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 Bottom-Up

<ul><li>This is our first report on Prudential Financial, Inc., a major global player in financial services and insurance.</li><li>Prudential kept transforming throughout the quarter to become less reliant on the market and better able to produce steady, long-term growth.</li><li>The company also had the financial strength to navigate the changing macroeconomic climate because of its rock-solid balance sheet.</li></ul>

This is our first report on Prudential Financial, Inc., a major global player in financial services and insurance.Prudential kept transforming throughout the quarter to become less reliant on the market and better able to produce steady, long-term growth.The company also had the financial strength to navigate the changing macroeconomic climate because of its rock-solid balance sheet.

Prudential Financial Inc.: Initiation of Coverage – The Deerpath Capital Acquisition & Other Major Drivers

Equity Capital Markets

Prudential Financial / Equity Capital Markets

<ul><li>This is our first report on Prudential, a major provider of life and health insurance.</li><li>Prudential had a very strong quarter with 19% sales growth.</li><li>Despite slower revenue recognition in the life insurance market, the company has been witnessing strong cash flows and returned over $800 million to shareholders in the latest quarter.</li></ul>

This is our first report on Prudential, a major provider of life and health insurance.Prudential had a very strong quarter with 19% sales growth.Despite slower revenue recognition in the life insurance market, the company has been witnessing strong cash flows and returned over $800 million to shareholders in the latest quarter.

Prudential PLC: Initiation of Coverage – Expansion In Emerging Markets & Other Drivers

Research Firm with a Qualitative Overlay, Pearl Gray Equity and Research

Pearl Gray Equity and Research

Research Firm with a Qualitative Overlay

Quantitative fund & research firm with a qualitative overlay. 

Our coverage: General U.S. with a skew towards the primary sector. 

Methods: Smart Beta/Factor Pricing, Neural Networks, Street Gossip, and Common Sense.

<ul>
<li>Higher interest rates might reflect positively in Prudential's Q4 report.</li>
<li>However, the continued decline in long-dated par rates presents a severe risk to the company's investment portfolio.</li>
<li>The company's stock is relatively overvalued, and its dividend yield is poorly covered.</li>
</ul>


Higher interest rates might reflect positively in Prudential's Q4 report.
However, the continued decline in long-dated par rates presents a severe risk to the company's investment portfolio.
The company's stock is relatively overvalued, and its dividend yield is poorly covered.


Prudential Financial: We Expect A Solid Q4, Coupled With A Doubtful Outlook

External broker reports(aggregated public sources), HDFC Securities

HDFC Securities

External broker reports(aggregated public sources)

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Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Thematic (Sector/Industry)

<ul><li>IndusInd Bank: IndusInd Bank (IIB) reported its highest-ever quarterly earnings, largely on account of steady loan growth (+19% YoY), stable margins, sustained traction in fee income and lower credit costs (1.7% annualised)</li><li>Gross slippages at 2.3% witnessed some deterioration in the CV/CE portfolio and partial fallout from the restructured book, ex of which the back-book appears to be incrementally stabilising</li><li>IIB managed to garner retail deposits in the form of CA and TD from select affluent and NRI pockets, resulting in an overhang on its funding costs</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

IndusInd Bank: IndusInd Bank (IIB) reported its highest-ever quarterly earnings, largely on account of steady loan growth (+19% YoY), stable margins, sustained traction in fee income and lower credit costs (1.7% annualised)Gross slippages at 2.3% witnessed some deterioration in the CV/CE portfolio and partial fallout from the restructured book, ex of which the back-book appears to be incrementally stabilisingIIB managed to garner retail deposits in the form of CA and TD from select affluent and NRI pockets, resulting in an overhang on its funding costsContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

HSIE Results Daily - IndusInd Bank, ICICI Prudential Life, PSP Projects

Silver Point

Thomas J. Monaco

Independent Insight Provider

Silver Point is a boutique research firm that focuses on the broader financial services sector, with a particular focus on troubled institutions globally. 

Asia Ex Japan

*Weak Results Showing No Signs Of Improvement: Ping An Insurance (2318.HK) [Ping An] reported abbreviated results for 3Q20, coming in at CNY 34.5 bn which declined CNY 8.2 bn (19.2%) on a linked quarter basis. The decline in earnings is attributed to a CNY 10.1 bn (8.7%) decline in Ping An Life (PAL) net earned premiums; a CNY 40.7 bn (43.7%) decline in investment income as rates and markets stabilized; and a CNY 8.5 bn (20.1%) increase in SG&amp;A;*Insurance Remains Fundamentally Challenged: Despite the Investor Day cheerleading session, PAL’s value of new business (VONB) declined 33% YOY in 3Q, driven by larger than expected margin decline associated with mix of reduced agent motivation during COVID-19 and demand weakness. Ping An P&amp;C’s combined ratio rose 1.0% to 99.1% in 3Q20 - barely allowing this business any breathing room. This increase would appear to be attributed to auto insurance reform, which is placing downward pressure on pricing; andBank Risk: Ping An Bank (000001.CH) [PAB], reported 3Q20 net income of CNY 8.7 bn – increasing CNY 3.6 bn or 70% linked quarter. One factor, and one factor alone, was responsible for the increase - provisions were pre-emptively reduced CNY 6.7 bn (29.5%) over the period despite a true decrease in credit risk. Net new NPLs have increased CNY 23.0 bn linked quarter or a massive 223.1% on an annualized basis. Assuming the credit break in the PAB portfolio holds – which it likely will given the economic weakness attributed to COVID-19 – reserves would appear light by CNY 178 bn if we assume a 2x NPL ratio. This shortfall represents 62% of stated equity.

*Weak Results Showing No Signs Of Improvement: Ping An Insurance (2318.HK) [Ping An] reported abbreviated results for 3Q20, coming in at CNY 34.5 bn which declined CNY 8.2 bn (19.2%) on a linked quarter basis. The decline in earnings is attributed to a CNY 10.1 bn (8.7%) decline in Ping An Life (PAL) net earned premiums; a CNY 40.7 bn (43.7%) decline in investment income as rates and markets stabilized; and a CNY 8.5 bn (20.1%) increase in SG&amp;A;*Insurance Remains Fundamentally Challenged: Despite the Investor Day cheerleading session, PAL’s value of new business (VONB) declined 33% YOY in 3Q, driven by larger than expected margin decline associated with mix of reduced agent motivation during COVID-19 and demand weakness. Ping An P&amp;C’s combined ratio rose 1.0% to 99.1% in 3Q20 - barely allowing this business any breathing room. This increase would appear to be attributed to auto insurance reform, which is placing downward pressure on pricing; andBank Risk: Ping An Bank (000001.CH) [PAB], reported 3Q20 net income of CNY 8.7 bn – increasing CNY 3.6 bn or 70% linked quarter. One factor, and one factor alone, was responsible for the increase - provisions were pre-emptively reduced CNY 6.7 bn (29.5%) over the period despite a true decrease in credit risk. Net new NPLs have increased CNY 23.0 bn linked quarter or a massive 223.1% on an annualized basis. Assuming the credit break in the PAB portfolio holds – which it likely will given the economic weakness attributed to COVID-19 – reserves would appear light by CNY 178 bn if we assume a 2x NPL ratio. This shortfall represents 62% of stated equity. 

Ping An Insurance – The Drip Drop Of Bad News

United States

Prudential Financial, Inc. provides financial services throughout the United States and several locations worldwide. The Company offers a variety of products and services, including life insurance, mutual funds, annuities, pension, and retirement related services, as well as administration and asset management.

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Prudential Financial (PRU US)

Prudential Financial Inc.: Initiation of Coverage – The Deerpath Capital Acquisition & Other Major Drivers

This is our first report on Prudential Financial, Inc., a major global player in financial services and insurance. Prudential kept transforming...

Baptista Research

Prudential PLC: Initiation of Coverage – Expansion In Emerging Markets & Other Drivers

This is our first report on Prudential, a major provider of life and health insurance. Prudential had a very strong quarter with 19% sales...

Baptista Research

Prudential Financial: We Expect A Solid Q4, Coupled With A Doubtful Outlook

Higher interest rates might reflect positively in Prudential's Q4 report. However, the continued decline in long-dated par rates presents a severe...

Pearl Gray Equity and Research

HSIE Results Daily - IndusInd Bank, ICICI Prudential Life, PSP Projects

IndusInd Bank (IIB) reported its highest-ever quarterly earnings, largely on account of steady loan growth (+19% YoY), stable margins

HDFC Securities

Ping An Insurance – The Drip Drop Of Bad News

PING AN INSURANCE: First It Was The Bank Who Reported Manufactured Results, As Credit Worsened. Now The Insurers Continue To Struggle With No End...

Thomas J. Monaco

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