Daily Brief Equity Bottom-Up: ICICI Securities : A Special Situation Play with Limited Downside and more

• ICICI Securities Shareholders will consider delisting proposal at the end of March-24 which will decide its fate
• Swap Ratio based on current prices offers limited downside for I-Sec Shareholders if delisting goes through.
• There could be potential upside of 20% if delisting fails.

• Our NAV analysis of LG Corp suggests an implied market cap of 16.3 trillion won or 103,781 won per share which is 16% higher than current share price.
• For holdco discount, we used a 50% holdco discount. If investors perceive improvement in value (such as through corporate governance improvements), the holdco discount on LG Corp would decline.
• LG Corp’s shares are up 5.9% in the past six months, outperforming all the major LG Group related companies including LG Chem, LG H&H, LG Electronics, and LG Energy Solution. 

• Wins Co. is engaged in the business of developing and supplying information security solutions and developing software related to network security to protect networks from cyber threats and viruses. 
• The company has a consistent growth in sales and profits. It also has a strong balance sheet. At the end of 2023, it had a debt ratio of 15.4%. 
• Wins Co is trading at EV/EBITDA of 1.7x, P/E of 7.8x, and P/B of 0.9x in 2024 which are 75%, 26%, and 25% lower than the historical valuation multiples.

• This is our first report on ed-tech major, Coursera.
• The company had a successful fourth quarter, marking a strong close to the year.
• The company welcomed 24 million new learners in this period, bringing their base to more than 140 million and seeing an increase in annual revenue of 21% over the previous year.

• In Q3FY24, Larsen & Toubro (LT IN) witnessed order inflow of INR 760bn (up 25% YoY) bolstering the order book to INR 4.7tn at the end of December 2023.
• Margins continued to remain under pressure in 9MFY24 due to cost pressures in legacy jobs.
• Strong project execution and healthy order book are expected to drive future growth with margins reviving after bottoming out.

• This is our first report on AI software platform company, C3 AI. The company has demonstrated positive performance in their third-quarter fiscal 2024 results with a total revenue of $78.4 million, marking an 18% YoY growth and surpassing their guidance range.
• The total number of customer engagements has also seen an increase of 80% compared to the previous year.
• The company reported a non-GAAP gross profit of $54.7 million with a gross margin standing at 70%.

• This is our first report on capital equipment manufacturer, Kulicke and Soffa Industries Inc.
• The company delivered their Q1 2024 earnings recently, announcing an impressive revenue of $171.2 million for the December quarter.
• However, not all news from the call was as positive because GAAP net income stood at only $9.3 million, alongside non-GAAP earnings per share at $0.3. However, this was still slightly higher than the guidance midpoint.

• This is our first report on Envestnet, a leading provider of integrated wealth management solutions.
• The company announced strong financial results for the fourth quarter and full year of 2023 in its latest earnings call.
• The company reported solid growth and successfully executed its strategic initiatives, leading to significant margin expansion.

• A liquid proxy for China’s recovering consumption (with no technology regulation risk)
• A quality red chip company at a very reasonable valuation
• Growing sales and margins as its premiumisation strategy is executed

• Establishment Labs is a Costa Rican company known for manufacturing and selling breast implants, with their Motiva implant gaining market share from competitors.
• The stock price of ESTA has recently dropped significantly due to a weak Q3 and lowered guidance, presenting an opportunity for investors to get into the dominant player in the breast augmentation market at a discounted price.
• With Motiva having a low rupture rate and no cases of associated cancers, analysts value ESTA at approximately $100 a share on a DCF basis, making it a compelling investment opportunity for potential growth.

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.