Consumer Analyst / Channel Surveillance Specialist, India Independent Insight

Pranav Bhavsar

Consumer Analyst / Channel Surveillance Specialist

India Independent Insight

India Independent Insight (Iii), is a collaborative initiative by Nitin Mangal and Pranav Bhavsar. Nitin Mangal is a SEBI registered Independent Analyst (SEBI Reg. INH 000004723) and Pranav Bhavsar is a SEBI registered Investment Advisor (SEBI Reg. INA 000011510). With Iii our endeavor is to deliver Independent & Unbiased research on Indian Mid to large cap companies. Iii typically provides counter consensus views which cover forensic research along with on-ground primary research. Our research process is a combination of a deep dive on accounting, governance and channel checks.

Equity Bottom-Up

FSN E-Commerce Ventures (Nykaa) / Equity Bottom-Up

<ul>
<li>As part of our Narrative and Numbers themed Annual Report insights, we shift our focus to <a href="https://www.smartkarma.com/entities/fsn-e-commerce-ventures-nykaa" target="_blank" data-smartkarma-citation="entities:33796:1" rel="noopener">FSN E-Commerce Ventures (Nykaa) (NYKAA IN)</a>.</li>
<li>We focus on Nykaa Fashion due to its financial significance in spite of not being a material subsidiary warranting the need for board review on materiality policy.</li>
<li>Notable issues demanding scrutiny include (1) Declining Financials, (2) Inconsistent Reporting, (3) Misleading Narrative, and (4) Elevated Executive Compensation.</li>
</ul>


As part of our Narrative and Numbers themed Annual Report insights, we shift our focus to FSN E-Commerce Ventures (Nykaa) (NYKAA IN).
We focus on Nykaa Fashion due to its financial significance in spite of not being a material subsidiary warranting the need for board review on materiality policy.
Notable issues demanding scrutiny include (1) Declining Financials, (2) Inconsistent Reporting, (3) Misleading Narrative, and (4) Elevated Executive Compensation.


NYKAA IN | Nykaa Fashion Appears to Be Mismanaged and in Need of a Change

External broker reports(aggregated public sources), HDFC Securities

HDFC Securities

External broker reports(aggregated public sources)

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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>We recently met Nykaa’s management (Mar-23) to primarily track our core thesis and what it holds</li><li>Hence, our REDUCE rating on Nykaa stands with a DCF-based TP of INR110/sh (implying 157x FY25 P/E)</li><li>Our three-point thesis was (1) TAM seemed oversold (2) ad revenue will be closely contended for and (3) Nykaa seems more like an efficient pipe business than a platform</li></ul><p><em>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.</em></p>

We recently met Nykaa’s management (Mar-23) to primarily track our core thesis and what it holdsHence, our REDUCE rating on Nykaa stands with a DCF-based TP of INR110/sh (implying 157x FY25 P/E)Our three-point thesis was (1) TAM seemed oversold (2) ad revenue will be closely contended for and (3) Nykaa seems more like an efficient pipe business than a platformContent 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.

Fsn E-commerce Ventures: The going seems to be getting tougher! Maintain REDUCE

Fsn E-Commerce Ventures - The Going Seems to Be Getting Tougher! Maintain REDUCE

<ul>
<li>
<a href="https://www.smartkarma.com/entities/phonepe-pvt-ltd" target="_blank" data-smartkarma-citation="entities:34788:1" rel="noopener">Phonepe Pvt Ltd (1732974D IN)</a> 's new app, "Pincode", is based on the ONDC platform and offers hyperlocal e-commerce.</li>
<li>ONDC-Enabled Pincode could disrupt <a href="https://www.smartkarma.com/entities/zomato-ltd" target="_blank" data-smartkarma-citation="entities:28820:1" rel="noopener">Zomato (ZOMATO IN)</a> food delivery and grocery businesses.</li>
<li>Loyal restaurants may choose to offer discounts via ONDC, putting pressure on <a href="https://www.smartkarma.com/entities/zomato-ltd" target="_blank" data-smartkarma-citation="entities:28820:1" rel="noopener">Zomato (ZOMATO IN)</a>  and <a href="https://www.smartkarma.com/entities/bundl-technologies-private-limited-swiggy" target="_blank" data-smartkarma-citation="entities:35630:1" rel="noopener">Swiggy (1255298D IN)</a> to compete bringing back cash burn and discounting. </li>
</ul>



Phonepe Pvt Ltd (1732974D IN) 's new app, "Pincode", is based on the ONDC platform and offers hyperlocal e-commerce.
ONDC-Enabled Pincode could disrupt Zomato (ZOMATO IN) food delivery and grocery businesses.
Loyal restaurants may choose to offer discounts via ONDC, putting pressure on Zomato (ZOMATO IN)  and Swiggy (1255298D IN) to compete bringing back cash burn and discounting. 


Zomato (ZOMATO IN) | Houston, We Have A "Pincode" Problem

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.

Event-Driven

<ul>
<li>Multiple new agencies have been reporting that <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a> plans to trim its investment portfolio over the remainder of the year. </li>
<li>The reports have been coming in since the second half of the year and the company has been duly denying these rumors.</li>
<li>In this note, we look at Tencent’s shareholding in various companies to try and gauge which ones it could sell out of and how.</li>
</ul>


Multiple new agencies have been reporting that Tencent (700 HK) plans to trim its investment portfolio over the remainder of the year. 
The reports have been coming in since the second half of the year and the company has been duly denying these rumors.
In this note, we look at Tencent’s shareholding in various companies to try and gauge which ones it could sell out of and how.


Tencent Investee Selldown - The US$120bn Global Overhang

India

FSN E-Commerce Ventures Private Limited providese-retailing beauty and personal care solutions. The Company offers comprehensive selection of makeup, skin and hair care, bath body, fragrance, grooming appliances, personal care, and health and welness categories. FSN E-Commerce Ventures serves customers worldwide.

FSN E-Commerce Ventures (Nykaa) (NYKAA IN)

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FSN E-Commerce Ventures (Nykaa) (NYKAA IN)

NYKAA IN | Nykaa Fashion Appears to Be Mismanaged and in Need of a Change

We highlight concerns about FSN E-Commerce Ventures (Nykaa), focusing on Nykaa Fashion's declining financials, inconsistent reporting, misleading...

Pranav Bhavsar

Fsn E-commerce Ventures: The going seems to be getting tougher! Maintain REDUCE

We recently met Nykaa’s management (Mar-23) to primarily track our core thesis and what it holds. Hence, our REDUCE rating on Nykaa stands with a...

HDFC Securities

Fsn E-Commerce Ventures - The Going Seems to Be Getting Tougher! Maintain REDUCE

We recently met Nykaa’s management (Mar-23) to primarily track our core thesis and what it holds. Hence, our REDUCE rating on Nykaa stands with a...

HDFC Securities

Zomato (ZOMATO IN) | Houston, We Have A "Pincode" Problem

Emergence of ONDC and PhonePe's Pincode app likely to disrupt food delivery and grocery businesses of Zomato and Swiggy, bringing back cash burn...

Pranav Bhavsar

Tencent Investee Selldown - The US$120bn Global Overhang

There have been multiple reports that Tencent (700 HK) plans to trim its investment portfolio over the remainder of the year. We look at Tencent's...

Sumeet Singh

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)