In today’s briefing:
- NIFTY NEXT50 Index Rebalance: Five Changes; Big Impact; Cross Index Flow
- Bajaj Finance: Strong Q1FY24 Earnings – Guidance Upgraded
- Concord Biotech IPO Trading – Strong Subscription Rates, Peers Have Moved up Since Last Note
- Narrative and Numbers | Astral Ltd (ASTRA IN) | FY23
- India Shelter Finance Pre-IPO Tearsheet
- Morning Views Asia: Continuum Green Energy, Lenovo
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NIFTY NEXT50 Index Rebalance: Five Changes; Big Impact; Cross Index Flow
- NSE Indices has continued to use the current index methodology to come up with the 5 adds/deletes. The proposed methodology seems to be put on ice for reasons unknown.
- Punjab National Bank, Shriram Transport Finance, Trent, TVS Motor and Zydus Lifesciences will replace ACC, FSN E-Commerce Ventures, HDFC Asset Management, Indus Towers and Page Industries.
- The adds, deletes, capping and funding changes will result in one-way turnover of 13% and in a one-way trade of INR 20.77bn. The impact on the adds/deletes is big.
Bajaj Finance: Strong Q1FY24 Earnings – Guidance Upgraded
- Bajaj Finance (BAF) reported a strong Q1FY24 earnings, led by an all-time-high quarterly AUM growth of INR 22718cr. With this, BAF has upgraded its FY24 AUM growth guidance to 29-31%.
- AUM growth was aided by the highest ever new loans in a quarter. New loans booked at 9.94mm in Q1FY24 were up 34% YoY and 31%+ QoQ.
- Opex-To-NII has come down to 34.0% vs 35%+ earlier, led by operational leverage and deceleration in investments. This has helped the ROE to jump to 24.0% vs 23.1% YoY.
Concord Biotech IPO Trading – Strong Subscription Rates, Peers Have Moved up Since Last Note
- Concord Biotech Ltd (658823Z IN) raised US$188m in its India IPO.
- Concord Biotech (Concord) is an India-based biopharma firm, which develops and manufactures fermentation-based active pharmaceutical ingredients (APIs).
- In this note, we will talk about the trading dynamics.
Narrative and Numbers | Astral Ltd (ASTRA IN) | FY23
- Astral Ltd (ASTRA IN) is a manufacturer of Chlorinated Poly Vinyl Chloride (CPVC) and Poly Vinyl Chloride (PVC) plumbing systems, catering to both residential and industrial applications.
- The company offers a compelling narrative, propelled by the larger market trends of agriculture, housing, and market share expansion.
- Despite the confident growth outlook, the current valuation at 75x NTM appears relatively high. It might be prudent to await a more appealing entry opportunity.
India Shelter Finance Pre-IPO Tearsheet
- India Shelter Finance (0570670D IN) is looking to raise up to US$217m in its upcoming India IPO. The deal will be run by Ambit, Citigroup, ICICI Securities and Kotak Mahindra.
- India Shelter Finance (ISF) is a retail focused affordable housing finance company. Between FY21-23, the firm registered a two-year CAGR growth of 40.8% in terms of AUM, according to CRISIL.
- Its target segment comprises self-employed customers, focusing on first time home loan takers in the low and middle income group in Tier II and Tier III cities in India.
Morning Views Asia: Continuum Green Energy, Lenovo
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.