In today’s briefing:
- Ola Electric IPO – RHP Updates – Growing Faster than Expected, Driven by GoI Policy
- Reservoir Hogs: WH Group (288 HK) Mulls US/Mexican Spin-Off
- Ola Electric IPO: Valuation Insights
- GEM Funds: Extreme Stocks, July 2024
- Shimano (7309) | Shifts Gears with Upbeat Guidance
- Customers Flocking to Donki for Both Discounted Daily Necessities and Tourist Toys
- Tesla Inc (TSLA) – Tuesday, Apr 30, 2024
- Ola Electric IPO – Thoughts on Valuation
- Companies Without Engagement Opportunities Lack a Sense of Urgency to Solve Problems
- Narrative and Numbers | V-Mart Retail (VMART IN) | FY24
![](http://www.smartkarma.com/assets/plugins/a3-lazy-load/assets/images/lazy_placeholder.gif)
Ola Electric IPO – RHP Updates – Growing Faster than Expected, Driven by GoI Policy
- Ola Electric is now looking to raise about US$730m in its upcoming India IPO.
- Ola Electric Mobility is a vertically integrated pure EV player in India with manufacturing capabilities for EVs and EV components, including cells.
- In our previous notes, we looked at the company’s performance, undertook a peer comparison and talked about valuations. In this note, we look at the updates from its recent filings.
Reservoir Hogs: WH Group (288 HK) Mulls US/Mexican Spin-Off
- Earlier this month, WH Group (288 HK) announced it had submitted a plan to spin-off its Smithfield US and Mexican ops on the NYSE or NASDAQ,
- These ops accounted for 54% of WHG’s FY23 revenue and 22.4% of the operating profit; compared to 56% and 44.9% respectively in FY22.
- We’ve been here before. A Smithfield spin-off was touted in 4Q23 (in the media). WHG acquired Smithfield for US$4.7bn in 2013, ahead of its 2014 listing.
Ola Electric IPO: Valuation Insights
- Ola Electric (1700674D IN), the largest Indian player in electric two-wheel vehicles (E2W), is seeking to raise up to US$734 million.
- We previously discussed the IPO in Ola Electric IPO: The Bull Case, Ola Electric IPO: The Bear Case and Ola Electric IPO: The Investment Case.
- Our valuation analysis suggests that the IPO price range of Rs72-76 per share is attractive. Therefore, we would participate in the IPO.
GEM Funds: Extreme Stocks, July 2024
- We screen for stocks at the extreme ends of their positioning or momentum ranges among active Emerging Market equity funds.
- High Positioning, Negative Momentum: BYD Company Limited Class H, Novatek Microelectronics Corp.
- Low Positioning, Negative Momentum: Banco Bradesco SA Pfd, LG Chem Ltd.
Shimano (7309) | Shifts Gears with Upbeat Guidance
- Shimano’s Q2 results exceeded expectations with revenue and operating profit significantly beating estimates despite a YoY decline.
- Full-Year revenue and operating profit guidance were revised upward, reflecting improved performance and aligning with analyst consensus.
- Our estimate for FY25 was significantly raised; despite full valuations, further recovery and potential shareholder returns offer continued bullish outlook.
Customers Flocking to Donki for Both Discounted Daily Necessities and Tourist Toys
- Inflation is encouraging customers to seek out discount chains, led by PPI’s Don Quijote.
- Backed by expansion of private brand lines and more food lines, as well as higher sales to tourists, PPI has been posting record results.
- There continues to be high expectations for further growth at home and abroad.
Tesla Inc (TSLA) – Tuesday, Apr 30, 2024
- Tesla is a polarizing company with both enthusiastic supporters and skeptical critics.
- The company has the potential to become the most valuable in the world if it solves autonomous transportation.
- The debate around Tesla is focused on its Full Self Driving software, which has recently transitioned to a neural net architecture and is best experienced firsthand at a Tesla delivery center.
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.
Ola Electric IPO – Thoughts on Valuation
- Ola Electric is now looking to raise about US$730m in its India IPO.
- Ola Electric Mobility is a vertically integrated pure EV player in India with manufacturing capabilities for EVs and EV components, including cells.
- In our previous notes, we looked at the company’s past performance. In this note, we will talk about valuations.
Companies Without Engagement Opportunities Lack a Sense of Urgency to Solve Problems
- Companies that have increased their valuations over the past year are those with higher valuations and have further increased their ROE and ROA, resulting in even higher valuations.
- The difference between the characteristics of companies whose valuations increased and those whose valuations did not change over the past year is the foreign ownership ratio.
- Companies with low foreign ownership have less access to overseas investors’ suggestions for solving individual company problems, which is why they are slow to act to improve capital profitability.
Narrative and Numbers | V-Mart Retail (VMART IN) | FY24
- V-Mart Retail (VMART IN) is an omni-channel value retailer, providing a range of products aimed at Bharat’s middle and lower middle class
- The company has implemented a cluster strategy that has supported its expansion across India. In FY24, V-Mart opened 46 new stores nationwide.
- Being over-indexed to value, V-MART has posted slower revenue growth compared to the recent past. New Warehouse and tigher control over inventory could boost cashflows further.