India

In today’s briefing:

KFin Technologies IPO Trading – Previous Deals with Lackluster Demand Had Mixed Debuts
India Channel Insight #47 | Go Fashion, Lux Industries

KFin Technologies IPO Trading – Previous Deals with Lackluster Demand Had Mixed Debuts

KFin Technologies (1804170D IN) raised around US$180m in its India IPO. The IPO had been a 100% OFS.
KFin Technology (KFin) is a technology driven financial services platform providing comprehensive services and solutions to the capital markets ecosystem.
We have looked at various aspects of the deal in our previous note, in this note, we talk about the demand and trading dynamics.

India Channel Insight #47 | Go Fashion, Lux Industries

By Pranav Bhavsar

Our flash checks for Go Fashion India (GOCOLORS IN) and LUX Industries Ltd (LUX IN) suggest weak consumer sentiment continues to prevail.
Competitive intensity is an area of concern for category creator and leader Go Fashion India (GOCOLORS IN)
Rupa & Company (RUPA IN) is giving a tough fight to LUX Industries Ltd (LUX IN) in the rural markets.

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Dec 26

Daily Brief India: Polycab India and more

In today’s briefing:

2023 High Conviction | Polycab: A High Quality Play on Rise of India as a Manufacturing Hub

2023 High Conviction | Polycab: A High Quality Play on Rise of India as a Manufacturing Hub

By Ankit Agrawal, CFA

Polycab is a high-quality wires/cables and FMEG brand, benefitting from growing domestic consumption and rising capex led by India gaining foothold in global manufacturing.
Its FMEG business is currently in nascent stage representing just 10-12% of revenues but is poised to scale up exponentially over the next 3 years.
Its Wires and Cables business, despite commanding a dominant 22%+ market share, has been gaining share and is benefitting from strong demand tailwinds, positioning it well for double-digit growth.

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Dec 23

Daily Brief India: Mahindra & Mahindra, Indegene Limited and more

In today’s briefing:

Mahindra & Mahindra (MM IN) | Scorpio-N Fake Bookings
Indegene Pre-IPO Tearsheet

Mahindra & Mahindra (MM IN) | Scorpio-N Fake Bookings

By Pranav Bhavsar

One of our routine channels is suggesting the possibility of some of Mahindra & Mahindra (MM IN) ‘s Scorpio-N bookings being fake.
This channel (an online auto forum) has been a trusted source of information followed by various industry veterans including the company’s chairman.
While the rationalisation of fake bookings as a recent industry practice could solace some, the fallacy of the bookings narrative only gets stronger.

Indegene Pre-IPO Tearsheet

Indegene Limited (1864095D IN) is looking to raise around US$400m in its upcoming India IPO. The bookrunners on the deal are Citigroup, JP Morgan, Kotak, and Nomura.
Indegene is a digital commercialisation firm focused exclusively on the global life sciences industry.
Its solutions enable biopharmaceutical, emerging biotech and medical devices companies to develop, launch and drive sales for their products in a more efficient manner.

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Dec 22

Daily Brief India: Sula Vineyards, Varun Beverages Ltd, Protean and more

In today’s briefing:

Sula Vineyards IPO Trading – Not a Whole Lot to Cheer About
AMFI Stock Reclassification Preview (Dec 2022): A Bunch of Migrations
Protean EGov Technologies Pre-IPO – A Key Service Provider but Earnings Have Lagged

Sula Vineyards IPO Trading – Not a Whole Lot to Cheer About

Sula Vineyards raised around US$117m in its India IPO, although demand wasn’t all that great.
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”.
We have looked at various aspects of the deal in our previous notes. In this note, we will talk about demand and trading dynamics.

AMFI Stock Reclassification Preview (Dec 2022): A Bunch of Migrations

By Brian Freitas

Near the end of the review period, we see 7 stocks moving from MidCap to LargeCap, 6 from LargeCap to MidCap, 8 from SmallCap to MidCap and vice versa.
One spin-off should be added to the MidCap segment, while a bunch of recent listings will be added to the SmallCap segment.
Stock migrating upwards have outperformed stocks migrating downwards and we expect there could be some mean reversion from the middle of January.

Protean EGov Technologies Pre-IPO – A Key Service Provider but Earnings Have Lagged

Protean eGov Technologies (PET) is looking to raise up to US$600m in its upcoming India IPO.
Protean eGov Technologies (PET) is a key IT-enabled solutions company in India engaged in conceptualizing, developing and executing nationally critical greenfield technology solutions.
In this note, we look at the company’s past performance.

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Dec 21

Daily Brief India: Bata India Ltd and more

In today’s briefing:

India Channel Insight #46 | Bata India, Campus Activewear

India Channel Insight #46 | Bata India, Campus Activewear

By Pranav Bhavsar

Consumer sentiment is soft, but competition is limited for both Bata India Ltd (BATA IN) and Campus Activewear (CAMPUS IN)
Bata enjoys good relationships with its distributors and franchisees, traction for offline sales channels is strong.
Campus is in an aggressive expansion mode, with leadership in the sports shoe segment driving sales.

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Dec 17

Daily Brief India: KFin Technologies and more

In today’s briefing:

KFin Technologies IPO – Profit Growth Has Outpaced Peer, However Valuation Isn’t Cheap

KFin Technologies IPO – Profit Growth Has Outpaced Peer, However Valuation Isn’t Cheap

KFin Technologies (1804170D IN) is looking to raise around US$180m in its India IPO.
KFin Technology (KFin) is a technology driven financial services platform providing comprehensive services and solutions to the capital markets ecosystem.
In this note, we will look at its RHP updates, peer comparison, earnings assumptions, and share our thoughts on valuation.

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Dec 16

Daily Brief India: Indian Railway Catering and Tourism, Zydus Lifesciences Ltd and more

In today’s briefing:

IRCTC OFS – Well Flagged Deal for an Overly Well Priced Stock
Zydus Lifesciences (ZYDUSLIF IN): New Launches Aid US Business; India Business Continued to Progress

IRCTC OFS – Well Flagged Deal for an Overly Well Priced Stock

Government of India (GoI) aims to raise up to US$360m via selling its 5% stake in Indian Railway Catering and Tourism (IRCTC IN).
This is not the first selldown by GoI and won’t be the last either. However, the stock now looks more expensive than ever.
In this note, we will talk about the deal dynamics and run the deal through our ECM framework.

Zydus Lifesciences (ZYDUSLIF IN): New Launches Aid US Business; India Business Continued to Progress

By Tina Banerjee

In Q2FY23, Zydus Lifesciences Ltd (ZYDUSLIF IN) recorded 16% y/y and 10% q/q growth in the U.S. formulation business, mainly driven by new launches including gRevlimid.
India formulation business continued to progress well, with market share gain in key therapies including cardiovascular, gynecology, respiratory, and gastro intestinal on a y/y basis.
Zydus remains confident to achieve 20% plus EBITDA margin for the current fiscal, backed by growth visibility across key businesses, coupled with various cost optimization initiatives.

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Dec 15

Daily Brief India: Paytm, Adani Enterprises and more

In today’s briefing:

PayTM (One 97 Communications) Announces a BUYBACK – Overhang Vs Feelings Vs Buyback Vs Index
Adani Enterprise US$2.4bn Raising Early Look – Lots to Think About: Controversies, Debt, Grand Plans

PayTM (One 97 Communications) Announces a BUYBACK – Overhang Vs Feelings Vs Buyback Vs Index

By Travis Lundy

PayTM, which IPOed 13 months ago at Rs2150/share and now trades 75% lower “intimated” the possibility of a buyback on the 8th, and shares jumped 7.2% on the 9th.
The Board approved the INR 8.5bn buyback at max price INR 810/share late last night. The shares fell slightly today. Now we move to a postal ballot.
The buy-back rules crate interesting parameters and these buy-back terms provide interesting opportunities.

Adani Enterprise US$2.4bn Raising Early Look – Lots to Think About: Controversies, Debt, Grand Plans

Adani Enterprises (ADE IN) is looking to raise INR200bn (US$2.4bn) via a further public offering. The company has obtained board approval and is now awaiting shareholder approval.
It is the flagship company of the Adani Group. The group’s listed entities’ stock performance over the past few years has made the founder one of the richest persons globally.
However, the stock is expensive and has had some issues in the past. In this note, we take an early look at the possible placement and its impact.

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Dec 14

Daily Brief India: Sula Vineyards, Gujarat Ambuja Exports, KFin Technologies and more

In today’s briefing:

Sula Vineyards IPO: Forensic Analysis
Gujarat Ambuja Exports
KFin Technologies Pre-IPO – Large Domestic Player Continues to Get Larger

Sula Vineyards IPO: Forensic Analysis

By Nitin Mangal

Sula Vineyards (1332009D IN) has currently come up with its IPO. The ~INR 9.6 bn IPO comprises offer for sale and has a price band of INR 340-357 per share.
The company is a market leader with a market share crossing 50% in a relatively nascent INR 13.45 bn domestic 100% grape wine market.
Key forensic takeaways that one should consider is high litigation liabilities, emphasis on related party transactions, irrational dividends and absurd trend of line items.

Gujarat Ambuja Exports

By Gauri Anand

Company holds pole position in corn starch processing in India with ~ 25% market share; but accounts for a significant share of industry’s profit pool.
Further expanded capacity by 40% (1200tpd) just last week and another 25% expansion is planned for Q4FY24E, the 60%+ capacity expansion will drive volume led growth forward.
Cost pressures (commodity, energy) to abate in FY24E. Formidable player, capital efficient business, cost leadership, net cash stature, low valuations(<10x PER, <1x EV/Sales), favors investment.

KFin Technologies Pre-IPO – Large Domestic Player Continues to Get Larger

KFin Technologies (1804170D IN) is looking to raise around US$300m in its India IPO.
KFin Technology (KFin) is a technology driven financial services platform providing comprehensive services and solutions to the capital markets ecosystem.
Under its offering, it primarily serves asset managers and corporate issuers domestically, while providing investor solutions for mutual funds and private retirement schemes in other regions.

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Dec 13

Daily Brief India: Sula Vineyards and more

In today’s briefing:

Sula Vineyards IPO – Does Offer a Unique Exposure with Lots of Ifs and Buts

Sula Vineyards IPO – Does Offer a Unique Exposure with Lots of Ifs and Buts