Daily Brief Consumer: BrainBees Solutions, Ola Electric, TSE Tokyo Price Index TOPIX, Ford Motor Co, O’Reilly Automotive, Whirlpool Corp, Kameda Seika, Kitwave Group and more

• BrainBees Solutions is looking to raise up to US$500m in its upcoming India IPO.
• FirstCry is India’s largest multi-channel retailing platform for Mothers’, Babies’ and Kids’ products in terms of GMV, for the year ending Dec 2022 (9M23), according to RedSeer.
• In our previous notes, we looked at the company’s past performance. In this note, we will talk about valuations.

• Ola Electric (1700674D IN) is launching its IPO, consisting of fresh issue worth INR 5.5 bn and offer for sale upto 84.9 mn shares.
• The company delivered its first electric scooter in December 2021, and since then it has grown immensely to become a market leader with a share of 35%.
• As far as forensics go, one should look out for related party transactions with promoters, some accounting policies, constant losses, need for capex, trend of expenses, etc.

• Signs of change in companies that have improved their capital profitability and valuations can be seen in their policy shareholdings/total assets. 
• Companies with fewer policy shareholdings, as measured by (policy shareholdings + equity holdings)/total assets, tend to have the best values for valuation, ROE, and ROA, and vice versa.
• To measure the seriousness of reducing cross-shareholdings, as long as the company has the voting right of cross-shareholdings in retirement benefit trust, the deemed shares should be included in cross-shareholdings.

• Ford Motor Company’s second quarter 2024 performance offers a comprehensive snapshot of a transitional phase in the company’s long-standing history.
• The quarter reflects their advancing Ford+ strategic plan which aims to refine operational efficiencies and bolster profit margins through structural adaptations and technological advancements.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• O’Reilly Automotive, Inc. faced a challenging second quarter in 2024, with performance below expectations due to broader industry demand headwinds.
• Despite these challenges, the company reported a 2.3% increase in comparable store sales, continuing to outperform the industry.
• Adjustments in full-year outlook for operating profit and earnings per share were made following these results.

• Whirlpool Corporation reported its second quarter earnings for 2024, reflecting a mixed performance amid a challenging macroeconomic environment.
• The company showed strong sequential global margin expansion and reiterated its net sales guidance at $16.9 billion.
• However, it faced downward pressure on discretionary demand due to the soft housing market, particularly affecting the North American market.

• Sales rose JPY1.8bn (8.3%) YoY, driven by higher sales in Domestic Rice Cracker, Overseas, and Food businesses.
• Operating profit increased JPY375mn (53.6%) YoY, with significant profit growth in Domestic Rice Cracker and Food businesses.
• Revised FY03/25 forecast projects sales of JPY102.0bn (+6.8% YoY) and net income of JPY3.8bn (+68.4% YoY).

• U.K.-based food distributor specializing in delivering a variety of products to convenience stores and foodservice providers
• Targets independent establishments with low minimum order values
• National scale gives them bargaining power over suppliers, providing a competitive edge

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.