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Garvit Bhandari

Founder, CEO

Leading Provider of Equity and Investment Research

GSBR Research

We are an independent equity research provider focused on covering global markets. The aim of the research is to provide an unbiased view of the fundamentals of the company.

Equity Bottom-Up

Spectrum Brands Holdings, Inc / Equity Bottom-Up

<ul>
<li>SPB plans to spin-off its home &amp; personal care (HPC) business into a separate listed company (SpinCo). The parent will retain Global Pet Care and Home &amp; Garden business units.</li>
<li>The separation will allow SPB to allocate capital and resources more efficiently towards higher growth categories.  SPB (ex SpinCo) will be a higher-growth, higher margin business.</li>
<li>HPC business (low-growth and low-margin) has been a drag on the overall valuation of SPB. The spin-off will unlock value as SPB (ex SpinCo) will command higher multiple post spin.</li>
</ul>


SPB plans to spin-off its home &amp; personal care (HPC) business into a separate listed company (SpinCo). The parent will retain Global Pet Care and Home &amp; Garden business units.
The separation will allow SPB to allocate capital and resources more efficiently towards higher growth categories.  SPB (ex SpinCo) will be a higher-growth, higher margin business.
HPC business (low-growth and low-margin) has been a drag on the overall valuation of SPB. The spin-off will unlock value as SPB (ex SpinCo) will command higher multiple post spin.


Spin-Off Analysis: Spectrum Brands Holdings Inc. (SPB) To Spin-Off Home & Personal Care Business

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>Spectrum Brands Holdings, Inc. has navigated the challenges and opportunities of its fiscal second quarter of 2024 with a mixed yet hopeful performance.</li><li>The company, a diversified global consumer products giant, saw a slight decline in net sales by 1.5% which indicates some areas of softness within certain segments.</li><li>However, its strategic maneuvers and operational improvements across its three primary business units—Global Pet Care, Home & Personal Care, and Home & Garden—brought about noteworthy advancements, particularly in terms of gross margin and adjusted EBITDA growth.</li></ul>

Spectrum Brands Holdings, Inc. has navigated the challenges and opportunities of its fiscal second quarter of 2024 with a mixed yet hopeful performance.The company, a diversified global consumer products giant, saw a slight decline in net sales by 1.5% which indicates some areas of softness within certain segments.However, its strategic maneuvers and operational improvements across its three primary business units—Global Pet Care, Home & Personal Care, and Home & Garden—brought about noteworthy advancements, particularly in terms of gross margin and adjusted EBITDA growth.

Spectrum Brands Holdings Inc.: Will Their Strategic Brand Investments Pay Off? - Major Drivers

<ul><li>The Spectrum Brands Holdings Q1 2024 Earnings highlighted some key points reflecting both positive and negative aspects of the company's performance.</li><li>To begin with, net sales for the company were down by 3% for the first quarter, in-line with their prior expectations.</li><li>Factors such as a challenging macroeconomic environment, decreased demand in some of their business segments including Home & Personal Care and Global Pet Care, and a cautious approach by home center retailers, all contributed to this decline.</li></ul>

The Spectrum Brands Holdings Q1 2024 Earnings highlighted some key points reflecting both positive and negative aspects of the company's performance.To begin with, net sales for the company were down by 3% for the first quarter, in-line with their prior expectations.Factors such as a challenging macroeconomic environment, decreased demand in some of their business segments including Home & Personal Care and Global Pet Care, and a cautious approach by home center retailers, all contributed to this decline.

Spectrum Brands Holdings: Initiation Of Coverage - These Are The 4 Pivotal Drivers Shaping Their Future Growth! - Financial Forecasts

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.

Equity Capital Markets

<div><p><a href="https://www.smartkarma.com/entities/cheerwin" target="_blank" data-smartkarma-citation="entities:31314:1" rel="noopener">Cheerwin (6601 HK)</a> is a leading consumer household care company in China that develops and manufactures a variety of household care, personal care and pet care products. Cheerwin will commence trading on Wednesday, 10 March. Cheerwin priced its IPO at HK$9.20 and <a href="https://inews.hket.com/article/2896489/%E3%80%90%E6%96%B0%E8%82%A1IPO%E3%80%91%E6%9C%9D%E9%9B%B2%E9%9B%86%E5%9C%986601%E6%9A%97%E7%9B%A4%E8%B7%8C2%E6%88%90%E3%80%80%E4%B8%80%E6%89%8B%E8%9D%95%E7%B4%841000%E5%85%83?mtc=40001&amp;srkw=IPO%E6%9C%80%E5%BF%AB%E6%9C%80%E9%BD%8A" target="_blank" rel="noopener">opened around -18% lower</a> at HK$7.52 in the grey market. The poor grey market performance is perhaps unsurprisingly in light of the choppy market conditions. </p></div><div><p>In <a href="https://www.smartkarma.com/insights/cheerwin-group-ipo-initiation-the-itch-of-fate" target="_blank" data-smartkarma-citation="insights:48373" rel="noopener">Cheerwin Group IPO Initiation: The Itch of Fate</a>, we opined that Cheerwin has the right ingredients to offer investors a play on another subsegment of China’s household care industry. We concluded that Cheerwin’s fundamentals are attractive. In <a href="https://www.smartkarma.com/insights/cheerwin-group-ipo-valuation-insights" target="_blank" data-smartkarma-citation="insights:48633" rel="noopener">Cheerwin Group IPO: Valuation Insights</a>, we noted that the IPO price range is resonable.</p></div><div><div><div class="content-highlight"><p>In many ways, the timing of Cheerwin's listing is unfortunate as <a href="https://www.smartkarma.com/entities/blue-moon-group-holdings" target="_blank" data-smartkarma-citation="entities:29179:1" rel="noopener">Blue Moon Group Holdings (6993 HK)</a>'s shares have derated -18% since Cheerwin launched its bookbuild. Updating for the final IPO net raise, our base-case DCF derived price target of HK$10.15 per share. Our DCF sensitivity analysis shows that the IPO price remains reasonable and the grey market factors in conservative market share and margin forecasts. For investors with a longer-term horizon, we think that the grey market price represents good value. </p></div></div></div>

Cheerwin (6601 HK) is a leading consumer household care company in China that develops and manufactures a variety of household care, personal care and pet care products. Cheerwin will commence trading on Wednesday, 10 March. Cheerwin priced its IPO at HK$9.20 and opened around -18% lower at HK$7.52 in the grey market. The poor grey market performance is perhaps unsurprisingly in light of the choppy market conditions. In Cheerwin Group IPO Initiation: The Itch of Fate, we opined that Cheerwin has the right ingredients to offer investors a play on another subsegment of China’s household care industry. We concluded that Cheerwin’s fundamentals are attractive. In Cheerwin Group IPO: Valuation Insights, we noted that the IPO price range is resonable.In many ways, the timing of Cheerwin's listing is unfortunate as Blue Moon Group Holdings (6993 HK)'s shares have derated -18% since Cheerwin launched its bookbuild. Updating for the final IPO net raise, our base-case DCF derived price target of HK$10.15 per share. Our DCF sensitivity analysis shows that the IPO price remains reasonable and the grey market factors in conservative market share and margin forecasts. For investors with a longer-term horizon, we think that the grey market price represents good value. 

<div><p><a href="https://www.smartkarma.com/entities/cheerwin" target="_blank" data-smartkarma-citation="entities:31314:1" rel="noopener">Cheerwin (6601 HK)</a> is a leading consumer household care company in China that develops and manufactures a variety of household care, personal care and pet care products. At the proposed IPO price range of HK$7.80-9.20 per share, Cheerwin will have a market cap of HK$10,400.0-12,266.7 million ($1.3-1.6 billion). At the mid-point of the IPO price range, the net proceeds are HK$2,663.9 million ($343 million). </p></div><div><div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/cheerwin-group-ipo-initiation-the-itch-of-fate" target="_blank" data-smartkarma-citation="insights:48373" rel="noopener">Cheerwin Group IPO Initiation: The Itch of Fate</a>, we opined that Cheerwin has the right ingredients to offer investors a play on another subsegment of China’s household care industry. We concluded that Cheerwin’s fundamentals are attractive. Despite the lack of cornerstone support, we would participate in the IPO due to a reasonable IPO price range. Our base-case DCF valuation is HK$10.04 per share. </p></div></div>

Cheerwin (6601 HK) is a leading consumer household care company in China that develops and manufactures a variety of household care, personal care and pet care products. At the proposed IPO price range of HK$7.80-9.20 per share, Cheerwin will have a market cap of HK$10,400.0-12,266.7 million ($1.3-1.6 billion). At the mid-point of the IPO price range, the net proceeds are HK$2,663.9 million ($343 million). In Cheerwin Group IPO Initiation: The Itch of Fate, we opined that Cheerwin has the right ingredients to offer investors a play on another subsegment of China’s household care industry. We concluded that Cheerwin’s fundamentals are attractive. Despite the lack of cornerstone support, we would participate in the IPO due to a reasonable IPO price range. Our base-case DCF valuation is HK$10.04 per share. 

United States

Energizer Holdings, Inc. manufactures dry cell batteries and flashlights. The Company offers a full line of products, including alkaline, carbon zinc, miniature, and rechargeable batteries, as well as lighting products. Energizer also manufactures and markets a range of razor and shave related products on a global basis.

Central Garden & Pet Company supplies consumer lawn and garden and pet supply products.  The Company's products are sold under brand names such as Pennington Seed, Zodiac, Four Paws, Island, and Grant's.  Central also offers value-added services, including inventory management, advertising and promotional programs, in-store service, and sales program development.

WD-40 Company manufactures and markets multi-purpose lubricant products and heavy-duty hand cleaners.  The Company's WD-40 acts as a lubricant, rust preventative, penetrant, cleaner, and moisture displacer.  WD-40's 3-IN-ONE Oil is a drip oil lubricant that allows precise application. The Company also manufactures Lava heavy-duty hand cleaner and other household cleaning products.

Oil-Dri Corporation of America develops, manufactures, and markets sorbent products.  The Company's products, consisting primarily of cat litter, are used in the consumer, fluids purification, agricultural, industrial and automotive markets.  They are sold through the grocery products industry, mass merchandisers, warehouse clubs, and pet specialty retail outlets.

Edgewell Personal Care Co., manufactures and markets a diversified range of personal care  products in the wet shave, skin care, feminine care and infant care categories.  The Companies products include shaving systems and disposable razors, feminine care products, sun care products, infant feeding, gloves and moist wipes.

Herbalife Ltd. is a global nutrition company that sells weight management, healthy meals and snacks, sports and fitness, energy and targeted nutritional products as well as personal care products. The Company distributes and sells its products through a network of independent distributors, using the direct selling channel.

USANA Health Sciences, Inc. develops, manufactures, and markets nutritionals, personal care, and weight management products.  The Company's products are sold directly to preferred customers and distributors throughout the United States, Canada, Australia, New Zealand, the United Kingdom, and Hong Kong.

Inter Parfums, Inc. manufactures, markets, and distributes a wide array of fragrances and fragrance related products. The Company's European-based operations produce and distribute prestige fragrance products primarily under license with brand owners. It's U.S.-based operations primarily produce and sell fragrance and personal care products under several specialty retail brands.

Nu Skin Enterprises, Inc. is a global direct selling company.  The Company distributes premium quality personal care products and nutritional supplements. Nu Skin markets its products in the Americas, Europe, and the Asia Pacific region.  The Company provides marketing and distribution of technology-based products through Big Planet, Inc.

Nature's Sunshine Products, Inc. manufactures and distributes nutritional and personal care products.  The Company's products include herbal products, vitamins, homeopathics, oils and lotions, aloe vera gel, herbal shampoo, toothpaste, and skin cleanser.  Nature's Sunshine markets its products in the United States and internationally.

Jyothy Laboratories Limited develops and manufactures household products.

Lion Corporation manufactures a variety of household products such as toothpaste and detergents. The Company also produces pharmaceuticals, chemical products, and seasonings.  Lion sells its products primarily in Asia.

Nafine Chemical Industry Group Co., Ltd. manufactures and sells a variety of chemical products.  The Company's products include laundry detergents, Glauber's salt, alkali sulfides, and fertilizers.

Duc Giang Chemicals And Detergent Powder Joint Stock Company primarily produces and sells detergents powder and liquids, and chemical raw materials and commodity chemicals in Vietnam. Its products include mono ammonium phosphate, axetone, Duc Giang detergent powder, soffy fabric softener, and yellow phosphorus. It also engages in manufacturing and trading other chemical products, such as H3PO4, pharmaceutical, purity chemicals, and engineering chemicals. The company is based in Hanoi, Vietnam.

Vinda International Holdings Limited manufactures tissue paper products in China.

PIGEON CORPORATION manufactures and sells baby care goods.  The Company also produces maternity and elder care products.

C&S Paper Company Limited researches, develops, manufactures and sells consumer tissue. The Company's main products include tissue rolls, paper handkerchiefs, boxed tissues and soft pumping paper.

Shanghai Feilo Acoustics Co Ltd primarily engages in the manufacture and distribution of lighting equipment. The Company also produces musical equipment and provides acoustics technology consulting service.

Shanghai Feilo Acoustics Co., (600651 CH)

Lonkey Industrial Co., Ltd., Guangzhou manufactures and markets detergents, soaps, and other cleaning products for household use.  The Company also manufactures sulphonic acid, glycerine, and other chemical materials for industrial use.

PZ Cussons plc is a holding company.  Through its subsidiaries, the Company manufactures soaps, detergents, toiletries, pharmaceuticals, refrigerators, and air conditioners.  PZ Cussons also sells and merchandises its products in the United Kingdom, Greece, Africa, Australia, Indonesia, and Thailand.

Spectrum Brands Holdings, Inc. is a global and diversified consumer products company and a supplier of consumer batteries, residential locksets, residential builders' hardware, faucets, shaving and grooming products, personal care products, small household appliances, specialty pet supplies, lawn and garden and home pest control products, and personal insect repellents.

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Spectrum Brands Holdings, Inc (SPB US)

Spin-Off Analysis: Spectrum Brands Holdings Inc. (SPB) To Spin-Off Home & Personal Care Business

SPB to spin-off HPC business into separate company to focus on higher growth categories and unlock value. SPB (ex SpinCo) will command a higher...

GSBR Research

Spectrum Brands Holdings Inc.: Will Their Strategic Brand Investments Pay Off? - Major Drivers

Spectrum Brands Holdings, Inc. has navigated the challenges and opportunities of its fiscal second quarter of 2024 with a mixed yet hopeful...

Baptista Research

Spectrum Brands Holdings: Initiation Of Coverage - These Are The 4 Pivotal Drivers Shaping Their Future Growth! - Financial Forecasts

The Spectrum Brands Holdings Q1 2024 Earnings highlighted some key points reflecting both positive and negative aspects of the company's...

Baptista Research

Cheerwin Group IPO: Trading Debut

Cheerwin priced its IPO at HK$9.20 and opened around -18% lower at HK$7.52 in the grey market. For investors with a longer-term horizon, we think...

Arun George

Cheerwin Group IPO: Valuation Insights

Cheerwin has launched its HK IPO to raise net proceeds of $343m at the mid-point of the HK$7.80-9.20 price range. The price range is attractive...

Arun George

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Spin-Off Analysis: Spectrum Brands Holdings Inc. (SPB) To Spin-Off Home & Personal Care Business

​SPB to spin-off HPC business into separate company to focus on higher growth categories and unlock value. SPB (ex SpinCo) will command a higher...

GSBR Research

Spectrum Brands Holdings Inc.: Will Their Strategic Brand Investments Pay Off? - Major Drivers

Spectrum Brands Holdings, Inc. has navigated the challenges and opportunities of its fiscal second quarter of 2024 with a mixed yet hopeful...

Baptista Research

Spectrum Brands Holdings: Initiation Of Coverage - These Are The 4 Pivotal Drivers Shaping Their Future Growth! - Financial Forecasts

The Spectrum Brands Holdings Q1 2024 Earnings highlighted some key points reflecting both positive and negative aspects of the company's...

Baptista Research

Cheerwin Group IPO: Trading Debut

Cheerwin priced its IPO at HK$9.20 and opened around -18% lower at HK$7.52 in the grey market. For investors with a longer-term horizon, we think...

Arun George

Cheerwin Group IPO: Valuation Insights

Cheerwin has launched its HK IPO to raise net proceeds of $343m at the mid-point of the HK$7.80-9.20 price range. The price range is attractive...

Arun George

SPB to spin-off HPC business into separate company to focus on higher growth categories and unlock value. SPB (ex SpinCo) will command a higher...