India: Rainbow Children’s Hospital, ICICI Bank Ltd, Hcl Technologies, KNR Constructions, Larsen & Toubro, Angel One, Cyient Ltd and more

• Rainbow Children’s Hospital (RCH) aims to raise around US$200m via issuing a mix of primary and secondary shares in its India IPO.
• RCH is a multi-specialty pediatric and obstetrics and gynecology hospital chain in India, operating 14 hospitals and three clinics in six cities, with a total bed capacity of 1,500 beds.
• In this note, we will talk about the recent updates and peer comparison.

• ICICI Bank (ICICIBC) reported yet another strong performance in Q4FY22 with a 59% YoY earnings growth, driven by 21% YoY growth in PPOP and a sharp decline of 63% YoY in provisions.
• The company’s NII growth was robust at 21% YoY, supported by a healthy loan book growth of 17% YoY and marginal NIM expansion (4% vs 3.96% in Q3FY22).
• We maintain a BUY rating on the stock with a revised target price of Rs 1,000 (SOTP basis core book at 2.8x FY24E ABV and Rs 173 Subsidiary Value), implying an upside of 34% from CMP.

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• While we have underweighted the IT sector (Report) HCL Technologies (HCLT) is a preferred pick due to (1) Significant narrowing of growth differential in FY23 despite disappointment on revenue guidance – vis-à-vis Indian Tier-1 growth leader Infosys.
• We also see modest acceleration in FY23 while most Tier-1 peers will see deceleration
• Our view that underlying growth in Products and Platforms (P&P) business is positive…(continued).

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• KNRC sits on a strong order book of ~INR100b (excluding recently won projects), which provides clear revenue visibility for the next three years.
• It has received appointed dates (AD) for two HAM projects in Jan’22 and financial closure (FC) in one HAM project in Apr’22, which will support execution in FY23E and FY24E.
• We expect margin to stay elevated, despite inflationary pressures from higher commodity prices, as a sizable portion (~26%) of its order book consists of irrigation projects.

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• LTTS reported a 3.6% QoQ CC growth in 4QFY22, 90bp below our estimate due to softer growth in Industrial Products (-0.5% QoQ), Medical Devices (flat QoQ), and Telecom and Hi-Tech (+1.1% QoQ), while Transportation grew a robust 7.8% QoQ.
• Despite the large 400bp shift in its on-site revenue mix and lower utilization (-80bp QoQ), operating margin was flat QoQ.
• Attrition spiked to 20.4% (+290bp QoQ) in 4QFY22, indicating continued supply pressures.

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• ANGELONE printed 15% growth in topline sequentially on a strong base (15% Q3), resulting in an 11% beat, led by better-than-estimated customer activity (higher average revenue-generating orders per customer) and stronger ancillary transactional revenue
• We are comforted by ARGO’s indicators of stabilisation, which include higher quality customer adds and improved activation levels
• Given the flat-fee model, ANGELONE is one of the best plays on the secular growth story in Indian capital markets and our highest-conviction BUY.

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• Rainbow Children’s Hospital (RCH) aims to raise around US$200m via issuing a mix of primary and secondary shares in its India IPO.
• RCH is a multi-specialty pediatric and obstetrics and gynecology hospital chain in India, operating 14 hospitals and three clinics in six cities, with a total bed capacity of 1,500 beds.
• In this note, we will talk about our earnings forecast and thoughts on valuation.

• Revenue fell 0.4% QoQ in USD CC terms in 4QFY22, but was above our estimate of -1.1% QoQ USD CC.
• The beat was led by both Services (+1.6% QoQ USD CC) and DLM (-9.3% QoQ USD).
• Growth in Services was driven by Portfolio (10% QoQ), Aerospace (3.9%), and Communications (3.5%), while growth in Rail Transportation (-9.5%) was weak.

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.