Consumer Analyst / Channel Surveillance Specialist, Trudence Capital Advisors

Pranav Bhavsar

Consumer Analyst / Channel Surveillance Specialist

Trudence Capital Advisors

Trudence Capital Advisors Private Limited is a SEBI-registered Research Analyst, holding SEBI registration number INH000015747. Our firm is dedicated to providing independent and unbiased research on Indian mid to large-cap companies. Trudence Capital is known for its counter-consensus views, with a focus on forensic research and on-ground primary investigations. Our research approach is thorough, involving detailed analysis of accounting practices and governance, alongside extensive channel checks.

Independent & Unbiased Research

Thematic (Sector/Industry)

<h3>About The Narrative</h3>
<p>Earnings conference calls are important sources that aid us in the identification of potential catalysts and drivers of stock returns. Every quarter we go through these transcripts and connect them with primary research with the objective of assessing on-ground reality against management commentary. </p>
<p>The edition focuses on key quotes from the earnings transcripts of <a href="https://www.smartkarma.com/entities/indiamart-intermesh-limited" target="_blank" data-smartkarma-citation="entities:27733:1" rel="noopener">IndiaMart (INMART IN)</a> / <a href="https://www.smartkarma.com/entities/just-dial-ltd" target="_blank" data-smartkarma-citation="entities:4070:1" rel="noopener">Just Dial Ltd (JUST IN)</a> / <a href="https://www.smartkarma.com/entities/makemytrip-ltd" target="_blank" data-smartkarma-citation="entities:23580:1" rel="noopener">Makemytrip Ltd (MMYT US)</a> / <a href="https://www.smartkarma.com/entities/info-edge-india-ltd" target="_blank" data-smartkarma-citation="entities:14461:1" rel="noopener">Info Edge India (INFOE IN)</a> </p>
<p>We have separated the quotes to highlight<em><strong> Business Performance, Business Model and New Developments, Margin and Outlook / Guidance. </strong></em></p>

About The Narrative
Earnings conference calls are important sources that aid us in the identification of potential catalysts and drivers of stock returns. Every quarter we go through these transcripts and connect them with primary research with the objective of assessing on-ground reality against management commentary. 
The edition focuses on key quotes from the earnings transcripts of IndiaMart (INMART IN) / Just Dial Ltd (JUST IN) / Makemytrip Ltd (MMYT US) / Info Edge India (INFOE IN) 
We have separated the quotes to highlight Business Performance, Business Model and New Developments, Margin and Outlook / Guidance. 

The Narrative | Q2 FY22 | India Internet - IndiaMart / Just Dial / Makemytrip / Info Edge India

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.

Equity Capital Markets

FSN E-Commerce Ventures (Nykaa) / Equity Capital Markets

<div><p><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) (1003622D IN)</a> provides e-retailing of beauty and fashion products through two verticals Nykaa (beauty and personal care) and Nykaa Fashion (apparel and accessories). Nykaa is the largest speciality beauty and personal care platform in India as measured by the value of products sold in the FY21 and in 5MFY22 (five months ending August), according to RedSeer.   </p></div><div>
<p>Nykaa will launch its IPO on 28 October. The IPO comprises a primary raise of Rs6,300 million ($84 million) with the remainder 42.0 million secondary shares. At the indicative price range of Rs1,085-1,125 per share, the gross proceeds are Rs51.8-53.2 billion ($691-714 million). An anchor placement of up to Rs23.4 billion ($312 million) will open on 27 October, and the IPO will close on 1 November. </p>
<p>In <a href="https://www.smartkarma.com/insights/nykaa-ipo-initiation-beauty-parade" target="_blank" data-smartkarma-citation="insights:58791" rel="noopener">Nykaa IPO Initiation: Beauty Parade</a>, we stated that Nykaa has a strong positioning in India’s e-commerce beauty products industry, underpinned by the strong brand recognition of the ‘Nykaa’ brand. The financial performance is solid with strong growth, rising margins and cash generation. These characteristics should enable Nykaa to hold its own against intensifying competition. We concluded that Nykaa has attractive fundamentals.</p>
</div><div><div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/nykaa-ipo-on-trend" target="_blank" data-smartkarma-citation="insights:59407" rel="noopener">Nykaa IPO: On Trend</a>, we stated that the recent results from the updated prospectus reinforce our view that Nykaa has the ability to deliver strong profitable growth. Our valuation analysis suggests that the IPO price range is attractive.</p></div></div>

FSN E-Commerce Ventures (Nykaa) (1003622D IN) provides e-retailing of beauty and fashion products through two verticals Nykaa (beauty and personal care) and Nykaa Fashion (apparel and accessories). Nykaa is the largest speciality beauty and personal care platform in India as measured by the value of products sold in the FY21 and in 5MFY22 (five months ending August), according to RedSeer.   
Nykaa will launch its IPO on 28 October. The IPO comprises a primary raise of Rs6,300 million ($84 million) with the remainder 42.0 million secondary shares. At the indicative price range of Rs1,085-1,125 per share, the gross proceeds are Rs51.8-53.2 billion ($691-714 million). An anchor placement of up to Rs23.4 billion ($312 million) will open on 27 October, and the IPO will close on 1 November. 
In Nykaa IPO Initiation: Beauty Parade, we stated that Nykaa has a strong positioning in India’s e-commerce beauty products industry, underpinned by the strong brand recognition of the ‘Nykaa’ brand. The financial performance is solid with strong growth, rising margins and cash generation. These characteristics should enable Nykaa to hold its own against intensifying competition. We concluded that Nykaa has attractive fundamentals.
In Nykaa IPO: On Trend, we stated that the recent results from the updated prospectus reinforce our view that Nykaa has the ability to deliver strong profitable growth. Our valuation analysis suggests that the IPO price range is attractive.

External broker reports(aggregated public sources), SMC Global

SMC Online

External broker reports(aggregated public sources)

Equity Bottom-Up

<p>retail loan growth may see good boost but overall loan may see mute performance. AUM may see moderate improvement. Disclaimer: This Research Report is for the personal information of the authorized recipient and doesn't construe to be any investment, legal or taxation advice to the investor. It is only for private circulation and use. The Research Report is based upon information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as such.</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>

retail loan growth may see good boost but overall loan may see mute performance. AUM may see moderate improvement. Disclaimer: This Research Report is for the personal information of the authorized recipient and doesn't construe to be any investment, legal or taxation advice to the investor. It is only for private circulation and use. The Research Report is based upon information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as such.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.

Estimated Result Impact April to June (2021)

Forensic Analyst, Trudence Capital Advisors

Nitin Mangal

Forensic Analyst

Forensic Accounting

<p>We had written about this largest 'B2B Market-Leader' back when it got listed in 2019. Since listing, <a href="https://www.smartkarma.com/entities/indiamart-intermesh-limited" target="_blank" data-smartkarma-citation="entities:27733:1" rel="noopener">IndiaMart (INMART IN)</a> has attracted a lot of eyes in the market, but the numbers in the last two years especially have been in line with our expectations of a slowdown. When it comes to the nitty-gritty of the operations, we have uncovered several operational discomforts that question whether the company is really growing? Or is it just reporting growth? Horrors of slowdown and de-growth which has been evident recently, is starting to haunt the company.</p>
<p>In this insight, we highlight several fundamental issues with the balance sheet and reported metrics (updated with the F21 results) that lead us to believe that company is no-where a giant of a growth company that the management believes. </p>
<p>IndiaMART may have reported a constant upsurge in the buyers and enquiries, alongside a formidable growth in PAT, but a closer look at the numbers, especially unreasonable trends in revenue growth, platform growth, collection and employee costs, tell us something else and leads us to believe that a slowdown was evident. Also as more and more financial information is available our core belief of reported accounts not reflecting reality is strengthened.</p>

We had written about this largest 'B2B Market-Leader' back when it got listed in 2019. Since listing, IndiaMart (INMART IN) has attracted a lot of eyes in the market, but the numbers in the last two years especially have been in line with our expectations of a slowdown. When it comes to the nitty-gritty of the operations, we have uncovered several operational discomforts that question whether the company is really growing? Or is it just reporting growth? Horrors of slowdown and de-growth which has been evident recently, is starting to haunt the company.
In this insight, we highlight several fundamental issues with the balance sheet and reported metrics (updated with the F21 results) that lead us to believe that company is no-where a giant of a growth company that the management believes. 
IndiaMART may have reported a constant upsurge in the buyers and enquiries, alongside a formidable growth in PAT, but a closer look at the numbers, especially unreasonable trends in revenue growth, platform growth, collection and employee costs, tell us something else and leads us to believe that a slowdown was evident. Also as more and more financial information is available our core belief of reported accounts not reflecting reality is strengthened.

IndiaMart InterMesh Ltd: Audible Phantom Notes

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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Event-Driven

<p>India has one of the most liquid single stock futures markets in the world and is the <a href="https://www.bloomberg.com/news/articles/2020-01-21/india-now-has-world-s-largest-derivatives-exchange-by-volume" target="_blank" rel="noopener">largest derivatives exchange in the world by volume</a>. Volumes are driven mainly by company promoters, arbitrageurs, and speculators. With a large retail presence, inclusion in the derivatives market gives these stocks a 'halo effect'.</p><p>Historically, inclusion in the Futures and Options (F&amp;O) segment has led to a rally in stock prices, while exclusion names have been sold off. Post the event, liquidity has shrunk on the names excluded from the F&amp;O segment.</p><p>In this Insight, we look at the criteria that stocks need to satisfy to be included in the F&amp;O segment in India, the impact of exclusions on the stock price, at a list of possible inclusions and exclusions in the near future and some possible trades, and the implications of inclusion on <a href="https://www.smartkarma.com/entities/dmart" target="_blank" rel="noopener" data-smartkarma-citation="entities:23656:1">Avenue Supermarts (DMART IN)</a>.</p>

India has one of the most liquid single stock futures markets in the world and is the largest derivatives exchange in the world by volume. Volumes are driven mainly by company promoters, arbitrageurs, and speculators. With a large retail presence, inclusion in the derivatives market gives these stocks a 'halo effect'.Historically, inclusion in the Futures and Options (F&amp;O) segment has led to a rally in stock prices, while exclusion names have been sold off. Post the event, liquidity has shrunk on the names excluded from the F&amp;O segment.In this Insight, we look at the criteria that stocks need to satisfy to be included in the F&amp;O segment in India, the impact of exclusions on the stock price, at a list of possible inclusions and exclusions in the near future and some possible trades, and the implications of inclusion on Avenue Supermarts (DMART IN).

India - Possible F&O Inclusions, Exclusions and Implications

India

Just Dial Ltd. operates a local search engine that provides comprehensive updated information. The Company offers a search engine that includes a variety of categories such as movies, hotels and resorts, taxis and car rentals, insurance, bars, and nightclubs. Just Dial markets its search engine to users throughout India.

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Just Dial Ltd (JUST IN)

The Narrative | Q2 FY22 | India Internet - IndiaMart / Just Dial / Makemytrip / Info Edge India

The edition focuses on key quotes from the earnings transcripts of IndiaMart / Just Dial Ltd / Makemytrip Ltd / Info Edge India

Pranav Bhavsar

Nykaa IPO: Valuation Insights

Nykaa will launch its IPO on 28 October to raise gross proceeds of $691-714 million. Our valuation analysis suggests that the IPO price range is...

Arun George

Estimated Result Impact April to June (2021)

retail loan growth may see good boost but overall loan may see mute performance. AUM may see moderate improvement. Disclaimer: This Research Report...

SMC Online

IndiaMart InterMesh Ltd: Audible Phantom Notes

IndiaMART may have reported a constant upsurge in the buyers and enquiries, alongside a formidable growth in PAT, but a closer look at the numbers...

Nitin Mangal

India - Possible F&O Inclusions, Exclusions and Implications

India has one of the most liquid single stock futures markets in the world and is the largest derivatives exchange in the world by volume. Volumes...

Brian Freitas

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)