Equity Analyst - Fundamental & Thematic, Sree Capital

Sreemant Dudhoria

Equity Analyst - Fundamental & Thematic

Fundamental Research on Listed Indian Companies

Sree Capital

Sree Capital is a platform to share fundamental research on listed Indian companies. We do this research for our own investment

Equity Capital Markets

SBI Funds Management / Equity Capital Markets

<ul>
<li>This insight compares <a href="https://www.smartkarma.com/entities/sbi-funds-management-ltd" target="_blank" data-smartkarma-citation="entities:48001:1" rel="noopener">SBI Funds Management Ltd (360103Z IN)</a> with listed peers across multiple operational, functional and financial parameters.</li>
<li>We compare these companies across 9 parameters and highlight metrics where SBI Funds lead and where it lags.</li>
<li>Finally, we compare the valuation of these companies and present our view on listing price of the company.</li>
</ul>


This insight compares SBI Funds Management Ltd (360103Z IN) with listed peers across multiple operational, functional and financial parameters.
We compare these companies across 9 parameters and highlight metrics where SBI Funds lead and where it lags.
Finally, we compare the valuation of these companies and present our view on listing price of the company.


SBI Funds Management IPO – Comparison with Listed Peers

India focused: IPO, special situations, Stylus Holdings

Himanshu Dugar

India focused: IPO, special situations

Stylus Holdings

Stylus Holdings is a buy-side equity research firm. We offer bottom-up investment ideas as well as provide on demand equity research and portfolio tracking. 
At Stylus, our focus is to identify market dislocations that can generate 20+% IRR with a reasonable margin of safety. As part of our research process, we do a deep dive into the fundamentals of the company, evaluate their competitive positioning and assess their valuation.
Our investment team is led by Himanshu Dugar. Himanshu is a Chartered Accountant and a CFA charter holder. He has 10+ years of active experience in the stock market with stints at CRISIL Research, a S&P Global copmany and Miras Investments, a single family office based in Dubai.

Equity Research Firm

<ul>
<li>SBI Funds is India's largest AMC ($308bn AUM including $132bn MF AUM with 15.3% market share). It is also the largest PMS manager (39.7% share) and SIF platform (28% share)</li>
<li>The company has been losing market share in recent years due to underperformance in several equity schemes. Starting valuations are down at PE of 38x, while peers trade at 40-50x.</li>
<li>The issue opens on 14th July @ 575 per share. A secondary with both SBI and Amundi selling 10% stake each to be pared down in the next 3 years.</li>
</ul>


SBI Funds is India's largest AMC ($308bn AUM including $132bn MF AUM with 15.3% market share). It is also the largest PMS manager (39.7% share) and SIF platform (28% share)
The company has been losing market share in recent years due to underperformance in several equity schemes. Starting valuations are down at PE of 38x, while peers trade at 40-50x.
The issue opens on 14th July @ 575 per share. A secondary with both SBI and Amundi selling 10% stake each to be pared down in the next 3 years.


SBI Funds - IPO Review - Weak Performance Impacting AUM Momentum

<ul>
<li>This insight discusses about the broad structure of upcoming IPO of <a href="https://www.smartkarma.com/entities/sbi-funds-management-ltd" target="_blank" data-smartkarma-citation="entities:48001:1" rel="noopener">SBI Funds Management Ltd (360103Z IN)</a> .</li>
<li>The IPO will be open for subscription from 14 to 16 July.</li>
<li>This insight discusses about the company profile, various segments, shareholders &amp; Financial Snapshot. Finally, we discuss about what will drive the investment case for this IPO.</li>
</ul>


This insight discusses about the broad structure of upcoming IPO of SBI Funds Management Ltd (360103Z IN) .
The IPO will be open for subscription from 14 to 16 July.
This insight discusses about the company profile, various segments, shareholders &amp; Financial Snapshot. Finally, we discuss about what will drive the investment case for this IPO.


SBI Funds Management Limited IPO: First-Cut

Silver Point

Thomas J. Monaco

Silver Point is a boutique research firm that focuses on the broader financial services sector, with a particular focus on troubled institutions globally. 

Asia Ex Japan

Thematic (Sector/Industry)

*Reversing Course Again: On April 3, 2020, the European Insurance and Occupational Pensions Authority (EIOPA) - the European Union’s financial regulatory body which replaced the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) – in the context of the corona virus, released a statement urging insurers to “temporarily suspend all discretionary dividend distributions and share buybacks aimed at remunerating shareholders” in order to preserve capital. In an odd reversal of course, EIOPA has updated its commentary surrounding European insurance capital management; and  *Asia-Pacific Insurers Still At Risk: Asia-Pacific insurance counterparts previously acted in capital solidarity with their Western peer during COVID-19. Many Asia-Pacific insurers purchased USD-denominated assets in their desperate search for yield in this low/negative rate environment where the impact of credit default and ratings agency downgrades on their investment portfolios is likely to continue to be outsized and challenge capital their ratios. We are hopeful that the Asia-Pacific insurers - particularly in Japan, Australia, Taiwan, and South Korea – don’t behave as desperately as their European counterparts have.

*Reversing Course Again: On April 3, 2020, the European Insurance and Occupational Pensions Authority (EIOPA) - the European Union’s financial regulatory body which replaced the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) – in the context of the corona virus, released a statement urging insurers to “temporarily suspend all discretionary dividend distributions and share buybacks aimed at remunerating shareholders” in order to preserve capital. In an odd reversal of course, EIOPA has updated its commentary surrounding European insurance capital management; and  *Asia-Pacific Insurers Still At Risk: Asia-Pacific insurance counterparts previously acted in capital solidarity with their Western peer during COVID-19. Many Asia-Pacific insurers purchased USD-denominated assets in their desperate search for yield in this low/negative rate environment where the impact of credit default and ratings agency downgrades on their investment portfolios is likely to continue to be outsized and challenge capital their ratios. We are hopeful that the Asia-Pacific insurers - particularly in Japan, Australia, Taiwan, and South Korea – don’t behave as desperately as their European counterparts have. 

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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

With large parts of India still in lockdown, there have been apprehensions that there could be an increase in corporate defaults, especially from lower rated companies. Consequently, there has been a drop in liquidity in the corporate bond markets and increased redemptions from fixed income mutual fund schemes.A few hours ago, Franklin Templeton Mutual Fund announced its decision to wind up six schemes in its managed credit funds due to a dramatic and sustained drop in liquidity in the corporate bond market accompanied by continuous and heightened redemptions. All redemptions will be halted and investors will be paid off of proportionally and in a staggered manner as the underlying securities are sold, bonds mature, and coupons are received.Net assets in the six schemes amount to INR 308.5bn (US$4.07bn). The event will have far reaching implications for the Indian markets and the Mutual Fund industry.RBI's Targeted Long Term Repo Operation (TLTRO) 2.0 that is aimed at providing liquidity to small and mid sized Non Banking Financial Companies and Microfinance Institutions saw a bid to cover ratio of 0.5 yesterday with limited participation by banks, further highlighting a reluctance to lend in the current economic situation.

With large parts of India still in lockdown, there have been apprehensions that there could be an increase in corporate defaults, especially from lower rated companies. Consequently, there has been a drop in liquidity in the corporate bond markets and increased redemptions from fixed income mutual fund schemes.A few hours ago, Franklin Templeton Mutual Fund announced its decision to wind up six schemes in its managed credit funds due to a dramatic and sustained drop in liquidity in the corporate bond market accompanied by continuous and heightened redemptions. All redemptions will be halted and investors will be paid off of proportionally and in a staggered manner as the underlying securities are sold, bonds mature, and coupons are received.Net assets in the six schemes amount to INR 308.5bn (US$4.07bn). The event will have far reaching implications for the Indian markets and the Mutual Fund industry.RBI's Targeted Long Term Repo Operation (TLTRO) 2.0 that is aimed at providing liquidity to small and mid sized Non Banking Financial Companies and Microfinance Institutions saw a bid to cover ratio of 0.5 yesterday with limited participation by banks, further highlighting a reluctance to lend in the current economic situation.

India

Nippon Life India Asset Management Limited is one of India's largest asset management companies, serving as the investment manager for Nippon India Mutual Fund. The company offers a diversified suite of investment solutions including mutual funds, exchange-traded funds (ETFs), portfolio management services, alternative investment funds, pension funds, and offshore advisory mandates. It was founded in 1995 and is headquartered in Mumbai, India.

Nippon Life India Asset Management (NAM IN)

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Nippon Life India Asset Management (NAM IN)

SBI Funds Management IPO – Comparison with Listed Peers

SBI Funds Management IPO is getting listed today. The issue saw a very healthy over subscription of 41.73 times (overall). It is likely to list...

Sreemant Dudhoria

SBI Funds - IPO Review - Weak Performance Impacting AUM Momentum

SBI Funds, India's largest AMC, facing market share loss due to underperformance in equity schemes. Secondary offering at 575 per share with SBI...

Himanshu Dugar

SBI Funds Management Limited IPO: First-Cut

Insight into the upcoming IPO of SBI Funds Management Ltd, covering company profile, segments, shareholders, financial snapshot, and investment...

Sreemant Dudhoria

Asian Insurers – Mea, Mea EIOPA

ASIA INSURERS: On April 3, 2020, EIOPA temporarily suspended capital management activities," but just reversed course. Many Asia-Pacific insurers...

Thomas J. Monaco

India's Bear Stearns Moment

With large parts of India still in lockdown, there have been apprehensions that there could be an increase in corporate defaults, especially from...

Brian Freitas

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

SBI Funds Management IPO – Comparison with Listed Peers

SBI Funds Management IPO is getting listed today. The issue saw a very healthy over subscription of 41.73 times (overall). It is likely to list...

Sreemant Dudhoria

SBI Funds - IPO Review - Weak Performance Impacting AUM Momentum

​SBI Funds, India's largest AMC, facing market share loss due to underperformance in equity schemes. Secondary offering at 575 per share with SBI...

Himanshu Dugar

SBI Funds Management Limited IPO: First-Cut

​Insight into the upcoming IPO of SBI Funds Management Ltd, covering company profile, segments, shareholders, financial snapshot, and investment...

Sreemant Dudhoria

Asian Insurers – Mea, Mea EIOPA

ASIA INSURERS: On April 3, 2020, EIOPA temporarily suspended capital management activities," but just reversed course. Many Asia-Pacific insurers...

Thomas J. Monaco

India's Bear Stearns Moment

With large parts of India still in lockdown, there have been apprehensions that there could be an increase in corporate defaults, especially from...

Brian Freitas

SBI Funds, India's largest AMC, facing market share loss due to underperformance in equity schemes. Secondary offering at 575 per share with SBI...

Insight into the upcoming IPO of SBI Funds Management Ltd, covering company profile, segments, shareholders, financial snapshot, and investment...