Equity Research Focusing on the Consumer Sector, Small Cap Consumer Research

Small Cap Consumer Research

Equity Research Focusing on the Consumer Sector

Small Cap Consumer Research, LLC is a leading company-sponsored equity research provider focusing on the consumer sector (apparel, brand licensing and specialty retailing segments).

Equity Bottom-Up

<ul><li>We are reiterating our Buy rating, price target and projections for Starco Brands with the company announcing 2Q24 (June) results after the close on Tuesday.</li><li>We believe, after resetting near-term expectations in 1Q due to multiple expansions for key brands in 2H and 2025 and Whipshots slightly plateauing, the 2Q call will be focused on laying out the road map for material expansion on multiple levels/brands and the longer term positive implications.</li><li>We believe there remain multiple pathways to upside for the company over the longer-term and, the model of leveraging the company's manufacturing and marketing infrastructure remains fully intact.</li></ul>

We are reiterating our Buy rating, price target and projections for Starco Brands with the company announcing 2Q24 (June) results after the close on Tuesday.We believe, after resetting near-term expectations in 1Q due to multiple expansions for key brands in 2H and 2025 and Whipshots slightly plateauing, the 2Q call will be focused on laying out the road map for material expansion on multiple levels/brands and the longer term positive implications.We believe there remain multiple pathways to upside for the company over the longer-term and, the model of leveraging the company's manufacturing and marketing infrastructure remains fully intact.

elf Beauty Inc - STCB: 2Q Preview: Putting the Building Blocks Together; Reiterate Buy, PT

<ul><li>We are reiterating our Buy rating.</li><li>$0.25 price target and projections for Starco Brands as we look at key trends for 2H24 and beyond.</li><li>We believe 2024, while somewhat frustrating from an investor standpoint (given the downward revenue guidance and pulling of EBITDA guidance after 1Q), will be seen as a positive over the longer term, as the company has made material steps forward for all of their brands, positioning Starco for significant top line growth and going forward, material operating leverage, which we believe will become increasingly self-evident in 2025 and beyond.</li></ul>

We are reiterating our Buy rating.$0.25 price target and projections for Starco Brands as we look at key trends for 2H24 and beyond.We believe 2024, while somewhat frustrating from an investor standpoint (given the downward revenue guidance and pulling of EBITDA guidance after 1Q), will be seen as a positive over the longer term, as the company has made material steps forward for all of their brands, positioning Starco for significant top line growth and going forward, material operating leverage, which we believe will become increasingly self-evident in 2025 and beyond.

elf Beauty Inc - STCB: 2H Signposts; Building for a Better Tomorrow; Reiterate Buy, $0.25 PT

Equity Analyst - Asia Consumer Sector, Investory

Devi Subhakesan

Equity Analyst - Asia Consumer Sector

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.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/allied-blenders-distillers" target="_blank" data-smartkarma-citation="entities:36090:1" rel="noopener">Allied Blenders &amp; Distillers</a>' recent IPO spotlighted India's alcoholic beverage sector, which bucks global trends with strong volume and value growth.</li>
<li>India is the third largest alcoholic beverage market globally, and the second largest for spirits. It is projected to grow at a CAGR of more than 10% over the near-term.</li>
<li>Incumbent players in this highly regulated sector can benefit from strong market moats and evolving growth opportunities if they can effectively navigate the highly regulated business  environment.</li>
</ul>



Allied Blenders &amp; Distillers' recent IPO spotlighted India's alcoholic beverage sector, which bucks global trends with strong volume and value growth.
India is the third largest alcoholic beverage market globally, and the second largest for spirits. It is projected to grow at a CAGR of more than 10% over the near-term.
Incumbent players in this highly regulated sector can benefit from strong market moats and evolving growth opportunities if they can effectively navigate the highly regulated business  environment.


India Alcoholic Beverages: Growing in Pints And Quarts. IPO Adds a Valuation Kick

Asset Allocation & Fund Positioning, Copley Fund Research

Steven Holden

Asset Allocation & Fund Positioning

Copley Fund Research

Copley Fund Research provide research and data on asset allocation among Global and Emerging Market equity funds.  The analysis details absolute and relative positioning across countries, sectors and industries together with highly granular data on single stock and single fund allocations.  The data is updated monthly with time series going back to January 2011.

Global Research - Analysis of 165 prominent Global equity funds, combined AUM $335bn
GEM Research - Analysis of 127 prominent global EM equity funds, combined AUM $250bn

Asset Allocation - Global and GEM Equity

Cross Asset Strategy

<ul>
<li>Global equity funds are heavily overweight in UK stock heading in to the election on July 4th.</li>
<li>Compared to the SPDRs MSCI ACWI ETF benchmark, UK allocations are at a record overweight of +2.64%, with 69% of investors positioned ahead of the benchmark.</li>
<li>All sectors in the UK are held net overweight, led by Industrials and Consumer Staples. Key stocks like AstraZeneca, Linde, and Unilever are among the most widely held.</li>
</ul>


Global equity funds are heavily overweight in UK stock heading in to the election on July 4th.
Compared to the SPDRs MSCI ACWI ETF benchmark, UK allocations are at a record overweight of +2.64%, with 69% of investors positioned ahead of the benchmark.
All sectors in the UK are held net overweight, led by Industrials and Consumer Staples. Key stocks like AstraZeneca, Linde, and Unilever are among the most widely held.


United Kingdom:  Record Overweights in Run Up to Election

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

Allied Blenders & Distillers / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/allied-blenders-distillers" target="_blank" data-smartkarma-citation="entities:36090:1" rel="noopener">Allied Blenders &amp; Distillers (9844250Z IN)</a> is looking to raise about US$180m in its upcoming India IPO.</li>
<li>ABD is the largest Indian-owned Indian-made foreign liquor (IMFL) company and the third largest IMFL company in India, in terms of annual sales volumes between FY14 and FY22.</li>
<li>In our previous notes, we talked about various aspects of the company. In this note, we talk about its RHP updates and our thoughts on valuation.</li>
</ul>



Allied Blenders &amp; Distillers (9844250Z IN) is looking to raise about US$180m in its upcoming India IPO.
ABD is the largest Indian-owned Indian-made foreign liquor (IMFL) company and the third largest IMFL company in India, in terms of annual sales volumes between FY14 and FY22.
In our previous notes, we talked about various aspects of the company. In this note, we talk about its RHP updates and our thoughts on valuation.


Allied Blenders and Distillers - RHP Updates & Thoughts on Valuation

United Kingdom

Diageo plc produces, distills and markets alcoholic beverages.  The Company offers a wide range of branded beverages, including vodkas, whiskeys, tequilas, gins, and beer.

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Diageo Plc (DGE LN)

elf Beauty Inc - STCB: 2Q Preview: Putting the Building Blocks Together; Reiterate Buy, PT

We are reiterating our Buy rating, price target and projections for Starco Brands with the company announcing 2Q24 (June) results after the close...

Small Cap Consumer Research

elf Beauty Inc - STCB: 2H Signposts; Building for a Better Tomorrow; Reiterate Buy, $0.25 PT

We are reiterating our Buy rating. $0.25 price target and projections for Starco Brands as we look at key trends for 2H24 and beyond. We believe...

Small Cap Consumer Research

India Alcoholic Beverages: Growing in Pints And Quarts. IPO Adds a Valuation Kick

India's alcoholic beverage sector has delivered strong volume and value growth as well as attractive shareholder returns. Know the fundamentals and...

Devi Subhakesan

United Kingdom: Record Overweights in Run Up to Election

Global equity fund managers are heading into the UK election with a significant overweight position compared to the SPDRs MSCI ACWI ETF benchmark.

Steven Holden

Allied Blenders and Distillers - RHP Updates & Thoughts on Valuation

Allied Blenders & Distillers (9844250Z IN) is looking to raise about US$180m in its upcoming India IPO. In this note, we talk about its RHP updates...

Ethan Aw

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