Daily Brief Consumer: Allied Blenders & Distillers, Games Workshop Group PLC, TSE Tokyo Price Index TOPIX, Volkswagen , United Parks and Resorts, Manchester United and more

• Allied Blenders & Distillers (9844250Z IN) is looking to raise about US$180m in its upcoming India IPO.
• ABD is the largest Indian-owned Indian-made foreign liquor (IMFL) company and the third largest IMFL company in India, in terms of annual sales volumes between FY14 and FY22.
• In our previous notes, we talked about various aspects of the company. In this note, we talk about its RHP updates and our thoughts on valuation.

Games Workshop Group’s FY24 trading update provided a nice surprise on the revenue side, broadly equally split between core and licensing, and an even nicer surprise for PBT, suggesting an improvement in gross margin. We have upgraded our FY24 estimates to be consistent with the indicated figures and marginally increase our estimates for FY25, which reverts to a 52-week period accounting period.

• Companies with higher foreign shareholdings have superior board practices, suggesting that overseas investor engagement played an important role in improving management that resulted in return on capital.
• Clues to changes in management reform can be found in the percentage of independent board members, the percentage of female board members, and policy shareholdings/total assets.
• While the substance of the goals is important, the focus has shifted to management’s strong will to achieve the goals to raise valuations and return on capital.

• Volkswagen’s US ADRs (VWAPY) have underperformed in the past 5 years, despite a 3% increase with dividends
• Company’s growth guidance and margins are weaker compared to peers, leading to undervaluation of stock
• Trading at low multiples of forward earnings and free cash flow, recent free cash flow guidance for 2024 was unimpressive; preferred shares receive extra dividends but no voting rights

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Key points

• United Parks & Resorts (PRKS) is proposing a $500 million share repurchase authorization to decrease share count and float significantly at current prices.
• The buyback, if approved, could be completed by the end of 2024 and potentially drive double-digit EBITDA growth, leading to an 80% increase in stock price to $100.
• With a leverage of 2.5x EBITDA, the company may also be a candidate for sale or privatization, with Hill Path ownership increasing to 49% and potential for significant premium buyouts.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Manchester United is a well-known football club with a large fan base and diverse revenue sources
• The club is controlled by the Glazer family through Class B shares but Sir Jim Ratcliffe acquired a 25% stake in MANU
• Ratcliffe’s investment could signal a shift in control to SJR, making the stock appealing to investors

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.