India

• Gopal Snacks (1592789D IN) IPO worth INR 6.5 bn is live on the bourses. 
• The company is a prominent snacks manufacturer in India, especially in the state of Gujarat. It boasts one of the highest fixed asset turnover ratio and high ROCEs. 
• On the flipside, caution must remain on its dull revenue growth post F22 and on its related party transactions, especially with promoter companies.

• Ola Electric is looking to raise about US$1bn in its upcoming India IPO.
• Ola Electric Mobility is a vertically integrated pure EV player in India with manufacturing capabilities for EVs and EV components, including cells.
• In our previous note we looked at the company’s past performance and undertook a peer comparison. In this note, we will talk about valuations.

• HDFC Bank (HDFCB IN) has been the most successful bank in India over the last two decades, delivering best-in-class performance consistently; Things changed drastically with the merger with HDFC Ltd.
• The negatives outweigh the positives in the near-term from the merger; the synergies, which are significant, are long-term in nature and hence would take time to play out.
• We remain long-term believers, but it is a “Short” in the short-term as we expect further -20% correction in valuations

• Kolte Patil Developers (KPDL IN) reported a decent Q3FY24 led by record sales value and improved realization. It is on track to achieve its guided INR 2800cr sales value for FY24.
• Demand environment continues to be robust. Kolte Patil has guided for 25%+ sales value growth even for FY25. Realization also has room to improve and should aid the growth.
• New business development activity is strong. Kolte Patil is in advances stages of discussion for projects with sales value worth INR 8000-10000cr, INR 3000-4000cr of which could close soon.

• Copper, known as the “red metal” and vital in modern civilization, has seen a significant surge in demand globally, especially in sectors like electrical, electronics, construction, and transportation.
• Global and Indian reserves of copper, use cases, production process and government push towards Copper mining and overall analysis of existing new entrants in the industry.
• India possessing only 0.25% of the world’s reserves, the overall view from mining to distribution and consumption of copper across India and companies involved in the space.

• The GoI is looking to raise up to US$248m from selling its stake in Neyveli Lignite (NLC IN).
• This seems to be part of the GoI’s ongoing divestment drive across PSUs, with the recent selldowns in other PSUs having done well. 
• The GoI had also sold some stake in the firm earlier in Oct 2017. 

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 Green Energy

• India’s Credit Landscape has changed and is facing structural and regulatory challenges.
• The Indian regulator (RBI), particularly in its oversight of underwriting practices and the behavior of Non-Banking Financial Companies (NBFCs), is commendably proactive, positioning it ahead of the curve.
• We expect more such steps in other parts of the credit funnel. The recent crack down along with the stock underperformance is here to stay and possibility intensify. 

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 Green Energy
• Greentown China

• Tata Motors restructures, separating passenger and commercial vehicle businesses into distinct entities to unlock value in electric vehicles and Jaguar Land Rover unit.
• Streamlines operations, enhances shareholder value, and capitalizes on growth opportunities in passenger and commercial vehicle sectors.
• Offers investors specialized entities, unlocking hidden value, showcasing proactive adaptation to market changes, and positioning for sustainable growth in the automotive industry.

• Ola Electric is looking to raise about US$1bn in its upcoming India IPO.
• Ola Electric Mobility is a vertically integrated pure EV player in India with manufacturing capabilities for EVs and EV components, including cells.
• In our previous note we have looked at the company’s past performance. In this note, we will undertake a peer comparison.

• AntFin is looking to raise around US$350m by selling around 2% of Zomato (ZOMATO IN).
• Ant Group had earlier sold some of its stake in Nov 2023 and Ant just came out of lockup from the previous selldown a few days ago.
• In this note, we talk about the deal dynamics and run the deal through our ECM framework.

• With the review period complete, Titan Co Ltd (TTAN IN) should replace Indian Oil Corp (IOCL IN) in the Nifty100 Low Volatility 30 Index at the close on 27 March.
• Constituent changes, volatility changes and capping changes will result in one-way turnover of 13.2% resulting in a one-way trade of INR 4.2bn.
• The flows on the stocks are not very large but there will be same side and offsetting flows from other index trackers at the same time.

• Macrotech Developers (LODHA IN) is looking to raise around US$398m via a QIP.
• The deal here will be a well flagged one with LODHA’s board having announced its intention of raising up to INR50bn via a QIP earlier in Jan 2024.
• That being said, while representing just 3% of LODHA’s shares outstanding, the deal would be a large one to digest at 30 days of its three month ADV.

• In India, demand for pets is on the rise – so much so that the country’s pet care market is estimated to reach US$1.9 billion by 2030. However, that also means an influx of first-time pet owners who don’t always know how to take care of their charges.
• That’s where companies like Supertails come in.
• An India-based pet care startup, Supertails addresses the needs of inexperienced owners by offering a holistic platform for pet care in India.

• While some B2B ecommerce firms are struggling, others are thriving. India-based Metalbook, a B2B platform focused on the global metal supply chain, said it is eyeing US$200 million in annualized revenue run rate by the end of the 2024 fiscal year.
• Founded in 2021, the startup has raised US$15 million in a series A round led by Rigel Capital. FJ Labs participated, as well as existing investors Axilor Ventures and Stride Ventures, among others.
• Metalbook helps customers through their entire metal manufacturing and procurement cycle. This includes everything from buying and selling to customization, logistics, scrap recycling, as well as financing.