In today’s briefing:
- Radico Khaitan: Forensic Analysis
- Bajaj Auto Ltd (BJAUT IN) | EV & Exports Optionality
- Sheng Siong (SSG SP): Upbeat on Potential Ramp up in Store Growth
Radico Khaitan: Forensic Analysis
- Radico Khaitan (RDCK IN) had succeeded in getting de-leveraged to a strong extent, as mentioned in our previous insight, Radico Khaitan Limited: On the Path of Getting Debt Free
- The company has entered into the new capex phase and has accumulated some debt, the annual report F22 also highlights few irregularities on the forensic side.
- These include complex structure for land purchase, receivables provisioning, deviation between RoU and lease assets, etc.
Bajaj Auto Ltd (BJAUT IN) | EV & Exports Optionality
- Bajaj Auto Ltd (BJAUT IN) is optimistic about the future of their exports and expects a recovery in exports as a critical catalyst for the stock over the near term.
- The company’s EV endeavors in both 2-wheelers and 3-wheelers are expected to surprise on the upside, which can deliver upside than what is currently factored in.
- The stock also trades at undemanding valuations (16x FY25 consensus estimates), offering adequate comfort with an optionality of EV and Exports.
Sheng Siong (SSG SP): Upbeat on Potential Ramp up in Store Growth
- Sheng Siong (SSG SP) management hinted at possible accelerated store growth referring to news reports about Singapore ramping up public housing to meet strong demand.
- Singapore minister’s comment on public housing BTO projects under construction to increase to 150 in 2025 (from 100 currently) suggests a strong project pipeline in the next few years too.
- Muted 1Q2023 performance reported- decline in revenues and profits, yoy – in line with expectations as shopping ‘normalize’ post-COVID.
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