India

• Hyundai Motor (005380 KS) is looking to raise around US$3bn via listing its India unit, Hyundai Motor India. HMI is a wholly owned subsidiary of the Hyundai Motor Group.
• HMI primarily manufactures and sells four-wheeler passenger vehicles and parts. Currently its vehicle portfolio includes 13 passenger vehicle models across sedans, hatchbacks, SUVs and battery EVs.
• In our previous note, we looked at the company’s past performance. In this note, we undertake a peer comparison.

• Overall, Cantabil Retail is a well-managed company with a solid track record and a clear growth strategy. 
• With a focus on expanding into new markets, maintaining high profitability, and strong promoter and FII confidence, Cantabil is poised for continued success in the Indian retail sector. 
• Investors looking for a promising investment opportunity in the apparel industry should consider Cantabil Retail for its strong financial performance and growth potential.

• Medi Assist Healthcare Services (0886371D IN) was listed on 23rd Jan 2024 after raising US$140m. The IPO had been 100% secondary, with the promoters and pre-IPO investors trimming their stakes.
• Medi Assist Healthcare Services (Medi Assist) provides third party administration services to insurance companies via its subsidiaries.
• Coming up for six-month lockup expiry are the firm’s pre-IPO shareholders and a portion of the promoters’ stakes.

• Hyundai Motor India (1342Z IN), a subsidiary of Hyundai Motor (005385 KS), aims to raise up to US$3.0 billion at a valuation of US$17 billion.
• In Hyundai Motor India IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
• The bear case rests on market share losses in the key SUV sub-segment, bottom-quartile revenue growth, higher royalty rates and dividends to Hyundai ahead of the IPO.

• Kalyan Jewellers (KALYANKJ IN) , a leading jeweller with a pan-India presence, is expected to deliver strong sales growth, and improving returns with its asset-light expansion plans.
• Indian weddings have transformed from simple rituals to elaborate celebrations requiring heavy spending on jewellery and specialty apparel, reflecting rising affluence and media influence.
• Wedding related jewellery demand constitutes 60% of India’s total gold jewellery demand and remains resilient regardless of price changes.

• Niva Bupa Health Insurance (1226871D IN) is looking to raise US$360m in its upcoming India IPO. The bookrunners on the deal are MS, Kotak, Axis, ICICI, HDFC, and Motilal Oswal.
• Niva Bupa Health Insurance (Niva Bupa) is a health insurance firm. Its portfolio consists of health (including retail and group), personal accident, and travel insurance.
• As per Redseer, the firm was one of India’s largest and fastest growing standalone health insurers (SAHI) based on overall health gross direct premium income (GDPI) in FY24. 

• Sagility India (2058883D IN) is looking to raise up to US$500m in its upcoming India IPO. The deal will be run by ICICI Securities, IIFL Securities, Jefferies and JP Morgan. 
• Sagility India is a pure-play healthcare focused solutions and services provider to Payers (U.S. health insurance companies), and Providers (primarily hospitals, physicians, and diagnostic and medical devices companies). 
• It supports the core business operations of both Payer and Provider clients. 

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

• Adani Ports & Special Economic Zone
• Vedanta Resources

• IVs for Monthly & Quarterly contracts rose as options market baked in additional risk premia for the Budget Announcement. 
• Vega bid & Gamma offered  – Monthly IVs higher by +2.3 vols & Weekly IVs lower by -0.5 vols.  Short-Dated IVs closed lower in spite of upcoming earnings events 
• Term structure is trading with a kinked shape, with Monthly IVs trading at a markup to rest of the curve

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

• HPCL-Mittal Energy Ltd
• JSW Steel Ltd
• Lenovo
• Lippo Malls Indonesia Retail Trust
• Tata Steel Thailand

• Hyundai Motor India (1342Z IN), a subsidiary of Hyundai Motor (005385 KS), aims to raise up to US$3.0 billion at a valuation of US$17 billion. 
• HMIL is India’s second largest passenger vehicle manufacturer, as measured by domestic passenger vehicle sales. It serves as Hyundai’s production and export hub for emerging markets.
• The bull case rests on a strong market position, premiumisation-led growth, top-quartile operating and FCF margin profile. 

• Currently, the share of natural gas in energy basket is just 6.7%, Which India is aiming for 15% by 2030.
• Capex in Place- expanding the Dahej Plant, Petchem facility(20000Cr) will be operational in 4-5 years, Kochi utilization will improve
• 20% Volume Growth expected by Management, with a rising LNG portion in overall Gas Consumption in India.

• ADF Foods (ADFL IN) is undergoing significant expansions, including brownfield projects in Nadiad and Nasik, and a greenfield project in Surat.
• These projects are expected to boost revenue significantly, enhance operational efficiency, and support the company’s growth plans.
• Company will almost double its revenue in 3 years and similarly PAT will also grow, which makes it attractive on valuation side as well. 

• Avanse Financial Services is looking to raise up to US$419m in its upcoming India IPO.
• Avanse Financial Services (AFS) is an education focused non-banking financial company (NBFC) operating in India.
• In this note, we look at the company’s past performance.

• Avanse Financial Services is looking to raise up to US$419m in its upcoming India IPO.
• Avanse Financial Services (AFS) is an education focused non-banking financial company (NBFC) operating in India.
• In this note, we talk about the not-so-positive aspects of the deal.

• Emcure Pharmaceuticals raised around US$240m in its India IPO. Subscription rates were strong.
• Emcure Pharmaceuticals (EP) is an Indian Pharmaceutical company engaged in the developing, manufacturing and globally marketing a broad range of pharmaceutical products across several major therapeutic areas.
• We have looked at the company’s past performance in our earlier note. In this note, we talk about the trading dynamics.

• HDFC Bank is the largest private sector bank in India known for its strong track record of compounding book value and EPS
• The recent merger with Housing Development Finance Company initially received positive market reaction but has since caused a decline in HDFC Bank’s stock price
• Despite the stock underperformance, the merger offers potential cross-selling opportunities and a bright future for HDFC Bank

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Regular Spot-Vol Correlations reasserted – Implied Volatilities (IVs) traded lower as Equity Markets continued making new Highs.
• As expected, Vol-Regime Switching Model is stuck in “High & Down” state. IVs projected to grind lower over an elongated period.      
• Changes in Vol term-structure + Skew/ Smile compression – indicative of reduced risk-premia for July-end India Budget event.

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

• Greentown China
• NagaCorp Ltd
• Vedanta Resources
• Yuexiu Property

• There is renewed interest in HDFC Bank given potential for stock index re-balancing as well as an acquisition for one of its subsidiaries
• The story with HDFC Bank is strong regardless of these new ancillary positives, where growth is incredibly stable, and credit metrics shine
• We remind that the amalgamation of HDFC Finance remains new, and gains are still not fully reflected, but a look at costs/assets shows progress

• Dollar has 15% market share in the Indian hosiery space with 2,000 products
• Strategically expanding the Distribution network by targeting specific areas with Lakshya   
• Integrated value chain from Spinning to stitching to marketing and distribution

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

• Road King Infrastructure
• Samvardhana Motherson International Ltd
• Vedanta Resources