Daily Brief Industrials: Belrise Industries, Pateo Connect Technology, Delta Manufacturing, Diana Shipping, Hunt (Jb) Transprt Svcs and more

• Belrise Industries (9156339Z IN)  is planning to raise about US$255m through its upcoming IPO in India. The lead bookrunners for the deal are Axis Capital, HSBC, Jefferies, SBI Capital
• Established in 1988, it specializes in safety-critical systems and engineering solutions for two-wheelers, three-wheelers, four-wheelers, commercial vehicles, and agricultural vehicles.
• As per Crisil report, Belrise held a market share of 24% in the two-wheeler metal components segment in India as of FY24.

• Pateo Connect Technology (PTC HK)  is looking to raise up to US$300m in its upcoming Hong Kong IPO.
• It is one of the largest domestic providers of smart cockpit and intelligent connectivity solutions in China, providing full-stack smart cockpit solution and cloud-based vehicle connectivity, for Chinese OEMs.
• In this note, we look at the firm’s past performance.

• Delta Manufacturing (DELTAMAG IN)  manufactures hard-ferrite magnets, which it sells to OEMs and also manufactures garment trims in India i.e. woven labels, heat transfers, fabric printed labels, etc.
• DMG’s market cap is just about INR 1.2 bn but faces grim, loss making operations
• Other forensic setbacks include lack of FCF generation on the back of muted capex, cash flow misstatements, goodwill impairment, dependency on low cost promoter debt, etc.

• Dry bulk shipping sector experienced a summer slump in Q3 2024, with companies like GNK, GOGL, and SBLK seeing stock prices fall 10-20%
• Despite the slump, GOGL has seen flat to 25% YTD increase while DSX has a YTD drop of 15%+
• DSX has lagged behind peers but offers a high dividend yield of 12.3% and trades at a significant discount to its net asset value, making it an attractive investment opportunity

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• J.B. Hunt Transport Services, Inc. recently released its third-quarter results for the fiscal year 2024, providing insights into the performance and strategic positioning amidst a dynamic freight environment.
• The company reported a decline in revenue by 3% year over year, with operating income down by 7% and diluted earnings per share decreasing by 17%.
• These figures reflect the ongoing challenges in the freight industry, exacerbated by the deflationary rate environment which continues to exert pressure on the company’s margin performance across the board.