Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Sona Blw Precision Forgings Lt / Equity Capital Markets

<div>Sona Comstar (Sona) raised around US$761m in its Indian IPO. The company is backed by Blackstone, which held a 66.2% stake prior to listing.</div><div>Sona is an automotive technology company, designing, manufacturing and supplying highly engineered, mission critical automotive systems and components to automotive OEMs across US, Europe, India and China, for both electrified and non-electrified powertrain segments.</div><div></div><div>
We have covered the deal background in our earlier notes:
<ul>
<li><a href="https://www.smartkarma.com/insights/sona-comstar-pre-ipo-inconsistent-growth-patchy-disclosures" target="_blank" rel="noopener">Sona Comstar Pre-IPO - Inconsistent growth, patchy disclosures </a></li>
<li><a href="https://www.smartkarma.com/insights/sona-comstar-has-its-positives-but-we-remain-unconvinced" target="_blank" rel="noopener">Sona Comstar - Has Its Positives, but We Remain Unconvinced</a></li>
</ul>
</div><div>In this note, we will talk about the trading dynamics.</div>

Sona Comstar (Sona) raised around US$761m in its Indian IPO. The company is backed by Blackstone, which held a 66.2% stake prior to listing.Sona is an automotive technology company, designing, manufacturing and supplying highly engineered, mission critical automotive systems and components to automotive OEMs across US, Europe, India and China, for both electrified and non-electrified powertrain segments.
We have covered the deal background in our earlier notes:

Sona Comstar Pre-IPO - Inconsistent growth, patchy disclosures 
Sona Comstar - Has Its Positives, but We Remain Unconvinced

In this note, we will talk about the trading dynamics.

Sona Comstar IPO Trading - Strong Anchors but Tepid Demand

Independent Research Analyst

Mamta Verma

DC India Research

DC India Research LLP (DCIR) is based out of Mumbai, India.

We specialize in providing customized, independent research across listed and unlisted companies in India across equities and credit including sectoral research. Our customers include India focussed PE funds, special situation funds, domestic AMCs, Wealth Advisory& PMS firms, Rating Agencies & Investment Advisors. 

The DCIR board consists of prominent names from the industry as well as CIO’s of Hedge funds.

Equity Bottom-Up

Amara Raja Energy & Mobility / Equity Bottom-Up

Amara Raja – P&amp;L Snapshot<table class="table table-striped"><tbody>
<tr>
<td>(Rs. Mn.)</td>
<td>Q4FY17</td>
<td>Q3FY18</td>
<td>Q4FY18</td>
<td>FY17</td>
<td>FY18</td>
</tr>
<tr>
<td>Net Sales</td>
<td>13,445</td>
<td>15,535</td>
<td>15,807</td>
<td>53,172</td>
<td>60,592</td>
</tr>
<tr>
<td>YoY (%)</td>
<td>17.4%</td>
<td>17.1%</td>
<td>17.6%</td>
<td>15.1%</td>
<td>14.0%</td>
</tr>
<tr>
<td>QoQ (%)</td>
<td>1.3%</td>
<td>8.8%</td>
<td>1.8%</td>
</tr>
<tr>
<td>Raw Material</td>
<td>9,144</td>
<td>10,390</td>
<td>10,866</td>
<td>35,619</td>
<td>41,163</td>
</tr>
<tr>
<td>as % of net sales</td>
<td>68.0%</td>
<td>66.9%</td>
<td>68.7%</td>
<td>67.0%</td>
<td>67.9%</td>
</tr>
<tr>
<td>YoY (%)</td>
<td>28.3%</td>
<td>20.4%</td>
<td>18.8%</td>
<td>19.5%</td>
<td>15.6%</td>
</tr>
<tr>
<td>QoQ (%)</td>
<td>6.0%</td>
<td>10.3%</td>
<td>4.6%</td>
</tr>
<tr>
<td>Employee Costs</td>
<td>705</td>
<td>758</td>
<td>783</td>
<td>2,778</td>
<td>3,090</td>
</tr>
<tr>
<td>as % of net sales</td>
<td>5.2%</td>
<td>4.9%</td>
<td>5.0%</td>
<td>5.2%</td>
<td>5.1%</td>
</tr>
<tr>
<td>YoY (%)</td>
<td>13.1%</td>
<td>4.7%</td>
<td>11.0%</td>
<td>14.3%</td>
<td>11.2%</td>
</tr>
<tr>
<td>QoQ (%)</td>
<td>-2.5%</td>
<td>2.2%</td>
<td>3.3%</td>
</tr>
<tr>
<td>Optg. &amp; Mfg. Exp</td>
<td>1,752</td>
<td>1,972</td>
<td>2,051</td>
<td>6,282</td>
<td>7,507</td>
</tr>
<tr>
<td>as % of net sales</td>
<td>13.0%</td>
<td>12.7%</td>
<td>13.0%</td>
<td>11.8%</td>
<td>12.4%</td>
</tr>
<tr>
<td>YoY (%)</td>
<td>-1.2…</td>
</tr>
</tbody></table>

Amara Raja – P&amp;L Snapshot

(Rs. Mn.)
Q4FY17
Q3FY18
Q4FY18
FY17
FY18


Net Sales
13,445
15,535
15,807
53,172
60,592


YoY (%)
17.4%
17.1%
17.6%
15.1%
14.0%


QoQ (%)
1.3%
8.8%
1.8%


Raw Material
9,144
10,390
10,866
35,619
41,163


as % of net sales
68.0%
66.9%
68.7%
67.0%
67.9%


YoY (%)
28.3%
20.4%
18.8%
19.5%
15.6%


QoQ (%)
6.0%
10.3%
4.6%


Employee Costs
705
758
783
2,778
3,090


as % of net sales
5.2%
4.9%
5.0%
5.2%
5.1%


YoY (%)
13.1%
4.7%
11.0%
14.3%
11.2%


QoQ (%)
-2.5%
2.2%
3.3%


Optg. &amp; Mfg. Exp
1,752
1,972
2,051
6,282
7,507


as % of net sales
13.0%
12.7%
13.0%
11.8%
12.4%


YoY (%)
-1.2…



Amara Raja - In-Line, Maintain Buy Investment Thesis

Risk-reward favourable, improving profitability profile, formidable position in Indian storage batteries, debt-free BS &amp; strong mgt. pedigreeQ3-FY18 Performance Summary –<ol>
<li>Topline came in at Rs. 15.5bn in q3-FY18, 17% YoY growth – led by healthy growth in volume across auto OEM and auto after market segments. Industrial segment too witnessed healthy traction in the UPS segment as well as significant improvement in telecom battery business. On sequential basis, topline grew at 9% in q3-FY18.</li>
<li>EBITDA…</li>
</ol>

Risk-reward favourable, improving profitability profile, formidable position in Indian storage batteries, debt-free BS &amp; strong mgt. pedigreeQ3-FY18 Performance Summary –
Topline came in at Rs. 15.5bn in q3-FY18, 17% YoY growth – led by healthy growth in volume across auto OEM and auto after market segments. Industrial segment too witnessed healthy traction in the UPS segment as well as significant improvement in telecom battery business. On sequential basis, topline grew at 9% in q3-FY18.
EBITDA…


Amara Raja: In-Line Q3-Fy18 Results. Maintain Investment Thesis

Asia Ex Japan; Technology and Consumption.

Rohinee Sharma

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.

Gravita is a  company whose philosophy is to usher in a better tomorrow by changing and nurturing the world for the better. Sounds like corporate vaporing? But it is literally what Gravita India Ltd does - Waste Recycling!  Twenty-five years ago the company took its first step with recycling of Lead ( 84% of revenues and 93% of EBIT -FY18E  ) and over the last few years added Aluminium and PET Recycling.The company's present size (market cap: US$150M) is no deterrent to its aspiration to become the largest recycler in the world by 2023. Our analysis does not give us reasons to doubt that they are executing well. The company generates very healthy ROEs of 28% and 31% ( FY18E &amp; FY19E, vs 22.5% FY17), has impressive sales and profit growth estimates in the range of 44 % and 61% for FY18 ( 45% and 43% for FY19E). Who said you can’t make money from trash ?!

Gravita is a  company whose philosophy is to usher in a better tomorrow by changing and nurturing the world for the better. Sounds like corporate vaporing? But it is literally what Gravita India Ltd does - Waste Recycling!  Twenty-five years ago the company took its first step with recycling of Lead ( 84% of revenues and 93% of EBIT -FY18E  ) and over the last few years added Aluminium and PET Recycling.The company's present size (market cap: US$150M) is no deterrent to its aspiration to become the largest recycler in the world by 2023. Our analysis does not give us reasons to doubt that they are executing well. The company generates very healthy ROEs of 28% and 31% ( FY18E &amp; FY19E, vs 22.5% FY17), has impressive sales and profit growth estimates in the range of 44 % and 61% for FY18 ( 45% and 43% for FY19E). Who said you can’t make money from trash ?!

From Trash To Cash: A Sustainable Recycling Theme

<ul><li>
Background - Amara Raja (FY17 Topline Rs. 53bn &amp; Mkt. Cap $2.3bn) is the second largest player after Exide (FY17 Topline Rs. 76bn &amp; Mkt. Cap $3.0bn) in the Indian organized battery market. It commenced operations in 1991, to manufacture batteries for industrial segments - telecom, UPS backup, railways and power utility sectors. Subsequently, in early 2000 the company forayed into manufacturing of automotive batteries with technological tie-up with the global battery major Johnson Controls Inc…</li></ul>


Background - Amara Raja (FY17 Topline Rs. 53bn &amp; Mkt. Cap $2.3bn) is the second largest player after Exide (FY17 Topline Rs. 76bn &amp; Mkt. Cap $3.0bn) in the Indian organized battery market. It commenced operations in 1991, to manufacture batteries for industrial segments - telecom, UPS backup, railways and power utility sectors. Subsequently, in early 2000 the company forayed into manufacturing of automotive batteries with technological tie-up with the global battery major Johnson Controls Inc…

Amara Raja: Impg Profitability, Formidable Position in Storage Batteries, Healthy BS Risk Reward Fav

India

Amara Raja Energy & Mobility Limited manufactures batteries. The Company offers lead-acid batteries for both industrial and automotive applications in the storage battery industry. Amara Raja Energy & Mobility serves automotive, telecom, solar, railways, defense, and UPS sectors worldwide

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Amara Raja Energy & Mobility (AMRJ IN)

Sona Comstar IPO Trading - Strong Anchors but Tepid Demand

Sona Comstar (Sona) raised around US$761m in its Indian IPO. The company is backed by Blackstone, which held a 66.2% stake prior to listing.

Sumeet Singh

Amara Raja - In-Line, Maintain Buy Investment Thesis

Amara Raja – P&L Snapshot Q4-FY18 update: Topline grew 18% YoY led by 30% YoY value growth in automotive batteries; with industrial batteries...

DC India Research

Amara Raja: In-Line Q3-Fy18 Results. Maintain Investment Thesis

Risk-reward favourable, improving profitability profile, formidable position in Indian storage batteries, debt-free BS & strong mgt....

DC India Research

From Trash To Cash: A Sustainable Recycling Theme

Gravita is a company whose philosophy is to usher in a better tomorrow by changing and nurturing the world for the better. Sounds like corporate...

Rohinee Sharma

Amara Raja: Impg Profitability, Formidable Position in Storage Batteries, Healthy BS Risk Reward Fav

Background - Amara Raja (FY17 Topline Rs. 53bn & Mkt. Cap $2.3bn) is the second largest player after Exide (FY17 Topline Rs. 76bn & Mkt....

DC India Research

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