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.

Equity Capital Markets

Kalyan Jewellers / Equity Capital Markets

In this report, we highlight few investment concerns that dents the appeal of <a href="https://www.smartkarma.com/entities/kalyan-jewellers" target="_blank" data-smartkarma-citation="entities:29714:1" rel="noopener">Kalyan Jewellers (KALYAN IN)</a> IPO, in our view, including Kalyan's highly competitive landscape that conspicuously fails to find a mention in its prospectus. We also argue why we disagree with the prospectus on the demand outlook for gold jewellery in India, going forward.<a href="https://www.smartkarma.com/entities/kalyan-jewellers" target="_blank" data-smartkarma-citation="entities:29714:1" rel="noopener">Kalyan Jewellers (KALYAN IN)</a>, a leading mass-market branded gold jewellery chain with presence across India and the Middle East, proposes to raise around USD250 mn at its upcoming IPO - Rs10 bn (USD150 mn) in fresh issue and Rs7.5 bn (USD 100 mn) in an offer for sale. Company's promoters will be offloading shares worth up to Rs2.5 bn, while Warburg Pincus owned Highdell Investment would sell up to Rs5 bn worth of shares.

In this report, we highlight few investment concerns that dents the appeal of Kalyan Jewellers (KALYAN IN) IPO, in our view, including Kalyan's highly competitive landscape that conspicuously fails to find a mention in its prospectus. We also argue why we disagree with the prospectus on the demand outlook for gold jewellery in India, going forward.Kalyan Jewellers (KALYAN IN), a leading mass-market branded gold jewellery chain with presence across India and the Middle East, proposes to raise around USD250 mn at its upcoming IPO - Rs10 bn (USD150 mn) in fresh issue and Rs7.5 bn (USD 100 mn) in an offer for sale. Company's promoters will be offloading shares worth up to Rs2.5 bn, while Warburg Pincus owned Highdell Investment would sell up to Rs5 bn worth of shares.

Kalyan Jewellers (IPO): Lacks Lustre. Look Beyond the Prospectus

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.

Kalyan Jewellers aims to raise around US$250m via a mix of selling new and existing shares in its Indian IPO. The company was established in 1993 and is backed by Warburg Pincus.The company is one of the largest jewellery companies in India based on FY20 (year ending Mar 2020) revenue, as per the Technopak report. As of Jun 2020, it had 107 showrooms across 21 states and union territories in India. It also had 30 showrooms in the Middle East.Earnings haven’t grown much over the past few years, as the company appears to have suffered from a strategic misstep. Furthermore, the recent COVID-19 induced lockdown wouldn’t have helped FY21 (period ending Mar 21) results either.Having said that, the industry remains highly fragmented with ample scope remaining for organised players, like Kalyan, to gain market share.In this note, I’ll talk about the company’s background and some of the above points.

Kalyan Jewellers aims to raise around US$250m via a mix of selling new and existing shares in its Indian IPO. The company was established in 1993 and is backed by Warburg Pincus.The company is one of the largest jewellery companies in India based on FY20 (year ending Mar 2020) revenue, as per the Technopak report. As of Jun 2020, it had 107 showrooms across 21 states and union territories in India. It also had 30 showrooms in the Middle East.Earnings haven’t grown much over the past few years, as the company appears to have suffered from a strategic misstep. Furthermore, the recent COVID-19 induced lockdown wouldn’t have helped FY21 (period ending Mar 21) results either.Having said that, the industry remains highly fragmented with ample scope remaining for organised players, like Kalyan, to gain market share.In this note, I’ll talk about the company’s background and some of the above points.

Kalyan Jewellers Pre-IPO - Strategy Missteps Led to Earnings Flatlining

India

Kalyan Jewellers is an Indian multinational jewellery company that designs, manufactures, and sells a wide range of gold, diamond, silver, platinum, and gemstone jewellery. The company utilizes a hyperlocal strategy to cater to regional consumer preferences across its extensive network of showrooms and online platforms. It was founded in 1993 and is headquartered in Thrissur, Kerala, India.

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Kalyan Jewellers (KALYANKJ IN)

Kalyan Jewellers (IPO): Lacks Lustre. Look Beyond the Prospectus

Report discusses Investment concerns that conspicuously fail to find a mention in Kalyan Jewellers' prospectus. We also disagree with the...

Devi Subhakesan

Kalyan Jewellers Pre-IPO - Strategy Missteps Led to Earnings Flatlining

Kalyan Jewellers aims to raise around US$250m via a mix of selling new and existing shares in its Indian IPO. The company was established in 1993...

Sumeet Singh

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