growth while the company has managed to turn a profit in FY21. We have looked at various aspects of the deal in our previous note, FSN E-Commerce (Nykaa) Pre-IPO - Mixed bag - Fashion growing, beauty slowing. In this note, we will talk about valuations.

FSN E-Commerce (Nykaa) IPO - Beauty Showing Signs of Improvement but Its Too Expensive for Our Taste

India

FSN E-Commerce Ventures Private Limited providese-retailing beauty and personal care solutions. The Company offers comprehensive selection of makeup, skin and hair care, bath body, fragrance, grooming appliances, personal care, and health and welness categories. FSN E-Commerce Ventures serves customers worldwide.

FSN E-Commerce Ventures (Nykaa) (NYKAA IN)

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FSN E-Commerce Ventures (Nykaa) (NYKAA IN)

PB Fintech (Policybazaar) IPO - Increasing Competition Will Keep Ad Spending High

PB Fintech, India’s largest online platform for insurance and lending products, aims to raise up to US$793m in its India IPO. The company is backed...

Sumeet Singh

Nykaa IPO | Can It Make You Rich? (Without Getting Lucky)

Inspired by Naval's legendary thread, this Insight is an attempt to use his analogy to provide a different perspective on Nykaa 's IPO along with...

Pranav Bhavsar

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

Nykaa IPO: Looking Beautiful

Nykaa currently operates in two market segments with immense long term growth potential. Nykaa’s speciality beauty and personal care e-commerce...

Oshadhi Kumarasiri

FSN E-Commerce (Nykaa) IPO - Beauty Showing Signs of Improvement but Its Too Expensive for Our Taste

FSN E-commerce (Nykaa) aims to raise around US$720m in its Indian IPO. In this note, we will look at the recent updates and valuation.

Sumeet Singh

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52-week Range

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