India

• Asahi India Glass (AISG IN) is an integrated glass and window solutions company and engages both in the automotive and the building & construction segments.
• While capital allocation is not a major concern for the company, the only element that could warrant attention is CWIP as the company has several projects overdue.
• Margins have been strong yet slightly fluctuating in the last two years. Overall, the balance sheet health looks okay.

• Earlier this month, British American Tobacco (BATS LN)’s management stated that they were reviewing their stake in ITC Ltd (ITC IN) to enhance its balance sheet flexibility.
• BAT has owned its stake in ITC for over a century and remains its largest shareholder.
• In this note, we talk about the possible deal structure and dynamics.

• There are five changes for the NSE Nifty Next 50 Index (NIFTYJR INDEX) that will be implemented at the close on 27 March. Changes are on expected lines.
• Estimated one-way turnover for the NSE Nifty Next 50 Index (NIFTYJR INDEX) is 10.1% resulting in a one-way trade of INR 22.2bn (US$268m).
• Apart from the impact on the adds and deletes, there will be a big impact on some of the non-F&O stocks due to capping and funding flows.

• Shriram Finance (SHFL IN) will replace UPL Ltd (UPLL IN) in the NIFTY Index (NIFTY INDEX) at the close of trading on 27 March. This was a high probability change.
• Trent Ltd (TRENT IN) missed out on inclusion and that results in Bharat Petroleum Corp (BPCL IN) staying in the index.
• There is over 11 days of delivery volume to trade in the add and delete and there appears to be significant positioning in one of the stocks.

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

• Bharat Highways InVIT (BHINV IN) is looking to raise up to US$301m in its Indian IPO.
• Bharat Highways InVIT is an infrastructure investment trust established to acquire, manage and invest in a portfolio of infrastructure assets in India.
• In this note, we talk about the company’s historical performance and provide our quick thoughts on valuation.

• MTAR Technologies (MTARTECH IN)  is a precision engineered company that caters to customers in clean energy, Space, Defense sectors, etc. 
• The company has done well over the last few years in terms of securing business, however there are concerns on the margins end, working capital and cash generation. 
• There also exists a high business risk in terms of customer concentration since more than 75% of the revenues (F23) come from one single entity.

• Indiabulls Housing’s Right Issue offers a unique opportunity to earn higher returns on smaller investment. 
• Indiabulls Housing is at the cusp of a turnaround: detaching its old identity maligned by various governance issues 
• Turnaround + Special Situation Bet – A potential opportunity to make outsized returns owing to the lower initial investment requirement in a company undergoing significant turnaround

• Akums Drugs and Pharmaceuticals (0200361D IN) is looking to raise >US$100m in its upcoming India IPO. The deal will be run by ICICI Securities, Axis Capital, Citigroup and Ambit.
• Akums Drugs and Pharmaceuticals (ADP) is a pharmaceutical contract development and manufacturing organization (CDMO) offering a comprehensive range of pharmaceutical products and services in India and overseas. 
• As a CDMO, it produces a range of dosage forms including tablets, capsules, liquid orals, vials, ampoules, blow-filled seals, topical preparations, eye drops, dry powder injections, and gummies, among others. 

• INOX India Limited (INOX IN) ( or IWL) and Inox Wind Energy (IWEL IN) (or IWEL) have announced a merger, where IWEL will be amalgamated with IWL
• The share swap ratio in the scheme of amalgamation gives a very evident arbitrage opportunity. 
• The arbitrage opportunity has become bigger than when announced in June 2023. While the strategy is still possible, we try to justify the market behaviour.

• Union Bank Of India (UNBK IN) is looking to raise up to INR 30bn (US$362m) with the floor price set at INR 142.78/share and a maximum discount of 5%.
• The stock has run up a lot and with index inclusion around the corner, this is as good a time as any to issue stock.
• Union Bank Of India (UNBK IN) trades cheaper than peers and could continue to outperform over the near-term.

• Union Bank Of India (UNBK IN) is looking to raise up to US$370m (INR30bn) via its QIP.
• The company last undertook a QIP in Aug 2023, which we covered in Union Bank of India QIP – Well-Flagged Deal, Recent Momentum Has Been Strong.
• This deal too is a very well flagged one, with the firm having earlier reported that it would look to do a QIP to boost its free float and capital.

• We visited FirstCry Franchisee stores in Ajmer (Rajasthan), and Hosur (Tamil Nadu).
• FirstCry has a high brand recall, limited competition, and healthy franchisee relations.
• The ability to leverage FirstCry and Baby Oye is a good margin lever.

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.

• Juniper Hotels is looking to raise up to US$217m in its upcoming India IPO.
• Juniper Hotels is the largest owner by no. of keys of Hyatt affiliated hotels in India as of 2Q23 (30th Jun 23), according to Horwath.
• We have looked at the company’s past performance in our previous note. In this note, we provide our thoughts on valuations.

• The market seems to be dancing to its own tune and is likely to continue.
• EUREKAFO’s distributors are dissatisfied, MANYAVAR’s reported numbers failed to match up to the on-ground optimism. 
• LTFH’s “strong” retail playbook keeps performing, and SGMART’s website raises concerns about its operations. 

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.

• Alam Sutera Realty
• Citicore Renewable Energy

• The NIFTY Index has been rising for 5 days in a row, this is the second week up (CC=+2), there is a good chance it will pullback soon.
• The index is going towards the Q3 resistance level at 22354, that would be a good area from where to start to prepare for a pullback.
• Going SHORT may not be worth it, the right trade is to wait for the pullback and go LONG again at better prices.

• Waaree Energies Limited (0656504D IN) (WEL) has filed its DRHP. The company is the largest player in the Solar PV Modules manufacturing space in the country.  
• The company has seen a sharp growth in sales in F23, backed by China plus one phenomemon. 
• However, the financials do have a few talking points, such as high RPT, large inventory in transit, faster depreciating newer assets, etc.

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.

• JSW Steel Ltd