Equity L/S Analyst | Forensic Accounting | India, Yellowstone Equity

Ankit Agrawal, CFA

Equity L/S Analyst | Forensic Accounting | India

Creating Wealth through Alpha and Compounding

Yellowstone Equity

Providing unbiased and independent research on Indian equities to global institutions and individual investors


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Regulatory Disclosure: 
Note that Ankit Agrawal (Proprietor of Yellowstone Equity) is a SEBI registered Research Analyst (Registration No.: INH000007216). Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Investment in securities market are subject to market risks. Read all the related documents carefully before investing.

Research Analyst Contact Details:
Address: A-412, Shilp Aaron, Sindhu Bhavan Road, Ahmedabad, Gujarat - 380059
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Compliance/Grievance Officer:
Name: Ankit Agrawal
Email: services@yellowstoneequity.com
Mobile: +91-7575817289
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Equity Bottom-Up

KPIT Technologies Limited operates as a technology company. The Company specializes in embedded software, artificial intelligence, and digital solutions. KPIT Technologies serves automobile industry worldwide.

<ul>
<li>Despite macro challenges, <a href="https://www.smartkarma.com/entities/kpit-technologies-ltd" target="_blank" data-smartkarma-citation="entities:35189:1" rel="noopener">KPIT</a> delivered a decent Q2FY26 and is on track to post a much better H2FY26, led by reducing uncertainty and improving demand environment.</li>
<li>More importantly, KPIT has been adding select capabilities that have been pivotal to building its differentiation and competitiveness. Its approach to move to solutions vs services has been yielding fruition.</li>
<li>Deal wins came in strong in Q2FY26 at $232mm, well above the typical $150mm+ run-rate. Additionally, KPIT also won a mega $100mm+ deal.</li>
</ul>


Despite macro challenges, KPIT delivered a decent Q2FY26 and is on track to post a much better H2FY26, led by reducing uncertainty and improving demand environment.
More importantly, KPIT has been adding select capabilities that have been pivotal to building its differentiation and competitiveness. Its approach to move to solutions vs services has been yielding fruition.
Deal wins came in strong in Q2FY26 at $232mm, well above the typical $150mm+ run-rate. Additionally, KPIT also won a mega $100mm+ deal.


KPIT: Improving Trajectory, H2FY26 Guided to Be Significantly Better

HDFC Bank Ltd. offers a wide range of services to the global corporate sector. The Bank provides corporate banking and custodial services and is active in the treasury and capital markets. HDFC also markets project advisory services and capital market products such as Global Deposit Receipts, Euro currency loans, and Euro currency bonds.

<ul>
<li>HDFCB's balance sheet has been normalizing post the merger, allowing it to accelerate its growth trajectory. The demand and liquidity environment have also improved. </li>
<li>NIMs are likely to expand led by rate cut tailwind that will reflect fully over the next 18 months. Shift to CASA from term-deposits should further help. </li>
<li>Merger synergies are now being leveraged, especially for cross-selling and up-selling. At the current valuation, an investment in HDFCB offers 25%+ IRR over a holding period of two years.</li>
</ul>


HDFCB's balance sheet has been normalizing post the merger, allowing it to accelerate its growth trajectory. The demand and liquidity environment have also improved. 
NIMs are likely to expand led by rate cut tailwind that will reflect fully over the next 18 months. Shift to CASA from term-deposits should further help. 
Merger synergies are now being leveraged, especially for cross-selling and up-selling. At the current valuation, an investment in HDFCB offers 25%+ IRR over a holding period of two years.


HDFC Bank (HDFCB): Management Upbeat on Growth

Nuvama Wealth Management / Equity Bottom-Up

Nuvama Wealth Management Limited provides financial services. The Company offers wealth management, portfolio management, and advisory services to individuals, institutions, trusts, private funds, charitable organizations, and investment companies. Nuvama Wealth Management serves customers India.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/nuvama-wealth-management-ltd" target="_blank" data-smartkarma-citation="entities:40316:1" rel="noopener">Nuvama Wealth Management ("Nuvama")</a> posted a strong Q1FY26 despite a challenging market environment. Q1FY26 revenue grew 15% YoY and PAT grew 19% YoY led by improved cost efficiency.</li>
<li>Managed Products and Investment Solutions (MPIS) which is a core focus area for Nuvama Wealth saw strong inflows representing 77% of the INR 2900cr total inflows.</li>
<li>Even within Nuvama Private, the recurring assets net flows were INR 2900cr+, which on an annualized basis implies a growth of 25%+ YoY.</li>
</ul>



Nuvama Wealth Management ("Nuvama") posted a strong Q1FY26 despite a challenging market environment. Q1FY26 revenue grew 15% YoY and PAT grew 19% YoY led by improved cost efficiency.
Managed Products and Investment Solutions (MPIS) which is a core focus area for Nuvama Wealth saw strong inflows representing 77% of the INR 2900cr total inflows.
Even within Nuvama Private, the recurring assets net flows were INR 2900cr+, which on an annualized basis implies a growth of 25%+ YoY.


RPSG Ventures Limited operates as a venture capital investment company. The Company focuses on information technology, business process outsourcing, real estate, and entertainment sectors. CESC Ventures serves customers in India.

<ul>
<li>RPSGV reported a steady Q1FY26. Revenue from the Sports business was around INR 520cr as per the typical run-rate. FMCG business maintained its annualized at around INR 550cr run-rate.</li>
<li>The BPO business reported 19%+ YoY growth in constant currency terms. The EBIT margin expanded 10bp QoQ. The Mall business reported steady revenue of around INR 35cr, despite ongoing renovation.</li>
<li>At current valuation, RPSGV is trading at a holding company discount of 83%. Even if the discount narrows to 70%, upside potential is 75%+ over three years.</li>
</ul>


RPSGV reported a steady Q1FY26. Revenue from the Sports business was around INR 520cr as per the typical run-rate. FMCG business maintained its annualized at around INR 550cr run-rate.
The BPO business reported 19%+ YoY growth in constant currency terms. The EBIT margin expanded 10bp QoQ. The Mall business reported steady revenue of around INR 35cr, despite ongoing renovation.
At current valuation, RPSGV is trading at a holding company discount of 83%. Even if the discount narrows to 70%, upside potential is 75%+ over three years.


Rajshree Polypack Limited manufactures packaging products. The Company offers coffee cups, trays, lids, plates, bowls, and other containers, as well as plastics rigid sheet. Rajshree Polypack serves dairy, beverages, retail, pharmaceuticals, and electronics industries in India.

<ul>
<li>Despite early monsoon resulting in weak demand, RPPL posted a decent revenue growth of 4.9% YoY in Q1FY26. This was led by 45% YoY growth in exports.</li>
<li>RPPL's injection molding segment has been doing exceptionally well with revenue doubling in Q1FY26. RPPL's Olive Ecopak JV has started slow but holds significant potential.</li>
<li>At current valuation, RPPL's stock offers an attractive entry point with potential to more than triple over a holding period of three years. </li>
</ul>


Despite early monsoon resulting in weak demand, RPPL posted a decent revenue growth of 4.9% YoY in Q1FY26. This was led by 45% YoY growth in exports.
RPPL's injection molding segment has been doing exceptionally well with revenue doubling in Q1FY26. RPPL's Olive Ecopak JV has started slow but holds significant potential.
At current valuation, RPPL's stock offers an attractive entry point with potential to more than triple over a holding period of three years. 


Rajshree Polypack (RPPL): Decent Q1FY26, Considering Weak Demand Environment