In today’s briefing:
- TVS Supply Chain Solutions IPO Trading – Offered at a Premium with Underwhelming Subscription Rates
- Coforge Placement – US$900m Cleanup, Well Flagged but the Stock Is Toppish
- RPPL: Weak Q1FY24 Earnings, However, Long-Term Growth Trajectory Remains Intact
- HCG: Hitting All The Right Notes To Scale Up
- JSW Infra Pre-IPO – The Positives – Grown Its Concessions and Long-Term Contracts Provide Visibility
TVS Supply Chain Solutions IPO Trading – Offered at a Premium with Underwhelming Subscription Rates
- TVS Supply Chain Solutions (TVSSCS IN) raised around US$108m in its India IPO, after downsizing from an earlier reported float of up to US$500m.
- TVS SCS is an Indian supply chain logistics solution provider which also has global capabilities and network across the value chain with cross deployment abilities, according to RedSeer.
- We have looked at various aspects of the deal in our previous notes. In this note, we talk about the demand and trading dynamics.
Coforge Placement – US$900m Cleanup, Well Flagged but the Stock Is Toppish
- Baring aims to raise around US$900m by selling its remaining 26.6% stake in Coforge (COFORGE IN) .
- Baring has been paring down its stake since 2020 and hence, the selldown is somewhat well flagged.
- In this note, we run the deal through our ECM framework and talk about the deal dynamics.
RPPL: Weak Q1FY24 Earnings, However, Long-Term Growth Trajectory Remains Intact
- RPPL reported a weak Q1FY24 due to correction in raw material prices that led to inventory losses and decline in EBITDA margin to 12% vs 14%+ QoQ and 16% YoY.
- Given that Q1 tends to be a high demand quarter, RPPL had kept high inventory, which further accentuated the inventory losses.
- The raw material prices have stabilized now. EBITDA per kg should stabilize back to around INR 34-35 and should help the EBITDA to grow in line with the volume growth.
HCG: Hitting All The Right Notes To Scale Up
- HCG’s cancer segment reported decent revenue growth of 14% YoY in Q1FY24. EBITDA margin came in weaker than expected due to a few transient adverse factors.
- HCG is hitting all the right notes to drive growth. It is beefing up clinical talent to attract patients. It is also making strategic tuck-in acquisitions to expand its presence.
- As cancer treatment is becoming more advanced, the mix of immunotherapy and hi-tech treatment is growing, helping the realization and the profitability to improve.
JSW Infra Pre-IPO – The Positives – Grown Its Concessions and Long-Term Contracts Provide Visibility
- JSW Infrastructure (5978490Z IN) is looking to raise around US$340m in its upcoming India IPO.
- JSW Infrastructure (JSWI) is the fastest growing port-related infrastructure company in terms of growth in installed cargo handling capacity and cargo volumes handled during FY20 to FY22, according to CRISIL.
- In this note, we will talk about the positive aspects of the deal.
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