India

• Survival Technologies (1279515D IN) is looking to raise around US$121m in its upcoming India IPO. 
• Survival Technologies (ST) is a contract research and manufacturing services (CRAMS) focused speciality chemical manufacturer in India. 
• ST has seen its profitability grow and margins expand during the track record period. However, the company seems to have had a number of run-ins with the authorities.

• RPSG Ventures Limited (RPSGVENT IN) [“RPSGV”] continues to scale up its FMCG business. Q3FY23 FMCG revenues saw a YoY growth of 23%. QoQ, there was some de-growth due to seasonality.
• Excluding one-off other income, Firstsource Solutions (FSOL IN) reported weak Q3FY23 earnings led by sluggish growth and weak margins.
• RPSGV remains a deep-value holding company that is trading at a discount of >85%. As its FMCG and Sports businesses scale up, the stock has potential to re-rate significantly.

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. China Jinmao Holdings
2. Lifestyle International Holdings
3. Geely Auto
4. First Pacific Co
5. Tata Motors Ltd

and more…

The Asia HY Trade Book for March 2023 includes a summary of our recommendations, as well as our high-conviction ideas. The report also features relative-value charts and lists of the bonds across Asia (ex-Japan) HY and crossover credits.

• Blue Jet Healthcare Ltd (BJHC IN)  is looking to raise about US$300m in its upcoming India IPO.
• Blue Jet Healthcare (BJH) is a specialty pharmaceutical and healthcare ingredient and intermediate company, offering niche products targeted toward innovator pharmaceutical companies and multinational generic pharmaceutical companies. 
• In this note, we look at the company’s past performance.

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

• Indusind Bank (IIB IN) ‘s shares saw a sharp fall of 7% on Monday.
• The fact that RBI shortened the tenure of MD & CEO to two years baffled the market. 
• Shortening of tenures by the RBI have been seen earlier also for BFSIs. The move does not explicitly indicate any fundamental deficiency, hence investors should not be too worried.

• Tata Technologies (TATATECH IN) is looking to raise about US$600m in its upcoming India IPO. The deal will be run by Bank of America, Citigroup and JM Financial.  
• 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. 
• It has deep domain expertise in the automotive industry and serves clients in adjacent industries, such as aerospace, transportation and construction heavy machinery (TCHM), according to the company. 

• Mahindra & Mahindra (MM IN) is facing challenges in the highly competitive SUV segment in India.
• Model-Wise data indicates declining sales volumes for some of its models such as Scorpio, XUV300, and XUV700.
• The strategy of focusing on the higher end of the SUV market may lead to confusion and loss of market share. 

• Snowman Logistics (SNLL IN)  is principally engaged in the business of providing integrated cold chain solution to users in India.
• The company is in capex phase as it looks to increase the pallet capacity. 
• Forensic concerns include inability to deliver cash flows after the last capex cycle, alongside governance issues such as directorial pay, churn in board, etc.

• Singapore VII Topco III (Blackstone-affiliate) is looking to raise at least US$585m in its stake sale of Sona BLW Precision Forgings (SONACOMS IN) . 
• The share sale is a clean-up one and will lift the overhang on the stock.
• The block is marketed at a floor price of INR400/share, at a 8.3% discount to last close. 

• In this insight, we take a look at the Potential ADDs/DELs for the BSE SENSEX, 100, 200, and 500 Indices in the June 2023 Rebalance.
• The BSE AllCap March 2023 Rebalance results were announced and this changes the main universe from which SENSEX, BSE 100, and BSE 200 members are selected.
• In this insight, we take a look at the recent updates to my expectations and the price and volume performance of the candidates.

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 Transmission
• Country Garden Holdings Co

• The current slowdown in volume can be attributed to both the broader macroeconomic slowdown & the pausing of the inventory system during the COVID, which has resulted in some mismanagement.
• However, the slowdown is not due to a loss of market share, product quality, or adverse distributor policies, indicating a cyclical issue rather than a structural one.
• In case of a gradual recovery of the macroeconomic situation and appropriate measures taken by Page Industries (PAG IN) , volume growth may pick up in the future.

• Balaji Speciality Chemicals (1742663D IN) is looking to raise about US$126m in its upcoming India IPO. 
• Balaji Speciality Chemicals (BSC) is the sole manufacturer in India of niche chemicals such as Ethylenediamine, Piperazine (Anhydrous), Diethylenetriamine, Amino Ethyl Ethanol Amines and Amino Ethyl Piperazine, according to CRISIL.
• BSC’s profitability growth has been stupendous, given its quick production ramp up. However, its growth is very likely to normalize. 

• Late Thursday night, the Adani Group announced that the family entities had sold Rs 154bn or US$1.8bn+ of stock in four listed entities to Australian-listed GQG Partners (GQG AU). 
• GQG is a US$90bn AUM asset manager specialising in emerging markets. They bought stakes of 2.55-4.10% in each of four entities. 
• This “increases” float, but doesn’t. As of now, this will partially offset one MSCI downweight in May, and will likely cause three FIF uplifts.

• The lock-up on nearly 9.4bn shares of Yes Bank (YES IN) expires on 13 March. Most of that is from the banks that helped in the recapitalisation in March 2020.
• There will be forced sellers as soon as the lock-up ends, and there will be other sellers that will want to sell.
• The forced and discretionary selling will be offset to a very small extent by inflows from passive trackers in May/June as the free float for the stock increases.

• Global Health (Medanta) (MEDANTA IN) reported double-digit growth in revenue, EBITDA, and net profit during Q3 and 9MFY23, driven by increasing footfalls, rising ARPOB, and faster-than-expected ramp-up of new hospitals.
• The company plans to add 1,000–1,500 beds in next 2–3 years, with ~70% of the planned bed addition being at existing hospitals, thereby entailing lower capex per bed.
• Recently, Medanta has announced a new asset light partnership to launch a 300-bed hospital in Indore under operations and management arrangement. The hospital is expected to commence operation in FY27.  

• The BHARAT 22 ETF (ICICIB22 IN) will rebalance on 17 March while the CPSE ETF (CPSEBE IN) and Nifty Bank Index (NSEBANK INDEX) will rebalance on 29 March.
• There are no constituent changes for the indices in March but there will be capping changes for the stocks and there is a reasonable impact on some stocks.
• There are stocks that will have opposing flows on the two days, while there are some stocks that will have same way flows from passive trackers.