In today’s briefing:
- Brainbees Solutions (FirstCry) IPO – Not Very Attractive but It Is Relatively Cheap
- Ola Electric IPO- Forensic Analysis
- Reducing Cross Shareholdings Is Necessary to Increase the Effectiveness of Engagement
- Ford Motor Company: EV Segment Losses & Surging Warranty Costs Are A Major Concern! – Major Drivers
- O’Reilly Automotive Inc.: What Major Challenges Did They Face & How Is The Management Overcoming Them? – Major Drivers
- Whirlpool Corporation: How Is The Management Executing Global Market Penetration and Diversification! – Major Drivers
- Kameda Seika (2220 JP): Q1 FY03/25 flash update
- Kitwave Group Plc (KITW) – Thursday, May 2, 2024
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Brainbees Solutions (FirstCry) IPO – Not Very Attractive but It Is Relatively Cheap
- 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 IPO- Forensic Analysis
- 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.
Reducing Cross Shareholdings Is Necessary to Increase the Effectiveness of Engagement
- 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: EV Segment Losses & Surging Warranty Costs Are A Major Concern! – Major Drivers
- 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.: What Major Challenges Did They Face & How Is The Management Overcoming Them? – Major Drivers
- 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: How Is The Management Executing Global Market Penetration and Diversification! – Major Drivers
- 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.
Kameda Seika (2220 JP): Q1 FY03/25 flash update
- 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).
Kitwave Group Plc (KITW) – Thursday, May 2, 2024
- 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.