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>Block Inc., previously known as Square, provided updates on its business performance for the first quarter of 2024 in a recent earnings conference call.</li><li>The company reported an impressive gross profit of $2.09 billion, an increase of 22% compared with the same period last year.</li><li>This was mainly due to robust growth in the company's Square and Cash App businesses, and discipline in managing expenses.</li></ul>

Block Inc., previously known as Square, provided updates on its business performance for the first quarter of 2024 in a recent earnings conference call.The company reported an impressive gross profit of $2.09 billion, an increase of 22% compared with the same period last year.This was mainly due to robust growth in the company's Square and Cash App businesses, and discipline in managing expenses.

Block Inc.: A Deep Dive Into Their  Strategic Evolution & Competitive Landscape! - Major Drivers

<ul><li>Block has shown considerable growth in gross profit with an impressive 25% increase year over year, largely driven by the strong performance of its Cash App.</li><li>Adjusted EBITDA was up by 81% compared to previous year, proving positive focus on efficiency and profitability.</li><li>The execution of its investment framework and consistent progress towards achieving its Rule of 40 target in 2026, were also remarkable.</li></ul>

Block has shown considerable growth in gross profit with an impressive 25% increase year over year, largely driven by the strong performance of its Cash App.Adjusted EBITDA was up by 81% compared to previous year, proving positive focus on efficiency and profitability.The execution of its investment framework and consistent progress towards achieving its Rule of 40 target in 2026, were also remarkable.

Block Inc.: Expansion Of Financial Services Through The Cash App & 5 Growth Catalysts! - Financial Forecasts

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.

Event-Driven

<ul>
<li>Multiple new agencies have been reporting that <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a> plans to trim its investment portfolio over the remainder of the year. </li>
<li>The reports have been coming in since the second half of the year and the company has been duly denying these rumors.</li>
<li>In this note, we look at Tencent’s shareholding in various companies to try and gauge which ones it could sell out of and how.</li>
</ul>


Multiple new agencies have been reporting that Tencent (700 HK) plans to trim its investment portfolio over the remainder of the year. 
The reports have been coming in since the second half of the year and the company has been duly denying these rumors.
In this note, we look at Tencent’s shareholding in various companies to try and gauge which ones it could sell out of and how.


Tencent Investee Selldown - The US$120bn Global Overhang

TMT & Consumer Independent Equity Research Analyst, Obex Capital Research

Aaron Gabin

TMT & Consumer Independent Equity Research Analyst

TMT & Consumer Independent Equity Research

Obex Capital Research

“Obex” is Latin for Barriers to Entry. Obex Capital Management’s investment philosophy is driven by an intense focus on which business model’s Barriers to Entry are able to withstand the ever increasing competitive disruption in the TMT and Consumer Sectors.

<p>Last week Square acquired Afterpay for $29B in an all stock deal. Square said the deal would be accretive to gross profit growth in year one after closing, with just a “modest decrease” to adjusted EBITDA in year one. Its shares subsequently added ~$14B market cap…not too shabby.  </p><div class="content-highlight"><p>Obex’s fundamental research process is focused on secular change in the TMT and Consumer sectors. We seek to differentiate between fundamental business analysis and security analysis. Before deciding if a security’s pricing and positioning merit a long or short position, we analyze the four pillars of business fundamentals (Secular Factors, TAM, Competitive Advantage, Business Model) in order to determine if this is a “good” or “not so good” opportunity.  </p></div>

Last week Square acquired Afterpay for $29B in an all stock deal. Square said the deal would be accretive to gross profit growth in year one after closing, with just a “modest decrease” to adjusted EBITDA in year one. Its shares subsequently added ~$14B market cap…not too shabby.  Obex’s fundamental research process is focused on secular change in the TMT and Consumer sectors. We seek to differentiate between fundamental business analysis and security analysis. Before deciding if a security’s pricing and positioning merit a long or short position, we analyze the four pillars of business fundamentals (Secular Factors, TAM, Competitive Advantage, Business Model) in order to determine if this is a “good” or “not so good” opportunity.  

Square: Afterpay Acquisition a Master Class in Platform Synergies

<ul><li>Block, Inc. surpassed the revenue expectations as well as the earnings expectations of Wall Street, elevating profitability expectations for the remainder of the year.</li><li>The quarter saw the highest-ever adjusted EBITDA of $477 million, reflecting a 25% margin on gross profit.</li><li>Square and Cash App played pivotal roles in this success, with Square generating $899 million in gross profit, up 15% year-over-year, and Cash App yielding $984 million in gross profit, a notable 27% year-over-year increase.</li></ul>

Block, Inc. surpassed the revenue expectations as well as the earnings expectations of Wall Street, elevating profitability expectations for the remainder of the year.The quarter saw the highest-ever adjusted EBITDA of $477 million, reflecting a 25% margin on gross profit.Square and Cash App played pivotal roles in this success, with Square generating $899 million in gross profit, up 15% year-over-year, and Cash App yielding $984 million in gross profit, a notable 27% year-over-year increase.

Block Inc.: Cash App & Square's Stellar Success - Inside Block's Profit Powerhouse! - Major Drivers

United States

Equitable Holdings, Inc. is an independent U.S.-based financial services company. The Company, through its subsidiaries, provides advice, protection, retirement strategies, and investment-management and research.

Voya Financial, Inc. is a retirement, investment and insurance company. The Company offers asset accumulation, asset protection and asset distribution products and services to individual and institutional customers in the United States.

PennyMac Financial Services, Inc. provides mortgage lending services. The Company offers credit risk transfers, loan servicing and production, investment management, and other related financial services. PennyMac Financial Services serves customers in the United States.

Paymentus Holdings, Inc. operates as a holding company. The Company, through its subsidiaries, develops cloud-based bill payment technology and solutions. Paymentus Holdings serves customers worldwide.

Fannie Mae buys and holds mortgages, and issues and sells guaranteed mortgage-backed securities to facilitate housing ownership for low to middle-income Americans. The Company was chartered by the United States Congress, but went public in 1970.

Compass Diversified Holdings is an investment holding company. The Company acquires controlling interests in profitable small to middle market businesses in niche industries as well as works with management to pursue growth opportunities and provide strategic support.

Cannae Holdings, Inc. operates as a holding company. The Company, through its subsidiaries, manages and operates a group of companies and investments. Cannae Holdings serves investors in the State of Nevada.

Freddie Mac is a stockholder-owned corporation chartered by Congress in 1970 to create a continuous flow of funds to mortgage lenders.  Freddie purchases single-family and multi-family residential mortgages and mortgage-related securities, which it finances primarily by issuing mortgage pass through securities and debt instruments in the capital markets.

Tiptree Financial Inc. is a diversified holding company which conducts its operations through its operating subsidiary. The Company's primary focus is on four sectors of financial services: insurance and insurance services, specialty finance (including corporate, consumer and tax-exempt credit), asset management and real estate.

Cantaloupe Inc operates as a software and payments company. The Company provides end-to-end technology solutions for the unattended retail market. Cantaloupe serves customers worldwide.

Bajaj Finserv Ltd. is currently engaged in life insurance; general insurance and consumer finance businesses and has plans to expand its business by offering a wide array of financial products and services in India. The Company is also active in wind-energy generation.

ORIX Corporation provides comprehensive financial services throughout the world. The Company's business lines include leasing, real estate loans, life insurance, banking, and consumer finance.  The Company also operates Environment related business and Private equity investment business. ORIX has a professional baseball team, the ORIX Buffalos.

Fubon Financial Holding Co., Ltd. is a financial holding company, formed through the merger of Fubon Insurance, Fubon Securities, Fubon Commercial Bank, and Fubon Life Assurance.

Indian Railway Finance Corporation Limited (IRFC) provides financial services. The Company raises money from the market through bonds and off-shores borrowings to finance the plan outlay of railways and other various developmental programs. IRFC serves customers in India. 

Indian Railway Finance Corporation (IRFC IN)

Adyen N.V. provides payment solutions. The Company offers a platform that enable merchants and businesses to process payments online, mobile, and point-of-sale systems with payment methods including card schemes, mobile wallets, and other local methods. Adyen serves customers worldwide.

Rural Electrification Corporation Limited engages in the financing and promotion of transmission, distribution and generation projects in India. The Company provides funding to clients to assist them in formulating and implementing various types of power project-related schemes.

Power Finance Corporation funds power projects in India.  The Company serves state power utilities, central power sector utilities, power departments, private power sector utilities, joint sector power utilities, power equipment manufacturers, and municipal power utilities.

EXOR N.V. is a diversified holding company. The Company brings in finance for the development of its companies, to improve their competitive position and profitability, and maintains a constant dialogue with the top management of the companies in which it invests, while fully respecting their operating autonomy.

FirstRand Limited is a portfolio of separately branded, integrated financial services businesses offering a universal set of transactional, lending, investment and insurance products and services in South Africa, certain markets in sub-Saharan Africa and the UK.

Block, Inc. operates as a financial services and digital payments company. The Company develops a payments platform aimed at small and medium businesses that allows them to accept credit card payments and use tablet computers as payment registers for a point-of-sale system. Block also provides financial and marketing services.

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Block (SQ US)

Block Inc.: A Deep Dive Into Their Strategic Evolution & Competitive Landscape! - Major Drivers

Block Inc., previously known as Square, provided updates on its business performance for the first quarter of 2024 in a recent earnings conference...

Baptista Research

Block Inc.: Expansion Of Financial Services Through The Cash App & 5 Growth Catalysts! - Financial Forecasts

Block has shown considerable growth in gross profit with an impressive 25% increase year over year, largely driven by the strong performance of...

Baptista Research

Tencent Investee Selldown - The US$120bn Global Overhang

There have been multiple reports that Tencent (700 HK) plans to trim its investment portfolio over the remainder of the year. We look at Tencent's...

Sumeet Singh

Square: Afterpay Acquisition a Master Class in Platform Synergies

Last week Square acquired Afterpay for $29B in an all stock deal. Its shares subsequently added ~$14B market cap…not too shabby.

Aaron Gabin

Block Inc.: Cash App & Square's Stellar Success - Inside Block's Profit Powerhouse! - Major Drivers

Block, Inc. surpassed the revenue expectations as well as the earnings expectations of Wall Street, elevating profitability expectations for the...

Baptista Research

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