In today’s briefing:
- Edelweiss: Wealth Management Arm Demerger Is Nearing
- Schneider Electric Infra Ltd (SEIL)- Forensic Analysis
Edelweiss: Wealth Management Arm Demerger Is Nearing
- A key re-rating trigger for Edelweiss’ stock is nearing as its wealth management (WM) arm gets close to demerge and list over the next couple of months.
- Edelweiss’ WM business could list at a market cap of around INR 8750cr, suggesting that Edelweiss’ 44% stake in it alone could be valued at INR 3850cr.
- Edelweiss also reported strong Q3FY23 earnings with 31% YoY growth in ex-insurance PAT. Edelweiss has significant potential to re-rate over the next couple of years as the credit business normalizes.
Schneider Electric Infra Ltd (SEIL)- Forensic Analysis
- Schneider Electric Infrastructure (SCHN IN) is engaged in manufacturing of products and systems for electricity distribution, such as distribution transformers, medium voltage switchgears, etc.
- After plagued with losses for most of last decade, the company has entered into positive net worth and profit territory.
- However, forensics do indicate concerns on aspects such as borrowing rates, inventory verification, contingent liability, etc. including few governance woes.
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