Smartkarma AI Primers, Smartkarma

αSK Primers

Smartkarma AI Primers

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Equity Bottom-Up

Infosys Limited provides IT consulting and software services, including e-business, program management and supply chain solutions. The Group's services include application development, product co-development, and system implementation and system engineering. Infosys targets businesses specializing in the insurance, banking, telecommunication and manufacturing sectors.

<ul>
 <li>Resilient Core Fundamentals and Robust Cash Generation: Infosys exhibits disciplined execution and healthy top-line expansion, delivering FY26 revenue of INR 1,786.5bn (+9.6% YoY) and net income of INR 294.4bn. High cash conversion continues to anchor corporate strength, with FY26 Free Cash Flow reaching INR 339.7bn (a 16.63% 3-year CAGR) and EBITDA margins stabilizing at a resilient 24.0%.</li>
 <li>Compelling Relative Valuation and Statistical Mispricing: Trading at INR 1,088.00 with an attractive dividend yield of 4.71%, Infosys presents an asymmetrical risk-reward setup. Independent quantitative analysis demonstrates that the TCS vs. Infosys valuation ratio has stretched beyond two standard deviations from its historical mean, opening a high-conviction statistical mean-reversion opportunity.</li>
 <li>Strategic Positioning in Cloud and Enterprise AI: Commercial traction across Infosys Topaz (Generative AI platform) and Infosys Cobalt (cloud services suite), alongside steady mega-deal renewals in BFSI and manufacturing, positions the firm to capture structural market share despite broader enterprise discretion in IT spend.</li>
</ul>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.


  Resilient Core Fundamentals and Robust Cash Generation: Infosys exhibits disciplined execution and healthy top-line expansion, delivering FY26 revenue of INR 1,786.5bn (+9.6% YoY) and net income of INR 294.4bn. High cash conversion continues to anchor corporate strength, with FY26 Free Cash Flow reaching INR 339.7bn (a 16.63% 3-year CAGR) and EBITDA margins stabilizing at a resilient 24.0%.
  Compelling Relative Valuation and Statistical Mispricing: Trading at INR 1,088.00 with an attractive dividend yield of 4.71%, Infosys presents an asymmetrical risk-reward setup. Independent quantitative analysis demonstrates that the TCS vs. Infosys valuation ratio has stretched beyond two standard deviations from its historical mean, opening a high-conviction statistical mean-reversion opportunity.
  Strategic Positioning in Cloud and Enterprise AI: Commercial traction across Infosys Topaz (Generative AI platform) and Infosys Cobalt (cloud services suite), alongside steady mega-deal renewals in BFSI and manufacturing, positions the firm to capture structural market share despite broader enterprise discretion in IT spend.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

Shenton Research

Shenton Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Equity Capital Markets

Shenzhen Transsion Holdings / Equity Capital Markets

Shenzhen Transsion Holdings Co., Ltd. manufactures and distributes communication devices. The Company produces mobile phones and phone accessories. Shenzhen Transsion Holdings markets products in China, Africa, and other countries and regions.

<ul>
<li>Transsion, a mobile phone maker focused on Africa and other emerging markets, raised HKD 2,968.0m (USD 378.2m) and will list on HKEX on Thursday, 15 Oct 2026.</li>
<li>In our previous notes, we looked at the company's fundamentals and the deal terms.</li>
<li>In this note, we provide an update for the IPO before its trading debut.</li>
</ul>


Transsion, a mobile phone maker focused on Africa and other emerging markets, raised HKD 2,968.0m (USD 378.2m) and will list on HKEX on Thursday, 15 Oct 2026.
In our previous notes, we looked at the company's fundamentals and the deal terms.
In this note, we provide an update for the IPO before its trading debut.


Korea / Special Situations, Clepsydra Capital

Sanghyun Park

Korea / Special Situations

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Index Rebalance

Fadu Inc. oprates electronic component manufacturing businesses. The Company produces controller components, integrated circuits, and other products. Fadu conducts businesses in South Korea.

<ul>
<li>I spoke directly with the KRX official overseeing KOSDAQ 150, who confirmed that Fadu’s June exclusion was due to ongoing litigation, putting December inclusion in question.</li>
<li>He also confirmed the six-month normal trading record is irrelevant; Fadu’s inclusion hinges on the court case, with a ruling unlikely before early next year, effectively ruling out December entry.</li>
<li>Simmtech could enter TIGER Semis Top 10 if FnGuide reclassifies it as Semiconductors in November’s MKF500 rebalance, potentially triggering front running and passive flow positioning.</li>
</ul>


I spoke directly with the KRX official overseeing KOSDAQ 150, who confirmed that Fadu’s June exclusion was due to ongoing litigation, putting December inclusion in question.
He also confirmed the six-month normal trading record is irrelevant; Fadu’s inclusion hinges on the court case, with a ruling unlikely before early next year, effectively ruling out December entry.
Simmtech could enter TIGER Semis Top 10 if FnGuide reclassifies it as Semiconductors in November’s MKF500 rebalance, potentially triggering front running and passive flow positioning.


What I've Found on Fadu and Simmtech: Key Near Term Passive Flow Plays

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

Kakaku.com, Inc provides price comparison services and products information through its website.  The Company also provides Internet advertising services.

<ul>
<li>EQT/DG raised its <a href="https://www.smartkarma.com/entities/kakaku-com-inc" target="_blank" data-smartkarma-citation="entities:7408:1" rel="noopener">Kakaku.com Inc (2371 JP)</a> offer by JPY1 to JPY3,682, extending the closing date to 28 October. The bump buys time as EQT/DG still lacks minimum acceptances.</li>
<li>Bain/LY's silence likely signals one decisive bump, ideally above JPY3,756 and towards the JPY3,923 DCF high end. But each idle extension gives Oasis and KDDI time to side with EQT/DG.</li>
<li>At JPY3,800, upside is limited (+2.2% to +3.2%) against a -3.1% base downside and a severe (low-probability) tail risk. Taking some money off the table is sensible.</li>
</ul>


EQT/DG raised its Kakaku.com Inc (2371 JP) offer by JPY1 to JPY3,682, extending the closing date to 28 October. The bump buys time as EQT/DG still lacks minimum acceptances.
Bain/LY's silence likely signals one decisive bump, ideally above JPY3,756 and towards the JPY3,923 DCF high end. But each idle extension gives Oasis and KDDI time to side with EQT/DG.
At JPY3,800, upside is limited (+2.2% to +3.2%) against a -3.1% base downside and a severe (low-probability) tail risk. Taking some money off the table is sensible.


Kakaku.com (2371 JP): Third JPY1 Bump, Same Stalemate, Limited Upside Left

Affle 3i Limited is a global technology company that provides a consumer intelligence platform, delivering consumer engagements, acquisitions, and transactions through mobile advertising. The company operates on a Cost Per Converted User (CPCU) model, transforming online and offline user data into actionable insights for brands. It was incorporated in 1994 and is headquartered in Gurugram, India.

<ul>
 <li>
Differentiated CPCU Architecture and AI-Driven Growth: <a href="https://smartkarma.com/entities/affle-3i-limited">Affle 3i</a> demonstrates sustained conversion-focused momentum, achieving FY26 revenue of INR 27,093.09 Mn (+19.5% YoY) and net profit of INR 4,548.51 Mn (+19.1% YoY), underpinned by its proprietary Cost Per Converted User (CPCU) model and agentic AI integrations (Niko, OpticksAI) that drive superior advertiser ROI across mobile and connected devices.</li>
 <li>
Pristine Balance Sheet Counterbalanced by Working Capital and Accounting Friction: The company maintains a virtually debt-free balance sheet with robust operating cash flow (INR 5,445.87 Mn in FY26) and cash reserves; however, institutional scrutiny persists regarding aggressive capitalisation of product-development costs, elevated unbilled revenues, lengthening receivable cycles, and potential impairment risks on legacy investments such as Bobble.</li>
 <li>
Global Expansion and Valuation Headwinds: Trading at ~42.3x P/E and ~27.1x EV/EBITDA at a price of INR 1434.10, Affle trades at a premium to domestic enterprise IT peers but at an EV/growth discount to top-tier global programmatic platforms. Sustained re-rating hinges on accelerating penetration in Established Markets (North America and Europe) while defending dominant market shares across Emerging Asia-Pacific and Latin America.</li>
</ul>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.


  
Differentiated CPCU Architecture and AI-Driven Growth: Affle 3i demonstrates sustained conversion-focused momentum, achieving FY26 revenue of INR 27,093.09 Mn (+19.5% YoY) and net profit of INR 4,548.51 Mn (+19.1% YoY), underpinned by its proprietary Cost Per Converted User (CPCU) model and agentic AI integrations (Niko, OpticksAI) that drive superior advertiser ROI across mobile and connected devices.
  
Pristine Balance Sheet Counterbalanced by Working Capital and Accounting Friction: The company maintains a virtually debt-free balance sheet with robust operating cash flow (INR 5,445.87 Mn in FY26) and cash reserves; however, institutional scrutiny persists regarding aggressive capitalisation of product-development costs, elevated unbilled revenues, lengthening receivable cycles, and potential impairment risks on legacy investments such as Bobble.
  
Global Expansion and Valuation Headwinds: Trading at ~42.3x P/E and ~27.1x EV/EBITDA at a price of INR 1434.10, Affle trades at a premium to domestic enterprise IT peers but at an EV/growth discount to top-tier global programmatic platforms. Sustained re-rating hinges on accelerating penetration in Established Markets (North America and Europe) while defending dominant market shares across Emerging Asia-Pacific and Latin America.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

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