In today’s briefing:
- Indegene Limited Pre-IPO: Subscribe on Profitable Niche Business Model and Attractive Valuation
- BSE – A Regulatory Accident?
- Waaree Renewable Technologies Ltd- Forensic Analysis
- Premier Energies Pre-IPO Tearsheet
- Hi-Tech Pipes: A.G.E. Analysis
Indegene Limited Pre-IPO: Subscribe on Profitable Niche Business Model and Attractive Valuation
- Indegene Limited (1864095D IN) has set IPO price band at INR430–452 per share. The IPO consists of fresh issue as well as OFS by existing shareholders.
- Considering FY24 annualized post-IPO EPS of INR13.48, Indegene seeks a P/E valuation of 31.9–33.5x.
- Considering niche business focus, proven execution capability, marquee clientele, long-standing client relationship, life science focus, and comprehensive offering, Indegene’s valuation seems quite attractive.
BSE – A Regulatory Accident?
- SEBI has asked BSE to pay regulatory fees on options trading based on notional turnover instead of premium turnover
- The impact of this would 10-20% on earnings in short term
- The bigger question lies ahead what BSE will do to offset the impact and grow its market share in derivative trading
Waaree Renewable Technologies Ltd- Forensic Analysis
- Waaree Renewable Technologies (WAREERTL IN) or (WRTL) is into Solar EPC and is a subsidiary of Waaree Energies Ltd.
- Revenues and order book have increased exponentially in the last few years.
- While the business has certainly picked up, there are few forensic checks that need attention; most important being the auditor’s comment on the need to increase strength of internal controls.
Premier Energies Pre-IPO Tearsheet
- Premier Energies Limited (0377949D IN) is looking to raise US$300m in its upcoming India IPO. The bookrunners on the deal are JP Morgan, Kotak, and ICICI Securities.
- Premier Energies (Premier) is a manufacturer of solar photovoltaic (PV) cells, and solar modules. It also executes EPC projects and provides follow-up O&M services.
- As per Frost & Sullivan (F&S), the firm was the second largest domestic manufacturer in terms of annual installed capacity as of Mar 2024.
Hi-Tech Pipes: A.G.E. Analysis
- HI-Tech Pipes (HITECH IN) is engaged in manufacturing of ERW Steel Round & Section Pipes, cold Rolled Strips, coils, and colour coated sheet, etc. and has distribution across India.
- The company has grown impressively in the last 5-7 years and has seen improved balance sheet and working capital situation.
- However, tapering return ratios, prolonged concern on cash conversion and erosion of margins are few talking points that should be taken into account.
💡 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
