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

Equity Capital Markets

<ul>
<li>Groww is India's largest stockbroker with 13mn active users. It is progressing towards a full-stack investment platform, expecting to cross-sell multiple financial products to over 18mn users on its platform.</li>
<li>It is aggressively expanding into lending (MTF, LAS) and has recently acquired 'Fisdom' to offer premiumised wealth solutions (AIF, insurance, tax-filing). It also owns Groww AMC, offering debt/equity/Fixed income products.</li>
<li>At 33 times FY25 earnings, IPO is priced reasonably considering its deep penetration in the market (customers from 98% Pincodes) and strong ARPU and profitability supported by decent retention metrics.</li>
</ul>


Groww is India's largest stockbroker with 13mn active users. It is progressing towards a full-stack investment platform, expecting to cross-sell multiple financial products to over 18mn users on its platform.
It is aggressively expanding into lending (MTF, LAS) and has recently acquired 'Fisdom' to offer premiumised wealth solutions (AIF, insurance, tax-filing). It also owns Groww AMC, offering debt/equity/Fixed income products.
At 33 times FY25 earnings, IPO is priced reasonably considering its deep penetration in the market (customers from 98% Pincodes) and strong ARPU and profitability supported by decent retention metrics.


Groww IPO Review – India’s Largest & Fastest Growing Broker / Investment Platform.

Equity Analyst - Fundamental & Thematic, Sree Capital

Sreemant Dudhoria,CFA

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

<ul>
<li>This insight describes about <a href="https://www.smartkarma.com/entities/national-securities-depository-ltd-nsdl" target="_blank" data-smartkarma-citation="entities:39939:1" rel="noopener">NSDL (NSDL IN)</a> 's complete overhaul in top management team over the last 12 months.</li>
<li>The mandate for new team is to arrest the market share loss with new age/ discount brokers. The revised strategy seems to be working.</li>
<li>The IPO provides investors a front-row seat opportunity to witness this turnaround.</li>
</ul>


This insight describes about NSDL (NSDL IN) 's complete overhaul in top management team over the last 12 months.
The mandate for new team is to arrest the market share loss with new age/ discount brokers. The revised strategy seems to be working.
The IPO provides investors a front-row seat opportunity to witness this turnaround.


NSDL - New Management, Revised Strategy — The Battle for Market Share Continues

Market & Forensics Analyst, Beat the Street

Nimish Maheshwari

Market & Forensics Analyst

Beat the Street

Beat The Street was founded by Nimish Maheshwari and Sudarshan Bhandari, both of whom are Chartered Accountants by Profession, known for their expert analysis in the fields of Business, Sectoral analysis, and Corporate governance.

With a strong social media presence of 45,000+ Subscribers across various platforms, they are considered trusted voices in the industry. Their insights and analysis have been featured in some of India’s most prominent publications, including the Economic Times, Dalal Street Investment Journal, The Morning Context, and The Ken.

Their analysis on Bankrupt & Insolvent companies has been instrumental in saving investors from significant losses. They have a keen eye for identifying red flags and has identified exclusive redflags earlier in Vedanta, Nykaa, Dhani Services, Adani and many more.

Read Business Not Stock Prices

Thematic (Sector/Industry)

<ul>
<li>India's depository duopoly shows strong growth, with <a href="https://www.smartkarma.com/entities/national-securities-depository-ltd-nsdl" target="_blank" data-smartkarma-citation="entities:39939:1" rel="noopener">NSDL (NSDL IN)</a> leading in institutional assets and <a href="https://www.smartkarma.com/entities/central-depository-services" target="_blank" data-smartkarma-citation="entities:27902:1" rel="noopener">Central Depository Services (CDSL IN)</a> dominating the expanding retail investor base.</li>
<li>Financially, CDSL shows superior growth (37% revenue CAGR) and higher profitability margins, while NSDL has grown revenue at a 23% CAGR.</li>
<li>NSDL’s settlement value market share has declined to 66% from 82% in FY19, as competitor CDSL gains ground by partnering with high-volume, new-age retail brokers.</li>
</ul>


India's depository duopoly shows strong growth, with NSDL (NSDL IN) leading in institutional assets and Central Depository Services (CDSL IN) dominating the expanding retail investor base.
Financially, CDSL shows superior growth (37% revenue CAGR) and higher profitability margins, while NSDL has grown revenue at a 23% CAGR.
NSDL’s settlement value market share has declined to 66% from 82% in FY19, as competitor CDSL gains ground by partnering with high-volume, new-age retail brokers.


NSDL Vs. CDSL: Who Can Drive More Growth Ahead in This Duopoly?

<ul>
<li>SEBI asked Brokers to to be ‘true to the label’ in how they levy charges.</li>
<li>This can impact 10% of <a href="https://www.smartkarma.com/entities/zerodha" target="_blank" data-smartkarma-citation="entities:29664:1" rel="noopener">Zerodha (ZERO IN)</a> and 8% of <a href="https://www.smartkarma.com/entities/angel-one-ltd" target="_blank" data-smartkarma-citation="entities:33510:1" rel="noopener">Angel One (ANGELONE IN)</a> Topline.</li>
<li>Rationale behind this circular and its impact on the market.</li>
</ul>


SEBI asked Brokers to to be ‘true to the label’ in how they levy charges.
This can impact 10% of Zerodha (ZERO IN) and 8% of Angel One (ANGELONE IN) Topline.
Rationale behind this circular and its impact on the market.


SEBI’s New “True to Label” Circular: End of Zero Fee Era

External broker reports(aggregated public sources), HDFC Securities

HDFC Securities

External broker reports(aggregated public sources)

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Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

<ul><li>Zerodha is slated to clock revenue/PAT at ~INR55bn/25bn (+10/12% YoY) in FY23E.</li><li>Core revenue, at INR43bn (net of pass-through charges), comprises brokerage/float income/other charges at 63/27/10%.</li><li>Sharp moderation in average monthly demat additions at 140k-170k (vs. 320k-350k during 2020-2022) higher than industry levels.</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Zerodha is slated to clock revenue/PAT at ~INR55bn/25bn (+10/12% YoY) in FY23E.Core revenue, at INR43bn (net of pass-through charges), comprises brokerage/float income/other charges at 63/27/10%.Sharp moderation in average monthly demat additions at 140k-170k (vs. 320k-350k during 2020-2022) higher than industry levels.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

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Zerodha (ZERO IN)

Groww IPO Review – India’s Largest & Fastest Growing Broker / Investment Platform.

Groww, India's largest stockbroker by user base, is evolving into a complete investment platform with lending and wealth solutions. Is the IPO...

Himanshu Dugar

NSDL Vs. CDSL: Who Can Drive More Growth Ahead in This Duopoly?

India's depository duopoly sees NSDL leading in institutional assets, while CDSL dominates retail investors with superior growth and profitability.

Nimish Maheshwari

SEBI’s New “True to Label” Circular: End of Zero Fee Era

SEBI's new directive on transparent charges could significantly affect Zerodha and Angel One's revenue, prompting market analysis on the rationale...

Nimish Maheshwari

Zerodha: Outlook on Retail Broking

Zerodha is slated to clock revenue/PAT at ~INR55bn/25bn (+10/12% YoY) in FY23E. Core revenue, at INR43bn (net of pass-through charges), comprises...

HDFC Securities

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Groww IPO Review – India’s Largest & Fastest Growing Broker / Investment Platform.

​Groww, India's largest stockbroker by user base, is evolving into a complete investment platform with lending and wealth solutions. Is the IPO...

Himanshu Dugar

NSDL - New Management, Revised Strategy — The Battle for Market Share Continues

NSDL has moved sharply post listing. It is up 56% from the IPO price. The stock now trades (73x P/E FY25) at premium to CDSL (62x P/E FY25). One...

Sreemant Dudhoria,CFA

NSDL Vs. CDSL: Who Can Drive More Growth Ahead in This Duopoly?

​India's depository duopoly sees NSDL leading in institutional assets, while CDSL dominates retail investors with superior growth and profitability.

Nimish Maheshwari

SEBI’s New “True to Label” Circular: End of Zero Fee Era

​SEBI's new directive on transparent charges could significantly affect Zerodha and Angel One's revenue, prompting market analysis on the rationale...

Nimish Maheshwari

Zerodha: Outlook on Retail Broking

Zerodha is slated to clock revenue/PAT at ~INR55bn/25bn (+10/12% YoY) in FY23E. Core revenue, at INR43bn (net of pass-through charges), comprises...

HDFC Securities

Groww, India's largest stockbroker by user base, is evolving into a complete investment platform with lending and wealth solutions. Is the IPO...

India's depository duopoly sees NSDL leading in institutional assets, while CDSL dominates retail investors with superior growth and profitability.

SEBI's new directive on transparent charges could significantly affect Zerodha and Angel One's revenue, prompting market analysis on the rationale...