External broker reports(aggregated public sources), Axis Direct

Axis Direct

External broker reports(aggregated public sources)

Axis Direct is the flagship brand under Axis Securities Limited, a subsidiary of Axis Bank in India. 

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

<ul><li>VBL announced a proposed acquisition of a 100% stake in SBC Beverages Tanzania Ltd and SBC Beverages Ghana, both PepsiCo bottlers operating in the territories of Tanzania and Ghana, further reinforcing its position in the high-growth African market following the acquisition of BevCo in Dec-23.</li><li>Additionally, it has proposed acquiring the remaining 39.93% (taking its total shareholding to 100%) stake in Lunarmech Technologies which is engaged in manufacturing plastic closures for PET bottles used by VBL inhouse.</li><li>SBC Beverages Tanzania (SBCT): The proposed transaction is valued at an equity value of Rs 1,304 Cr (~USD 154.5 Mn), reflecting a reasonable valuation of ~0.9x P/S on an FY24 basis. </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.

VBL announced a proposed acquisition of a 100% stake in SBC Beverages Tanzania Ltd and SBC Beverages Ghana, both PepsiCo bottlers operating in the territories of Tanzania and Ghana, further reinforcing its position in the high-growth African market following the acquisition of BevCo in Dec-23.Additionally, it has proposed acquiring the remaining 39.93% (taking its total shareholding to 100%) stake in Lunarmech Technologies which is engaged in manufacturing plastic closures for PET bottles used by VBL inhouse.SBC Beverages Tanzania (SBCT): The proposed transaction is valued at an equity value of Rs 1,304 Cr (~USD 154.5 Mn), reflecting a reasonable valuation of ~0.9x P/S on an FY24 basis. 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.

Varun Beverages Ltd - Fizzing The Portfolio for Growth

External broker reports(aggregated public sources), ICICI Securities Ltd

ICICI Securities Limited

ICICI Securities Ltd

ICICI Securities Limited provides investment services. The Company provides corporate and investment banking, securities, wealth management, retail brokerage, initial public offerings, and advisory services. 

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.

<ul><li>Takeaways: (1) Varun (VBL) has aggressively ramped up production (operating at maximum utilisation) at its recentlycommissioned DRC facility, due to strong demand.</li><li>It plans to scale up production capacity at DRC in a phased manner (2x by Aug’25).</li><li>(2) Unfavourable weather hurt domestic volumes (+5.7% YoY).</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.

Takeaways: (1) Varun (VBL) has aggressively ramped up production (operating at maximum utilisation) at its recentlycommissioned DRC facility, due to strong demand.It plans to scale up production capacity at DRC in a phased manner (2x by Aug’25).(2) Unfavourable weather hurt domestic volumes (+5.7% YoY).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.

Varun Beverages - Strong Growth Prospects at International Business

<ul><li>VBL delivered a strong set of numbers: The company delivered strong results, driven by robust consolidated volume growth of ~22% YoY to 267.5 Mn cases (including 34 Mn cases from Bevco).</li><li>This growth was led by an expanded distribution network, deeper product penetration, and favourable demand trends in key markets.</li><li>However, domestic volume growth was moderate at 5.7% YoY, impacted by heavy rains during the quarter.</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.

VBL delivered a strong set of numbers: The company delivered strong results, driven by robust consolidated volume growth of ~22% YoY to 267.5 Mn cases (including 34 Mn cases from Bevco).This growth was led by an expanded distribution network, deeper product penetration, and favourable demand trends in key markets.However, domestic volume growth was moderate at 5.7% YoY, impacted by heavy rains during the quarter.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.

Varun Beverages Ltd - Strong Performance Continues; Maintain BUY

Thematic (Sector/Industry)

<ul><li>Topline growth remains muted: Staple companies have reported muted topline growth due to weak urban consumer demand, heavy rainfall across major parts of the country, and heightened competitive intensity.</li><li>On a positive note, rural demand continues to show signs of revival and remains resilient. </li><li>Urban weakness was a surprising element: Urban which accounts for 50-60% of FMCG sales came under pressure as highlighted by most of the consumer companies owing to – 1) Slowdown in discretionary spends, 2) Muted wage growth, 3) Higher interest rate coupled with increase in rentals and EMIs, 3) Higher competitive intensity from other D2C brands as Qcommerce penetration increase in the recent time leading to overall weakness in overall urban.</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.

Topline growth remains muted: Staple companies have reported muted topline growth due to weak urban consumer demand, heavy rainfall across major parts of the country, and heightened competitive intensity.On a positive note, rural demand continues to show signs of revival and remains resilient. Urban weakness was a surprising element: Urban which accounts for 50-60% of FMCG sales came under pressure as highlighted by most of the consumer companies owing to – 1) Slowdown in discretionary spends, 2) Muted wage growth, 3) Higher interest rate coupled with increase in rentals and EMIs, 3) Higher competitive intensity from other D2C brands as Qcommerce penetration increase in the recent time leading to overall weakness in overall urban.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.

Top Conviction Ideas – “FMCG” - November 2024

APAC IPOs & Placements, Aequitas Research

Akshat Shah

APAC 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

<ul>
<li>
<a href="https://www.smartkarma.com/entities/zinka-logistics" target="_blank" data-smartkarma-citation="entities:43728:1" rel="noopener">Blackbuck (1355652D IN)</a>  raised about US$130m in its India IPO.</li>
<li>Zinka Logistics (Blackbuck) is India’s largest digital platform for truck operators (in terms of number of users), with 963,345 truck operators transacting on its platform in FY24, as per Redseer.</li>
<li>We have looked at the company’s past performance and valuations in our earlier notes. In this note, we talk about the trading dynamics.</li>
</ul>



Blackbuck (1355652D IN)  raised about US$130m in its India IPO.
Zinka Logistics (Blackbuck) is India’s largest digital platform for truck operators (in terms of number of users), with 963,345 truck operators transacting on its platform in FY24, as per Redseer.
We have looked at the company’s past performance and valuations in our earlier notes. In this note, we talk about the trading dynamics.


Zinka Logistics IPO Trading - Subdued Demand; Lags Recent Listings

India

Varun Beverages Limited produces and distributes beverages. The Company offers carbonated soft drinks and non-alcoholic beverages, as well as provides packaged drinking water. Varun Beverages serves customers worldwide.

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Varun Beverages (VBL IN)

Varun Beverages Ltd - Fizzing The Portfolio for Growth

VBL announced a proposed acquisition of a 100% stake in SBC Beverages Tanzania Ltd and SBC Beverages Ghana, both PepsiCo bottlers operating in the...

Axis Direct

Varun Beverages - Strong Growth Prospects at International Business

Takeaways: (1) Varun (VBL) has aggressively ramped up production (operating at maximum utilisation) at its recentlycommissioned DRC facility, due...

ICICI Securities Limited

Varun Beverages Ltd - Strong Performance Continues; Maintain BUY

The company delivered strong results, driven by robust consolidated volume growth of ~22% YoY to 267.5 Mn cases (including 34 Mn cases from Bevco).

Axis Direct

Top Conviction Ideas – “FMCG” - November 2024

Staple companies have reported muted topline growth due to weak urban consumer demand, heavy rainfall across major parts of the country, and...

Axis Direct

Zinka Logistics IPO Trading - Subdued Demand; Lags Recent Listings

Zinka Logistics (Blackbuck) raised about US$130m in its India IPO. In this note, we talk about the demand and trading dynamics.

Akshat Shah

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52-week Range

Market Cap (USDm)

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