In today’s briefing:
- NIFTY200 Momentum30 Index Rebalance: 18 Changes a Side, 58% Turnover, Momentum Intact
- IRCON Placement – Opportunistic Monetisation of a 2.5x YTD Gain
- Entero Healthcare Pre-IPO – Has Been Scaling up Rapidly Aided by a Flurry of Acquisitions
- Zomato Placement – SVF’s Overhang Will Be Lifted Post-Deal, Momentum on the Stock Remains Strong
- Nesco: Strong Q2FY24 Earnings
NIFTY200 Momentum30 Index Rebalance: 18 Changes a Side, 58% Turnover, Momentum Intact
- There are 18 changes for the Nifty200 Momentum 30 Index that will be implemented at the close on 28 December. We had forecast all the index changes.
- Estimated one-way turnover is 57.7% resulting in a one-way trade of INR 21.75bn (US$261m). 8 stocks have over 1x ADV to trade; 21 stocks have atleast 0.5x ADV to trade.
- The adds have continued to outperform the deletes and the index and there could be further outperformance heading into year-end and buying from passive trackers.
IRCON Placement – Opportunistic Monetisation of a 2.5x YTD Gain
- The Government of India (GoI) is looking to raise US$155m from trimming a portion of its stake in Ircon International (IRCON IN), assuming the deal upsizes.
- Assuming the deal upsizes, while it would represent 8% of the firm’s current shares outstanding, it would only represent 3.8 days of its three month ADV, given its strong liquidity.
- Given that it isn’t the first time the GoI has sold its stake in IRCON, the selldown here should be expected, in our view.
Entero Healthcare Pre-IPO – Has Been Scaling up Rapidly Aided by a Flurry of Acquisitions
- Entero Healthcare Solutions Limited (2294842D IN) is looking to raise US$200m in its upcoming India IPO. The IPO will consist of both a primary and secondary component.
- Entero Healthcare Solutions (Entero) is a healthcare products distributor in India.
- In this note, we look at the company’s past performance.
Zomato Placement – SVF’s Overhang Will Be Lifted Post-Deal, Momentum on the Stock Remains Strong
- Softbank Group (9984 JP) is looking to raise US$135m from selling its remaining stake in Zomato (ZOMATO IN).
- Since receiving shares from Zomato’s acquisition of 91% of Blinkit’s outstanding shares, Softbank has been busy trimming its stake in Zomato. The stake sale now will be a cleanup one.
- Representing just 1.2 days of Zomato’s three month ADV, the deal here would be easily digested by the firm.
Nesco: Strong Q2FY24 Earnings
- Nesco reported strong growth in BEC revenues led by Q2 being a seasonally strong quarter for the exhibition business. Even in YoY terms, the growth was decent at 8%.
- Nesco IT Park revenues also jumped by 14% QoQ, suggesting that the occupancy level in Tower 3 has gone up from 82% earlier.
- Nesco Foods business continues to grow rapidly as the new Food Court and Restaurants have seen strong traction. Revenue in Foods business has more than doubled YoY.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
