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.

Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/vedant-fashions" target="_blank" data-smartkarma-citation="entities:34260:1" rel="noopener">Vedant Fashions</a>, owner of India's leading homegrown brand for premium ethnic wear for men - Manyavar, will launch its IPO on Feb 4th at a price range of Rs824-866/share.</li>
<li>The USD420 mn IPO suggests an equity valuation of USD2.8 bn implying forward P/E of around 70X at a premium to apparel peers but in line with consumer good companies.</li>
<li>The rapid growth in demand for premium ethnic-branded-wear for men have helped Vedant Fashions emerge as a segment leader with a pan India presence and attractive growth outlook.</li>
</ul>



Vedant Fashions, owner of India's leading homegrown brand for premium ethnic wear for men - Manyavar, will launch its IPO on Feb 4th at a price range of Rs824-866/share.
The USD420 mn IPO suggests an equity valuation of USD2.8 bn implying forward P/E of around 70X at a premium to apparel peers but in line with consumer good companies.
The rapid growth in demand for premium ethnic-branded-wear for men have helped Vedant Fashions emerge as a segment leader with a pan India presence and attractive growth outlook.


Vedant Fashions IPO: Regal Ware Deserves a Premium. India's Leading Men's Ethnic Apparel Brand Play.

APAC IPOs & Placements, Aequitas Research

Clarence Chu

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.

<a href="https://www.smartkarma.com/entities/oyo-pvt-ltd" target="_blank" data-smartkarma-citation="entities:28861:1" rel="noopener">Oyo (1698548D IN)</a> is looking to raise up to US$1.1bn in its upcoming India IPO. The deal will be run by Deutsche Bank, ICICI Securities, JM Financial, Nomura and joint global coordinators include Citigroup, JP Morgan and Kotak. Oyo runs a digital platform that serves as a hotel aggregator between Patrons, which include owners and lessors, and Customers, such as travelers and guests booking for accommodation. Patrons list their digitally-enabled storefronts on the firm’s platform, which can be booked by customers through the firm’s direct to consumer (D2C) channels or via its indirect channels with third-party online travel agencies (OTAs). As at Mar 2021, there were more than 157,344 storefronts across more than 35 countries listed on Oyo’s platform.

Oyo (1698548D IN) is looking to raise up to US$1.1bn in its upcoming India IPO. The deal will be run by Deutsche Bank, ICICI Securities, JM Financial, Nomura and joint global coordinators include Citigroup, JP Morgan and Kotak. Oyo runs a digital platform that serves as a hotel aggregator between Patrons, which include owners and lessors, and Customers, such as travelers and guests booking for accommodation. Patrons list their digitally-enabled storefronts on the firm’s platform, which can be booked by customers through the firm’s direct to consumer (D2C) channels or via its indirect channels with third-party online travel agencies (OTAs). As at Mar 2021, there were more than 157,344 storefronts across more than 35 countries listed on Oyo’s platform.

Puranik Builders Limited / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/puranik-builders-limited" target="_blank" data-smartkarma-citation="entities:34464:1" rel="noopener">Puranik Builders Limited (1607816D IN)</a> is looking to raise about US$150m in its upcoming India IPO. The deal will be run by Elara Capital and Yes Securities. This is a refiling after its previous two filings, in 2018 and 2019, lapsed. Puranik Builders is a residential real estate developer for the Mumbai Metropolitan Region (MMR) and Pune Metropolitan Region (PMR). According to Cushman &amp; Wakefield (C&amp;W), the firm is among the leading residential real estate developers in the growing Thane region of MMR, based on projects being marketed and corresponding units sold. As of Jul 2021, it had completed 35 projects amounting to 554,197 sqm of Developable Area across MMR and PMR.

Puranik Builders Limited (1607816D IN) is looking to raise about US$150m in its upcoming India IPO. The deal will be run by Elara Capital and Yes Securities. This is a refiling after its previous two filings, in 2018 and 2019, lapsed. Puranik Builders is a residential real estate developer for the Mumbai Metropolitan Region (MMR) and Pune Metropolitan Region (PMR). According to Cushman &amp; Wakefield (C&amp;W), the firm is among the leading residential real estate developers in the growing Thane region of MMR, based on projects being marketed and corresponding units sold. As of Jul 2021, it had completed 35 projects amounting to 554,197 sqm of Developable Area across MMR and PMR.  

Puranik Builders Pre-IPO Tearsheet (Refiled)

<a href="https://www.smartkarma.com/entities/vedant-fashions" target="_blank" data-smartkarma-citation="entities:34260:1" rel="noopener">Vedant Fashions (123D IN)</a> is looking to raise up to US$340m in its upcoming India IPO. The deal will be run by Axis Capital, Edelweiss, ICICI Securities, IIFL Securities, and Kotak. Vedant Fashions is a fashionwear company targeting the Indian wedding and celebration wear segment. According to CRISIL, it was the largest company in India in the men’s Indian wedding and celebration wear segment in terms of revenue, EBITDA and PAT for FY20. It operates an asset-light business where sales are generated primarily through its franchisee-owned exclusive brand outlets (EBOs). As of Jun 2021, it had a retail footprint of 1.1m sq ft covering 525 EBOs across 207 cities and towns in India, and 12 EBOs internationally, across the United States, Canada and the UAE.

Vedant Fashions (123D IN) is looking to raise up to US$340m in its upcoming India IPO. The deal will be run by Axis Capital, Edelweiss, ICICI Securities, IIFL Securities, and Kotak. Vedant Fashions is a fashionwear company targeting the Indian wedding and celebration wear segment. According to CRISIL, it was the largest company in India in the men’s Indian wedding and celebration wear segment in terms of revenue, EBITDA and PAT for FY20. It operates an asset-light business where sales are generated primarily through its franchisee-owned exclusive brand outlets (EBOs). As of Jun 2021, it had a retail footprint of 1.1m sq ft covering 525 EBOs across 207 cities and towns in India, and 12 EBOs internationally, across the United States, Canada and the UAE.

Equity Analyst, LightStream Research

Oshadhi Kumarasiri

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/vedant-fashions" target="_blank" data-smartkarma-citation="entities:34260:1" rel="noopener">Vedant Fashions (123D IN)</a>, which owns the leading ethnic and celebration wear brands ‘Manyavar’, ‘Mohey’ and ‘Manthan’, filed for an initial public offering with the SEBI on 14th September 2021.</li>
<li>The offer comprises 36.4m secondary shares, which is around 15.0% of Vedant Fashions Limited’s outstanding shares.</li>
<li>Vedant Fashions is a stable business with excellent return on capital alongside a healthy and progressive dividend. Its revenue growth prospects might also be better than its peers’.</li>
<li>We would expect such a company to be priced expensively, and to discourage value investor participation in the IPO. However, the pent-up demand for weddings following COVID-19 could encourage value investor participation even at relatively uncomfortable valuation multiples.</li>
</ul>



Vedant Fashions (123D IN), which owns the leading ethnic and celebration wear brands ‘Manyavar’, ‘Mohey’ and ‘Manthan’, filed for an initial public offering with the SEBI on 14th September 2021.
The offer comprises 36.4m secondary shares, which is around 15.0% of Vedant Fashions Limited’s outstanding shares.
Vedant Fashions is a stable business with excellent return on capital alongside a healthy and progressive dividend. Its revenue growth prospects might also be better than its peers’.
We would expect such a company to be priced expensively, and to discourage value investor participation in the IPO. However, the pent-up demand for weddings following COVID-19 could encourage value investor participation even at relatively uncomfortable valuation multiples.


Vedant Fashions IPO: Pent Up Demand Could Justify an Expensive Valuation

India

Vedant Fashions Limited operates as a manufacturer and marketer of apparels. The Company provides men, women and kids apparels and accessories. Vedant Fashions also offers ethnic wedding, indo-western, and bridal collections. Vedant Fashions serves customers worldwide.

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Vedant Fashions (MANYAVAR IN)

Vedant Fashions IPO: Regal Ware Deserves a Premium. India's Leading Men's Ethnic Apparel Brand Play.

A niche player in the premium Indian ethnic wear segment with clear leadership in the men's category. Superior operating margins, return ratios,...

Devi Subhakesan

Oravel Stays (Oyo) Pre-IPO Tearsheet

Oyo (1698548D IN) is looking to raise up to US$1.1bn in its upcoming India IPO. The deal will be run by Deutsche Bank, ICICI Securities, JM...

Clarence Chu

Puranik Builders Pre-IPO Tearsheet (Refiled)

Puranik Builders Limited (1607816D IN) is looking to raise about US$150m in its upcoming India IPO. The deal will be run by Elara Capital and Yes...

Clarence Chu

Vedant Fashions Pre-IPO Tearsheet

Vedant Fashions (123D IN) is looking to raise up to US$340m in its upcoming India IPO. The deal will be run by Axis Capital, Edelweiss, ICICI...

Clarence Chu

Vedant Fashions IPO: Pent Up Demand Could Justify an Expensive Valuation

Vedant Fashions is a stable business with excellent return on capital alongside a healthy and progressive dividend. Its revenue growth prospects...

Oshadhi Kumarasiri

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