Investment Research - Asia Consumer Sector, Investory

Devi Subhakesan

Investment Research - Asia Consumer Sector. 

Equity Research experience of over 20 years. Earlier, Analyst for leading Buy and Sell-side institutions, covering markets in ASEAN, India, and North Asia. Expertise spans various sectors - Consumer Discretionary, Media, Textiles, Oil, Gas, and Coal.
Passionate about mindfulness and meditation.

Investment Research - Asia Consumer Sector

Kalyan Jewellers IPO Priced Just Above PE Investor's Cost; Not for Quick Returns

ASIA CONSUMER: INSIGHTS AND INVESTMENT IDEAS

Investory

Investory is a Singapore-based boutique independent equity research firm founded in January 2017 with a primary focus on consumption themes across Asia-Pacific.

We aim to generate investible ideas based on consumption trends and outlook. We screen our ideas on several parameters - product potential, long-term growth and management commitment being the most critical.  We follow a fundamental analysis approach in our stock selection process and are not restricted by market cap.

We aspire to grow into a leading source of unbiased research, free of conflict of interest, for investors yearning for independent and disciplined analysis. 

We also undertake bespoke research mandates to support our Institutional clients’ investment needs.

Our team comprises of professionals with extensive experience in the Asian equity markets, in areas ranging from research, servicing institutional clients and investment management.

Equity Capital Markets

Kalyan Jewellers / Equity Capital Markets

<p>In this report, we highlight few investment concerns that dents the appeal of <a href="https://www.smartkarma.com/entities/kalyan-jewellers" target="_blank" data-smartkarma-citation="entities:29714:1" rel="noopener">Kalyan Jewellers (KALYAN IN)</a> IPO, in our view, including Kalyan's highly competitive landscape that conspicuously fails to find a mention in its prospectus. We also argue why we disagree with the prospectus on the demand outlook for gold jewellery in India, going forward.</p><p><a href="https://www.smartkarma.com/entities/kalyan-jewellers" target="_blank" data-smartkarma-citation="entities:29714:1" rel="noopener">Kalyan Jewellers (KALYAN IN)</a>, a leading mass-market branded gold jewellery chain with presence across India and the Middle East, proposes to raise around USD250 mn at its upcoming IPO - Rs10 bn (USD150 mn) in fresh issue and Rs7.5 bn (USD 100 mn) in an offer for sale. Company's promoters will be offloading shares worth up to Rs2.5 bn, while Warburg Pincus owned Highdell Investment would sell up to Rs5 bn worth of shares.</p>

In this report, we highlight few investment concerns that dents the appeal of Kalyan Jewellers (KALYAN IN) IPO, in our view, including Kalyan's highly competitive landscape that conspicuously fails to find a mention in its prospectus. We also argue why we disagree with the prospectus on the demand outlook for gold jewellery in India, going forward.Kalyan Jewellers (KALYAN IN), a leading mass-market branded gold jewellery chain with presence across India and the Middle East, proposes to raise around USD250 mn at its upcoming IPO - Rs10 bn (USD150 mn) in fresh issue and Rs7.5 bn (USD 100 mn) in an offer for sale. Company's promoters will be offloading shares worth up to Rs2.5 bn, while Warburg Pincus owned Highdell Investment would sell up to Rs5 bn worth of shares.

Kalyan Jewellers (IPO): Lacks Lustre. Look Beyond the Prospectus