India

• GradRight, an India-based startup that helps students with selecting their university majors and financing their studies, has raised 500 million rupees (US$6.1 million) in series A funding from IvyCap Ventures. 
• The investment will be used to accelerate GradRight’s growth and expand its reach to lower- and middle-income students around the world.
• Founded in 2020 by Aman Singh and Sasidhar Sista, the edtech startup runs an AI-powered platform that brings together prospective students, universities, and lenders.

• Jio Financial Services (JIOFIN IN) started trading on 21 August following its demerger from Reliance Industries (RIL IN). The stock was locked limit down on its first four trading days.
• Passive NIFTY Index (NIFTY INDEX) and S&P BSE SENSEX Index (SENSEX INDEX) trackers hold Jio Financial Services (JIOFIN IN) stock and will need to sell over the next few days.
• We estimate passive trackers will need to sell around 188m shares (US$487m) of Jio Financial Services (JIOFIN IN) next week and the stock could head lower in the short term.

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.

• Anton Oilfield
• Meituan
• Vedanta Resources

• Happy Forgings Limited (6596652Z IN) is looking to raise around US$160m in its upcoming India IPO.
• Happy Forgings Limited (HF) is a manufacturer of complex and safety critical, heavy forged and high precision machines components in India.
• As per the Ricardo Report, the firm is the fourth largest firm domestically in terms of FY23 forging capacity. 

• Vishnu Prakash R Punglia (1636911D IN) IPO has opened for subscription.
• The company operates in the EPC space with a prominence in Water Supply Projects and a strong geographic presence in Rajasthan.
• The financials of the company should be looked at carefully, especially given the fact that margins are boosted by inventory, and there are plenty of RPT with the promoters.

• Cello World Limited (CW IN) is looking to raise around US$210m in its upcoming India IPO. The bookrunners on the deal are Kotak, JM Financial, ICICI, IIFL, and Motilal Oswal.
• Cello World (CW) is an Indian consumer products company. The firm is a leading company in the consumerware market in India.
• According to the Technopak Report, the firm’s consumer houseware, writing instruments and stationery, and moulded furniture and allied products categories are amongst the largest brands in the Indian consumerware market.

• In this Insight, we review the recent performance of ABB India Ltd (ABB IN), Siemens Ltd (SIEM IN), Polycab India (POLYCAB IN) and Havells India (HAVL IN) 
• Most companies have performed in line with our expectations, except for Polycab, which has exceeded our performance expectations.
• We continue to favour ABB over Siemens (ABB/SIEM), Polycab over Havells (POLYCAB/HAVL)

• JSW Infrastructure (5978490Z IN) is looking to raise around US$340m in its upcoming India IPO.
• JSW Infrastructure (JSWI) is the fastest growing port-related infrastructure company in terms of growth in installed cargo handling capacity and cargo volumes handled during FY20 to FY22, according to CRISIL. 
• In this note, we will talk about the not so positive aspects of the deal.

• TVS Supply Chain Solutions (TVSSCS IN) raised around US$108m in its India IPO, after downsizing from an earlier reported float of up to US$500m.
• TVS SCS is an Indian supply chain logistics solution provider which also has global capabilities and network across the value chain with cross deployment abilities, according to RedSeer. 
• We have looked at various aspects of the deal in our previous notes. In this note, we talk about the demand and trading dynamics.

• Baring aims to raise around US$900m by selling its remaining 26.6% stake in Coforge (COFORGE IN) .
• Baring has been paring down its stake since 2020 and hence, the selldown is somewhat well flagged.
• In this note, we run the deal through our ECM framework and talk about the deal dynamics.

• RPPL reported a weak Q1FY24 due to correction in raw material prices that led to inventory losses and decline in EBITDA margin to 12% vs 14%+ QoQ and 16% YoY.
• Given that Q1 tends to be a high demand quarter, RPPL had kept high inventory, which further accentuated the inventory losses.
• The raw material prices have stabilized now. EBITDA per kg should stabilize back to around INR 34-35 and should help the EBITDA to grow in line with the volume growth. 

• HCG’s cancer segment reported decent revenue growth of 14% YoY in Q1FY24. EBITDA margin came in weaker than expected due to a few transient adverse factors.
• HCG is hitting all the right notes to drive growth. It is beefing up clinical talent to attract patients. It is also making strategic tuck-in acquisitions to expand its presence.  
• As cancer treatment is becoming more advanced, the mix of immunotherapy and hi-tech treatment is growing, helping the realization and the profitability to improve.

• JSW Infrastructure (5978490Z IN) is looking to raise around US$340m in its upcoming India IPO.
• JSW Infrastructure (JSWI) is the fastest growing port-related infrastructure company in terms of growth in installed cargo handling capacity and cargo volumes handled during FY20 to FY22, according to CRISIL. 
• In this note, we will talk about the positive aspects of the deal.

• Zydus Lifesciences Ltd (ZYDUSLIF IN) recorded 30% YoY growth in revenue to INR51B in Q1FY24, driven by 57% YoY growth in US formulation business. India business revenue grew 6% YoY.
• US business growth was driven by new product launches and improvement in base business. The company has launched four new products in the US during the quarter.
• Zydus Lifesciences expects double-digit growth in India branded formulation business to continue and the U.S. business to grow on a formidable base of FY23 going forward.

• Union Bank Of India (UNBK IN) is looking to raise US$301m from its qualified institutional placement (QIP). Included in the deal is an option to effectively double its base deal. 
• The deal is a relatively large one to digest with the base deal alone representing 21.1 days of three months ADV. 
• That being said, the deal here is a very well flagged one with the firm having earlier reported to look to do so to boost its free float.

• Kolte Patil (KPDL) reported record sales velocity in Q1FY24 and is on track to achieve 25%+ sales value growth in FY24 as per its stated guidance.
• Business development activity is also happening at a record pace and Kolte Patil is on track to beat its prior FY24 guidance of INR 8000cr by a wide margin.
• Despite 80%+ rise in the share price since our coverage initiation 2Y ago, Kolte Patil still offers an upside potential of 25%+ IRR over a holding period of three years. 

• SAMHI Hotels (SAMHI IN) plans to raise around US$200m (estimated) in its Indian IPO.
• Samhi is India’s third-largest hotel asset owner, by number of keys, with a portfolio of 25 operating hotel assets comprising 3,839 keys, as of Feb 2023.
• In this note, we will undertake a peer comparison and provide our thoughts on valuation.

• Jana Small Finance Bank (3667144Z IN) is looking to raise up to US$100m in its upcoming India IPO. The deal will be run by Axis Capital, ICICI-Sec and SBI Capital.
• Jana Small Finance Bank (JSFB) is the fourth largest small finance bank in India in terms of AUM and deposit size as of FY23 (Year ended 31st Mar 2023). 
• The firm has served nearly 12m customers since 2008, including 4.57m active customers as of FY23.

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. Sino-Ocean Group
2. Adani Ports & Special Economic Zone
3. Road King Infrastructure
4. China Jinmao Holdings
5. Geely Auto

and more…

• Global Health (Medanta) (MEDANTA IN) delivered robust revenue growth and profitability in Q1FY24. Revenue grew 27% YoY and 9% sequentially to INR7.9B. EBITDA margins expanded 250 bps YoY to 25.1%.
• All the key operating metrics including inpatient and outpatient volume, ARPOB, and ALOS improved. However, occupancy declined to 58.1% in Q1FY24 from 60% in Q1FY23 on increased bed capacity.   
• Medanta and DLF will develop a 400 bed multi-specialty hospital in Delhi. Ongoing expansion projects are on track to increase the bed capacity to 3,500–4,000 in FY25 from 2,725.

• NSE Indices has continued to use the current index methodology to come up with the 5 adds/deletes. The proposed methodology seems to be put on ice for reasons unknown.
• Punjab National Bank, Shriram Transport Finance, Trent, TVS Motor and Zydus Lifesciences will replace ACC, FSN E-Commerce Ventures, HDFC Asset Management, Indus Towers and Page Industries.
• The adds, deletes, capping and funding changes will result in one-way turnover of 13% and in a one-way trade of INR 20.77bn. The impact on the adds/deletes is big.

• Bajaj Finance (BAF) reported a strong Q1FY24 earnings, led by an all-time-high quarterly AUM growth of INR 22718cr. With this, BAF has upgraded its FY24 AUM growth guidance to 29-31%.
• AUM growth was aided by the highest ever new loans in a quarter. New loans booked at 9.94mm in Q1FY24 were up 34% YoY and 31%+ QoQ.
• Opex-To-NII has come down to 34.0% vs 35%+ earlier, led by operational leverage and deceleration in investments. This has helped the ROE to jump to 24.0% vs 23.1% YoY.

• Concord Biotech Ltd (658823Z IN) raised US$188m in its India IPO.
• Concord Biotech (Concord) is an India-based biopharma firm, which develops and manufactures fermentation-based active pharmaceutical ingredients (APIs).
• In this note, we will talk about the trading dynamics.

• Astral Ltd (ASTRA IN) is a manufacturer of Chlorinated Poly Vinyl Chloride (CPVC) and Poly Vinyl Chloride (PVC) plumbing systems, catering to both residential and industrial applications. 
• The company offers a compelling narrative, propelled by the larger market trends of agriculture, housing, and market share expansion.
• Despite the confident growth outlook, the current valuation at 75x NTM appears relatively high. It might be prudent to await a more appealing entry opportunity.

• India Shelter Finance (0570670D IN) is looking to raise up to US$217m in its upcoming India IPO. The deal will be run by Ambit, Citigroup, ICICI Securities and Kotak Mahindra.
• India Shelter Finance (ISF) is a retail focused affordable housing finance company. Between FY21-23, the firm registered a two-year CAGR growth of 40.8% in terms of AUM, according to CRISIL. 
• Its target segment comprises self-employed customers, focusing on first time home loan takers in the low and middle income group in Tier II and Tier III cities 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.

• Continuum Green Energy
• Lenovo

• National Securities Depository Limited (NSDL) is looking to raise around US$400m in its India IPO. 
• It is the largest depository in India in terms of number of issuers, number of active instruments, market share in demat value of settlement volume and value of assets.
• In this note, we talk about the positive aspects of the deal.

• Recently awarded “Maharatna” status, only 12 companies, FY24 is first full year for this
• Growth is steady, with good returns, and major improvement in credit metrics
• Its 4.77% dividend yield is incredibly high and about 3x higher than peers

• India-based Credgenics, a loan collection services firm, has raised US$50 million in its series B funding round led by Accel and WestBridge Capital.
• It will use the new capital to diversify its offerings and reach other client segments. Credgenics also looks to expand its international business.
• The company’s geographical expansion will primarily focus on countries such as Indonesia and Vietnam, which share similarities with India’s credit market.

• All the APAC markets we cover (Nifty50, HSI, Nikkei225, Kospi200, S&P/ASX200) are pulling back and some of them have been doing so for 3 weeks.
• In this insight we want to offer a re-cap of all the MRM support levels and probabilities for the APAC markets above, after the August 16th Close.
• Check our previously published single-market insights for deeper analysis and related investment ideas: Nifty50, HSI, Nikkei225, Kospi200, S&P/ASX200.

• National Securities Depository Limited (NSDL) is looking to raise around US$400m in its India IPO. 
• It is the largest depository in India in terms of number of issuers, number of active instruments, market share in demat value of settlement volume and value of assets.
• In this note, we talk about the not-so-positive aspects of the deal.