India: INR, Indian Oil Corp, Dlf Ltd, HDFC Limited, Indoco Remedies, Orient Cement, Tech Mahindra, TTK Prestige, V.I.P. Industries and more

• The Reserve Bank of India (RBI), India’s central bank, is set to launch its own blockchain-based currency, the digital rupee, by 2023 

• The move is likely to give an impetus to the participation of institutional players in the blockchain space

• In November 2021, the Indian government said the RBI was working on a strategy to introduce a central bank digital currency (CBDC) in a phased manner after examining its use cases

Issue Snapshot: Issue Open: Feb 04 Feb 08, 2022 Price Band: Rs. 824 866 *Issue Size: Rs 3149.2 cr (Entirely Offer for sale) Reservation for: QIB Upto 50% eq sh Non Institutional atleast 15% eq sh Retail atleast 35% eq sh Face Value: Rs 1 Book value: Rs 35.45 (Sep 30, 2021) Bid size: – 17 equity shares and in multiples thereof 100% Book built Issue Vedant Fashions Limited – IPO Note

• DLF’s residential business continues to perform strongly, recording pre-sales of INR2,018cr (up 97% YoY and 33% QoQ
• With pre-sales of INR4,544cr in M9FY22, the management revised its guidance to around INR6,000–6,500cr for FY22
• It also reported strong cash surplus for the second consecutive quarter, with cash surplus of INR764cr resulting in net debt reduction of INR765crto INR3,220cr.

DLF reported strong performance in its residential business as new sales value doubled YoY driven by new launches and robust cash flow generation. This led to further reduction in net debt in its development (DevCo) arm. Sales traction remained intact despite 12% price hike taken at the portfolio level since beginning of the year and DLF further plans to take 10-12% price hike in its key projects (Camellias and the recently launched ONE-Midtown). DLF’s commercial portfolio (DCCDL) performance remained stable with marginal increase in occupancy to 88% v/s 87% in 2QFY22.

• HDFC Ltd is the largest NBFC engaged in the housing finance business.
• It has demonstrated a consistent performance in terms of both business growth as well as asset quality.
• Target Price and Valuation: We value HDFC Ltd at ~2.5x FY24E core ABV and Rs 1676 (post15% discount) for subsidiaries and maintain target price of Rs 3350/share.

• Indoco manufactures and markets branded formulations and APIs for the domestic and export markets
• In domestic formulations, through its nine marketing divisions, the company serves a range of specialties
• Target Price and Valuation: We value Indoco Remedies at Rs 510 i.e. 18x P/E on FY24E EPS of Rs 28.3

• Orient cement reported Revenue growth of 2% in Q3FY22 owing to higher realization. However, the company’s EBITDA/APAT posted a de-growth of 14%/19% on account of elevated costs
• The company reported a volume of 1.22 million tonnes per annum (mntpa), down 10% YoY as it did not resort to selling cement at unremunerative prices and maintained price discipline.
• We value the company at 6x of its FY23E EV/EBITDA and retain our BUY rating on the stock with a target price of Rs 200/share. TP implies an upside of 16% from CMP.

• Tech Mahindra (TechM) has over 1.2 lakh employees across 90 countries serving 1000+ clients with higher exposure to telecom (40% of revenues)
• Apart from telecom, the company caters to BFSI, manufacturing & retail
• Target Price and Valuation: We value TechM at Rs 1850 i.e. 23x P/E on FY24E EPS

• TTK Prestige is India’s leading player in kitchen solutions and has been successful in transforming itself from a company manufacturing pressure cookers
• It continues to be market leader in the cooker segment and has material share in other appliance and cookware categories
• Target Price and Valuation: We value TTK at Rs 1270 i.e. 45x FY24E EPS

• VIP Industries is one of Asia’s leading seller/manufacturer of various type of luggage’s, backpacks and handbags
• VIP has a range of leading brands, positioned across the entire price range, catering to value (Aristocrat) mid (VIP, Skybags) and premium (Carlton, Caprese) price points
• Target Price and Valuation: We value VIP at Rs 770 i.e. 48x FY24E EPS