Daily Brief India: JSW Infrastructure, Ajanta Pharma, HDFC Bank, Indika Energy, IREDA and more

• JSW Infrastructure (5978490Z IN) will open up for its IPO subscription this week.
• The company is into ports and maritime infrastructure and is the second largest commercial port operator in India in terms of cargo handling capacity.
• While the company has grown rapidly, the financials do indicate few concerns such as critical dependence/high RPT with JSW group, high debt-high cash balance sheet, forex risk, etc.

• Ajanta Pharma (AJP IN) reported better-than-expected profitability in Q1FY24, due to softening of raw material prices and normalization of freight rates. EBITDA margin expanded 300bps YoY to 26%.
• Revenue increased 7% YoY to INR10B, driven by superior execution in branded generics business and lesser price erosion in the U.S. 73% of the total sales came from branded generic.
• Management maintained mid-teen revenue growth and EBITDA margin guidance of ~25% for FY24. Ajanta Pharma has a positive business outlook due to growing branded generic business and niche U.S. launches.

• The markets closed below our stop of 19,900, primarily driven by weakness in global market sentiments. 
• For HDFC Bank (HDFCB IN) while the street seems to be worried about asset quality, trends in whistle-blower complaints and the timing of the merger also raise alarms.  
• Other names discussed this week include Delta Corp Ltd (DELTA IN) and Godrej Properties (GPL IN).  

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.

• Indika Energy
• Tata Steel Thailand

• IREDA (1845911D IN) is looking to raise at least US$100m in its upcoming India IPO. The deal will be run by IDBI Capital, SBI Capital and Bob Capital.
• Indian Renewable Energy Development Authority (IREDA) is a wholly owned Government of India (GoI) enterprise under the administrative control of the Ministry of New and Renewable Energy (MNRE). 
• It is registered with the Reserve Bank of India (RBI) as a Systemically Important Non-Deposit-taking Non-Banking Finance Company (NBFCND-SI), with Infrastructure Finance Company (IFC) status.