India: Adani Wilmar, Maruti Suzuki India, Polycab India , Biocon Ltd, Phillips Carbon Black, Reliance Industries, HDFC Standard Life Insurance, ICICI Bank Ltd, ICICI Securities Ltd and more

• Adani Wilmar (6596700Z IN) is a leading FMCG food company in India. It is set to launch an IPO to raise Rs36,000 million ($483 million) at a price of Rs218-230.
• In Adani Wilmar IPO Initiation: Cooking up a Business, we noted that the business is navigating the high commodity prices by delivering high growth and creditable margin performance.  
• In this note, we present our valuation methodology. Our valuation analysis suggests that the IPO price range is attractive. The offer period is from 27 to 31 January.

• Suzuki reported its 3QFY22 results on Tuesday with revenue of INR236bn (+15.0% QoQ, -0.2% YoY) and OP of INR12.5bn implying an OPM of 5.3% compared to 0.5% in 2QFY22. 
• The reported revenue was 1.1% lower than the consensus estimates, while OP was 165.9% higher (INR7.8bn). 
• That reads positive overall but we are concerned that margins are still not on track to achieve consensus estimates for next FY.

• Polycab is the largest manufacturer of wire & cable in India
• The company also entered the fast moving electrical goods (FMEG) space in 2014 and has recorded strong segment revenue CAGR of 43% in the last five years
• Target Price and Valuation: We revise our target price to Rs 3000/share valuing stock at 35x P/E on FY24E EPS

• Biocon Limited reported revenue growth of 17.5% (est. 8.9%) which is majorly driven by biosimilars (+27.6%, YoY) and generic (+8.3%, YoY) segment
• In generic, the launch of Everolimus and uptake in API has improved sales despite continuous pricing pressure in the US
• Therefore, we recommend a BUY rating with a Target Price of Rs 425, implying an upside of 14% from the CMP.

• PCBL Ltd (name changed from Phillips Carbon Black) is the leading manufacturer of carbon black, which is used as a reinforcing material in tyres.
• PCBL also derives ~8% of sales volume from speciality carbon black, which fetches high margins and finds application in paints, plastics among others
• Target Price and Valuation: Introducing FY24E, we roll over our valuations and now value PCBL at unchanged target price Rs 320 i.e. 12x P/E on FY23E-24E avg. EPS

RIL reported standalone revenue of INR 1,112bn (+81% YoY; +15% QoQ) and EBITDA of INR 139bn, (+60% YoY; +12% QoQ), 3% below our estimates in Q3. Standalone APAT was at INR 102bn (+18% YoY, +10% QoQ; HSIE:INR 113bn).

• HDFC Life is among the most dominant players in the Indian life insurance industry with a strong distribution network, parentage, operating metrics.
• Balanced product mix with focus on non-par, protection & annuity business 
• Target Price and Valuation: We value HDFC Life at 3.4x FY24E EV with TP of Rs 800.

• ICICI Bank (ICICIBC) reported yet another strong performance in Q3FY22 with a 25% YoY earnings growth
• The bank’s NII grew 25% YoY with a healthy loan book growth of 16% YoY and stable NIMs (3.97%)
• We maintain a BUY rating on the stock with a revised target price of Rs 990/share (SOTP basis core book at 2.8x FY24E and Rs 182 Subs. Value), implying an upside of 23% from the CMP.

Kajaria Ceramics: We reiterate our BUY rating on Kajaria Ceramics (KJC), with an unchanged target price of INR1,450/sh (21x its Dec-23E consolidated EBITDA). KJC reported robust growth across tiles, bathware, and ply segments, riding on both healthy demand and market share gains, which drove its revenue by 27% YoY. However, elevated gas prices muted EBITDA/APAT growth to 1/3% YoY. KJC is confident to continue to gain market share, as it is eying a 15%+ tiles volume growth CAGR for the next three years.

• ICICI Securities Limited (ISEC) is an integrated and technology-based firm offering a wide range of services
• ISEC manages total assets of Rs 5.6 Tn for clients across different products
• We recommend a BUY rating on the stock with a target price of Rs 856/share, implying an upside of 10% from the CMP.