In today’s briefing:
- Axis Bank Placement – Second Deal for the Month but This Is Very Well Flagged
- Archean Chemical Industries IPO – Strong Growth Makes It Worth a Shot
- Shanghai Tofflon Science Placement (300171.CH)-Industry Periodicity May Put Valuation Under Pressure
- Uber Technologies: Advertising Division & Other Drivers
- Fiserv Inc: The Vert Launch & Other Drivers
- CVS Health Corp: Acquisition of Signify Health & Other Drivers
- L3Harris Corp: Acquisition of Viasat’s Tactical Data Links Business & Other Drivers
Axis Bank Placement – Second Deal for the Month but This Is Very Well Flagged
- The Government of India (GoI) aims to raise around US$500m via selling a 1.4% stake in Axis Bank Ltd (AXSB IN).
- This won’t be the first selldown by GoI as it has been reducing its stake since 2019. We have covered a number of the past deals in the name.
- In this note, we will run the deal through our ECM framework and comment on other deal dynamics.
Archean Chemical Industries IPO – Strong Growth Makes It Worth a Shot
- Archean Chemical Industries (0810406D IN) is looking to raise about US$178m in its India IPO.
- Archean Chemical Industries (ACI) is a specialty marine chemical manufacturer in India focused on producing and exporting bromine, industrial salt, and sulphate of potash to customers around the world.
- We have looked at the background of the deal in our earlier notes. In this note, we will talk about the peer comparison and valuations.
Shanghai Tofflon Science Placement (300171.CH)-Industry Periodicity May Put Valuation Under Pressure
- We analyzed three main factors to drive high performance growth of Tofflon in recent years, but these factors have become untenable. The remaining opportunity mainly lies in import substitution.
- Every explosive growth of Tofflon benefits from positive industry trend, whose periodicity is obvious. It’s not a good investment opportunity for long run,but a staged investment opportunity in short term.
- Tofflon is in the transition from explosive growth to steady growth. The change in industry demand would suppress valuation system. Buy low and sell high,rather than hold for long time.
Uber Technologies: Advertising Division & Other Drivers
- Uber delivered a mixed set of results as its revenues surpassed Wall Street expectations with gross bookings up 32% year over year.
- The company may have delivered a positive EBITDA over its guidance range as well as decent free cash flows but its overall bottom-line losses were wider than Wall Street expectations.
- In this report, we have carried out a fundamental analysis of the historical financial statements of the company.
Fiserv Inc: The Vert Launch & Other Drivers
- Fiserv had a decent quarter on the revenue front and delivered a double-digit growth as it continues to demonstrate the strength of its client base.
- Merchants took advantage of the more value-added business, continued to deliver better experiences, and opened up new businesses.
- Also, Fiserv was awarded another quarter with California State Comptroller for the cards that support different disbursement needs.
CVS Health Corp: Acquisition of Signify Health & Other Drivers
- CVS Health delivered another strong quarter.
- The company increased sales by 10% compared to the last year, reaching over $81 billion and surpassed Wall Street expectations in terms of revenues as well as earnings.
- The Health Care Benefits segment also had a good quarter.
L3Harris Corp: Acquisition of Viasat’s Tactical Data Links Business & Other Drivers
- L3Harris delivered a highly disappointing set of results for the previous quarter as it failed to meet Wall Street expectations in terms of revenues as well as earnings.
- The reduced margins and revenue have been responsible for the guidance decline in free cash flow and EPS.
- L3Harris performed well in the non-traditional prime business with a record quarter of more than $5 billion in funded orders.
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