India

• Prices showing uptrend after a marginal slide in recent times  
• Kerala climate conducive for production, leading to good yield  
• More regions in bid to expand rubber area buoyed by higher prices

• Hexaware Technologies (HEXW IN)  is looking to raise about US$1.2bn in its upcoming India IPO. The deal will be run by JPM, Kotak, HSBC, IIFL Securities and Citi.
• Hexaware Technologies is a global digital and technology services company delivering innovative solutions that help customers in their digital transformation journey and subsequent operations, as per the company.
• Its offerings encompass five services, namely Design & Build, Secure & Run, Data & AI, Optimize, and Cloud Services.

• IVs traded lower as risk sentiment received a boost. Markdown in risk-premia confirms earlier premise that the early-September Vol-spike was a seasonality driven event
• Vol-Curve Term-structure going into the Fed meeting – Slightly inverted for Nifty50 options & exhibiting V-shape kinked curve for BankNifty options
• Volatility Regime Model for BankNifty has switched to “Low & Down”, while Nifty50 options retain their “High & Down” vol-state. 

• India has become one of the most expensive markets globally, trading at a PE of close to 28. Quality stocks now trade consistently around 50-90x PEs. 
• We have screened 80 names (market cap agnostic) that trade at PEs between 5 and 45, with an average PE of 20 and an average ROEs of 26%. 
• We treat this only as a filter and aim to do due diligence on all these stocks over the next few months. 

• Belstar Microfinance Ltd (3624918Z IN) is looking to raise around US$156m in its upcoming India IPO.
• Belstar Microfinance is a non-banking finance company (NBFC) in India with a focus on furnishing micro-enterprise loans. 
• In this note, we talk about the company’s historical performance.

• Samvardhana Motherson International Ltd (MOTHERSO IN) is looking to raise up to US$780m in its QIP. Together with the offering is a US$270m compulsory convertible debenture (CCD) offering.
• The deal is very well flagged, having gone through rounds of board/shareholder approvals. The QIP has also been covered by domestic media reports.
• In this note, we run the deal through our ECM framework and comment on deal dynamics.

• Tube Investments of India (TIINDIA IN) is focused on clean mobility solutions through its subsidiary, TI Clean Mobility Private Limited. 
• The subsidiary’s Montra Electric 3-wheelers have quickly gained market share in southern India, targeting the last-mile mobility segment. 
• TI’s management is keenly focused on the EV segment, with upcoming launches of e-rickshaws and a new Cargo Version poised to drive substantial growth in the near future.

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.

• Samvardhana Motherson International Ltd
• Vedanta Resources

• JM Financial has decadal experience of being the powerhouse of financial services giant. 
• The company has been a bad capital allocator for the years and hence could not participate in the mega bull run.  
• What makes it interesting is a company is changing its strategy of capital allocation while cherry on the cake is attractive valuations and promoter buying.

• P N Gadgil Jewellers (1742652D IN) raised around US$130m in its India IPO. 
• It is an Indian organized jewellery player with product offerings which include traditional as well as modern and functional jewellery designs, in gold, diamond, silver and platinum.
• In our previous notes, we looked at the company’s past performance and valuation. In this note, we talk about trading dynamics.

• Max Healthcare Institute (MAXHEALT IN) to acquire controlling stake in Jaypee Healthcare (JHL), which owns 3 hospitals in Uttar Pradesh, including the renowned 500-beds Jaypee Hospital, Noida.
• JHL reported revenue of INR4.21B and EBITDA of INR70M in FY24. With an EV of INR16.6B, the deal values JHL at EV/EBITDA of 23.7x, which seems reasonable.
• This acquisition will significantly enhance Max Healthcare’s network and strengthen its leadership position in NCR, a region which is home to around 46M people.

• Sagility India (2058883D IN) is looking to raise US$500m in its upcoming India IPO.
• Sagility India is a pure-play healthcare focused solutions and services provider to Payers  and Providers.
• In this note, we look at the firm’s past performance.

• Bajaj Housing Finance (BHF IN) raised around US$800m in its India IPO.
• BHF is a non-deposit taking housing finance company engaged in mortgage lending since FY18. Its mortgage products include home loans, loans against property, lease rental discounting and developer financing.
• In our previous notes, we looked at the company’s past performance and valuation. In this note, we will talk about the trading dynamics.

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.

• Adaro Energy
• Vedanta Resources
• Yankuang Energy Group

• Raymond Lifestyle (RAYMONDL IN) recently demerged from Raymond Limited.  Since Raymond Limited was part of various indexes, Raymond Lifestyle was not. Index Fund selling led to a correction.
• The correction made Raymond Lifestyle a special situation value bet.
• The cherry on the cake is strong management guidance and a foray into the untapped non branded and unorganized apparel segment

• DAM Capital (930970Z IN) is looking to raise at least US$100m in its upcoming India IPO. The deal will be run by Nuvama Wealth.
• DAM Capital provides a range of financial solutions in investment banking comprising equity capital markets, mergers and acquisitions, private equity, structured finance advisory; and institutional equities comprising broking and research.
• According to CRISIL, DAM Capital was the fastest growing investment bank in India by revenue CAGR from FY22-24 along with the highest profit margin in FY24.

• RPPL reported a strong Q1FY25 led by margin improvement. EBITDA margin rose to 14.7% vs 13.5% QoQ and 12.0% YoY. Stability in raw material pricing and operating efficiencies helped margins. 
• While growth in overall revenues was average at 8.3% YoY, growth in high-margin packaging products segment, which contributes 80% of total revenues, was strong at 16% YoY. 
• Exports at INR 9.2cr were below the INR 10cr+ run-rate, however, the growth momentum is intact. RPPL is in process of finalizing an export contract with a major global distributor.

• This Insight focuses on Industrials, particularly those that derive a significant portion of their revenue from Air Conditioners (ACs).
• Companies in focus are Voltas Ltd (VOLT IN), Johnson Controls-Hitachi Air Conditioning India (JCHAC IN),
• Blue Star Ltd (BLSTR IN) and Havells India (HAVL IN) 

• National Infrastructure Trust (NIT IN) is looking to raise about US$190m in its upcoming India IPO. The deal will be run by SBI Caps and HDFC Bank.
• National Infrastructure Trust is an infrastructure investment trust established to acquire, manage and invest in a portfolio of infrastructure assets in India.
• Its initial asset portfolio will consist of nine road assets, in the states of Haryana, Rajasthan, Bihar, Uttarakhand, Himachal Pradesh, Madhya Pradesh and Karnataka with an aggregate length of ~683.875km.

• Krsnaa Diagnostics (KRSNAA IN) expands into B2C, adds new pathology labs, and secures major government contracts for further growth.
• Growth in PPP and retail sectors, improved margins, and expanding service offerings solidify market leadership.
• Krsnaa’s aggressive expansion strategy and diversification indicate strong long-term growth potential with new B2C trajectory and Asset Light Model Expansion.

• Bajaj Housing Finance (BHF IN) upcoming IPO is worth INR 65.6 bn, comprising of fresh issue worth INR 35.6 bn and offer for sale worth INR 30 bn. 
• The company reports strong KPIs and has been better than peers in several aspects. AUM growth is strong and is driven by Developer Financing and Lease Rental Discounting. 
• There are few important cautions regarding the NHB observations and assignments.

• As things stand, Trent Ltd (TRENT IN) could replace Bajaj Finserv (BJFIN IN) in the S&P BSE SENSEX Index (SENSEX INDEX) at the close on 20 December.
• Addition to the F&O list could see Zomato (ZOMATO IN) added to the index instead. That could then result in two changes to the S&P BSE SENSEX Index in December.
• Trent Ltd (TRENT IN) is also an inclusion to the NIFTY Index (NIFTY INDEX) later this month and the pool of shares available for active investors is getting smaller.

• P N Gadgil Jewellers (1742652D IN) is looking to raise up to US$132m in its India IPO.
• P N Gadgil Jewellers (PNGJ) is an Indian organized jewellery player. Its product offerings include traditional as well as modern and functional jewellery designs, in gold, diamond, silver and platinum.
• Previously, we talked about the company’s historical performance. In this note, we provide a summary of its RHP updates and share our quick thoughts on peer comparison and valuation.

• The NIFTY Index closed down last week, but if the rally restarts from here it would be good to analyse the pattern trend, to estimate how high it could go.
• The current WEEKLY pattern favors uptrend that last for 2 or 3 weeks up in a row, on average, and up to 5 consecutive weeks up in a row.
• Some additional reasoning is necessary to highlight the strongest resistance levels, we will do it in the insight.

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.

• Azure Power Global Ltd

• Late week Equity weakness pulled IVs off Summer Lows – IVs back at 14.0%. A dose of skepticism is required, given End-of-Summer Seasonality effect. 
• PCR drops to 0.92 & put-strike OI looks weak as weekly expiry rolls to 12.09 date – likely contributing to index’s inability to hold support levels.  
• Vol-Regime Switching Model held back from switching to Low-Vol state, highlighting sticky nature of “High & Down” Vol-state. Retain Short Vega & Skew-selling bias.