In today’s briefing:
- Zydus Lifesciences (ZYDUSLIF IN): Strong Start of FY24 Riding on US Formulation Business
- Union Bank of India QIP – Well-Flagged Deal, Recent Momentum Has Been Strong
- Kolte Patil: Strong Growth Momentum Continues from FY23
- Samhi Hotels Pre-IPO – The Negatives – Peer Comp and Valuation
Zydus Lifesciences (ZYDUSLIF IN): Strong Start of FY24 Riding on US Formulation Business
- Zydus Lifesciences Ltd (ZYDUSLIF IN) recorded 30% YoY growth in revenue to INR51B in Q1FY24, driven by 57% YoY growth in US formulation business. India business revenue grew 6% YoY.
- US business growth was driven by new product launches and improvement in base business. The company has launched four new products in the US during the quarter.
- Zydus Lifesciences expects double-digit growth in India branded formulation business to continue and the U.S. business to grow on a formidable base of FY23 going forward.
Union Bank of India QIP – Well-Flagged Deal, Recent Momentum Has Been Strong
- Union Bank Of India (UNBK IN) is looking to raise US$301m from its qualified institutional placement (QIP). Included in the deal is an option to effectively double its base deal.
- The deal is a relatively large one to digest with the base deal alone representing 21.1 days of three months ADV.
- That being said, the deal here is a very well flagged one with the firm having earlier reported to look to do so to boost its free float.
Kolte Patil: Strong Growth Momentum Continues from FY23
- Kolte Patil (KPDL) reported record sales velocity in Q1FY24 and is on track to achieve 25%+ sales value growth in FY24 as per its stated guidance.
- Business development activity is also happening at a record pace and Kolte Patil is on track to beat its prior FY24 guidance of INR 8000cr by a wide margin.
- Despite 80%+ rise in the share price since our coverage initiation 2Y ago, Kolte Patil still offers an upside potential of 25%+ IRR over a holding period of three years.
Samhi Hotels Pre-IPO – The Negatives – Peer Comp and Valuation
- SAMHI Hotels (SAMHI IN) plans to raise around US$200m (estimated) in its Indian IPO.
- Samhi is India’s third-largest hotel asset owner, by number of keys, with a portfolio of 25 operating hotel assets comprising 3,839 keys, as of Feb 2023.
- In this note, we will undertake a peer comparison and provide our thoughts on valuation.
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