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.

Thematic (Sector/Industry)

<ul><li>Aggregate revenue/EBITDA to grow by 9/4% on three-year CAGR: Our FMCG coverage universe is expected to deliver growth of 9/4% on three-year CAGR in revenue/EBITDA in Q1FY23 (vs 5/3% in Q1FY22 and 8/6% in Q4FY22)</li><li>Demand continued to be weak due to the elevated commodity pressure impacting affordability (particular in rural)</li><li>Thereby, the industry is witnessing a similar volume decline in Q1FY23 as seen in Q4FY22.</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.

Aggregate revenue/EBITDA to grow by 9/4% on three-year CAGR: Our FMCG coverage universe is expected to deliver growth of 9/4% on three-year CAGR in revenue/EBITDA in Q1FY23 (vs 5/3% in Q1FY22 and 8/6% in Q4FY22)Demand continued to be weak due to the elevated commodity pressure impacting affordability (particular in rural)Thereby, the industry is witnessing a similar volume decline in Q1FY23 as seen in Q4FY22.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.

FMCG & Alco Bev - Sustaining Pressure on Demand and Margin

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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Event-Driven

The Indian mutual fund industry has assets of almost INR 7.93 trillion (US$106.3bn) across Multi cap, Large Cap, Large and Mid Cap, Mid Cap, Small Cap and Flexi Cap equity schemes. Equity schemes classified as large cap need to have at least 80% of their assets invested in large cap stocks, large and mid cap schemes need to have at least 35% of their assets in large cap stocks and at least 35% in mid cap stocks, mid cap funds need to hold at least 65% of their assets in mid cap stocks, and small cap funds need to hold at least 65% of their assets in small cap stocks. Flexi cap funds can invest across market caps.The Association of Mutual Funds in India (AMFI) publishes the list of the stocks in each market cap segment in January and July each year and mutual funds have one month to rebalance their portfolios to adhere to the new categorization.We are just past halfway through the review period for the second half of 2021. Using data to the close on 4 October, at the next recategorization in January 2022, we see 10 stocks moving from the mid cap segment to the large cap segment, 11 stocks moving from the large cap segment to the mid cap segment , 11 stocks are expected to move from the small cap segment to the mid cap segment, with16 stocks moving from the mid cap to the small cap segment. <a href="https://www.smartkarma.com/entities/zomato-media-pvt" target="_blank" data-smartkarma-citation="entities:28820:1" rel="noopener">Zomato (ZOMATO IN)</a> will be a part of the large cap universe, while 4 other newly listed stocks will be a part of the mid cap universe.Historically, stocks moving to a higher market cap category have outperformed stocks that migrate to a lower market cap category over the back half of the review period. In some cases, the outperformance continues past the announcement of the changes as well. This can be attributed to fund managers realigning their portfolios to meet the new categorization. This provides opportunities to pre-position for the move and unwind post the announcement of the reclassification.

The Indian mutual fund industry has assets of almost INR 7.93 trillion (US$106.3bn) across Multi cap, Large Cap, Large and Mid Cap, Mid Cap, Small Cap and Flexi Cap equity schemes. Equity schemes classified as large cap need to have at least 80% of their assets invested in large cap stocks, large and mid cap schemes need to have at least 35% of their assets in large cap stocks and at least 35% in mid cap stocks, mid cap funds need to hold at least 65% of their assets in mid cap stocks, and small cap funds need to hold at least 65% of their assets in small cap stocks. Flexi cap funds can invest across market caps.The Association of Mutual Funds in India (AMFI) publishes the list of the stocks in each market cap segment in January and July each year and mutual funds have one month to rebalance their portfolios to adhere to the new categorization.We are just past halfway through the review period for the second half of 2021. Using data to the close on 4 October, at the next recategorization in January 2022, we see 10 stocks moving from the mid cap segment to the large cap segment, 11 stocks moving from the large cap segment to the mid cap segment , 11 stocks are expected to move from the small cap segment to the mid cap segment, with16 stocks moving from the mid cap to the small cap segment. Zomato (ZOMATO IN) will be a part of the large cap universe, while 4 other newly listed stocks will be a part of the mid cap universe.Historically, stocks moving to a higher market cap category have outperformed stocks that migrate to a lower market cap category over the back half of the review period. In some cases, the outperformance continues past the announcement of the changes as well. This can be attributed to fund managers realigning their portfolios to meet the new categorization. This provides opportunities to pre-position for the move and unwind post the announcement of the reclassification.

India: Stock Reclassification & Active Portfolio Management (Dec 2021)

External broker reports(aggregated public sources), ICICI Securities Ltd

ICICI Securities Limited

Equity Bottom-Up

Jubilant Pharmova Limited / Equity Bottom-Up

About the stock: Jubilant Pharmova is engaged in specialty pharmaceuticals, CDMO, generics, drug discovery and proprietary novel drug businesses.<ul><li>Formulations - 24% of FY21 revenues, Radiopharma and allergy therapy – 38%, and CDMO &amp; API – 33% of sales</li><li>It has six USFDA approved manufacturing facilities in India, US and Canada</li></ul><div class="content-highlight">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.</div>

About the stock: Jubilant Pharmova is engaged in specialty pharmaceuticals, CDMO, generics, drug discovery and proprietary novel drug businesses.Formulations - 24% of FY21 revenues, Radiopharma and allergy therapy – 38%, and CDMO &amp; API – 33% of salesIt has six USFDA approved manufacturing facilities in India, US and CanadaContent 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.

Jubilant Pharmova: Low Base, Covid Opportunities Drive Q1

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

Motilal Oswal

Jubilant Pharmova (JP) hosted an investor/analyst meet to discuss the business and strategic initiatives in key business segments. With the COVID disruption behind in key markets, JP expects radiopharma sales...<div class="content-highlight">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.</div>

Jubilant Pharmova (JP) hosted an investor/analyst meet to discuss the business and strategic initiatives in key business segments. With the COVID disruption behind in key markets, JP expects radiopharma sales...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.

Demand prospects favorable; execution remains the key

Equity L/S Analyst | Forensic Accounting | India, Yellowstone Equity

Ankit Agrawal, CFA

Equity L/S Analyst | Forensic Accounting | India

Forensic Accounting

Jubilant Pharmova Limited / Forensic Accounting

Jubilant group is a multi-billion-dollar conglomerate in India with a wide array of businesses across retail franchise (Domino's in India and some neighboring countries), pharma and life sciences, agrochemicals and performance polymers, retail dealership (Audi cars) as well as aviation consulting and oil &amp; gas offshore EPC services.
Its largest business, Domino's franchise, is listed through <a href="https://www.smartkarma.com/entities/jubilant-foodworks-ltd" target="_blank" data-smartkarma-citation="entities:986:1" rel="noopener">Jubilant Foodworks (JUBI IN)</a>. The pharma and life sciences business is conducted through listed entity <a href="https://www.smartkarma.com/entities/jubilant-life-sciences-ltd" target="_blank" data-smartkarma-citation="entities:6853:1" rel="noopener">Jubilant Life Sciences (JUBILANT IN)</a>. It also has another small listed entity, <a href="https://www.smartkarma.com/entities/jubilant-industries-ltd" target="_blank" data-smartkarma-citation="entities:2766:1" rel="noopener">Jubilant Industries (JIND IN)</a>, which is mainly into agrochemicals, IMFL (Indian made foreign liquor) and performance polymer business. Rest of the businesses like the Audi dealership, aviation consulting and offshore EPC services are conducted through private entities such as Jubilant MotorWorks, Jubilant Enpro, etc. that are owned by the promoters of Jubilant Group - Shyam Bhartia and Hari Bhartia.
Below we closely analyze the annual reports of Jubilant Life Sciences ("JLL") and Jubilant Industries and discuss certain related party transactions and accounting flags that are worth noting and probing further.

Jubilant group is a multi-billion-dollar conglomerate in India with a wide array of businesses across retail franchise (Domino's in India and some neighboring countries), pharma and life sciences, agrochemicals and performance polymers, retail dealership (Audi cars) as well as aviation consulting and oil &amp; gas offshore EPC services.
Its largest business, Domino's franchise, is listed through Jubilant Foodworks (JUBI IN). The pharma and life sciences business is conducted through listed entity Jubilant Life Sciences (JUBILANT IN). It also has another small listed entity, Jubilant Industries (JIND IN), which is mainly into agrochemicals, IMFL (Indian made foreign liquor) and performance polymer business. Rest of the businesses like the Audi dealership, aviation consulting and offshore EPC services are conducted through private entities such as Jubilant MotorWorks, Jubilant Enpro, etc. that are owned by the promoters of Jubilant Group - Shyam Bhartia and Hari Bhartia.
Below we closely analyze the annual reports of Jubilant Life Sciences ("JLL") and Jubilant Industries and discuss certain related party transactions and accounting flags that are worth noting and probing further. 

Jubilant Group: Related Party Transactions and Accounting Flags

India

Jubilant Pharmova Limited operates as a pharmaceuticals company. The Company offers products and services across the pharma value chain that includes manufacturing and supply of radiopharmaceuticals, developing therapies, and drug discovery and development services.

Jubilant Pharmova Limited (JUBLPHAR IN)

FMCG & Alco Bev - Sustaining Pressure on Demand and Margin

Demand continued to be weak due to the elevated commodity pressure impacting affordability (particular in rural). Thereby, the industry is...

HDFC Securities

India: Stock Reclassification & Active Portfolio Management (Dec 2021)

Halfway through the review period, we take a look at stocks that could migrate across the large, mid and small cap segments. With over US$100bn of...

Brian Freitas

Jubilant Pharmova: Low Base, Covid Opportunities Drive Q1

Jubilant Pharmova is engaged in specialty pharmaceuticals, CDMO, generics, drug discovery and proprietary novel drug businesses.

ICICI Securities Limited

Demand prospects favorable; execution remains the key

Jubilant Pharmova (JP) hosted an investor/analyst meet to discuss the business and strategic initiatives in key business segments. With the COVID...

Motilal Oswal

FMCG & Alco Bev - Sustaining Pressure on Demand and Margin

Demand continued to be weak due to the elevated commodity pressure impacting affordability (particular in rural). Thereby, the industry is...

HDFC Securities

India: Stock Reclassification & Active Portfolio Management (Dec 2021)

Halfway through the review period, we take a look at stocks that could migrate across the large, mid and small cap segments. With over US$100bn of...

Brian Freitas

Jubilant Pharmova: Low Base, Covid Opportunities Drive Q1

Jubilant Pharmova is engaged in specialty pharmaceuticals, CDMO, generics, drug discovery and proprietary novel drug businesses.

ICICI Securities Limited

Demand prospects favorable; execution remains the key

Jubilant Pharmova (JP) hosted an investor/analyst meet to discuss the business and strategic initiatives in key business segments. With the COVID...

Motilal Oswal

Jubilant Group: Related Party Transactions and Accounting Flags

A forensic analysis of Jubilant Group (Promoter Group of Jubilant Foodworks & Jubilant Lifesciences) leads us to certain related party transactions...

Ankit Agrawal, CFA