Daily Brief Financials: Shanghai Rural Commercial Bank, India Shelter Finance, IDFC First Bank Limited, Longfor Properties and more

• CSI 300 represents the 300 largest stocks by market capitalization and liquidity from the entire universe of Shanghai and Shenzhen Stock Exchanges. CSI 500 represents the next largest 500 names.
• In this insight, we take a look at the potential ADDs/DELs for the CSI 300 and CSI 500 rebalance in June 2024.
• At present, I see 10 ADDs/DELs for the CSI 300 index and 50 ADDs/DELs for the CSI 500 index.

• India Shelter Finance (0570670D IN) is looking to raise US$144m from its India IPO.
• India Shelter Finance (ISF) is a retail-focused HFC targeting the self-employed customer with a focus on first time home loan takers in the low and middle income group.
• In this note, we will look at past performance, and share our thoughts on valuation.

• India Shelter Finance (0570670D IN) (ISFC) IPO worth INR 12 bn opens for subscription this week. The issue comprises INR 8 bn fresh issue and INR 4 bn OFS. 
• ISFC has been generating high growth in AUM and disbursements in the last few years. The company has also improved its NPAs and stability.
• However, there are few cautions regarding employee productivity and on the opex side. Also, slippages have increased in H1F24.

• IDFC First Bank Limited (IDFCBK IN)  has built a banking franchise that holds the best promise among the mid-sized banks in India for long-run outperformance.
• A high-yielding and retail-oriented loan book, track record of pristine asset quality, superior funding profile boosting best-in-class retail deposit base, and incrementally improving unit economics.
• We value the stock as a long-term Buy, with 35% upside in near-term, as the bank continues to realize the benefits of its increasing scale on its earnings profile.

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.