In today’s briefing:
- Sula Vineyards Pre-IPO – Big Fish in a Small Pond
- Leapmotor IPO Valuation Analysis
- Teradyne Inc: Initiation of Coverage – Business Strategy & Key Drivers
- EbixCash Pre-IPO – The Negatives – Growing Too Fast for Its Previous Auditors, and Short Sellers
- F5 Inc: Initiation of Coverage – Business Strategy & Key Drivers
- Five9 Inc: Initiation of Coverage – Partnership With Kyndryl & Other Drivers
Sula Vineyards Pre-IPO – Big Fish in a Small Pond
- Sula Vineyards (1332009D IN) is looking to raise about US$175m in its upcoming India IPO.
- Sula Vineyards (SV) distributes wines under a bouquet of brands. In addition to its flagship brand “Sula,” popular brands include “RASA,” “Dindori”, “The source,” “Satori”, “Madera” & “Dia”.
- The firm has managed to stay profitable with margin expansion despite COVID-19. However, wine appears to remain a very small part of the Indian alcohol consumption market.
Leapmotor IPO Valuation Analysis
- Our base valuation of Leapmotor HKD 34.9 per share, which is 27% lower than the low end of the IPO price range of HKD 48 per share.
- Given the steep downside of our target price (6-12 month period) relative to the IPO price range, we are Negative on the Leapmotor IPO.
- Leapmotor is selling 130.82 million shares in the IPO at a price range of HKD 48 to HKD 62 per share, scaling back the size of the IPO considerably.
Teradyne Inc: Initiation of Coverage – Business Strategy & Key Drivers
- This is our first report on Teradyne, a leading global supplier of automation equipment for the testing of semiconductors, wireless products, data storage and complex electronics systems.
- In comparison to the previous year, industrial automation, wireless test, and system test revenues grew for Teradyne.
- Teradyne is lowering its shipment plan to align with reduced mobility-related test demand, continued supply shortages, and slower industrial automation growth.
EbixCash Pre-IPO – The Negatives – Growing Too Fast for Its Previous Auditors, and Short Sellers
- EbixCash (EC) is looking to raise around US$800m in its upcoming India IPO. The deal will be run by Motilal, Equirus, ISec, SBI Caps and Yes Securities.
- EC is a provider of digital products and services in the B2C, B2B and financial technology arena. Its has four primary business segments: Payment solutions, travel, financial technologies and BPO.
- In this note, we talk about the not-so-positive aspects of the deal
F5 Inc: Initiation of Coverage – Business Strategy & Key Drivers
- This is our first report on F5 Inc, a well-known provider of multi-cloud security and application delivery that helps businesses connect to their customers.
- In the quarter, F5 saw a good demand as customers secured, scaled, and added their applications as demand for security fuel sales.
- Service providers have driven recent demand as secure 4G cores and customers scale and start to move 5G cores in production.
Five9 Inc: Initiation of Coverage – Partnership With Kyndryl & Other Drivers
- This is our first report on Five9, a leading provider of cloud software for contact centers.
- The company’s core Virtual Contact Center (VCC) cloud platform has been a major revenue driver for them.
- Among key updates, Five9, along with Kyndryl, announced a partnership to offer its customers a cloud-enabled, personalized contact center experience.
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