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

<ul>
<li>Honasa Consumer (HC) is looking to raise about US$350m in its upcoming India IPO.</li>
<li>HC’s product portfolio includes products in the baby care, face care, body care, hair care, color cosmetics and fragrances segments. </li>
<li>In this note, we will talk about the positive aspects of the deal.</li>
</ul>


Honasa Consumer (HC) is looking to raise about US$350m in its upcoming India IPO.
HC’s product portfolio includes products in the baby care, face care, body care, hair care, color cosmetics and fragrances segments. 
In this note, we will talk about the positive aspects of the deal.


Honasa Consumer Pre-IPO - The Positives - New Age DTC Brand

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

Motilal Oswal

External broker reports(aggregated public sources)

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.

Equity Bottom-Up

Godrej Consumer Products / Equity Bottom-Up

<ul><li>Godrej Consumer (GCPL) is our top pick from our Staples Coverage Universe from a oneyear horizon</li><li>Recent sales growth momentum encouraging: After maintaining a Neutral view on GCPL for 10 years, we turned bullish on its prospects earlier this year</li><li>Mr Sudhir Sitapati’s medium-term focus would be on driving double-digit volume led growth primarily via penetration gains</li></ul><div class="content-highlight"><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></div>

Godrej Consumer (GCPL) is our top pick from our Staples Coverage Universe from a oneyear horizonRecent sales growth momentum encouraging: After maintaining a Neutral view on GCPL for 10 years, we turned bullish on its prospects earlier this yearMr Sudhir Sitapati’s medium-term focus would be on driving double-digit volume led growth primarily via penetration gainsContent 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.

Godrej Consumer: Investment Rationale Intact

External broker reports(aggregated public sources), IDBI Capital

IDBI Capital

<p>Godrej Consumer Products (GCPL) result was in-line with our estimates. India business continues to grow at high double digit on a base of 5%YoY driven by strong growth within categories of home care and personal care. GCPL continues to gain market share in soap and hair colour portfolio. In international market; except Indonesia market, which was impacted (zero revenue growth in CC) due to 2nd wave induced lockdowns, performance of other geographies remained promising (48-60%YoY). Gross margin witnessed sharp contraction despite 4-5% price hike during the quarter due to significant increase in raw material prices.</p><div class="content-highlight"><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></div>

Godrej Consumer Products (GCPL) result was in-line with our estimates. India business continues to grow at high double digit on a base of 5%YoY driven by strong growth within categories of home care and personal care. GCPL continues to gain market share in soap and hair colour portfolio. In international market; except Indonesia market, which was impacted (zero revenue growth in CC) due to 2nd wave induced lockdowns, performance of other geographies remained promising (48-60%YoY). Gross margin witnessed sharp contraction despite 4-5% price hike during the quarter due to significant increase in raw material prices.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.

Godrej Consumer Products: Q1FY22 Result Review

External broker reports(aggregated public sources), HDFC Securities

HDFC Securities

<p>Aditya Birla Capital: As outlined in our Initiation note, Aditya Birla Capital (ABCL) continues on its journey towards a credible makeover, driving consolidated return ratios closer to franchise potential over the next three years. We believe that ABCL is steadily repositioning its lending businesses towards retail and granular loans (58% of NBFC AUM towards Retail + SME + HNI; 29% of HF AUM towards affordable housing), likely to reflect in sustained improvement in franchise earnings. Although Q1FY22 was weak for insurers in general, we draw comfort from both of ABCL's insurance businesses steadily building their profitability trajectory (VNB margins +300bps YoY to -1.6% on account of better mix and all-time low loss ratios (40%) in the health insurance business).</p>
<div class="content-highlight"><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></div>

Aditya Birla Capital: As outlined in our Initiation note, Aditya Birla Capital (ABCL) continues on its journey towards a credible makeover, driving consolidated return ratios closer to franchise potential over the next three years. We believe that ABCL is steadily repositioning its lending businesses towards retail and granular loans (58% of NBFC AUM towards Retail + SME + HNI; 29% of HF AUM towards affordable housing), likely to reflect in sustained improvement in franchise earnings. Although Q1FY22 was weak for insurers in general, we draw comfort from both of ABCL's insurance businesses steadily building their profitability trajectory (VNB margins +300bps YoY to -1.6% on account of better mix and all-time low loss ratios (40%) in the health insurance business).
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.

HSIE Results Daily: Godrej Consumers, Cipla, GAIL, Gujarat Gas, Hindustan Petroleum Corporation,...

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<div><p><a href="https://www.smartkarma.com/entities/cheerwin" target="_blank" data-smartkarma-citation="entities:31314:1" rel="noopener">Cheerwin (6601 HK)</a> is a leading consumer household care company in China that develops and manufactures a variety of household care, personal care and pet care products. Cheerwin will commence trading on Wednesday, 10 March. Cheerwin priced its IPO at HK$9.20 and <a href="https://inews.hket.com/article/2896489/%E3%80%90%E6%96%B0%E8%82%A1IPO%E3%80%91%E6%9C%9D%E9%9B%B2%E9%9B%86%E5%9C%986601%E6%9A%97%E7%9B%A4%E8%B7%8C2%E6%88%90%E3%80%80%E4%B8%80%E6%89%8B%E8%9D%95%E7%B4%841000%E5%85%83?mtc=40001&amp;srkw=IPO%E6%9C%80%E5%BF%AB%E6%9C%80%E9%BD%8A" target="_blank" rel="noopener">opened around -18% lower</a> at HK$7.52 in the grey market. The poor grey market performance is perhaps unsurprisingly in light of the choppy market conditions. </p></div><div><p>In <a href="https://www.smartkarma.com/insights/cheerwin-group-ipo-initiation-the-itch-of-fate" target="_blank" data-smartkarma-citation="insights:48373" rel="noopener">Cheerwin Group IPO Initiation: The Itch of Fate</a>, we opined that Cheerwin has the right ingredients to offer investors a play on another subsegment of China’s household care industry. We concluded that Cheerwin’s fundamentals are attractive. In <a href="https://www.smartkarma.com/insights/cheerwin-group-ipo-valuation-insights" target="_blank" data-smartkarma-citation="insights:48633" rel="noopener">Cheerwin Group IPO: Valuation Insights</a>, we noted that the IPO price range is resonable.</p></div><div><div><div class="content-highlight"><p>In many ways, the timing of Cheerwin's listing is unfortunate as <a href="https://www.smartkarma.com/entities/blue-moon-group-holdings" target="_blank" data-smartkarma-citation="entities:29179:1" rel="noopener">Blue Moon Group Holdings (6993 HK)</a>'s shares have derated -18% since Cheerwin launched its bookbuild. Updating for the final IPO net raise, our base-case DCF derived price target of HK$10.15 per share. Our DCF sensitivity analysis shows that the IPO price remains reasonable and the grey market factors in conservative market share and margin forecasts. For investors with a longer-term horizon, we think that the grey market price represents good value. </p></div></div></div>

Cheerwin (6601 HK) is a leading consumer household care company in China that develops and manufactures a variety of household care, personal care and pet care products. Cheerwin will commence trading on Wednesday, 10 March. Cheerwin priced its IPO at HK$9.20 and opened around -18% lower at HK$7.52 in the grey market. The poor grey market performance is perhaps unsurprisingly in light of the choppy market conditions. In Cheerwin Group IPO Initiation: The Itch of Fate, we opined that Cheerwin has the right ingredients to offer investors a play on another subsegment of China’s household care industry. We concluded that Cheerwin’s fundamentals are attractive. In Cheerwin Group IPO: Valuation Insights, we noted that the IPO price range is resonable.In many ways, the timing of Cheerwin's listing is unfortunate as Blue Moon Group Holdings (6993 HK)'s shares have derated -18% since Cheerwin launched its bookbuild. Updating for the final IPO net raise, our base-case DCF derived price target of HK$10.15 per share. Our DCF sensitivity analysis shows that the IPO price remains reasonable and the grey market factors in conservative market share and margin forecasts. For investors with a longer-term horizon, we think that the grey market price represents good value. 

India

Godrej Consumer Products Limited manufactures personal care, hair care, household care and fabric care products. The Company's products include toilet soaps, cosmetics, shaving creams, talcum powder, household cleaners and fabric detergents.

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Godrej Consumer Products (GCPL IN)

Honasa Consumer Pre-IPO - The Positives - New Age DTC Brand

Honasa Consumer, a DTC beauty and personal care brand, is looking to raise about US$350m in its upcoming India IPO. In this note, we will talk...

Sumeet Singh

Godrej Consumer: Investment Rationale Intact

Godrej Consumer (GCPL) is our top pick from our Staples Coverage Universe from a oneyear horizon. Recent sales growth momentum encouraging..

Motilal Oswal

Godrej Consumer Products: Q1FY22 Result Review

Godrej Consumer Products (GCPL) result was in-line with our estimates. India business continues to grow at high double digit on a base of 5%YoY...

IDBI Capital

HSIE Results Daily: Godrej Consumers, Cipla, GAIL, Gujarat Gas, Hindustan Petroleum Corporation,...

Aditya Birla Capital: As outlined in our Initiation note, Aditya Birla Capital (ABCL) continues on its journey towards a credible makeover, driving...

HDFC Securities

Cheerwin Group IPO: Trading Debut

Cheerwin priced its IPO at HK$9.20 and opened around -18% lower at HK$7.52 in the grey market. For investors with a longer-term horizon, we think...

Arun George

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