In today’s briefing:
- PayMate India Pre-IPO Tearsheet
- PSP Projects: Key Takeaways from the PSP Management Meet on 8th June 2022
- Morning Views Asia: Sino-Ocean Service, UPL Ltd
- Blue Dart Express – Outlook Robust; Capacity Expansion on the Cards
- Max Financial – Well-Positioned for Profitable Growth Despite Temporary ‘noises’
- Bharat Forge – CY22 Outlook Strong; Moderate Growth Expectations in CY23
- BFSI – New Normal Rate Cycle; Brace for Transmission Effects
PayMate India Pre-IPO Tearsheet
- PayMate India Ltd (935383Z IN) is looking to raise about US$193mn in its upcoming India IPO. The deal will be run by ICICI Securities, JM Financial, HSBC and SBI Caps.
- PayMate India is a leading business to business (“B2B”) payments and services provider that digitizes, automates and streamlines B2B payments in supply chains.
- It is one of the fastest-growing providers of on-line, card-based payment-processing services in India, in terms of total payment volume (TPV) processed in 9M22 using commercial credit cards.
PSP Projects: Key Takeaways from the PSP Management Meet on 8th June 2022
- With favourable attributes such as strong and diversified order book position, healthy bidding pipeline and order inflows, asset-light model, emerging opportunities in the construction space, efficient and timely execution supported by high ROE and ROCE above 20% with the majority of Capex over, we expect the company to generate healthy free cash moving ahead and deliver Revenue/EBITDA/APAT growth of 27%/37%/40% CAGR over FY21-FY24E.
- Currently, the stock is trading at 11x and 8x FY23E and FY24E EPS.
- We value the company at 10.5x FY24E EPS to arrive at the target price of Rs 665/share, implying an upside potential of 26% from the current levels.
Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.
Morning Views Asia: Sino-Ocean Service, UPL Ltd
Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.
Blue Dart Express – Outlook Robust; Capacity Expansion on the Cards
- BDE ended FY22 with a volume growth of ~30% YoY at 932.7kt, led by strong growth in the e-commerce vertical, which now constitutes ~25% of the business.
- Other segments like document shipment have been performing well for BDE.
- With the Education and BFSI sectors opening up, volumes are improving and have almost reached pre-COVID levels.
Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.
Max Financial – Well-Positioned for Profitable Growth Despite Temporary ‘noises’
- Corporate structure simplification ongoing: The simplification of the corporate structure has been one of the stated objectives of MAXF management.
- The promoter is committed to bringing down pledge level: The high pledge of promoter’s holding in MAXF has been one of the key investor concerns.
- Counter share and growth in the Axis Bank channel to normalize in H2 as base effects kick in
Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.
Bharat Forge – CY22 Outlook Strong; Moderate Growth Expectations in CY23
- HCV volume growth outlook intact in CY22; moderation in expectations for CY23
- CY22 PV demand outlook positive, but supply issues persist: Volkswagen and Mercedes expect up to 10% growth in CY22 in their global businesses, led by pending order books and low channel inventories.
- Robust CY22 outlook for industrials: Volvo and John Deere expect the construction equipment (CE) and tractor segments to grow by 5-20% in the North America and Europe regions in CY22, driven by higher commodity prices and infra spends.
Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.
BFSI – New Normal Rate Cycle; Brace for Transmission Effects
- Accelerated rate hike; more in the offing: In its response to a stubborn and elevated inflation print, the RBI has now effected an accelerated cumulative 90bps repo rate hike over the past few weeks.
- Near-total pass-through a surprise; near-term margin-accretive: Unlike earlier up-cycles in the past, the sharp pace of rate normalisation is margin- accretive for banks in the near-term, especially given early-stage monetary transmission.
- MCLR transmission to significantly lag EBLR transmission: At a system- wide level, ~20-30% of the aggregate loans are currently anchored to MCLR while 40% of the loans are anchored to EBLR.
Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.
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