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

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/trent-ltd" target="_blank" data-smartkarma-citation="entities:8410:1" rel="noopener">Trent Ltd (TRENT IN)</a> is a leading retail company in India known for its diverse range of fashion and lifestyle brands like Westside and Zudio. </li>
<li>With its own labels, operating efficiencies, and leverage at work, Trent has been able to expand its margins substantially. </li>
<li>We anticipate the strong operational performance to continue. We believe it will take a couple of years for peers to catch up to Trent's execution prowess.</li>
</ul>



Trent Ltd (TRENT IN) is a leading retail company in India known for its diverse range of fashion and lifestyle brands like Westside and Zudio. 
With its own labels, operating efficiencies, and leverage at work, Trent has been able to expand its margins substantially. 
We anticipate the strong operational performance to continue. We believe it will take a couple of years for peers to catch up to Trent's execution prowess.


Narrative and Numbers | Trent Ltd (TRENT IN) | FY24

<ul>
<li>The trade remains Long Nifty with a watch on earnings. </li>
<li>
<a href="https://www.smartkarma.com/entities/infosys-ltd" target="_blank" data-smartkarma-citation="entities:267:1" rel="noopener">Infosys Ltd (INFO IN)</a> reported a beat on revenues and a miss on EPS, heading into seasonally weak quarters is the pain now consensus? </li>
<li>Other names discussed include <a href="https://www.smartkarma.com/entities/delta-corp-ltd" target="_blank" data-smartkarma-citation="entities:4627:1" rel="noopener">Delta Corp Ltd (DELTA IN)</a>, <a href="https://www.smartkarma.com/entities/hdfc-asset-management-co-ltd" target="_blank" data-smartkarma-citation="entities:27027:1" rel="noopener">HDFC Asset Management Co Ltd (HDFCAMC IN)</a> and <a href="https://www.smartkarma.com/entities/dmart" target="_blank" data-smartkarma-citation="entities:23656:1" rel="noopener">Avenue Supermarts Ltd (DMART IN)</a>. </li>
</ul>


The trade remains Long Nifty with a watch on earnings. 

Infosys Ltd (INFO IN) reported a beat on revenues and a miss on EPS, heading into seasonally weak quarters is the pain now consensus? 
Other names discussed include Delta Corp Ltd (DELTA IN), HDFC Asset Management Co Ltd (HDFCAMC IN) and Avenue Supermarts Ltd (DMART IN). 


[Week 7] Namaste India 🙏 | Infosys Ltd (INFO IN) | Seasonal Sluggishness Now Consensus

<ul>
<li>The index seems to be finding support at 19,500 for the second consecutive week. Bullish momentum could resume when we close above 19,800 on the <a href="https://www.smartkarma.com/entities/nifty-index" target="_blank" data-smartkarma-citation="entities:23617:1" rel="noopener">NIFTY Index (NIFTY INDEX)</a> .</li>
<li>Names discussed include <a href="https://www.smartkarma.com/entities/titan-co-ltd" target="_blank" data-smartkarma-citation="entities:12630:1" rel="noopener">Titan Co Ltd (TTAN IN)</a>, <a href="https://www.smartkarma.com/entities/maruti-suzuki-india-ltd" target="_blank" data-smartkarma-citation="entities:733:1" rel="noopener">Maruti Suzuki India (MSIL IN)</a> and <a href="https://www.smartkarma.com/entities/metro-brands" target="_blank" data-smartkarma-citation="entities:35289:1" rel="noopener">Metro Brands (METROBRA IN)</a>.  </li>
<li>We also introduce the Earnings Diary which will be part of the publication, tracking estimates and narratives around over coverage. </li>
</ul>


The index seems to be finding support at 19,500 for the second consecutive week. Bullish momentum could resume when we close above 19,800 on the NIFTY Index (NIFTY INDEX) .
Names discussed include Titan Co Ltd (TTAN IN), Maruti Suzuki India (MSIL IN) and Metro Brands (METROBRA IN).  
We also introduce the Earnings Diary which will be part of the publication, tracking estimates and narratives around over coverage. 


[Week 6] Namaste India 🙏 | TTAN's Glittery Update and Earnings Workbook

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.

Equity Capital Markets

CarTrade Tech aims to raise around US$300m in its India IPO. The company is backed by Warburg Pincus and Temasek.
CarTrade Tech (CTT) is an online auto portal for sale of cars and two-wheelers in India. It is a multichannel auto platform with coverage and presence across vehicle types and value-added services through its various brands, namely: CarWale, CarTrade, Shriram Automall, BikeWale, CarTrade Exchange, Adroit Auto and AutoBiz.
In 4Q21 (period ending March 21), its platforms had an average of 31.99m unique visitors per month and 814,316 vehicles were listed for auction in FY 2021. 
Overall reported revenue grew by 96.9% in FY19 and was up another 22.6% in FY20. While 9M21 revenue points towards a YoY decline in revenue, its user growth has been progressively getting better throughout FY21 showing a strong rebound from COVID-19.
Although, most of the prior growth appears to have come via acquisitions. Were one to adjust for the acquisitions, the underlying growth doesn’t appear to be very strong.

CarTrade Tech aims to raise around US$300m in its India IPO. The company is backed by Warburg Pincus and Temasek.
CarTrade Tech (CTT) is an online auto portal for sale of cars and two-wheelers in India. It is a multichannel auto platform with coverage and presence across vehicle types and value-added services through its various brands, namely: CarWale, CarTrade, Shriram Automall, BikeWale, CarTrade Exchange, Adroit Auto and AutoBiz.
In 4Q21 (period ending March 21), its platforms had an average of 31.99m unique visitors per month and 814,316 vehicles were listed for auction in FY 2021. 
Overall reported revenue grew by 96.9% in FY19 and was up another 22.6% in FY20. While 9M21 revenue points towards a YoY decline in revenue, its user growth has been progressively getting better throughout FY21 showing a strong rebound from COVID-19.
Although, most of the prior growth appears to have come via acquisitions. Were one to adjust for the acquisitions, the underlying growth doesn’t appear to be very strong.

CarTrade Tech Pre-IPO - Acquisition Adjusted Growth Remains Low

Forensic Analyst, Trudence Capital Advisors

Nitin Mangal

Forensic Analyst

Forensic Accounting

<div class="content-highlight">
A.G.E. analysis is one of our proprietary evaluation tool where we look to provide a 360 degree view on a particular company. Using our in depth experience, we aim to provide a qualitative and quantitative overview of Accounting, Governance and Earnings. It is a quick forensic check on company's balance sheet strength and governance using our very own expertise and research framework.
</div>
<a href="https://www.smartkarma.com/entities/vmart-retail-ltd" target="_blank" data-smartkarma-citation="entities:1987:1" rel="noopener">Vmart Retail (VMART IN)</a> operates a chain of retail departmental stores in India, principally the Tier II and Tier III cities across the northern, eastern and western geographic regions of the country. The company engages predominantly in value-apparel retailing, while less than 10% of revenue also comes from kiranas, home furnishing, toys etc.
V-Mart has come a long way since its inception, and has lately put its foot on the aggressive expansion. The company has doubled its number of stores and total retail space within a span of five years, as it looks to tap the new cities and markets. However, the operational performance especially since F18 has been unsatisfactory to say the least. Revenue growth, margins and return ratios are all heading southwards. Even some of the key metrics such as transaction size, revenue and EBITDA per sq. ft., same store sales growth have deteriorated, and hence it seems that the operating leverage is not playing in favor of the company. The company also faces trouble from expensive recruitment and declining conversion rates.
V-Mart has not only been a victim of poor operational performance lately, but there are few accounting concerns as well seen in the balance sheet. V-Mart has been growing its inventory to a great extent the last 5 years which is why its cash conversion cycle has been elongated, unlike its peers. But more importantly, since the accounting/ valuation of inventory is done through FIFO method, (unlike the peers which use the weighted average method), increase in inventory has actually boosted the profitability.
Another accounting concern was noticed with respect to Ind AS 116- Leases, which is highly crucial for companies like V-Mart that have a leasing business model. The transition impact of Ind AS 116 has significantly lowered the PBT of the company, while generally it should more or less be the same. Upon deep dive, we have found that depreciation reported by the company is thought to be higher due to the estimates of useful lives.
Nonetheless, a bright spot was found with respect to FCFs that have been positive regularly lately, also giving importance to the peer comparison of important fundamentals, where V-Mart has emerged relatively stronger.


A.G.E. analysis is one of our proprietary evaluation tool where we look to provide a 360 degree view on a particular company. Using our in depth experience, we aim to provide a qualitative and quantitative overview of Accounting, Governance and Earnings. It is a quick forensic check on company's balance sheet strength and governance using our very own expertise and research framework.

Vmart Retail (VMART IN) operates a chain of retail departmental stores in India, principally the Tier II and Tier III cities across the northern, eastern and western geographic regions of the country. The company engages predominantly in value-apparel retailing, while less than 10% of revenue also comes from kiranas, home furnishing, toys etc.
V-Mart has come a long way since its inception, and has lately put its foot on the aggressive expansion. The company has doubled its number of stores and total retail space within a span of five years, as it looks to tap the new cities and markets. However, the operational performance especially since F18 has been unsatisfactory to say the least. Revenue growth, margins and return ratios are all heading southwards. Even some of the key metrics such as transaction size, revenue and EBITDA per sq. ft., same store sales growth have deteriorated, and hence it seems that the operating leverage is not playing in favor of the company. The company also faces trouble from expensive recruitment and declining conversion rates.
V-Mart has not only been a victim of poor operational performance lately, but there are few accounting concerns as well seen in the balance sheet. V-Mart has been growing its inventory to a great extent the last 5 years which is why its cash conversion cycle has been elongated, unlike its peers. But more importantly, since the accounting/ valuation of inventory is done through FIFO method, (unlike the peers which use the weighted average method), increase in inventory has actually boosted the profitability.
Another accounting concern was noticed with respect to Ind AS 116- Leases, which is highly crucial for companies like V-Mart that have a leasing business model. The transition impact of Ind AS 116 has significantly lowered the PBT of the company, while generally it should more or less be the same. Upon deep dive, we have found that depreciation reported by the company is thought to be higher due to the estimates of useful lives.
Nonetheless, a bright spot was found with respect to FCFs that have been positive regularly lately, also giving importance to the peer comparison of important fundamentals, where V-Mart has emerged relatively stronger.

India

V-Mart is a value retail chain in India, primarily targeting Tier II, III, and IV cities, offering fashion apparel, footwear, accessories, and general merchandise. The company also operates a digital marketplace platform. V-Mart was founded in 2002 and is headquartered in Gurugram, Haryana, India.

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V-Mart (VMART IN)

Narrative and Numbers | Trent Ltd (TRENT IN) | FY24

Trent Ltd in India stands out in retail with diverse brands like Westside and Zudio, showing strong margins and operational performance that peers...

Pranav Bhavsar

[Week 7] Namaste India 🙏 | Infosys Ltd (INFO IN) | Seasonal Sluggishness Now Consensus

The trade remains long Nifty. Names discussed include INFO, DMART, DELTACORP and HDFCAMC. The next two weeks are going to be busy as the full...

Pranav Bhavsar

[Week 6] Namaste India 🙏 | TTAN's Glittery Update and Earnings Workbook

Bullish momentum may resume if NIFTY Index closes above 19,800. Names discussed Titan Co Ltd, Maruti Suzuki India, and Metro Brands. Earnings...

Pranav Bhavsar

CarTrade Tech Pre-IPO - Acquisition Adjusted Growth Remains Low

CarTrade Tech aims to raise around US$300m in its India IPO. The company is backed by Warburg and Temasek, and claims to be the most popular auto...

Sumeet Singh

Forensic Analysis: V-Mart Retail Ltd

V-Mart has grown aggressively over the recent years, but the said growth has not augured well for the company, yielding questionable returns along...

Nitin Mangal

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Narrative and Numbers | Trent Ltd (TRENT IN) | FY24

​Trent Ltd in India stands out in retail with diverse brands like Westside and Zudio, showing strong margins and operational performance that peers...

Pranav Bhavsar

[Week 7] Namaste India 🙏 | Infosys Ltd (INFO IN) | Seasonal Sluggishness Now Consensus

The trade remains long Nifty. Names discussed include INFO, DMART, DELTACORP and HDFCAMC. The next two weeks are going to be busy as the full...

Pranav Bhavsar

[Week 6] Namaste India 🙏 | TTAN's Glittery Update and Earnings Workbook

​Bullish momentum may resume if NIFTY Index closes above 19,800. Names discussed Titan Co Ltd, Maruti Suzuki India, and Metro Brands. Earnings...

Pranav Bhavsar

CarTrade Tech Pre-IPO - Acquisition Adjusted Growth Remains Low

CarTrade Tech aims to raise around US$300m in its India IPO. The company is backed by Warburg and Temasek, and claims to be the most popular auto...

Sumeet Singh

Forensic Analysis: V-Mart Retail Ltd

V-Mart has grown aggressively over the recent years, but the said growth has not augured well for the company, yielding questionable returns along...

Nitin Mangal

Trent Ltd in India stands out in retail with diverse brands like Westside and Zudio, showing strong margins and operational performance that peers...

Bullish momentum may resume if NIFTY Index closes above 19,800. Names discussed Titan Co Ltd, Maruti Suzuki India, and Metro Brands. Earnings...