Daily Brief India: Patanjali Foods, Home First Finance, Zydus Lifesciences Ltd and more

In today’s briefing:

Patanjali Foods Early FPO Look – Lifting the Overhang with a Well Flagged Deal. Re-Listing Went Well
Home First Finance (HOMEFIRS IN) | The Bounce Mystery & Way Forward
Zydus Lifesciences (ZYDUSLIF IN): Strong India and US Momentum to Improve Margin and Drive Growth

Patanjali Foods Early FPO Look – Lifting the Overhang with a Well Flagged Deal. Re-Listing Went Well

The promoters of Patanjali Foods (PATANJAL IN) are looking to increase the firm’s public shareholding to the minimum required 25% imposed by SEBI.
We had discussed about this in their effective re-listing FPO last year, and the deal has been well covered by media sources as well, thus it is very well flagged.
While it would be a large one to digest, representing at least 62.1 days of the firm’s three month ADV, the deal will lift the remaining overhang on the stock.

Home First Finance (HOMEFIRS IN) lends to a customer segment exposed to high income volatility.
Soft bounces are used by customers to manage their cash flow, with bounce charge collection done on a best-effort basis, management attitude towards financial discipline warrants attention.
While there may not be any immediate asset quality issues, caution is warranted.

Zydus Lifesciences Ltd (ZYDUSLIF IN) reported total revenue of INR43.6B, up by 20% YoY and 6% QoQ, in Q3FY23. Key markets, India and the U.S. continued to deliver robust performance.
U.S. business is on track to register QoQ growth in near-term, with the launches of new products. Zydus plans to launch 2–3 transdermal products in U.S. in FY24.
For its India business, the company aims to outperform the industry growth sustainably in the medium to long term. Lipaglyn is expected to be among top 25 products of India.

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