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>W.W. Grainger's second-quarter financial performance in 2025 depicted a mixed yet stable operational stance amidst ongoing market uncertainties.</li><li>The company reported sales of nearly $4.6 billion, up 5.6% year-over-year, or 5.1% on a constant currency basis, which suggests a steady demand in its broad industrial customer base despite macroeconomic uncertainties.</li><li>Operating margins were recorded at 14.9%, with diluted EPS increasing by $0.21 to $9.97.</li></ul>

W.W. Grainger's second-quarter financial performance in 2025 depicted a mixed yet stable operational stance amidst ongoing market uncertainties.The company reported sales of nearly $4.6 billion, up 5.6% year-over-year, or 5.1% on a constant currency basis, which suggests a steady demand in its broad industrial customer base despite macroeconomic uncertainties.Operating margins were recorded at 14.9%, with diluted EPS increasing by $0.21 to $9.97.

W.W. Grainger’s Zoro Growth Engine – Can It Defy Market Challenges?

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

<ul>
<li>Based on 2025 revenue forecast of RMB24.1bn and the IPO price range, P/S is about 1.28-1.56x, higher than ZKH but lower than <a href="https://www.smartkarma.com/entities/ww-grainger-inc" target="_blank" data-smartkarma-citation="entities:20019:1" rel="noopener">Ww Grainger</a>. This is a reasonable valuation range.</li>
<li>The median IPO price range (HK$14.1/share) is a more likely/relatively safe outcome.This not only acknowledges JD Industrials’ leading position/growth story, but also partly reflects the market's perception of its challenges.</li>
<li>The IPO pricing is the result of seeking a balance between the "premium of industry leaders" and "its shortcomings".However, future valuation depends on whether JD Industrials can solve fundamental issues.</li>
</ul>


Based on 2025 revenue forecast of RMB24.1bn and the IPO price range, P/S is about 1.28-1.56x, higher than ZKH but lower than Ww Grainger. This is a reasonable valuation range.
The median IPO price range (HK$14.1/share) is a more likely/relatively safe outcome.This not only acknowledges JD Industrials’ leading position/growth story, but also partly reflects the market's perception of its challenges.
The IPO pricing is the result of seeking a balance between the "premium of industry leaders" and "its shortcomings".However, future valuation depends on whether JD Industrials can solve fundamental issues.


Pre-IPO JD Industrials - Thoughts on Valuation, IPO Pricing, and the Outlook

<ul><li>W.W. Grainger's first quarter of 2025 results reflect a performance largely in line with expectations, highlighting the environmental dynamics impacting the business.</li><li>Total company reported sales were up by 1.7% on a reported basis, equating to a 4.4% increase on a daily constant currency basis.</li><li>Operating margins were noted at a healthy 15.6%, with diluted earnings per share (EPS) rising by $0.24 to $9.86.</li></ul>

W.W. Grainger's first quarter of 2025 results reflect a performance largely in line with expectations, highlighting the environmental dynamics impacting the business.Total company reported sales were up by 1.7% on a reported basis, equating to a 4.4% increase on a daily constant currency basis.Operating margins were noted at a healthy 15.6%, with diluted earnings per share (EPS) rising by $0.24 to $9.86.

W.W. Grainger Inc. Shields Profits with Bold Moves in Pricing, Imports, & Market Targeting!

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.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/jingdong-jd-industrials-inc" target="_blank" data-smartkarma-citation="entities:36875:1" rel="noopener">JD Industrials (7618 HK)</a> raised around US$383m, after pricing in its Hong Kong IPO at the mid-point.</li>
<li>JDI is a leading industrial supply chain technology and service provider in China in terms of GMV in each year during the Track Record Period, according to CIC.</li>
<li>We looked at the company’s past performance in our earlier notes. In this note, we talk about the trading dynamics.</li>
</ul>



JD Industrials (7618 HK) raised around US$383m, after pricing in its Hong Kong IPO at the mid-point.
JDI is a leading industrial supply chain technology and service provider in China in terms of GMV in each year during the Track Record Period, according to CIC.
We looked at the company’s past performance in our earlier notes. In this note, we talk about the trading dynamics.


JD Industrials IPO Trading - Decent Pricing but Weakish Demand

<ul><li>W.W. Grainger Inc. delivered robust financial performance in 2024, demonstrating consistent strategic progress in response to fluctuating market dynamics.</li><li>The company achieved a total revenue of $17.2 billion, marking a 4.2% increase on a reported basis and a 4.7% increase on a daily organic constant currency basis.</li><li>The growth was driven by substantial contributions from both High-Touch Solutions and Endless Assortment segments, with the latter showing an impressive 11.6% rise in daily constant currency sales.</li></ul>

W.W. Grainger Inc. delivered robust financial performance in 2024, demonstrating consistent strategic progress in response to fluctuating market dynamics.The company achieved a total revenue of $17.2 billion, marking a 4.2% increase on a reported basis and a 4.7% increase on a daily organic constant currency basis.The growth was driven by substantial contributions from both High-Touch Solutions and Endless Assortment segments, with the latter showing an impressive 11.6% rise in daily constant currency sales.

W.W. Grainger Inc.: Expansion of Seller Coverage & Market Penetration & 5 Critical Factors Impacting Its Performance In 2025 & Beyond!

United States

W.W. Grainger, Inc. distributes maintenance, repair and operating supplies, and related information to the commercial, industrial, contractor, and institutional markets in North America.  The Company's products include motors, HVAC equipment, lighting, hand and power tools, pumps, and electrical equipment.

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Ww Grainger Inc (GWW US)

W.W. Grainger’s Zoro Growth Engine – Can It Defy Market Challenges?

W.W. Grainger's second-quarter financial performance in 2025 depicted a mixed yet stable operational stance amidst ongoing market...

Baptista Research

Pre-IPO JD Industrials - Thoughts on Valuation, IPO Pricing, and the Outlook

The IPO pricing of JD Industrials (HK$14.1/share) is in line with our analysis and is fairly priced in our view. However, as analyzed in the...

Xinyao (Criss) Wang

W.W. Grainger Inc. Shields Profits with Bold Moves in Pricing, Imports, & Market Targeting!

W.W. Grainger's first quarter of 2025 results reflect a performance largely in line with expectations, highlighting the environmental dynamics...

Baptista Research

JD Industrials IPO Trading - Decent Pricing but Weakish Demand

JD Industrials (7618 HK) raised around US$383m, after pricing in its Hong Kong IPO at the mid-point. Demand overall was weakish.

Sumeet Singh

W.W. Grainger Inc.: Expansion of Seller Coverage & Market Penetration & 5 Critical Factors Impacting Its Performance In 2025 & Beyond!

W.W. Grainger Inc. delivered robust financial performance in 2024, demonstrating consistent strategic progress in response to fluctuating market...

Baptista Research

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