Pan-Asia Index Flows & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Pan-Asia Index Flows & Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

<ul>
<li>The NIFTY Index Family has a series of broad equity indices that represents large, mid and small market capitalisation segments of the Indian public equity market.</li>
<li>The review of broad market indices will be done on a semi-annual basis and the changes will be implemented at the end of March and September every year.</li>
<li>Below is a look at the names leading the race to become Adds and Deletes for NIFTY 50, NIFTY 100, and NIFTY 500 in September 2022.</li>
</ul>


The NIFTY Index Family has a series of broad equity indices that represents large, mid and small market capitalisation segments of the Indian public equity market.
The review of broad market indices will be done on a semi-annual basis and the changes will be implemented at the end of March and September every year.
Below is a look at the names leading the race to become Adds and Deletes for NIFTY 50, NIFTY 100, and NIFTY 500 in September 2022.


NIFTY Indices: Quiddity Leaderboard for September 2022

External broker reports(aggregated public sources), Edelweiss Broking Limited

Edelweiss

External broker reports(aggregated public sources)

Edelweiss Broking Limited

Edelweiss Broking Limited is an Indian Financial services company based in Mumbai, India. The company is a subsidiary of Edelweiss Group. 

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.

Equity Bottom-Up

<h2>Business Overview</h2>Ultratech Cement Limited (UTCL), with pan-India presence, is the market leader in the domestic cement industry. With the acquisition of Binani Cement, JPA’s assets and the recently concluded Century Textiles deal, the company’s current domestic grey cement capacity has been enhanced to ~109mtpa. It is further set to rise to 113mtpa (22% of industry capacity) with commissioning of the proposed 4mtpa plant in UP. The company has 982MW thermal captive power plants that meet ~80% of its requirement. Also, the company operates in the white cement segment with ~1.5mtpa capacity. Grasim, the flagship company of the AV Birla Group, is a majority shareholder in UTCL with 60.3% ownership. Industry leader UltraTech Cement (UTCL) will be the beneficiary of – a) expected recovery in demand; b) rising clinker utilisations amidst tepid capacity additions; c) pan India presence that enables it to benefit from the price hikes across different regions; d) high operating leverage - a 1% rise in prices increases EBIT by 5%; and e) increasing focus on improving cost efficiency and reducing leverage.<div class="content-highlight">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.</div>

Business OverviewUltratech Cement Limited (UTCL), with pan-India presence, is the market leader in the domestic cement industry. With the acquisition of Binani Cement, JPA’s assets and the recently concluded Century Textiles deal, the company’s current domestic grey cement capacity has been enhanced to ~109mtpa. It is further set to rise to 113mtpa (22% of industry capacity) with commissioning of the proposed 4mtpa plant in UP. The company has 982MW thermal captive power plants that meet ~80% of its requirement. Also, the company operates in the white cement segment with ~1.5mtpa capacity. Grasim, the flagship company of the AV Birla Group, is a majority shareholder in UTCL with 60.3% ownership. Industry leader UltraTech Cement (UTCL) will be the beneficiary of – a) expected recovery in demand; b) rising clinker utilisations amidst tepid capacity additions; c) pan India presence that enables it to benefit from the price hikes across different regions; d) high operating leverage - a 1% rise in prices increases EBIT by 5%; and e) increasing focus on improving cost efficiency and reducing leverage.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.

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

Nuvoco Vistas (NV) raised around US$673m in its India IPO. It is promoted by the Nirma Group and has recently acquired Emami’s cement business.Nuvoco Vistas (NV) is the fifth largest cement company in India and the largest cement company in East India, in terms of capacity. It had a total consolidated capacity of 22.32 MMTPA across 11 cement plants, comprising five integrated units, five grinding units and one blending unit. It also operates a RMX business with 49 RMX plants across India. As of Dec 2020, its cement production capacity constituted approximately 4.2% of total cement capacity in India and 17% of total cement capacity in East India.The company’s past revenue growth has been subdued, largely owing to COVID-19 impact. Although, it has managed to expand its EBITDA margin, especially in FY20, thus shoring up EBITDA growth. However, there is nothing particularly alluring about the stock that makes it stand out versus its peers. We covered the background of the company in our previous note, <a href="https://www.smartkarma.com/insights/nuvoco-vistas-ipo-don-t-see-any-strong-reason-to-buy" target="_blank" rel="noopener">Nuvoco Vistas IPO - Don’t see any strong reason to buy.</a>In this note, we will talk about the trading dynamics.

Nuvoco Vistas (NV) raised around US$673m in its India IPO. It is promoted by the Nirma Group and has recently acquired Emami’s cement business.Nuvoco Vistas (NV) is the fifth largest cement company in India and the largest cement company in East India, in terms of capacity. It had a total consolidated capacity of 22.32 MMTPA across 11 cement plants, comprising five integrated units, five grinding units and one blending unit. It also operates a RMX business with 49 RMX plants across India. As of Dec 2020, its cement production capacity constituted approximately 4.2% of total cement capacity in India and 17% of total cement capacity in East India.The company’s past revenue growth has been subdued, largely owing to COVID-19 impact. Although, it has managed to expand its EBITDA margin, especially in FY20, thus shoring up EBITDA growth. However, there is nothing particularly alluring about the stock that makes it stand out versus its peers. We covered the background of the company in our previous note, Nuvoco Vistas IPO - Don’t see any strong reason to buy.In this note, we will talk about the trading dynamics.

Nuvoco Vistas (NV) aims to raise around US$673m in its India IPO. It is promoted by the Nirma Group and has recently acquired Emami’s cement business.Nuvoco Vistas (NV) is the fifth largest cement company in India and the largest cement company in East India, in terms of capacity. It had a total consolidated capacity of 22.32 MMTPA across 11 cement plants, comprising five integrated units, five grinding units and one blending unit. It also operates a RMX business with 49 RMX plants across India. As of Dec 2020, its cement production capacity constituted approximately 4.2% of total cement capacity in India and 17% of total cement capacity in East India.The company’s past revenue growth has been subdued, largely owing to COVID-19 impact. Although, it has managed to expand its EBITDA margin, especially in FY20, thus shoring up EBITDA growth. However, there is nothing particularly alluring about the stock that makes it stand out versus its peers. In this note, we will run the deal through our ECM framework and talk about pricing

Nuvoco Vistas (NV) aims to raise around US$673m in its India IPO. It is promoted by the Nirma Group and has recently acquired Emami’s cement business.Nuvoco Vistas (NV) is the fifth largest cement company in India and the largest cement company in East India, in terms of capacity. It had a total consolidated capacity of 22.32 MMTPA across 11 cement plants, comprising five integrated units, five grinding units and one blending unit. It also operates a RMX business with 49 RMX plants across India. As of Dec 2020, its cement production capacity constituted approximately 4.2% of total cement capacity in India and 17% of total cement capacity in East India.The company’s past revenue growth has been subdued, largely owing to COVID-19 impact. Although, it has managed to expand its EBITDA margin, especially in FY20, thus shoring up EBITDA growth. However, there is nothing particularly alluring about the stock that makes it stand out versus its peers. In this note, we will run the deal through our ECM framework and talk about pricing

Nuvoco Vistas IPO - Don’t See Any Strong Reason to Buy

Indian Accounting Research Analyst, Trudence Capital Advisors

Nitin Mangal

Indian Accounting Research Analyst

Thematic (Sector/Industry)

The COVID-19 crisis in India is surmounting as the number of tests and positive cases each day are reaching new highs while the peak has not reached yet, as discussed in <a href="https://www.smartkarma.com/insights/covid-19-how-does-india-fare-currently" target="_blank" data-smartkarma-citation="insights:38227" rel="noopener">COVID-19: How Does India Fare Currently?</a> Unsurprisingly, the government has extended the nation-wide lockdown to a further 19 days till May 3rd. While the extension was anticipated by many, the government has also decided to free up some economic activities post 20th April, subject to certain criteria (the guideline is embedded in the insight). Post the extension announcement, the government had segregated 700+ districts into hotspots, non-hotspots and green zones; it is green zones are where certain economic activities will resume on 20th April. In this insight, we try to decipher the possible beneficiaries arising from this 'free-up'

The COVID-19 crisis in India is surmounting as the number of tests and positive cases each day are reaching new highs while the peak has not reached yet, as discussed in COVID-19: How Does India Fare Currently? Unsurprisingly, the government has extended the nation-wide lockdown to a further 19 days till May 3rd. While the extension was anticipated by many, the government has also decided to free up some economic activities post 20th April, subject to certain criteria (the guideline is embedded in the insight). Post the extension announcement, the government had segregated 700+ districts into hotspots, non-hotspots and green zones; it is green zones are where certain economic activities will resume on 20th April. In this insight, we try to decipher the possible beneficiaries arising from this 'free-up'

COVID-19 : Intermediate Respite for Some Businesses

India

Ultra Tech Cement Ltd. produces a wide range of cement products. This Company represents the cement operations of Larsen & Toubro which were spun-off into a separate entity in which Grasim Industries holds a majority interest.

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Ultratech Cement (UTCEM IN)

NIFTY Indices: Quiddity Leaderboard for September 2022

A look at the names leading the race to become Adds and Deletes for NIFTY 50, NIFTY 100, and NIFTY 500 in September 2022.

Janaghan Jeyakumar, CFA

Pick of the Week - Ultratech Cement

Ultratech Cement Limited (UTCL), with pan-India presence, is the market leader in the domestic cement industry. With the acquisition of Binani...

Edelweiss

Nuvoco Vistas IPO Trading - Tepid Demand

Nuvoco Vistas (NV) raised around US$673m in its India IPO. It is promoted by the Nirma Group and has recently acquired Emami’s cement business.

Sumeet Singh

Nuvoco Vistas IPO - Don’t See Any Strong Reason to Buy

Nuvoco Vistas (NV) aims to raise around US$673m in its India IPO. It is promoted by the Nirma Group and has recently acquired Emami’s cement business.

Sumeet Singh

COVID-19 : Intermediate Respite for Some Businesses

The COVID-19 crisis in India is surmounting as the number of tests and positive cases each day are reaching new highs while the peak has not...

Nitin Mangal

Price Gauge

52-week Range

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