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

Thematic (Sector/Industry)

<h3>About The Narrative</h3>
<p>Earnings conference calls are important sources that aid us in the identification of potential catalysts and drivers of stock returns. Every quarter we go through these transcripts and connect them with primary research with the objective of assessing on-ground reality against management commentary. </p>
<p>The edition focuses on key quotes from the earnings transcripts of <a href="https://www.smartkarma.com/entities/asian-paints-ltd" target="_blank" data-smartkarma-citation="entities:6354:1" rel="noopener">Asian Paints (APNT IN)</a> / <a href="https://www.smartkarma.com/entities/pvr-ltd" target="_blank" data-smartkarma-citation="entities:10144:1" rel="noopener">PVR Ltd (PVRL 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> (Retail) / <a href="https://www.smartkarma.com/entities/titan-co-ltd" target="_blank" data-smartkarma-citation="entities:12630:1" rel="noopener">Titan Co Ltd (TTAN IN)</a> / <a href="https://www.smartkarma.com/entities/page-industries-ltd" target="_blank" data-smartkarma-citation="entities:4940:1" rel="noopener">Page Industries (PAG IN)</a> / <a href="https://www.smartkarma.com/entities/interglobe-aviation-ltd" target="_blank" data-smartkarma-citation="entities:24877:1" rel="noopener">InterGlobe Aviation Ltd (INDIGO IN)</a> </p>
<p>We have separated the quotes to highlight<em><strong> Business Environment &amp; Key Drivers, Pricing and Premiumisation, Competition, Margins &amp; Commodity Inflation and Outlook.</strong></em></p>

About The Narrative
Earnings conference calls are important sources that aid us in the identification of potential catalysts and drivers of stock returns. Every quarter we go through these transcripts and connect them with primary research with the objective of assessing on-ground reality against management commentary. 
The edition focuses on key quotes from the earnings transcripts of Asian Paints (APNT IN) / PVR Ltd (PVRL IN) / Reliance Industries (RIL IN) (Retail) / Titan Co Ltd (TTAN IN) / Page Industries (PAG IN) / InterGlobe Aviation Ltd (INDIGO IN) 
We have separated the quotes to highlight Business Environment &amp; Key Drivers, Pricing and Premiumisation, Competition, Margins &amp; Commodity Inflation and Outlook.

The Narrative | Q2 FY22 | India Consumer - Asian Paints, PVR, Reliance Retail, Titan, Page, Indigo

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

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

<p>FSN E-commerce (Nykaa) raised 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.</p>
<p>We have looked at various aspects of the deal in our previous notes:<a href="https://www.smartkarma.com/insights/fsn-e-commerce-nykaa-pre-ipo-mixed-bag-fashion-growing-beauty-slowing" target="_blank" rel="noopener"></a></p>
<ul>
<li><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, and</a></li>
<li><a href="https://www.smartkarma.com/insights/fsn-e-commerce-nykaa-ipo-beauty-showing-signs-of-improvement-but-its-too-expensive-for-our-taste" target="_blank" rel="noopener">FSN E-Commerce (Nykaa) IPO - Beauty Showing Signs of Improvement but Its Too Expensive for Our Taste</a></li>
</ul>
<p> In this note, we will talk about the trading updates.</p>

FSN E-commerce (Nykaa) raised 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.
We have looked at various aspects of the deal in our previous notes:

 FSN E-Commerce (Nykaa) Pre-IPO - Mixed bag - Fashion growing, beauty slowing, and
FSN E-Commerce (Nykaa) IPO - Beauty Showing Signs of Improvement but Its Too Expensive for Our Taste

 In this note, we will talk about the trading updates.

FSN E-Commerce (Nykaa) IPO Trading - FOMO.

Equity Bottom-Up

<p>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> </p><h3>About India Channel Insight</h3><p>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.  </p>

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

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Event-Driven

<p>The Indian mutual fund industry has assets of almost INR 7.93 trillion (US$106.3bn) across Multi cap, Large Cap, Large and Mid Cap, Mid Cap, Small Cap and Flexi Cap equity schemes. Equity schemes classified as large cap need to have at least 80% of their assets invested in large cap stocks, large and mid cap schemes need to have at least 35% of their assets in large cap stocks and at least 35% in mid cap stocks, mid cap funds need to hold at least 65% of their assets in mid cap stocks, and small cap funds need to hold at least 65% of their assets in small cap stocks. Flexi cap funds can invest across market caps.</p><p>The Association of Mutual Funds in India (AMFI) publishes the list of the stocks in each market cap segment in January and July each year and mutual funds have one month to rebalance their portfolios to adhere to the new categorization.</p><p>We are just past halfway through the review period for the second half of 2021. Using data to the close on 4 October, at the next recategorization in January 2022, we see 10 stocks moving from the mid cap segment to the large cap segment, 11 stocks moving from the large cap segment to the mid cap segment , 11 stocks are expected to move from the small cap segment to the mid cap segment, with16 stocks moving from the mid cap to the small cap segment. <a href="https://www.smartkarma.com/entities/zomato-media-pvt" target="_blank" data-smartkarma-citation="entities:28820:1" rel="noopener">Zomato (ZOMATO IN)</a> will be a part of the large cap universe, while 4 other newly listed stocks will be a part of the mid cap universe.</p><p>Historically, stocks moving to a higher market cap category have outperformed stocks that migrate to a lower market cap category over the back half of the review period. In some cases, the outperformance continues past the announcement of the changes as well. This can be attributed to fund managers realigning their portfolios to meet the new categorization. This provides opportunities to pre-position for the move and unwind post the announcement of the reclassification.</p>

The Indian mutual fund industry has assets of almost INR 7.93 trillion (US$106.3bn) across Multi cap, Large Cap, Large and Mid Cap, Mid Cap, Small Cap and Flexi Cap equity schemes. Equity schemes classified as large cap need to have at least 80% of their assets invested in large cap stocks, large and mid cap schemes need to have at least 35% of their assets in large cap stocks and at least 35% in mid cap stocks, mid cap funds need to hold at least 65% of their assets in mid cap stocks, and small cap funds need to hold at least 65% of their assets in small cap stocks. Flexi cap funds can invest across market caps.The Association of Mutual Funds in India (AMFI) publishes the list of the stocks in each market cap segment in January and July each year and mutual funds have one month to rebalance their portfolios to adhere to the new categorization.We are just past halfway through the review period for the second half of 2021. Using data to the close on 4 October, at the next recategorization in January 2022, we see 10 stocks moving from the mid cap segment to the large cap segment, 11 stocks moving from the large cap segment to the mid cap segment , 11 stocks are expected to move from the small cap segment to the mid cap segment, with16 stocks moving from the mid cap to the small cap segment. Zomato (ZOMATO IN) will be a part of the large cap universe, while 4 other newly listed stocks will be a part of the mid cap universe.Historically, stocks moving to a higher market cap category have outperformed stocks that migrate to a lower market cap category over the back half of the review period. In some cases, the outperformance continues past the announcement of the changes as well. This can be attributed to fund managers realigning their portfolios to meet the new categorization. This provides opportunities to pre-position for the move and unwind post the announcement of the reclassification.

India: Stock Reclassification & Active Portfolio Management (Dec 2021)

<div><p><a href="https://www.smartkarma.com/entities/zomato-media-pvt" target="_blank" data-smartkarma-citation="entities:28820:1" rel="noopener">Zomato (ZOM IN)</a> raised US$1.3bn in its India IPO, making it the the largest listing in India from the technology sector.</p></div><div>We have covered various aspects of the deal in our earlier notes  </div><div><ul style="list-style-type: disc;">
<li><a href="https://www.smartkarma.com/insights/zomato-pre-ipo-filings-lack-narrative-a-little-bit-of-history-helps" target="_blank" rel="noopener">Zomato Pre-IPO - Filings Lack Narrative, a Little Bit of History Helps, </a></li>
<li><a href="https://www.smartkarma.com/insights/zomato-pre-ipo-food-delivery-revenue-was-probably-up-16x" target="_blank" rel="noopener">Zomato Pre-IPO - Food Delivery Revenue Was Probably up 16x, and</a></li>
<li><a href="https://www.smartkarma.com/insights/zomato-pre-ipo-peer-comparison-listed-and-domestic" target="_blank" rel="noopener">Zomato Pre-IPO - Peer Comparison - Listed and Domestic</a></li>
<li><a href="https://www.smartkarma.com/insights/zomato-ipo-strong-4q21-has-a-very-long-runway" target="_blank" rel="noopener">Zomato IPO - Strong 4Q21, Has a Very Long Runway</a></li>
</ul></div><div><p>In this note, we will talk about the updates and the trading dynamics.</p></div>

Zomato (ZOM IN) raised US$1.3bn in its India IPO, making it the the largest listing in India from the technology sector.We have covered various aspects of the deal in our earlier notes  
Zomato Pre-IPO - Filings Lack Narrative, a Little Bit of History Helps, 
Zomato Pre-IPO - Food Delivery Revenue Was Probably up 16x, and
Zomato Pre-IPO - Peer Comparison - Listed and Domestic
Zomato IPO - Strong 4Q21, Has a Very Long Runway
In this note, we will talk about the updates and the trading dynamics.

Zomato IPO Trading - Ample Demand for Unique Exposure

India

Rallis India Limited manufactures and exports chemicals and allied products. Through its subsidiaries, the Company produces pesticides, fertilizers, textiles and garments, marine products and leather tanning materials.  Rallis also provides farm advisory services.

National Fertilizers Limited manufactures and markets chemical fertilizers, in addition to providing a number of other chemicals and by-products. The Company also supplies a number of allied services, which help to educate farmers on the use of fertilizers, agricultural equipment and machines, purity seeds, pesticides and fungicides.

Dhanuka Agritech Ltd. manufactures insecticides, pesticides and other chemicals. The Company has a technical tie-up with M/s E.I. Dupont De Numours & Co., U.S.A. to formulate the product Methomyl 12.5L under brand name "Dunet".

Responsive Industries Limited develops a wide range of flooring products. The Company's products range from vinyl flooring to rigid PVC.

Balaji Amines Ltd. manufactures methylamines, ethylamines, and derivatives of specialty chemicals and natural products. The Company supplies its products to c ompanies in the pharmaceutical and pesticide industries in India and elsewhere t hroughout the world.

Sudarshan Chemical Industries Limited manufactures color pigments, which are used in paints, printing inks, plastics, rubber artist materials, and textile printing.  The Group also manufactures a basic range of pesticides.

Kama Holdings Ltd. provides real estate and education services. The Company rents real estate properties, provides education services, and invests in shares.

NOCIL Ltd. manufactures a wide variety of petrochemicals, agrochemicals, rubber chemicals and their intermediates. The Company's products include azodrin, phosphamidon, high density polyethylene, special grade polypropylene and polymer alloys and blends.  NOCIL also manufactures ethyl vinyl acetate, processed polyethylene, oxygen and nitrogen.

GHCL Ltd manufactures various kinds of chemicals.  The Company's products include soda ash, edible salt, bromides and liquid bromine.  Gujarat Heavy Chemicals also manufactures yarn.

Gulf Oil Lubricants India Ltd. manufactures and markets lubricating oils and greases for distribution throughout India. The Company supplies its lubricants to automobile and tractor manufacturers in India and also manufacturers lubricant application solutions.

LOTTE Fine Chemical Co., Ltd. produces general and fine chemicals. The Company produces ammonia, epichlorohydrin, caustic soda, and dimethylformamide. LOTTE Fine Chemical also manufactures chemicals used in pharmaceutical and paint manufacturing areas.

Sinofert Holdings Ltd. manufactures and distributes fertilizers. The Company produces and imports potash fertilizers, phosphate-based and nitrogen-based fertilizers, and compound fertilizers.  Sinofert operates in the Peoples Republic of China.

SK KAKEN CO., LTD. manufactures and sells paints primarily for construction. The Company also paints buildings.  SK Kaken also operates overseas, especially in Southeast Asia.

Sichuan Lutianhua Co., Ltd. manufactures and markets a variety of fertilizers and industrial chemical products.  The Company's products include urea, liquified ammonium, and methyl alcohol.

FUSO CHEMICAL CO., LTD. manufactures fruit acid and its salts.  The Company also produces resin additives, fine chemical products, and silica related derivatives.

Halex Holdings Bhd manufactures agricultural chemicals.  The Company produces herbicides, insecticides, fungicides, fertilizers and related products.

NIPPON PILLAR PACKING CO., LTD. manufactures industrial-type mechanical seals. The Company also produces fluorine resin products, packing materials, and gaskets.

Pengxin International Mining Co., Ltd. is a mining exploration company. The Company acquires, explores and develops properties for copper and cobalt resources.

Pengxin International Mining C (600490 CH)

Shandong Jincheng Pharmaceutical Group Co., Ltd. manufactures pharmaceuticals. The Company produces and sells cephalosporin pharmaceuticals, biopharmaceuticals, anti-infective basic drugs, and more. Shandong Jincheng Pharmaceutical Group markets its products throughout China.

Shandong Jincheng Pharm And Chem (300233 CH)

T. HASEGAWA CO., LTD. manufactures fragrances for cosmetics and toiletries. The Company also produces flavorings for beverages and food products.

Indigo Paints Limited manufactures paints. The Company supplies exterior and interior paints. Indigo Paints serves customers in India.

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Indigo Paints (INDIGOPN IN)

The Narrative | Q2 FY22 | India Consumer - Asian Paints, PVR, Reliance Retail, Titan, Page, Indigo

The edition focuses on key quotes from the earnings transcripts of Asian Paints / PVR Ltd / Reliance Retail / Titan / Page Industries /Indigo

Pranav Bhavsar

FSN E-Commerce (Nykaa) IPO Trading - FOMO.

FSN E-commerce (Nykaa) raised around US$720m, via selling a mix of primary and secondary shares in its Indian IPO. In this note we will talk about...

Sumeet Singh

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

India: Stock Reclassification & Active Portfolio Management (Dec 2021)

Halfway through the review period, we take a look at stocks that could migrate across the large, mid and small cap segments. With over US$100bn of...

Brian Freitas

Zomato IPO Trading - Ample Demand for Unique Exposure

Zomato (ZOM IN) raised US$1.3bn in its India IPO, making it the the largest listing in India from the technology sector.

Sumeet Singh

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