Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>MercadoLibre Inc., a Latin America-based eCommerce platform, had an impressive financial performance in Q4 of 2023, ending the fiscal year on a high note.</li><li>The company saw a 42% increase in revenues, a considerable enhancement of its EBIT margin, and a steadfast growth in its base of active users, surpassing the 50 million mark in a single quarter for the first time.</li><li>This considerable growth was spearheaded by the company's Commerce and FinTech initiatives.</li></ul>

MercadoLibre Inc., a Latin America-based eCommerce platform, had an impressive financial performance in Q4 of 2023, ending the fiscal year on a high note.The company saw a 42% increase in revenues, a considerable enhancement of its EBIT margin, and a steadfast growth in its base of active users, surpassing the 50 million mark in a single quarter for the first time.This considerable growth was spearheaded by the company's Commerce and FinTech initiatives.

MercadoLibre Inc: Expanded Logistics Network

Asset Allocation & Fund Positioning, Copley Fund Research

Steven Holden

Asset Allocation & Fund Positioning

Copley Fund Research

Copley Fund Research provide research and data on asset allocation among Global and Emerging Market equity funds.  The analysis details absolute and relative positioning across countries, sectors and industries together with highly granular data on single stock and single fund allocations.  The data is updated monthly with time series going back to January 2011.

Global Research - Analysis of 165 prominent Global equity funds, combined AUM $335bn
GEM Research - Analysis of 127 prominent global EM equity funds, combined AUM $250bn

Asset Allocation - Global and GEM Equity

<ul>
<li>Despite MercadoLibre’s non-benchmark status, ownership among active EM managers has reached new highs.</li>
<li>MercadoLibre has been the beneficiary of significant manager rotation over the last year, with 131 funds increasing weights and 29 opening new positions.</li>
<li>MercadoLibre is now the 8th largest holding on an average weight basis and has recently overtaken AIA Group as the largest overweight stock position across all regions.</li>
</ul>


Despite MercadoLibre’s non-benchmark status, ownership among active EM managers has reached new highs.
MercadoLibre has been the beneficiary of significant manager rotation over the last year, with 131 funds increasing weights and 29 opening new positions.
MercadoLibre is now the 8th largest holding on an average weight basis and has recently overtaken AIA Group as the largest overweight stock position across all regions.


<ul><li>MercadoLibre delivered an all-around beat in the most recent quarterly result, marking a noteworthy blend of growth and profitability.</li><li>Mexico emerged as a standout performer with a remarkable revenue growth exceeding 60% year-on-year, while Brazil also exhibited commendable performance with a growth rate of approximately 40%.</li><li>The commerce sector experienced an acceleration in GMV and items sold growth across the primary geographies of operation during Q3.</li></ul>

MercadoLibre delivered an all-around beat in the most recent quarterly result, marking a noteworthy blend of growth and profitability.Mexico emerged as a standout performer with a remarkable revenue growth exceeding 60% year-on-year, while Brazil also exhibited commendable performance with a growth rate of approximately 40%.The commerce sector experienced an acceleration in GMV and items sold growth across the primary geographies of operation during Q3.

MercadoLibre Inc.: Unveiling the Secret Behind Their Exceptional Fintech and Commerce Boom! - Major Drivers

<ul><li>This is our first report on LatAm e-commerce major, MercadoLibre, Inc.</li><li>The company delivered a positive result and managed an all-around beat in the last quarter, showcasing robust revenue growth.</li><li>The company does have potential for solid margin expansion alongside growth rates that surpass the market average.</li></ul>

This is our first report on LatAm e-commerce major, MercadoLibre, Inc.The company delivered a positive result and managed an all-around beat in the last quarter, showcasing robust revenue growth.The company does have potential for solid margin expansion alongside growth rates that surpass the market average.

MercadoLibre Inc.: Initiation of Coverage - Business Strategy

Analysis on GARP with strong economic moats, Moat Investing

Moat Investing

Analysis on GARP with strong economic moats

We are a group of experienced investors that like to dig deeper into stocks to find growth stories at a reasonable price with strong economic moats. We also aim to conduct high-quality analysis by doing deep dive on valuations, key business drivers, risk/reward, and different future scenarios.

GARP with strong economic moats

<ul>
<li>Net Revenues reached $1.7 bln (102.6% YoY) on an FX neutral basis; Gross profit was $753 mln (44.3% margin), and the Income from operations was $166.2 mln ($99.4mln in Q1 20).</li>
<li>Net income before taxes was $138.9 mln ($89,3 mln in Q1 20); Net profit was $68.2 mln and Total Payment Volume was $17.5 bln, up 72% YoY on a FX neutral basis.</li>
<li>GMV was $7 billion, up 46% YoY on a FX neutral basis and the Unique active users reached 75.9 mln (+ 47,4% YoY);</li>
<li>Mercado Envios shipped over 230.5 mln items (+46.4% YoY) and Mobile Wallet delivered $2.9 bln in TPV (almost 200% growth YoY on a FX neutral basis.</li>
<li>Mercado Credito portfolio has reached $800 mln.</li>
</ul>


Net Revenues reached $1.7 bln (102.6% YoY) on an FX neutral basis; Gross profit was $753 mln (44.3% margin), and the Income from operations was $166.2 mln ($99.4mln in Q1 20).
Net income before taxes was $138.9 mln ($89,3 mln in Q1 20); Net profit was $68.2 mln and Total Payment Volume was $17.5 bln, up 72% YoY on a FX neutral basis.
GMV was $7 billion, up 46% YoY on a FX neutral basis and the Unique active users reached 75.9 mln (+ 47,4% YoY);
Mercado Envios shipped over 230.5 mln items (+46.4% YoY) and Mobile Wallet delivered $2.9 bln in TPV (almost 200% growth YoY on a FX neutral basis.
Mercado Credito portfolio has reached $800 mln.


MercadoLibre: Positive Q2 Results But Valuation Upside Is Now Limited

Brazil

MercadoLibre, Inc. operates an online trading site for the Latin American markets. The Company's website allows businesses and individuals to list items, conduct sales, and purchases online in either a fixed-price and auction format. MercadoLibre offers classified advertisements for motor vehicles, vessels, aircraft, and real estate, as well as online payment services.

MercadoLibre (MELI US)

MercadoLibre Inc: Expanded Logistics Network

MercadoLibre Inc., a Latin America-based eCommerce platform, had an impressive financial performance in Q4 of 2023, ending the fiscal year on a...

Baptista Research

MercadoLibre's Bullish Run Continues

MercadoLibre has been the beneficiary of significant manager rotation over the last year, overtaking AIA Group as the largest overweight stock...

Steven Holden

MercadoLibre Inc.: Unveiling the Secret Behind Their Exceptional Fintech and Commerce Boom! - Major Drivers

MercadoLibre delivered an all-around beat in the most recent quarterly result, marking a noteworthy blend of growth and profitability. Mexico...

Baptista Research

MercadoLibre Inc.: Initiation of Coverage - Business Strategy

This is our first report on LatAm e-commerce major, MercadoLibre, Inc. The company delivered a positive result and managed an all-around beat in...

Baptista Research

MercadoLibre: Positive Q2 Results But Valuation Upside Is Now Limited

Net Revenues reached $1.7 bln (102.6% YoY) on an FX neutral basis; Gross profit was $753 mln (44.3% margin), and the Income from operations was...

Moat Investing