Daily Brief India: Coforge, Maruti Suzuki India, Axis Bank Ltd, Rain Industries, MGM China Holdings and more

• Coforge (COFORGE IN) is looking to raise around US$386m in its upcoming qualified institutional placement (QIP).
• In an announcement released on Saturday, Coforge had mentioned its board’s approval to raise up to INR32bn via a QIP. Since then, the shares have corrected 9.1%.
• The deal would be a large one to digest at 14 days of three month ADV. That being said, the company’s last selldown did well.

• In Q3FY24, Maruti Suzuki India (MSIL IN) reported revenue of INR 335Bn, a growth of 14.6% YoY on the back of higher realization and volume.
• EBITDA margin expanded 210bps YoY to 12.3% as higher volume, favorable commodity price played a role in tandem.
• The company is planning 2x increase in its annual production capacity to about 4Mn by 2030-31. Capacity expansion plans augur well for the company in medium to long term.

• Sudden resignation of Ravi Narayanan Group-Head in charge of retail branches, retail liabilities and third party products as he wishes to pursue entrepreneurship.
• Possible explanation is that the bank like other banks is finding it difficult to raise retail deposits and pressure is building up on senior management
• Bank has a high LDR and reportedly the banking regulator is demanding the bank to lower its LDR. This will have consequences on future loan growth or on NIM

• Rain Industries (RINDL IN) is one of the global leaders in coal tar pitch and calcined petroleum coke. The company also engages in cement manufacturing.
• The company has been facing heat lately especially business related. The fact that there are goodwill impairments, reversal of DTA and costly refinancing puts Rain in a worrying shape.
• The company also has seen impairment in fixed assets especially the CWIP. The company also faces high liability for its DB plan in Germany.

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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• Adani Ports & Special Economic Zone
• MGM China Holdings