India

• Hero Motocorp (HMCL IN)  is undergoing a course correction, acknowledging its past mistakes.
• Multiple levers on the horizon arguing for a change of stance on HMCL.
• The stock is reasonably valued, and institutional holdings are at a 12-quarter low, signaling the need for attention.

• KFin Technologies (1804170D IN) was listed on 29th Dec 2022, when it raised around US$180m in its India IPO. Its six-month lockup will expire on 24th Jun 2023.
• KFin Technology (KFin) is a technology driven financial services platform providing comprehensive services and solutions to the capital markets ecosystem.
• Coming up for six-month expiry is General Atlantic (the Promoter) and other pre-IPO shareholders. The Promoter had been the sole selling shareholder in the IPO.

• Western Carriers (1489172D IN) is looking to raise at least US$100m in its upcoming India IPO. The deal will be run by JM Financial and Kotak. 
• The firm provides multi-modal logistics services which include road, railway, ocean/coastal/river and air logistics services. 
• It also provides chartering services to overseas destinations, stevedoring services at Indian ports and coastal movement of cargo within 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.

• ENN Natural Gas
• Vedanta Resources

• Piramal Enterprises (PIEL IN) plans to raise around US$600m via selling its entire 8.3% stake in Shriram Finance.
• The deal is very well flagged with Piramal having sold half its stake in 2019 and having publicly stated its intention to completely exit as well.
• In this note, we will run the deal through our ECM framework and comment on other deal dynamics.

• Tata Technologies (TATATECH IN) (TT) is looking to raise around US$600m in its upcoming India IPO.
• Tata Technologies is a global engineering services company offering product development and digital solutions, including turnkey solutions, to global original equipment manufacturers (OEMs) and their tier 1 suppliers. 
• We have looked at the company’s past performance and undertaken a peer comparison in our earlier notes. In this note we talk about valuations.

• Ask Automotive (7175293Z IN) is looking to raise about US$145m in its upcoming India IPO. The deal will be run by Axis Capital, IIFL Securities, ICICI Securities and JM Financial.
• ASK Automotive is the largest manufacturer of brake-shoe and advanced braking (AB) systems for two-wheelers (2W) in India, according to CRISIL. 
• The company has been supplying safety systems and critical engineering solutions for more than three decades with in-house designing, developing and manufacturing capabilities. 

• Aberdeen Asset Management (ADN LN) plans to raise around US$500m via selling its remaining 10% stake in HDFC Asset Management Co Ltd (HDFCAMC IN). 
• We have covered one of the past deals in HDFC AMC Placement/OFS – Forced to Sell, but It’s Not the Best of Times to Be Selling or Buying.
• In this note, we will run the deal through our ECM framework and comment on other deal dynamics.

• Erstwhile Citibank India’s retail customers are high-income, high spending and demand excellent customer service
• In FY2022, as per the latest data, Axis Bank has the dubious distinction of becoming the customer complaints market leader in private sector banking
• If Axis Bank does not improve its customer service, erstwhile Citibank’s lucrative retail customers will flee to competitors

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. Vedanta Resources
2. Tata Motors Ltd
3. Health And Happiness (H&H)
4. Central China Real Estate
5. Agile Property Holdings

and more…

• Zee Entertainment Enterprises (Z IN) ‘s tussle with the regulators and legalities seem to be perpetual in nature.
• SEBI’s interim order highlights the abuse of promoters’ position in the company in order to siphon-off funds, ultimately benefiting the promoter family. SEBI has directed promoters to resign as directors.
• Since the irregularities are now being made public, eyes now would be on the proposed Zee-Sony merger, which could further be delayed.

• Sula Vineyards  raised around US$117m in its India IPO in Dec 2022.
• Sula Vineyards (SV) distributes wines under a bouquet of brands. In addition to its flagship brand “Sula,” popular brands include “RASA,” “Dindori”, “The source,” “Satori”, “Madera” & “Dia”. 
• In this note, we will talk about the lock-up dynamics and updates since our last note.

• The CPSE ETF (CPSEBE IN) and Nifty Bank Index (NSEBANK INDEX) will have its quarterly rebalancing at the close on 29 June.
• There are no constituent changes for the indices in June but there will be capping and float changes for the stocks and there is a reasonable impact on many stocks.
• Both indices have performed well over the recent past and active investors can take advantage of the passive flows to increase or decrease existing positions.

• SBFC Finance Limited (1547353D IN) is looking to raise up to US$145m in its upcoming India IPO. 
• SBFC Finance is a systematically important, non-deposit taking non-banking finance company (NBFC-ND-SI), offering secured MSME Loans and Loans against Gold. 
• Even through COVID-19, it had managed to more than double its AUM through its branch expansion efforts. However, its NIM declined over the track record period and profitability growth slowed. 

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.

• NagaCorp Ltd
• Sunac China Holdings
• Vedanta Resources

• Tata Technologies (TATATECH IN)  (TT) is looking to raise around US$600m in its upcoming India IPO.
• Tata Technologies is a global engineering services company offering product development and digital solutions, including turnkey solutions, to global original equipment manufacturers (OEMs) and their tier 1 suppliers. 
• We have looked at the company’s past performance in our earlier notes, in this note we will undertake a peer comparison.

• IPL 2023 concluded recently with record streaming views and TV viewership. This bodes well for the valuation of the IPL Lucknow franchise owned by RPSG Ventures Limited (RPSGVENT IN) [“RPSGV”]. 
• FMCG business is currently doing a run-rate of INR 400cr+ revenue, however, needs to scale up faster. To drive this, Too Yumm! has entered into a new category, traditional Namkeens.
• The Firstsource Solutions business seems to be bottoming out. Operating margin has stabilized in the 11.5-12% range. FY23 revenues de-grew at -1.1% YoY as guided at -1% to -2%.

• Obnoxious video of bank official abusing staff for not meeting unrealistic sales targets
• Issue is widely prevalent in the private sector financial system demonstrating poor leadership, communicational and motivational training
• Setting aggressive sales target results in mis-selling, undermines confidence in the financial system and regulatory intervention may impact profitability.

• Indian Energy Exchange Ltd (IEX IN)  is a market leader among power exchanges. However, the company’s market share might be delicate, especially with the developments of market coupling.
• The company might be a market leader, however there are some aspects accounting wise that are unique to IEX as compared to other exchanges like MCX and BSE.
• This includes settlement guarantee fund, accounting of software license, etc.

• Edelweiss reported a decent Q4FY23. Across businesses, Edelweiss reported strong growth. The credit business is also now scaling up with Q4FY23 disbursements at INR 400cr in housing finance.
• The demerger of Nuvama Wealth Management is now complete with record date as Jun 2 2023. Nuvama is on track to list on the exchanges by the end of July.
• Based on our sum-of-the-parts valuation, Edelweiss can be valued at INR 15000cr+. At the current market cap of INR 4400cr, it is trading at a huge discount of 70%+.