In today’s briefing:
- ITC Ltd (ITC IN): Impact of BAT’s Potential Stake Sale
- Agilus Diagnostics Limited Pre-IPO – Still Recovering from COVID
- The Paytm Saga: A Tale of Non-Compliance and Controversy
- Indian Banks Screener: Bank of Baroda Remains the Value Pick, HDFC Bank Is the Quality Name
- SBFC Finance Lockup Expiry – Time to Cash in on Some Hefty Profits
- Entero Healthcare IPO – Profitability Not Out of the Woods Yet
ITC Ltd (ITC IN): Impact of BAT’s Potential Stake Sale
- British American Tobacco (BATS LN) owns 29.03% of ITC Ltd (ITC IN) and could sell a portion of its stake. But BAT will hold at least 25% of the company.
- British American Tobacco (BATS LN) paring its stake could also lead to SUUTI gradually reducing its own holding in the company.
- Any stake sales would not result in buying from global passive trackers while there will be small buying from local index trackers. Increased float could pressure the stock.
Agilus Diagnostics Limited Pre-IPO – Still Recovering from COVID
- Agilus Diagnostics Limited (SRLL IN) is looking to raise around US$200m in its upcoming India IPO.
- Agilus Diagnostics Limited (Agilus) is a diagnostic testing service provider.
- In this note, we look at the company’s past performance.
The Paytm Saga: A Tale of Non-Compliance and Controversy
- Paytm Payments Bank faces regulatory scrutiny and compliance challenges, impacting its trajectory and profitability amid ongoing supervisory action by the RBI.
- With significant restrictions on operations and revenue streams, Paytm navigates a complex financial landscape, highlighting resilience amidst regulatory uncertainties and governance concerns.
- Despite proactive measures, including partnership diversification and service continuity, Paytm’s future hinges on addressing compliance lapses and fostering transparent governance to regain trust in the fintech sector.
Indian Banks Screener: Bank of Baroda Remains the Value Pick, HDFC Bank Is the Quality Name
- We retain Bank of Baroda as the value Indian bank, despite its strong share performance, for its modest valuations, healthy ROE and further improvements in delinquency metrics
- HDFC Bank remains out of favour with the market but we retain it as a buy, with its potential for medium term gains post-merger and its strong balance sheet
- Axis bank remains on our watchlist; we remain negative on State Bank of India for its delinquency risks, low core capital ratio and limited progress on returns
SBFC Finance Lockup Expiry – Time to Cash in on Some Hefty Profits
- SBFC Finance Limited (SBFC IN) raised around US$131m in its India IPO, after the deal was priced at INR57/share. Its six-month lockup will expire on 12th Feb 2024.
- SBFC Finance is a systematically important, non-deposit taking non-banking finance company (NBFC-ND-SI), offering secured MSME Loans and Loans against Gold.
- In this note, we will talk about the lock-up dynamics and updates since our last note.
Entero Healthcare IPO – Profitability Not Out of the Woods Yet
- Entero Healthcare Solutions Limited (2294842D IN) is looking to raise US$193m in its India IPO.
- Entero Healthcare Solutions (Entero) is a healthcare products distributor in India.
- In this note, we will look at the RHP updates, undertake a peer comparison, and share our thoughts on valuation.
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