Smartkarma Daily Briefs

• The lock-up on the second half of the anchor investor allocation for Hyundai Motor India (HYUNDAI IN) ends after market close today and the shares will be available for sale tomorrow.
• The lock-up expiry further increases free float for the stock and there will be multiple index inclusions over the next few months.
• The largest index inclusion will be in February, followed by smaller inclusions in March and June. In total, passives will mop up around 16% of the float.

• LG Electronics (066570 KS) is looking to raise US$1.5bn+ via part-selling its stake in LG Electronics India IPO. 
• LG Electronics India (LGEI) was the market leader in India in major home appliances and consumer electronics (excluding mobile phones) in terms of volume in 1Q25, as per Redseer Report.
• In this note, we talk about the positive aspects of the deal.

• Tesla is once again reshaping the automotive and energy landscape with its latest wave of innovations that span from groundbreaking vehicle updates to advances in artificial intelligence and energy solutions.
• The company’s updated Model Y in China, a redesign aimed at maximizing efficiency, represents just one facet of its dynamic transformation.
• Recent Q3 2024 earnings discussions revealed record deliveries, improved vehicle safety metrics, and ambitious plans for scaling autonomous driving technologies and energy storage capabilities.

• Lock up expiry today of 21.2 million shares held by Hyundai Motor India (HYUNDAI IN)‘s anchor investors. This could improve free float to 17.5% with rest held by the parent.
• Hyundai India Management is positive about its CY2025 outlook and expects to grow by similar numbers or more in 2025 as it did in 2024. 
• Creta Electric’s launch is scheduled on Jan 17th; Hyundai hopes to replicate the growth and excitement seen with its original Creta model.

• Planet Fitness plans to open new stores over the next 10 years, with a focus on international markets and exploring new retail formats like off-mall locations
• The company aims to open 44 new clubs in 3Q24 and 260 clubs in the next 3 years
• PLNT’s price increase on memberships and aggressive new store development strategy position it for strong comp growth and expansion, capitalizing on the demand for fitness and wellness services.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Allied Blenders & Distillers (9844250Z IN) is shifting from mass-market spirits to premium offerings, leveraging IPO funds to reduce debt and boost margins amidst rising alco-beverage demand.
• This pivot could enhance profitability, thanks to stronger pricing power, higher brand recall, and sustained ROCE above capital costs within India’s highly regulated but fast-growing alcoholic beverage industry.
• Despite regulatory hurdles and stretched valuations, ABD’s balance sheet cleanup, premiumization strategy, and dominant mass-market presence suggest considerable long-term potential in India’s expanding alcohol sector.

• Q4 was the most challenging quarter for Upslope since early 2021 (peak of the SPAC/meme stock bubble).
• Longs underperformed and shorts dragged. Month-to-date performance has been similarly challenging (approximately -4% as of this writing).
• In addition to a tough market environment, I made mistakes that made things worse.

• Wayfair, the prominent online furniture retailer, has recently made headlines with its decision to exit the German market and restructure its global operations by cutting approximately 730 jobs.
• The move, aimed at reallocating resources towards more promising growth areas such as physical retail and key international markets, marks a significant strategic pivot amid a sluggish home furnishings sector.
• The German market, which contributed only a low single-digit percentage to the company’s overall revenue, has long posed challenges due to weak macroeconomic conditions and limited brand awareness.

• Health and Happiness’ (H&H) proposed tender offer and new notes issuance will extend its debt maturity profile and alleviate debt repayment pressure in FY 2026.
• In our view, the high tender offer price of 109.8 is to incentivise bondholders to tender and subscribe to the new notes.
• We see fair value for the proposed notes at c. 8%.

• Revenue decreased by 2.2% YoY to JPY42.5bn, while operating profit increased by 14.6% YoY to JPY4.0bn.
• PR and Advertising segment saw a 55.2% YoY increase in operating profit due to high-margin projects and cost reversals.
• Direct Marketing revenue fell 0.5% YoY, with Vitabrid’s Terminaria First sales growing 21.2% YoY in Q3.