India Equity Analyst - Fundamental & Thematic, Beat the Street

Sudarshan Bhandari

India Equity Analyst - Fundamental & Thematic

Beat the Street

Beat The Street was founded by Nimish Maheshwari and Sudarshan Bhandari, both of whom are Chartered Accountants by Profession, known for their expert analysis in the fields of Business, Sectoral analysis, and Corporate governance.

With a strong social media presence of 45,000+ Subscribers across various platforms, they are considered trusted voices in the industry. Their insights and analysis have been featured in some of India’s most prominent publications, including the Economic Times, Dalal Street Investment Journal, The Morning Context, and The Ken.

Their analysis on Bankrupt & Insolvent companies has been instrumental in saving investors from significant losses. They have a keen eye for identifying red flags and has identified exclusive redflags earlier in Vedanta, Nykaa, Dhani Services, Adani and many more.

Read Business Not Stock Prices

Equity Bottom-Up

<ul>
<li>Implementation of SEBI's new F&amp;O circular to remove weekly option contracts, is expected to significantly impact BSE's market share in derivatives. </li>
<li>The new F&amp;O circular is anticipated to considerably affect BSE's topline and bottom line. Management believes the initiatives will ultimately enhance market efficiency and benefit investors. </li>
<li>With removal of weekly contracts, it is expected that volumes will increase in existing contracts, which will benefit more to BSE vs NSE. </li>
</ul>


Implementation of SEBI's new F&amp;O circular to remove weekly option contracts, is expected to significantly impact BSE's market share in derivatives. 
The new F&amp;O circular is anticipated to considerably affect BSE's topline and bottom line. Management believes the initiatives will ultimately enhance market efficiency and benefit investors. 
With removal of weekly contracts, it is expected that volumes will increase in existing contracts, which will benefit more to BSE vs NSE. 


Riding the Derivatives Wave: Can BSE Seize the Opportunity Presented by SEBI's Circular?

<ul>
<li>SEBI has asked BSE to pay regulatory fees on options trading based on notional turnover instead of premium turnover</li>
<li>The impact of this would 10-20% on earnings in short term</li>
<li>The bigger question lies ahead what BSE will do to offset the impact and grow its market share in derivative trading</li>
</ul>


SEBI has asked BSE to pay regulatory fees on options trading based on notional turnover instead of premium turnover
The impact of this would 10-20% on earnings in short term
The bigger question lies ahead what BSE will do to offset the impact and grow its market share in derivative trading


Financials & FinTech research, Galliano’s Financials Research

Victor Galliano

Financials & FinTech research

Financials & FinTech, EM & Developed Markets

Galliano’s Financials Research

Galliano's Financials Research provides fundamental research in Emerging Markets financials, including FinTech, as well as financials in select Developed Markets.

The investment style applied is generally value oriented, although Growth At Reasonable Price (GARP) strategies can also be used where appropriate. 

Our investment research approach aim is often contrarian, looking to capitalise on overly sceptical or optimistic consensus views. In terms of valuation techniques, the focus is on PBV ratio to ROE, PE multiples and dividend yield, as well as the application of PEG ratios and, where appropriate, Sum of the Parts (SOTP) valuations.

Thematic (Sector/Industry)

<ul>
<li>We stick with Brazilian exchange B3 as our core value pick; it has a growing share of data revenues, its post-trade revenues are understated and equity fee pressure is easing</li>
<li>We keep Hong Kong Exchange as a buy, with its high share of post-trade revenues; HKEx shares have been highly volatile, but they represent relative value combined with growth potential</li>
<li>Philippines Stock Exchange (PSE) and BSE are new additions to our coverage of EM exchanges with PSE being one to watch; MexBolsa is deep value, but lacking a re-rating catalyst</li>
</ul>


We stick with Brazilian exchange B3 as our core value pick; it has a growing share of data revenues, its post-trade revenues are understated and equity fee pressure is easing
We keep Hong Kong Exchange as a buy, with its high share of post-trade revenues; HKEx shares have been highly volatile, but they represent relative value combined with growth potential
Philippines Stock Exchange (PSE) and BSE are new additions to our coverage of EM exchanges with PSE being one to watch; MexBolsa is deep value, but lacking a re-rating catalyst


Emerging Market Exchanges – Brazilian Exchange B3 (B3SA3 BZ) Stands Out

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

<ul>
<li>Nearing the completion of 60% of the review period, there could be two changes for the <a href="https://www.smartkarma.com/entities/s-p-bse-sensex-index" target="_blank" data-smartkarma-citation="entities:31494:1" rel="noopener">BSE SENSEX Index (SENSEX INDEX)</a> at the June rebalance.</li>
<li>With one stock right at the cusp of deletion from the index, there could be a third change too. Sector balance will be used to decide the list of inclusions.</li>
<li>The forecast adds outperformed the forecast deletes in the back end of 2024 but there has been huge underperformance this calendar year as stocks with nosebleed valuations have sold off.</li>
</ul>


Nearing the completion of 60% of the review period, there could be two changes for the BSE SENSEX Index (SENSEX INDEX) at the June rebalance.
With one stock right at the cusp of deletion from the index, there could be a third change too. Sector balance will be used to decide the list of inclusions.
The forecast adds outperformed the forecast deletes in the back end of 2024 but there has been huge underperformance this calendar year as stocks with nosebleed valuations have sold off.


SENSEX Index Rebalance Preview: Two Changes for Now; Third Change at the Cusp

Event-Driven

<ul>
<li>In November 2020, HT Global IT Solutions acquired all the shares it did not own in <a href="https://www.smartkarma.com/entities/hexaware-technologies-ltd" target="_blank" data-smartkarma-citation="entities:7882:1" rel="noopener">Hexaware Technologies (HEXW IN)</a> and delisted the stock from the <a href="https://www.smartkarma.com/entities/national-stock-exchange" target="_blank" data-smartkarma-citation="entities:23751:1" rel="noopener">NSE</a> and <a href="https://www.smartkarma.com/entities/bombay-stock-exchange" target="_blank" data-smartkarma-citation="entities:23694:1" rel="noopener">BSE</a>.</li>
<li>Now, <a href="https://www.smartkarma.com/entities/carlyle-group-inc-the" target="_blank" data-smartkarma-citation="entities:33402:1" rel="noopener">Carlyle Group</a> is looking to raise INR 87.5bn by selling stock at a price range of INR 674-708/share, valuing <a href="https://www.smartkarma.com/entities/hexaware-technologies-ltd" target="_blank" data-smartkarma-citation="entities:7882:1" rel="noopener">Hexaware Technologies (HEXW IN)</a> at US$4.8bn.</li>
<li>The stock will not get Fast Entry to global indices. Inclusion at regular rebalances should take place in May and September, though the impact will be limited.</li>
</ul>


In November 2020, HT Global IT Solutions acquired all the shares it did not own in Hexaware Technologies (HEXW IN) and delisted the stock from the NSE and BSE.
Now, Carlyle Group is looking to raise INR 87.5bn by selling stock at a price range of INR 674-708/share, valuing Hexaware Technologies (HEXW IN) at US$4.8bn.
The stock will not get Fast Entry to global indices. Inclusion at regular rebalances should take place in May and September, though the impact will be limited.


Hexaware Technologies IPO: Delisted in 2020; Now Looking to Raise US$1bn

India

Bombay Stock Exchange Limited provides market for trading in equity, debt instruments, derivatives, and mutual funds. The Company offers services including risk management, clearing, settlement, market data services, and education. Bombay Stock Exchange serves customers in India. ... More

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Bombay Stock Exchange (BSE IN)

Riding the Derivatives Wave: Can BSE Seize the Opportunity Presented by SEBI's Circular?

SEBI's new F&O circular removing weekly option contracts expected to impact BSE's market share in derivatives, affecting topline and bottom line...

Sudarshan Bhandari

BSE - A Regulatory Accident?

BSE - Regulatory Fee Hike Impact Is a Short-Term Overhang In Long-Term Multifold Growth. Impact on future business strategies and treatment of this...

Sudarshan Bhandari

Emerging Market Exchanges – Brazilian Exchange B3 (B3SA3 BZ) Stands Out

Our core value pick is B3 in Brazil, with its well spread product offering; buy HKEx with its high post-trade revenues, whilst PSE is one to watch,...

Victor Galliano

SENSEX Index Rebalance Preview: Two Changes for Now; Third Change at the Cusp

We forecast 2 changes for the Sensex in June, but there could be a third. Passives need to trade 7-19x delivery volume. The forecast adds have...

Brian Freitas

Hexaware Technologies IPO: Delisted in 2020; Now Looking to Raise US$1bn

Hexaware delisted in 2020. Now, Carlyle is looking to sell stock worth INR 87.5bn and relist Hexaware. The mid-point of the INR 674-708/share range...

Brian Freitas

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Riding the Derivatives Wave: Can BSE Seize the Opportunity Presented by SEBI's Circular?

​SEBI's new F&O circular removing weekly option contracts expected to impact BSE's market share in derivatives, affecting topline and bottom line...

Sudarshan Bhandari

BSE - A Regulatory Accident?

BSE - Regulatory Fee Hike Impact Is a Short-Term Overhang In Long-Term Multifold Growth. Impact on future business strategies and treatment of this...

Sudarshan Bhandari

Emerging Market Exchanges – Brazilian Exchange B3 (B3SA3 BZ) Stands Out

Our core value pick is B3 in Brazil, with its well spread product offering; buy HKEx with its high post-trade revenues, whilst PSE is one to watch,...

Victor Galliano

SENSEX Index Rebalance Preview: Two Changes for Now; Third Change at the Cusp

We forecast 2 changes for the Sensex in June, but there could be a third. Passives need to trade 7-19x delivery volume. The forecast adds have...

Brian Freitas

Hexaware Technologies IPO: Delisted in 2020; Now Looking to Raise US$1bn

Hexaware delisted in 2020. Now, Carlyle is looking to sell stock worth INR 87.5bn and relist Hexaware. The mid-point of the INR 674-708/share range...

Brian Freitas

SEBI's new F&O circular removing weekly option contracts expected to impact BSE's market share in derivatives, affecting topline and bottom line...