Investment Research - Asia Consumer Sector, Investory

Devi Subhakesan

Investment Research - Asia Consumer Sector

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.

Thematic (Sector/Industry)

<ul>
<li>India's packaged and processed food segment is in limelight with leading consumer companies launching/expanding their branded staples portfolio, and recent acquisitions in the branded spice segment.</li>
<li>Reliance retail launched packaged staples and food brand <em><strong>Independence; </strong></em>a potential competition to <a href="https://www.smartkarma.com/entities/adani-wilmar" target="_blank" data-smartkarma-citation="entities:34763:1" rel="noopener">Adani Wilmar</a>, <a href="https://www.smartkarma.com/entities/itc-ltd" target="_blank" data-smartkarma-citation="entities:327:1" rel="noopener">ITC Ltd</a>, and <a href="https://www.smartkarma.com/entities/tata-consumer-products" target="_blank" data-smartkarma-citation="entities:258:1" rel="noopener">Tata Consumer</a> that have been expanding in this space.</li>
<li>
<a href="https://www.smartkarma.com/entities/dabur-india-ltd" target="_blank" data-smartkarma-citation="entities:242:1" rel="noopener">Dabur (DABUR IN)</a> had announced acquisition of a 51% stake in veteran spice brand Badshah Masala in October this year, now followed by Wipro Consumer's takeover of spice player Nirapara.</li>
</ul>


India's packaged and processed food segment is in limelight with leading consumer companies launching/expanding their branded staples portfolio, and recent acquisitions in the branded spice segment.
Reliance retail launched packaged staples and food brand Independence; a potential competition to Adani Wilmar, ITC Ltd, and Tata Consumer that have been expanding in this space.

Dabur (DABUR IN) had announced acquisition of a 51% stake in veteran spice brand Badshah Masala in October this year, now followed by Wipro Consumer's takeover of spice player Nirapara.


Spicy Hot: India Branded Staples in Limelight - Acquisitions & Fresh Forays

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

Alibaba Group Holding  / Equity Capital Markets

<ul>
<li>Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.</li>
<li>On the IPO front, the two Japanese IPO set the ball rolling for the year end rush, with a few more lined up in Hong Kong along with Sunshine.</li>
<li>There were a few largish selldowns in Japan and India and given Hong Kong's recent performace, it will see some deals soon as well.</li>
</ul>


Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
On the IPO front, the two Japanese IPO set the ball rolling for the year end rush, with a few more lined up in Hong Kong along with Sunshine.
There were a few largish selldowns in Japan and India and given Hong Kong's recent performace, it will see some deals soon as well.


ECM Weekly (4th Dec 2022) - Skymark, Daiei, Sunshine, Lygend, Weilong, NRI, Zomato, Goto, Bobcat

Event-Driven

<ul>
<li>In May 2022, Delhivery raised around US$680m in its India IPO, the company is backed by a host of financial investors, the largest being Softbank.</li>
<li>Delhivery is an online logistics service provider which covers express parcel delivery, heavy goods delivery, part truckload (PTL) freight, truckload (TL) freight, supply chain solutions, cross border solutions etc.</li>
<li>In this note, we will talk about the upcoming lockup expiry.</li>
</ul>


In May 2022, Delhivery raised around US$680m in its India IPO, the company is backed by a host of financial investors, the largest being Softbank.
Delhivery is an online logistics service provider which covers express parcel delivery, heavy goods delivery, part truckload (PTL) freight, truckload (TL) freight, supply chain solutions, cross border solutions etc.
In this note, we will talk about the upcoming lockup expiry.


Delhivery IPO Lockup Expiry - US$2.8bn Lockup Release, with Softbank the Largest Holder

<ul>
<li>Despite a strong surge in sales in the Sept. quarter, most Indian consumer companies reported weak profit growth given negative impact of inflation, currency and interest rates.</li>
<li>Inflationary pressures from higher raw material costs, rise in fuel costs and higher wages have affected volume growth as companies attempted to effect price hikes to mitigate margin impact.</li>
<li>Leading FMCG companies have temporarily cut back on marketing spend during the quarter to offset the impact of cost pressures on operating margins.</li>
</ul>


Despite a strong surge in sales in the Sept. quarter, most Indian consumer companies reported weak profit growth given negative impact of inflation, currency and interest rates.
Inflationary pressures from higher raw material costs, rise in fuel costs and higher wages have affected volume growth as companies attempted to effect price hikes to mitigate margin impact.
Leading FMCG companies have temporarily cut back on marketing spend during the quarter to offset the impact of cost pressures on operating margins.


Inflation Bites: India Consumer Sector - Rising Revenues, Dipping Margins in Sept. Quarter

<ul>
<li>
<a href="https://www.smartkarma.com/entities/bikaji-foods-international-ltd" target="_blank" data-smartkarma-citation="entities:36502:1" rel="noopener">Bikaji Foods (BIKAJI IN)</a> , an ethnic snacks company, raised approximately US$107m in its India IPO.</li>
<li>Its product range includes six principal categories: bhujia, namkeen, packaged sweets, papad, western snacks as well as other snacks which primarily include gift packs, frozen food, mathri range and cookies.</li>
<li>We have looked at various aspects of the deal in our previous notes. In this note, we talk about the demand for the deal and the trading dynamics.</li>
</ul>



Bikaji Foods (BIKAJI IN) , an ethnic snacks company, raised approximately US$107m in its India IPO.
Its product range includes six principal categories: bhujia, namkeen, packaged sweets, papad, western snacks as well as other snacks which primarily include gift packs, frozen food, mathri range and cookies.
We have looked at various aspects of the deal in our previous notes. In this note, we talk about the demand for the deal and the trading dynamics.


Bikaji Foods International IPO Trading - One of the Strongest Demand This Year

India

Tata Consumer Products Limited produces food and beverage products. The Company manufactures, sells, and exports tea, coffee, salt, oil, pulses, spices, and food products. Tata Consumer Products serves customers worldwide.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Tata Consumer Products (TATACONS IN)

Spicy Hot: India Branded Staples in Limelight - Acquisitions & Fresh Forays

Leading consumer companies launching/expanding branded staples portfolios, and recent acquisitions in branded spice segment turn the spotlight on...

Devi Subhakesan

ECM Weekly (4th Dec 2022) - Skymark, Daiei, Sunshine, Lygend, Weilong, NRI, Zomato, Goto, Bobcat

Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.

Sumeet Singh

Delhivery IPO Lockup Expiry - US$2.8bn Lockup Release, with Softbank the Largest Holder

In May 2022, Delhivery raised around US$680m in its India IPO, the company is backed by a host of financial investors, the largest being Softbank....

Sumeet Singh

Inflation Bites: India Consumer Sector - Rising Revenues, Dipping Margins in Sept. Quarter

Cost pressures could continue to impact volume and margins for most India consumer stocks. Impact of Inflation, currency and interest rates are key...

Devi Subhakesan

Bikaji Foods International IPO Trading - One of the Strongest Demand This Year

Bikaji Foods (BIKAJI IN) , an ethnic snacks company, raised approximately US$107m in its India IPO. In this note, we look at the demand and trading...

Sumeet Singh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)