Daily Brief Industrials: Jardine Matheson Holdings, InterGlobe Aviation Ltd, IGI (India) Limited, Duskin Co Ltd, Epwin Group PLC, BQE Water , Allient and more

• I see Jardine Matheson Holdings (JM SP)‘s discount to NAV and implied stub at 12-month lows.
• Recent interim results were okay. Stripping out DFI Retail Group Holdings (DFI SP)‘s outperformance, the remainder of the Jardine stable delivered weaker numbers. 
• Further afield, the implied stub is marginally below the long-term average since the Jardine Strategic Holdings (JS SP) circularity was collapsed in April 2021. 

• InterGlobe Aviation Ltd (INDIGO IN)’s co-founder, Rakesh Gangwal, aims to raise around US$850m via selling around 3.8% stake in Indigo.
• He had earlier stated his intention to pare down his stake after a long drawn, and very public battle, with his co-founder Rahul Bhatia. He has sold many times before.
• In this note, we will talk about the lockup dynamics and possible placement.

• IGI (India) Limited (2261751D IN) is looking to raise about US$480m in its upcoming India IPO. The deal will be run by Axis, Kotak, MS, and SBI Caps.
• IGI India is part of the International Gemmological Institute (IGI) group. As of 22nd August 2024, IGI India handled operations of the IGI business in India and Türkiye.
• Its primary business is in provision of services related to certification and accreditation of natural diamonds, laboratory-grown diamonds, studded jewellery and coloured stones as well as offering of educational programs.

• Reflecting strengths and weaknesses – Q1 FY3/25 results presented contrasting elements in Duskin’s business.
• Despite high hurdles YoY, the Food Group demonstrated sustained sales growth driven by the ‘Mister Donut’ chain.
• However, cost inflation (involving personnel and manufacturing amongst others) and challenges in new customer acquisition at the Direct Selling Group contributed to a 7.5% decline in OP YoY. 

Epwin’s H124 trading update confirmed that management expects to achieve full-year expectations despite market headwinds. Long-term, well-established growth trends imply that the company is well-placed to leverage increasing demand for its energy-efficient and low-maintenance building products. It offers an attractive investment case with the potential for uplifts from additional self-funded M&A. It trades on an FY24e P/E ratio of 8.8x, materially below the long-term average of 10.5x, and yields nearly 6%. The share buyback programme should help support the share price.

• BQE reported Q2 financial results that beat our expectations on revenue and were in line on EBITDA.
• The quarter was once again led by the recurring operations segment which grew 79% YoY and 43% QoQ.
• Technical services revenue was soft again, but management expects a rebound in H2 as larger projects have been initiated in Q3.

• Allient, formerly Allied Motion, is a niche industrial company in motion/power/controls industry
• Strong returns on tangible capital and run by owner/operator Dick Warzala
• Undervalued at $26.75 per share, with potential for 20%+ IRRs over 3-4 year period

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.