In today’s briefing:
- EQD / NSE Vol Update / IVs Ride the Fed Seesaw
- Kolte Patil: New Launches Were Tepid In Q1 But FY25 Is On Track For Strong Performance
- Bajaj Finance: Mixed Q1, However Growth Trajectory Remains Intact
- Nuvama: Continues to Post Robust Performance
- IREDA QIP Early Look – Strong Momentum, Although Valuations Are Eye-Popping
EQD / NSE Vol Update / IVs Ride the Fed Seesaw
- IVs seesawed through the week on account of the Fed meeting. Trading up to 12.7% going into the meeting & selling-off to 11.4% thereafter.
- Vol-Curve Term-structure in Contango post Fed meeting – Nifty50 vol curve sheds its inversion & BankNifty vol curve loses its kinked-shape
- BankNifty Smile & Skew characteristics extend relative to previous weeks – despite falling IVs & strengthening index.
Kolte Patil: New Launches Were Tepid In Q1 But FY25 Is On Track For Strong Performance
- Kolte Patil reported a decent Q1FY25 with pre-sales of INR 711cr. This was lower than expected, however, adjusted for weak new launch activity, it was healthy.
- Q1FY25 pre-sales was mostly led by sustenance sales. New launches worth INR 1500cr have been initiated mostly in Q2FY25, thus will start reflecting in 2HFY25 pre-sales numbers.
- With highest-ever quarterly collection at INR 612cr, operating cash flows has remained strong. The balance sheet remains robust with negative net debt, allowing Kolte Patil to aggressively pursue new projects.
Bajaj Finance: Mixed Q1, However Growth Trajectory Remains Intact
- Bajaj Finance (“BAF”) reported a decent Q1FY25 with robust AUM growth, however, loan losses came in slightly elevated. AUM grew 31% YoY to reach INR 3,54,192cr.
- Annualized credit cost inched up to 2.1% vs 1.75-1.85% guided for FY25. This was led largely by weak collection efficiency. BAF is working on enhancing its collection infrastructure.
- BAF listed its housing finance subsidiary on Sep 16, unlocking value for the shareholders. It created history with highest-ever subscription amount and got listed at a premium of 114%.
Nuvama: Continues to Post Robust Performance
- Nuvama’s Q1FY25 results were yet again stellar with 60% YoY growth in revenues. The excess growth came from the Capital Markets segment where the activity has been upbeat.
- The Wealth Management and Asset Management segments, which are core to the business, continued to post secular growth in the range of 18-25% YoY.
- For the first-time ever, Nuvama Wealth Management (“Nuvama”) also declared dividend. Given the capital light nature of the business, it indicates prudent capital allocation.
IREDA QIP Early Look – Strong Momentum, Although Valuations Are Eye-Popping
- IREDA (1845911D IN) is looking to raise INR45bn (US$538m) via its qualified institutional placement (QIP).
- Most recently on 19th Sept 2024, IREDA received the Department of Investment and Public Asset Management’s (DIPAM) approval for said QIP.
- Overall, the deal wouldn’t be a large one for the stock to digest at just 4.7 days of three month ADV.
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