Daily BriefsIndia

Daily Brief India: Adani Green Energy, Tata Technologies, LTIMindtree, Tata Consultancy Svcs, Infosys Ltd, Indegene Limited, Vedanta Resources and more

In today’s briefing:

  • Analysis of Adani Group Shareholder Structure Changes in Q1 – Stock Moved
  • Tata Technologies Pre-IPO – The Negatives – Still Has a Few Issues
  • Quiddity Leaderboard NIFTY Sep 23: LTIMINDTREE Could Be an Intra-Review NIFTY 50 ADD
  • TCS: Q4FY23 Growth and Margins Weaker than Expected
  • Infosys: Weak Q4FY23 Earnings
  • Indegene Limited (1864095D IN) Pre-IPO: Enough Head Room For Long-Term Profitable Growth
  • Morning Views Asia: Meituan, Nickel Industries Ltd, Vedanta Resources

Analysis of Adani Group Shareholder Structure Changes in Q1 – Stock Moved

By Travis Lundy

  • Every quarter, Indian companies report their “Shareholding Pattern” for all to see. They show holdings by category type, and holders over 1%. 
  • The big news in Q1 in AdaniLand was the failed FPO, thwarted by the Hindenburg Research report, and the Adani Promoter sale of stakes in 4 companies to GQG Partners. 
  • The details in the change of the shareholder structure are, however, interesting.

Tata Technologies Pre-IPO – The Negatives – Still Has a Few Issues

By Sumeet Singh

  • Tata Technologies (TATATECH IN)  (TT) is looking to raise around US$600m in its upcoming India IPO.
  • Tata Technologies is a global engineering services company offering product development and digital solutions, including turnkey solutions, to global original equipment manufacturers (OEMs) and their tier 1 suppliers. 
  • In this note we talk about the not-so-positive aspects of the deal.

Quiddity Leaderboard NIFTY Sep 23: LTIMINDTREE Could Be an Intra-Review NIFTY 50 ADD

By Janaghan Jeyakumar, CFA

  • In this insight, we take a look at the names leading the race to become ADDs/DELs for the NIFTY 50 and NIFTY 100 indices in the September 2023 rebalance.
  • A couple of these names could become intra-review additions if the HDFC Limited (HDFC IN)HDFC Bank (HDFCB IN) Merger closes prior to the September 2023 Rebalance.
  • Apart from that, there could be five ADDs/DELs for the NIFTY 100 index which by definition will also be added/deleted from the NIFTY Next 50 index.

TCS: Q4FY23 Growth and Margins Weaker than Expected

By Ankit Agrawal, CFA

  • TCS reported weaker than expected growth and margins. YoY growth in constant currency (CC) terms came in at just 10.7%. Operating Margin (OPM) came in at 24.1% vs 25% expected.
  • North America in particular has seen some demand slowdown, largely due to deferment of discretionary projects and delayed decision making. Europe is improving as energy crisis is receding.
  • Looking forward, Europe, in particular UK, is likely to lead the growth. North America may also come back as the banking crisis there seems to have been contained.

Infosys: Weak Q4FY23 Earnings

By Ankit Agrawal, CFA

  • Infosys reported a weak Q4FY23 with QoQ CC (Constant Currency) growth down by -3.2%. OPM (Operating Margin) contracted QoQ by -50bp to 21%, and was weaker than 21.5%+ expected. 
  • Led by macro concerns, demand outlook remains cautious with FY24 growth guided to be 4-7% YoY in CC terms.
  • The bottom end of the FY24 OPM guidance has been lowered to 20% vs 21% achieved in FY23. Overall OPM guidance for FY24 is 20-22%.

Indegene Limited (1864095D IN) Pre-IPO: Enough Head Room For Long-Term Profitable Growth

By Tina Banerjee

  • Indegene Limited (1864095D IN), a healthtech firm focused on life sciences commercialization is looking to raise INR32B through an IPO, comprises of fresh issue and an offer for sale.  
  • The IPO funds will be used to repay debt, fund capex, pay for one of the company’s past acquisitions, and pursue any future inorganic growth.
  • Amid a large and growing underpenetrated addressable market, Indegene is poised for long-term profitable growth by leveraging on its marquee clientele, long-standing client relationship, and comprehensive offering.  

Morning Views Asia: Meituan, Nickel Industries Ltd, Vedanta Resources

By Charles Macgregor

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.


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