Daily Brief India: Adani Wilmar, Polyplex Corporation, Ola Electric, JITF Infralogistics, United Spirits, Akums Drugs and Pharmaceuticals, New World Development, Kalyan Jewellers, Tata Motors Ltd, UPL Ltd and more

• Adani Enterprises (ADE IN) demerged its stake in its Food FMCG business of Adani Wilmar (AWLTD IN) to its shareholder.
• The demerger aims to comply with SEBI’s minimum public shareholding requirement, reducing promoter stake and enhancing public stake.
• This strategic move positions Adani Wilmar for focused growth, unlocking value for shareholders and reducing promoter selling pressure.

• Polyplex is the integrated packaging player with global manufacturing facilities catering global customers and wide industries with its wide product portfolios
• Polyplex saw a 70% jump in exports while there has been a significant jump in product prices and spreads
• Significant investment by an FMCG veteran into another packaging player at the bottom of the cycle further strengthens the thesis.

• Ola Electric (1700674D IN) plans to raise INR55bn through fresh issue of shares while existing shareholders will offer 84.9m shares at an indicative IPO price band of INR72-76 per share.
• We expect the company’s revenues to continue to expand and grow at much higher rates during the next few years compared to competitors in the Indian two-wheeler market.
• Our valuation analysis suggests that Ola Electric’s IPO is attractively priced compared to peers and we would suggest subscribing for the company’s IPO.

• JITF Infralogistics (JITFIN IN) sells its railway wagon business to Texmaco Rail And Engineering for Rs 465 crore.
• The sale marks a strategic shift towards focusing on water and urban infrastructure segments, leveraging growing market demands and government initiatives.
• JITF’s strategic sale and focus on infrastructure position it for substantial growth, driven by its robust order book and government support.

• In an attempt to cover more companies, we shift gears from individual companies to sectoral analysis, focusing on alcoholic beverages in this insight.
• Companies in focus are United Spirits (UNSP IN), Radico Khaitan (RDCK IN) , Sula Vineyards (SULA IN) & United Breweries (UBBL IN). 
• UNSP remains the best among the pack in terms of earnings quality, and SULA occupies the other extreme. RDCK is chasing growth, and UBBL is facing challenges. 

• Akums Drugs and Pharmaceuticals (0200361D IN) raised around US$222m in its India IPO, after pricing the deal at the top end of the range at INR679/share.
• Akums Drugs and Pharmaceuticals (ADP) is a pharmaceutical contract development and manufacturing organization (CDMO) offering a comprehensive range of pharmaceutical products and services in India and overseas.
• We have looked at various aspects of the deal in our previous notes. In this note, we talk about demand and trading dynamics.

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.

• Adani Ports & Special Economic Zone
• Indika Energy
• New World Development
• Tata Steel Thailand

• Kalyan Jewellers (KALYANKJ IN) reported strong 1Q2025 sales and earnings growth, driven by robust same-store sales growth (SSSG) and new store additions.
• Titan Co Ltd (TTAN IN), the incumbent market leader, had a lacklustre performance for the quarter, highlighting Kalyan’s rapid growth.
• Expect Kalyan Jewellers (KALYANKJ IN) to outperform Titan Co Ltd (TTAN IN) , narrowing the steep relative valuation discount as it ramps up growth, improves performance metrics.

Tata Motors’ Q1/24-25 results were decent, with revenues and profit reaching record levels. However, net debt increased slightly following investment expenditure, preparations for the Range Rover EV launch and dividend payments. We share the company’s view that growth this year will likely be stable compared to the high base of FY 2023-24, due to: [1] consumer expectations surrounding the Range Rover EV launch and its initial revenue effects; and [2] the company’s profit margins decreasing slightly to cover the substantial initial costs for marketing, as well as the continuous quality improvements for new EV models. However, the company is confident about its FY 2025-26 target of a 10% EBIT margin. This may occur if the new electric models achieve stable quality rapidly, thus gradually reducing costs or even increasing the selling price.

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.

• UPL Ltd