In today’s briefing:
- NIFTY50 Index Rebalance Preview: Adani Enterprises Should Replace Shree Cement
- India Channel Insight #42 | Britannia, Dabur
- Healthvista India Pre-IPO Tearsheet
- Apollo Hospitals Enterprise (APHS IN): Set to Benefit from Medical Tourism Resumption in India
- Zomato IPO Lock-Up – A US$3.4bn Lockup Release Test Case for India
- Morning Views Asia: China South City, NagaCorp Ltd, Vedanta Resources
- Dredging Corp Of India: Lapse of Governance Controls
NIFTY50 Index Rebalance Preview: Adani Enterprises Should Replace Shree Cement
- With over 90% of the review period complete, Adani Enterprises (ADE IN) is a high probability inclusion to the NIFTY Index (NIFTY INDEX) and will replace Shree Cement (SRCM IN).
- We estimate passive NIFTY Index (NIFTY INDEX) trackers will need to buy nearly 7% of the real float on Adani Enterprises (ADE IN) and the stock should continue to outperform.
- Adani Green Energy (ADANIGR), Adani Transmission (ADANIT) and Avenue Supermarts Ltd (DMART) have higher average free float market caps and could be included if added to the F&O segment.
India Channel Insight #42 | Britannia, Dabur
- The current excess rainfall across India is so far not leading to any material damage in rural India.
- Britannia Industries (BRIT IN) continues to operate in a favourable environment and is possibly even immune to down trading.
- Dabur India Ltd (DABUR IN) channels remain optimistic about matching YoY value growth, however, in terms of volume there still is quite a bit of ambiguity.
Healthvista India Pre-IPO Tearsheet
- Healthvista India (1370230D IN) is looking to raise about US$126m in its upcoming India IPO. The deal will be run by SBI Cap, IIFL Securities and JM Financial.
- Healthvista India is an out-of-hospital healthcare service provider. Under its brand Portea, it offers services such as primary care, geriatric and palliative care, amongst others.
- It also distributes specialty pharmaceuticals and provides “point of care” medical equipment for sale and rental.
Apollo Hospitals Enterprise (APHS IN): Set to Benefit from Medical Tourism Resumption in India
- Medical tourism in India was negatively impacted by the pandemic. As the government is lifting travel restrictions, reopening border, and resuming international flight services, medical tourists have started returning back.
- Large corporate hospitals, having pan-India presence, like Apollo Hospitals Enterprise (APHS IN) are set to benefit from this trend. Medical tourism contributed 10% of revenue of Apollo in pre-pandemic era.
- Apollo’s market dominance and expansion plan in hospital and foray into online services have sharpened its competitive edge over competitors. Its healthcare business is expected to grow mid-teens this year.
Zomato IPO Lock-Up – A US$3.4bn Lockup Release Test Case for India
- Zomato (Zomato IN) raised US$1.3bn in its India IPO in Jul 2021. At that time, it was the largest technology sector listing in India.
- Zomato is one of two leading food delivery app operators in India. It recently acquired Blinkit marking its foray into the instant grocery segment.
- In this note, we will talk about the lock-up dynamics and updates since our last note.
Morning Views Asia: China South City, NagaCorp Ltd, Vedanta Resources
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.
Dredging Corp Of India: Lapse of Governance Controls
- Dredging Corp Of India (DCIL IN) has been seeing a heavy churn in top personnel lately, including the most critical sacking of MD and CEO, Mr. G.Y.V Victor.
- It was reported that there has been suppression of facts, material misrepresentation of facts and false claims in support of his experience criteria submitted by GYV Victor.
- This is a key governance red flag and the fact that the investigation was made after one year of his appointment indicates loopholes in the governance and recruitment controls.
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