Daily Brief Equity Bottom-Up: Top Ideas in Apparel & Fashion Retail and more

• In this insight, we present our top investment ideas in the Apparel & Fashion retail sector, analyzing recent earnings results and key insights from company earnings calls.
• Names discussed include Page Industries (PAG IN), Vedant Fashions (MANYAVAR IN), Aditya Birla Fashion and Retail Ltd (ABFRL IN), Arvind Fashions (ARVINDFA IN) and Go Fashion India (GOCOLORS IN). 
• We have a bearish stance on all names except Page Industries (PAG IN).  

• Vodafone Idea (IDEA IN) gains a lifeline with the waiver of Rs. 24,700 crore bank guarantees for pre-2022 spectrum acquisitions.
• The waiver eases financial strain, boosts cash flow, and enables critical investments in 4G and 5G upgrades amidst competition from Reliance Industries (RIL IN)‘s Jio and Bharti Airtel (BHARTI IN).
• While a positive step, Vi’s recovery depends on fundraising, reducing debt, and regaining market share, making its turnaround uncertain but slightly more plausible.

• Clarity Pharmaceuticals Ltd (CU6 AU) announced that two participants have been dosed with 64Cu-SAR-bisPSMA and imaged days after the commencement of the Co-PSMA Investigator-Initiated Trial (IIT).
• SARTATE completes final assessment in Phase II diagnostic trial for neuroendocrine tumours. SAR-Bombesin began trial for castrate resistant prostate cancer.
• Clarity’s copper platform, strong prostate pipeline, and therapeutic and diagnostic efficacy data represent an attractive opportunity to grow a significant radiopharmaceutical franchise in oncology and other indications.

• BIDU reported C3Q24 top line, non-GAAP operating profit and GAAP net income in-line, 4.6% and 66% vs. our estimate and in-line, 8.7% and 46% vs. consensus.
• Ads revenue declined and C4Q24 guidance was below expectations. Margin improvement was mainly achieved through personnel cuts, which we think is not sustainable. AI didn’t contribute materially to revenues;
• We see no return to growth from any of the business lines. We keep our SELL rating and cut the TP from US$84 to US$78.

• BQE posted excellent Q3 financials that beat our expectations across the board as operations services continued its growth trajectory and the technical services and China JV segments reverted to historical levels.
• Proportional revenue came in at $10.2M (+28% YoY) vs. our estimate of $8.6M and Adj. EBITDA came in at $4.6M (+67% YoY) vs. our $2.7M.
• Management expects continued strong performance from the technical services segment through Q4/24 and Q1/25.

• In this insight, we examine the key challenges facing the sector and discuss potential paths forward for MFI-focused lenders. 
• Companies in this sector have seen sharp declines, with stocks down 45% from their 52-week highs and showing negative returns of -37% YTD.
• Considering the Industry data, it would be fair to conclude that the pain in the industry is likely to persist.  CREDAG, SPANDANA, AUBANK, and IIB are key names to watch.

• WA government announces $150 million package for lithium miners, including waiving government fees for two years
• Package also includes a $50 million loan facility for interest-free loans to sustain operations
• While the news did not significantly impact stock prices, it provides some relief and support for struggling lithium companies

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• Investment thesis recommends shorting Shake Shack due to declining traffic, comp growth, and new unit productivity
• Stock price has surged despite challenges, trading at over 100x earnings
• Uncertain outlook with activist investor no longer involved and unique smashburger being commoditized, raising doubts about sustainability of 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.

• The latest earnings result and call for NVIDIA Corporation (NVIDIA) indicate a period of remarkable growth and robust financial performance driven primarily by the adoption of its AI technologies and data center products.
• NVIDIA reported record revenue of $35.1 billion, which represents a 17% sequential increase and a striking 94% year-over-year growth, surpassing its revenue outlook of $32.5 billion.
• This growth spanned all market platforms, particularly fueled by the increasing demand for NVIDIA’s accelerated computing and AI solutions.

• Speculation of a Qualcomm-Intel deal diminishes, while Japan boosts semiconductor subsidies to benefit Rapidus, with further support anticipated.
• China’s semiconductor industry growth poses a threat to South Korean companies, prompting Samsung to weigh integration of ChatGPT, sparking concerns over its Google partnership.
• Hiwin bolsters its robotics presence by partnering with Boston Dynamics, expanding its influence in the industry, as India eyes doubling 5G subscriptions by 2030.