India

• We have been covering Zee Entertainment Enterprises (Z IN) during the entire merger saga and had already highlighted several financial and governance issues with the entire group.
• The $10 bn merger deal with Sony has now been terminated but it is not a surprise to us, considering the events that were unraveled in the last two years.
• But where does ZEEL go from here is a question that lacks some clarity. There are uncertainties looming around and ZEEL can face further brunt. 

• FirstCry is looking to raise up to US$700m in its upcoming India IPO.
• FirstCry is India’s largest multi-channel retailing platform for Mothers’, Babies’ and Kids’ products in terms of GMV, for the year ending Dec 2022 (9M23), according to RedSeer.
• In this note, we talk about the not-so-positive aspects of the deal.

• Due to the ongoing earnings season, for the next couple of weeks, we will temporarily deviate from our regular format and instead focus on reported earnings.
• HDFC Bank (HDFCB IN) – The core concerns that worry the street do warrant attention. While the management believes it is temporary, we anticipate some more incremental pain ahead. 
• Other interesting names highlighted include Delta Corp Ltd (DELTA IN), IndiaMart (INMART IN), Polycab India (POLYCAB IN), and Poonawalla Fincorp (POONAWAL IN). 

• FirstCry is looking to raise up to US$700m in its upcoming India IPO. 
• FirstCry is India’s largest multi-channel retailing platform for Mothers’, Babies’ and Kids’ products in terms of GMV, for the year ending Dec 2022 (9M23), according to RedSeer.
• In this note, we talk about the positive aspects of the deal.

• HDFC Bank reported earnings last week. The next day the stock fell 8% followed by another 4% the day after.
• HDFC Bank is one of India’s bluest blue chip stocks with a reputation for being a high quality compounder.
• What happened and where do we go from here? First, some lessons from another life.

• Medi Assist Healthcare Services (0886371D IN) raised around US$140m in its India IPO.
• Medi Assist Healthcare Services (Medi Assist) provides third party administration services to insurance companies via its subsidiaries.
• We have covered various aspects of the deal in our previous note. In this note, we will talk about the demand and trading dynamics.

Key points (machine generated)

• IndiaMart is India’s largest online B2B marketplace with a market cap of $2 billion.
• The company has a 60% market share of B2B e-commerce in India, indicating a large potential for growth.
• IndiaMart benefits from a negative working capital business model, upfront supplier subscription payments, and a net cash balance sheet. It also has the option to invest in new business lines to expand its monetization opportunities. Despite limited advertising spend, the platform attracts over 1 billion in traffic.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Lucror Analytics Weekly Wraps provide an overview of all Morning Views comments and reports published by our analyst team in the past week, and also showcase a list of the most-read reports.

In this Insight:

1. Lippo Malls Indonesia Retail Trust
2. Vedanta Resources
3. ReNew Energy Global
4. China Jinmao Holdings
5. Geely Auto

and more…

• Last week at Close the NIFTY Index was OVERBOUGHT, this week it became quickly OVERSOLD, bouncing off from a price area near the Inner Fence support  levels for CC=-1.
• Another week down is possible but we see strong support in the 21250-20800 price area.
• Should that support area be reached, it would be a good opportunity to re-enter this index’s Bull market.

• HDFC Bank’s (HDFCB) stock was down over -8% yesterday and is down over -3% today. The stock seems to have reacted to low deposit growth (~2% QoQ) in Q3FY24 .
• Post the merger with HDFC Ltd that completed in Jun 2023, HDFCB needs to grow its deposits at a fast pace to support its loan growth.
• We think HDFCB is well placed to do so. It also has an option to raise capital through affordable housing bonds which have good economics, similar to term deposits.

• The GoI is looking to raise US$199m in trimming a portion of its stake in NHPC (NHPC IN). There is an upsize option to increase the deal size to US$279m.
• Assuming that the deal upsizes, the deal here would be a relatively large one to digest at 11 days of the stock’s ADV.
• The deal appears to be well flagged, with the selldown by the GoI appearing to be part of its divestment drive across PSUs in India.

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.

• Tata Steel Thailand

• Axis Capital is a 100% subsidiary of Axis Bank Ltd (AXSB IN) and one of its businesses is structured finance
• The Sojo Infotel is a high-risk transaction undertaken by Axis Capital which was underwritten by the company with the implicit support of the bank as per the credit rating agency
• When the transaction was done it was 50% of Axis Capital’s equity and default risk is high as the redemption date is on March 25, 2024

• State Bank Of India (SBIN IN) is the best-performing PSU bank in India and shows clear convergence with private peers across fundamental metrics beyond what its valuations might suggest
• Medium-Term ROE Forecast of 16% to 18% and loan growth forecast of 14% to 16%; ROA ~1.2% consistently; Strong fee income; successful cross-selling through subsidiaries; Strong asset quality.
• P/BV is cheap at 1.3x FY25e, compared private peers’ valuations of 2.5x to 3.0x. SBIN can potentially re-rate to P/BV of ~1.6x FY25e in the near term (~35% upside).

• Medi Assist Healthcare Services (0886371D IN) is looking to raise around US$140m in its India IPO.
• Medi Assist Healthcare Services (Medi Assist) provides third party administration services to insurance companies via its subsidiaries.
• In this note, we will look at the firm’s past performance, and share our thoughts on valuation.

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.

• Vedanta Resources

• The NIFTY Index closed up last week (CC=+1), it is not overbought yet but it could become so at the end of this week (Friday).
• Resistance begins at 22280/22800, these are the price areas from where SHORT trades can be initiated (target: 1 weeks reversal, close trade at Close).
• Covering LONG holdings with Covered CALLs is also possible, Strikes should be =>22800.

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.

• Innergex Renewable Energy
• Vedanta Resources

Key points (machine generated)

• Rainbow Children’s Medicare operates a hub hospital with multiple spoke hospitals in various locations, allowing them to serve a wide geographical area and reach a larger patient base.
• The company has a strong financial performance, with profitable growth and operating cash.
• Rainbow Children’s Medicare aims to address the underserved niche pediatric market in India and capitalize on the country’s large adolescent population, presenting significant growth potential. They plan to expand their operational bed capacity by 40% by 2026.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Lucror Analytics Weekly Wraps provide an overview of all Morning Views comments and reports published by our analyst team in the past week, and also showcase a list of the most-read reports.

In this Insight:

1. Sunny Optical Technology Group
2. Yuexiu Property
3. Vedanta Resources
4. Tata Motors Ltd
5. Adani Ports & Special Economic Zone

and more…