In today’s briefing:
- Datamatics Global Services Ltd: Forensic Analysis
- Nuvama: Stellar Start as an Independent Listed Entity
Datamatics Global Services Ltd: Forensic Analysis
- Datamatics Global Services (DATA IN) or DGSL has seen a good operational performance especially since F23, on the back of a difficult IT macro environment.
- Yet there are some discomforts on the forensic side, especially related to cash component. Low cash yield due to significant current account balances in subsidiaries raises alarm bells.
- We find opaqueness regarding some important disclosures including Ind AS 115- Revenues and Ind AS 116- Leases. Decision to increase remuneration cap size also leaves us perplexed.
Nuvama: Stellar Start as an Independent Listed Entity
- Nuvama reported its first quarterly result since its listing, as a demerged entity. It reported strong growth across all its business segments.
- Wealth management revenues grew 30% YoY, adjusted for one-off accounting impact. Cyclical recovery in the capital markets segment further helped.
- Nuvama has potential to scale up rapidly and grow its profitability exponentially led by growth and operating leverage. At the current valuation, an investment in Nuvama has potential to triple.
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