Derivatives and Quantitative Strategist

Gaudenz Schneider

Equity Bottom-Up

<ul>
<li>A long-short strategy with <a href="https://www.smartkarma.com/entities/hdfc-bank-ltd-4b6b7a92-9087-468d-9dbe-ab169e77f014" target="_blank" data-smartkarma-citation="entities:558:1" rel="noopener">HDFC Bank</a>, <a href="https://www.smartkarma.com/entities/icici-bank-ltd" target="_blank" data-smartkarma-citation="entities:547:1" rel="noopener">ICICI Bank</a>, and <a href="https://www.smartkarma.com/entities/state-bank-of-india" target="_blank" data-smartkarma-citation="entities:160:1" rel="noopener">State Bank Of India</a> outperformed the <a href="https://www.smartkarma.com/entities/nse-nifty-bank-index" target="_blank" data-smartkarma-citation="entities:26811:1" rel="noopener">NSE Nifty Bank Index</a> by 2.1% from 21 November to present.</li>
<li>The trade is supported by strong fundamentals, institutional and systemic aspects, and favorable technical factors.</li>
<li>The strategy is market-neutral with zero correlation to the Nifty Bank Index, enhanced by the yield pick-up from shorting the futures in a contango market.</li>
</ul>


A long-short strategy with HDFC Bank, ICICI Bank, and State Bank Of India outperformed the NSE Nifty Bank Index by 2.1% from 21 November to present.
The trade is supported by strong fundamentals, institutional and systemic aspects, and favorable technical factors.
The strategy is market-neutral with zero correlation to the Nifty Bank Index, enhanced by the yield pick-up from shorting the futures in a contango market.


Banking on Success: A Long-Short Strategy for Nifty Banks

External broker reports(aggregated public sources), Axis Direct

Axis Direct

External broker reports(aggregated public sources)

Axis Direct is the flagship brand under Axis Securities Limited, a subsidiary of Axis Bank in India. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>Near-term Asset Quality Challenges; Credit costs to remain elevated in H2FY25: AUSFB’s asset quality deterioration was primarily owing to elevated slippages from both the secured (~33% contribution to slippages) and unsecured portfolio.</li><li>The bank has taken multiple steps to restrict the flow of slippages by restricting lending exposure, ramping up collection efforts alongside making underwriting norms more stringent.</li><li>Despite this, the management expects stress in the unsecured portfolios to remain elevated in H2FY25, keeping credit costs higher. </li></ul>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.

Near-term Asset Quality Challenges; Credit costs to remain elevated in H2FY25: AUSFB’s asset quality deterioration was primarily owing to elevated slippages from both the secured (~33% contribution to slippages) and unsecured portfolio.The bank has taken multiple steps to restrict the flow of slippages by restricting lending exposure, ramping up collection efforts alongside making underwriting norms more stringent.Despite this, the management expects stress in the unsecured portfolios to remain elevated in H2FY25, keeping credit costs higher. 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.

AU Small Finance Bank Ltd. - Operationally Strong Quarter, Asset Quality Pain to Hurt in Near-Term!

External broker reports(aggregated public sources), Motilal Oswal Financial Services Limited

Motilal Oswal

Motilal Oswal Financial Services Limited

Motilal Oswal Financial Services Limited is an Indian diversified financial services firm offering a range of financial products and services. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>AU Small Finance Bank (AUBANK) is well-positioned for strong growth, demonstrating a steady improvement in operating profitability as it capitalizes on the synergies resulting from the merger.</li><li>A high-yielding loan book following the merger and broader product offerings, especially in the South, will facilitate profitable growth in the coming years.</li><li>The bank’s recent application for a Universal Bank license is expected to streamline regulatory requirements, improve brand positioning, and foster growth by enhancing customer acquisition and deposit productivity.</li></ul>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.

AU Small Finance Bank (AUBANK) is well-positioned for strong growth, demonstrating a steady improvement in operating profitability as it capitalizes on the synergies resulting from the merger.A high-yielding loan book following the merger and broader product offerings, especially in the South, will facilitate profitable growth in the coming years.The bank’s recent application for a Universal Bank license is expected to streamline regulatory requirements, improve brand positioning, and foster growth by enhancing customer acquisition and deposit productivity.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.

AU Small Finance Bank - On a Long Growth Runway!

APAC IPOs & Placements, Aequitas Research

Ethan Aw

APAC 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

Asirvad Micro Finance Limited / Equity Capital Markets

Asirvad Micro Finance Limited (1053198D IN)

<ul>
<li>
<a href="https://www.smartkarma.com/entities/asirvad-micro-finance-limited" target="_blank" data-smartkarma-citation="entities:40211:1" rel="noopener">Asirvad Micro Finance Limited (1053198D IN)</a> is looking to raise around US$183m in its upcoming India IPO.</li>
<li>Asirvad Micro Finance Limited (Asirvad) is a non-banking finance company (NBFC), and a microfinance institution (MFI) offering small loans to low-income women in India.</li>
<li>In this note, we talk about the company’s historical performance.</li>
</ul>



Asirvad Micro Finance Limited (1053198D IN) is looking to raise around US$183m in its upcoming India IPO.
Asirvad Micro Finance Limited (Asirvad) is a non-banking finance company (NBFC), and a microfinance institution (MFI) offering small loans to low-income women in India.
In this note, we talk about the company’s historical performance.


Asirvad Micro Finance Pre-IPO - Accelerating Profitability Growth but with a Litany of Legal Cases

<ul><li>AUBANK reported 1QFY25 PAT of INR5.02b, significantly ahead of our estimates, led by controlled opex.</li><li>NII stood at INR19.2b (in line), while NIMs improved 90bp QoQ to 6%, benefitting from the merger with Fincare SFB.</li><li>PPoP stood at INR9.9b (22% beat) as opex came in 13% lower than our estimate.</li></ul>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.

AUBANK reported 1QFY25 PAT of INR5.02b, significantly ahead of our estimates, led by controlled opex.NII stood at INR19.2b (in line), while NIMs improved 90bp QoQ to 6%, benefitting from the merger with Fincare SFB.PPoP stood at INR9.9b (22% beat) as opex came in 13% lower than our estimate.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.

AU Small Finance Bank - Low Opex Drives Earnings Beat; Credit Cost Stays High

India

AU Small Finance Bank Limited is an Indian scheduled commercial small finance bank. It offers a diverse range of products including savings accounts, current accounts, fixed deposits, loans (vehicle, MSME, housing, personal, gold, agriculture), debit and credit cards, and insurance. The company was founded in 1996 and is headquartered in Jaipur, Rajasthan, India.

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AU Small Finance Bank (AUBANK IN)

Banking on Success: A Long-Short Strategy for Nifty Banks

Long-short strategy with zero correlation to the NSE Nifty Bank Index with yield pick-up. Trade rationale supported by strong fundamentals,...

Gaudenz Schneider

AU Small Finance Bank Ltd. - Operationally Strong Quarter, Asset Quality Pain to Hurt in Near-Term!

AUSFB’s asset quality deterioration was primarily owing to elevated slippages from both the secured (~33% contribution to slippages) and unsecured...

Axis Direct

AU Small Finance Bank - On a Long Growth Runway!

AU Small Finance Bank (AUBANK) is well-positioned for strong growth, demonstrating a steady improvement in operating profitability as it...

Motilal Oswal

Asirvad Micro Finance Pre-IPO - Accelerating Profitability Growth but with a Litany of Legal Cases

Asirvad Micro Finance Limited (1053198D IN) is looking to raise around US$183m in its upcoming India IPO. In this note, we talk about the company’s...

Ethan Aw

AU Small Finance Bank - Low Opex Drives Earnings Beat; Credit Cost Stays High

AUBANK reported 1QFY25 PAT of INR5.02b, significantly ahead of our estimates, led by controlled opex. NII stood at INR19.2b (in line), while NIMs...

Motilal Oswal

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Banking on Success: A Long-Short Strategy for Nifty Banks

​Long-short strategy with zero correlation to the NSE Nifty Bank Index with yield pick-up. Trade rationale supported by strong fundamentals,...

Gaudenz Schneider

AU Small Finance Bank Ltd. - Operationally Strong Quarter, Asset Quality Pain to Hurt in Near-Term!

AUSFB’s asset quality deterioration was primarily owing to elevated slippages from both the secured (~33% contribution to slippages) and unsecured...

Axis Direct

AU Small Finance Bank - On a Long Growth Runway!

AU Small Finance Bank (AUBANK) is well-positioned for strong growth, demonstrating a steady improvement in operating profitability as it...

Motilal Oswal

Asirvad Micro Finance Pre-IPO - Accelerating Profitability Growth but with a Litany of Legal Cases

Asirvad Micro Finance Limited (1053198D IN) is looking to raise around US$183m in its upcoming India IPO. In this note, we talk about the company’s...

Ethan Aw

AU Small Finance Bank - Low Opex Drives Earnings Beat; Credit Cost Stays High

AUBANK reported 1QFY25 PAT of INR5.02b, significantly ahead of our estimates, led by controlled opex. NII stood at INR19.2b (in line), while NIMs...

Motilal Oswal

Long-short strategy with zero correlation to the NSE Nifty Bank Index with yield pick-up. Trade rationale supported by strong fundamentals,...