India

• Swiggy (SWIGGY IN) raised around US$1.35bn in its India IPO in Nov 2024. The company now plans to raise another US$1bn worth of fresh funds.
• Swiggy is a business to commerce marketplace company offering users a platform for ordering grocery and household items and food delivery, through its on-demand delivery network
• In this note, we will talk about the deal dynamics and possible placement.

• Aequs has a strong integrated aerospace ecosystem and deep OEM ties, but consolidated margins remain weak due to low overseas utilisation and losses in the consumer vertical.
• A robust ₹4,200–4,500 Cr aerospace backlog and India cluster scale provide visibility, but working-capital stretch and customer concentration elevate execution risk.
• View: Operating-Leverage story; valuation upside (₹180–200) requires utilisation lift and margin recovery. OFS-heavy structure and promoter dilution temper near-term sentiment.

• Castrol India stands as a leading player in the Indian lubricant market, commanding a significant market share of approximately 20-22% driven by its powerful brand equity, extensive distribution network, and technological prowess inherited from its parent company, BP.
• The company demonstrates robust financial health characterized by consistent profitability, strong cash flow generation, and a debt-free balance sheet, enabling a generous dividend policy.
• While facing the long-term strategic challenge of the transition to electric vehicles (EVs), Castrol is proactively diversifying its portfolio by investing in EV fluids, auto care products, and vehicle servicing networks to mitigate future risks and capture new growth opportunities.

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• Dominant Regional Player with Diversified Revenue Streams: KSE Ltd. is a leading manufacturer of compound cattle feed in Southern India, with a growing presence in the dairy and coconut oil processing segments. This diversification provides a natural hedge against volatility in any single business line.
• Strong Financial Performance and Attractive Valuation: The company has demonstrated robust profit growth and maintains a healthy balance sheet with minimal debt. Trading at a significant discount to its peers, the stock presents a compelling value proposition for long-term investors.
• Favorable Industry Tailwinds: The Indian animal feed market is poised for significant growth, driven by rising demand for protein-rich diets, increasing livestock population, and a shift towards organized farming practices. KSE is well-positioned to capitalize on these trends.

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• PTL Enterprises operates a unique, low-risk business model, leasing its tyre manufacturing plant in Kerala to its associate company, Apollo Tyres Ltd., generating a stable and predictable rental income stream.
• The company is characterized by its high dividend yield and attractive valuation, trading at a significant discount to its book value. Its financial profile is robust, with virtually no debt and consistent profitability.
• The primary risk and key determinant of future performance is the heavy dependence on a single lessee, Apollo Tyres. The terms and renewal of the long-term lease agreement are critical to the company’s outlook.

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• Niche Player with Strong Recent Growth: Repco Home Finance has demonstrated robust growth in recent years, evidenced by a 3-year net income CAGR of 33.47%. The company focuses on the underserved self-employed and non-salaried segments in Tier-II and Tier-III cities, particularly in South India, which provides a pricing power advantage.
• Attractive Valuation with Improving Asset Quality: The company trades at a significant discount to fair value, with a Price-to-Book ratio of 0.61 and a Price-to-Earnings ratio of 4.55. Asset quality has shown marked improvement, with Gross Non-Performing Assets (GNPA) declining from a peak of 7% in FY22 to 4.1% in FY24.
• Key Risks Center on Concentration and Competition: The business faces risks from its high geographical concentration in South India (83% of its loan portfolio) and its reliance on the economically sensitive self-employed segment. Intense competition from larger banks and other Housing Finance Companies (HFCs) could pressure margins and growth.

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• Sukhjit Starch & Chemicals is a well-established player in the Indian starch industry with over seven decades of experience, making it one of the oldest and largest producers in the country. The company has a strong foothold in the maize-based starch and derivatives market, with a diverse product portfolio catering to various industries including food and beverage, pharmaceuticals, paper, and textiles.
• The company is strategically expanding its manufacturing capacities to meet the growing demand for starch and its derivatives. This expansion, coupled with a focus on high-value products and deeper penetration into Tier 2 and 3 cities, positions the company for future growth. The favorable global environment for the starch industry, due to higher corn costs in other major producing countries, presents an additional tailwind.
• Key risks for the company include the volatility of raw material prices, particularly maize, which constitutes a significant portion of its operating income. The company’s operating margins are susceptible to fluctuations in maize prices and changes in government regulations, such as the implementation of minimum support prices.

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• Ambika Cotton Mills (ACML) is a specialized manufacturer of premium compact and Elitwist cotton yarn, catering to high-end apparel makers globally, which affords it a niche position and pricing power compared to commodity yarn producers.
• The company demonstrates strong financial resilience with a historically conservative, low-debt approach, funding capacity expansions primarily through internal accruals and maintaining healthy profitability margins.
• Key risks include volatility in raw cotton prices, high dependence on a few large clients, and cyclical demand from the global textile industry, which has impacted recent financial performance.

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• There could be 19 constituent changes for the Nifty200 Momentum 30 Index that will be implemented at the close on 30 December.
• If all changes are on expected lines, one-way turnover is estimated at 64.2% and that will result in a round-trip trade of INR 163bn (US$1.8bn).
• The adds have outperformed the deletes in the short-term. With the index based on momentum, there could be further gains over the next couple of weeks.

• Brian Freitas has discussed in a recent insight the methodology changes for the NSE Nifty Bank Index that will be implemented starting from December 30.
• HDFC Bank (HDFCB IN) is one of the two stocks that passive trackers need to sell (the other is ICICI Bank Ltd).
• HDFC Bank (HDFCB IN) is falling this week, so we analyze our model’s WEEKLY support entry zones, to evaluate how much HDFC Bank can fall, for hedging or re-entry purpose. 

• Meesho has positioned itself as a value-shopping platform catering to rural consumers and small sellers. It charges the seller only for fulfillment and advertising while bringing value deals for consumers
• We believe Meesho has a right to win in the value-shopping category ahead of Flipkart/Amazon with its focus on pricing vs quality/convenience. However, it may not attract high-spending aspirational consumers
• IPO valuation at $5.6bn(5x FY25 sales) is relatively cheap vs listed e-commerce peers (6-13x). Closest peer Flipkart was most recently valued at $35bn (14x FY25 revenues).

• NLCIL has outlined a transformative Rs. 1.17 lakh crore capex plan and guided to a 42% PAT growth from FY26E to FY28E.
• This dual-pronged strategy balances India’s persistent base-load thermal power need with an aggressive pivot towards 10 GW of renewable energy by FY30.
• The substantial planned capacity additions and robust financial guidance suggest NLCIL is poised for material earnings expansion, necessitating a fresh look at long-term valuation multiples.

• NSE Indices has announced the methodology changes for the NSE Nifty Bank Index (NSEBANK INDEX) that will be implemented in 4 tranches starting in December.
• Yes Bank (YES IN) and Union Bank Of India (UNBK IN) will be added to the index to increase the number of constituents from 12 to 14.
• Passives need to sell HDFC Bank (HDFCB IN) and ICICI Bank Ltd (ICICIBC IN) while buying all the other stocks in the index.

• Meesho Ltd (1546271D IN) is looking to raise around US$607m in its upcoming India IPO. 
• Meesho is an e-commerce marketplace, offering a wide assortment of products ranging from low cost unbranded products, regional and national brands at affordable prices to consumers.
• In this note, we talk about the company’s historical performance.

• Dodla is entering a new growth phase with its Maharashtra plant, OSAM integration, premium value-added products, and stronger Africa operations, supported by a solid procurement network.
• With over 94% direct milk sourcing, better farmer yields through Orgafeed, and a rising VAP mix, Dodla is building a high-return, self-funded growth model.
• As capex peaks and free cash flows inflect post-FY27, Dodla is transitioning into a structurally compounding dairy platform with improving mix, margins, and regional balance.

• The record INR23,500 Cr order book, anchored by a structural demand shift for US data center gas pipelines, validates the company’s large-scale global capex strategy in the US and KSA.
• The pivot from cyclical line pipes to stable B2C (Sintex) and structurally funded growth drivers (Vision 2030, AI energy) fundamentally de-risks the earnings profile and warrants a higher valuation multiple.
• With net cash and improving ROCE, WCL is transitioning from a cyclical steel player to a quality infrastructure compounder; investors should focus on the strategic segment mix and execution speed.

• Meesho IPO will comprise a fresh issue of INR42.5B, and an OFS of 105.5M shares. The price band of the IPO has been fixed between INR105 and INR111 per share.
• Meesho’s IPO will open for subscription on Wednesday, December 3 and close on Friday, December 5. The IPO is scheduled to list on the stock exchanges on Wednesday, December 10.
• Meesho intends to utilize IPO proceeds for investment for cloud infrastructure, paying salaries of technology team, marketing and brand building initiative, and acquisition. The IPO is suitable for risk-seeking investors.

• Zydus is shifting its business from US generics toward sustained, high-margin revenue. This growth is driven by its specialty pipeline, chronic Indian business, and MedTech.
• The successful Phase 2(B)/3 trial of Saroglitazar for Primary Biliary Cholangitis (PBC) is the key near-term catalyst, promising a long-duration, high-margin revenue stream in the US specialty market.
• The transition to an innovation-led portfolio evidenced by robust pipeline, strong chronic growth in India, and the MedTech acquisition positions Zydus for a potential re-rating as earnings quality improves.

• Profitable Arbitrage: Generates positive FCF by monetizing logistics spreads (Valmo) and ad-tech, effectively acting as a profitable toll booth for unorganized retail rather than a traditional commission-based marketplace.
• The Moat: Monopolizes “India 2” (<INR 300 AOV) via low-cost logistics infrastructure, creating a defensive barrier against Amazon and Flipkart’s higher-cost premium models.
• Downside Risk: Supply-side flywheel is fragile; high return rates driving seller churn could pose significant threats to long-term sustainability.

• Tejas Networks is poised for significant growth, driven by a substantial contract from BSNL to supply 4G/5G Radio Access Network (RAN) equipment for 100,000 sites, which has led to a more than threefold increase in annual revenue.
• The company is a key beneficiary of the Indian government’s ‘Make in India’ and Production-Linked Incentive (PLI) schemes, which promote domestic manufacturing of telecom equipment and aim to reduce reliance on imports.
• Despite the massive revenue ramp-up, the company faces significant risks related to customer concentration, negative operating and free cash flows, and high working capital requirements, leading to increased short-term borrowings.

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• LG Electronics (LGEINDIA IN) went public on 14 October 2025 on NSE and has a current market cap of over $12bn.
• Inclusion in Global All-World is expected in June 2026 as it passes eligibility and thresholds.
• Earliest possible inclusion in Global Standard is February 2026; however, it is currently estimated to fail the float cap threshold.

• Mphasis Ltd (MPHL IN) is a global information technology (IT) services and consulting company that specializes in providing cloud and cognitive services to help enterprises undergo digital transformation. 
• It is majority-owned by the Blackstone Group, one of the world’s largest private equity firms.
• Key forensic takeaways include hints of aggressive revenue booking via unbilled receivables, risk of goodwill impairment, etc.

• India’s Nifty50 index reached an all-time high yesterday. However, many Indian stocks are near their 52-week lows. Many among them have strong forecast earnings growth, good balance sheets, attractive valuations.
• We screen 17 stocks with double digit forecast EPS growth, PEG < 1.4x, net debt to equity less than 50%. They are spread across construction, chemicals, healthcare, industrials and technology.
• The largest five are Deepak Nitrite (DN IN), Cohance Lifesciences, BASF India Ltd (BASF IN), Crompton Greaves Consumer Electricals (CROMPTON IN), Clean Science and Technology (CLEAN IN).

• Cordelia Cruises, India’s only domestic cruise operator, is going public through an IPO of Rs. 7.27 billion. It plans to triple its fleet by 2028, expanding its passenger capacity significantly.
• The Indian cruise market remains under-penetrated with a CAGR forecast of 35-40% from FY2025-2030, creating a prime opportunity for growth, especially for domestic players like Cordelia.
• The IPO is a crucial step for Cordelia to expand its fleet, cater to increasing demand, and capitalize on the underpenetrated Indian cruise market.

• Tata Capital Limited (TATACAP IN) went public on 13 October 2025 on NSE and has a current market cap of over $15bn.
• Partial inclusion in Global indices is expected in June 2026, as the security fails the float cap threshold in one Global index.
• Free float is projected to increase incrementally following lock-up expiries of anchor investors and pre-offer shareholders.

• Paytm is a leading digital payments and financial services company in India, evolving from a mobile wallet to a comprehensive ecosystem encompassing payments, commerce, and high-margin financial products like lending and insurance.
• The company is navigating an intensely competitive landscape, dominated by PhonePe and Google Pay in the UPI segment, and a dynamic regulatory environment overseen by the Reserve Bank of India.
• After a history of significant losses, recent quarterly results indicate a strategic shift towards profitability, driven by growth in financial services distribution and cost optimization, marking a potential inflection point for the company’s financial trajectory.

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• Olectra Greentech (OLECTRA IN) , part of the MEIL Group, has transformed from a power insulator manufacturer into a pioneer and leading player in India’s electric mobility segment.
• The company is primarily known as the largest pure-electric bus manufacturer in India, operating through a long-term technology partnership with China’s BYD Auto Industry Co Ltd.
• Heavy reliance of the company on its associates for the sale of EVs, along with supplier concentration warrants attention. However, cash flow generation is improving, which is a positive

• The structural shift in Dynamatic Technologies’ revenue mix is accelerating, with the high-margin Aerospace segment now contributing 82% of consolidated EBITDA in FY25, underpinned by major new contract industrialization.
• The premium valuation is justified by its annuity-like, high-barrier sole-supplier status for the Airbus A320 family and significant new program wins (Airbus A220 doors), providing a multi-decade visibility.
• DTL’s core value is increasingly diverging from its legacy segments; success hinges on efficient capital deployment in India and mitigating the persistent drag from its European Metallurgy business.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: Bharti Airtel, China Hongqiao, West China Cement
• UST yields fell for a fourth straight day, led by the front end, following reports that Kevin Hassett has emerged as the front-runner to be the next Fed chairman.
• The yield declines were also supported by soft September retail sales and PPI data.

• Sunil Mittal-led promoter entity, Indian Continent Investment (ICI) is looking to raise around US$806m via selling a 0.6% stake in Bharti Airtel (BHARTI IN).
• ICI had earlier sold around US$1bn in Feb and Aug 2025 while Singtel had sold US$1bn+ via 0.8% stake sales in Airtel in May 2025 and Nov 2025 as well.
• In this note, we run the deal through our ECM framework and comment on deal dynamics.

• SHK reported 12% revenue growth in H1 FY26, but the reported EBITDA margin was compressed due to significant, deliberate investments in new growth initiatives and higher insurance costs.
• The margin compression is temporary, a function of strategic, discretionary capex and opex, which are critical for achieving the management’s ambitious 18–20% EBITDA margin target by FY27–FY28.
• The market is discounting the value of this forward-looking investment phase; sustained execution on new capacity, coupled with global regulatory shifts favoring organized players, provides a strong catalyst path.

• Bajaj Housing Finance (BHF IN) is a priced to perfection narrative.
• The current valuation (37.3x P/E, 4.2x P/B) prices the stock for absolute perfection in an environment that is distinctly imperfect and rapidly deteriorating.
• A critical red flag highlighted in the Q2 transcript is the elevated annualized attrition rate.

• Strong Brand Equity and Distribution Network: Wim Plast leverages the widely recognized “Cello”brand, a household name in India for decades, coupled with a robust pan-India network of manufacturing units and depots, providing a significant competitive advantage.
• Attractive Valuation with Consistent Shareholder Returns: The company trades at a compelling valuation (P/E of 9.7x, P/B of 1.03x) compared to its peers. This is supported by a history of consistent dividend payments and a healthy payout ratio.
• Favorable Industry Dynamics vs. Modest Growth: While the Indian plastic furniture market is poised for strong growth driven by urbanization and rising incomes, the company has demonstrated relatively flat revenue growth in recent years, highlighting a potential gap between market opportunity and execution.

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• Bombay Burmah Trading Corporation (BBTC) is a diversified holding company of the Wadia Group, with its intrinsic value primarily derived from its ~50.5% stake in the fast-moving consumer goods (FMCG) major, Britannia Industries.
• The company trades at a significant and persistent discount to the market value of its underlying assets, offering potential for substantial value unlocking. However, this discount is perpetuated by the underperformance of its standalone businesses and concerns over capital allocation.
• BBTC’s standalone operations, mainly in tea plantations and auto-electric components, face industry-specific headwinds and have historically yielded modest returns, weighing on the consolidated financial performance and investor sentiment.

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• Advanced Enzyme Technologies is a leading Indian enzyme and probiotics manufacturer with a global footprint, serving over 700 customers in more than 45 countries. The company has a diversified business model, catering to various industries including human healthcare, animal nutrition, and food processing.
• The company is well-positioned to capitalize on the growing global demand for eco-friendly and natural solutions. The industrial enzymes market is projected to grow at a CAGR of 6-7% annually. Key growth drivers include a strong focus on R&D, expansion of its international presence, and potential inorganic growth opportunities.
• While the company demonstrates a strong financial profile with a net cash position and healthy margins, it faces risks from regulatory changes, raw material price volatility, and intense competition from larger global players.

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• In today’s Morning Views publication we comment on developments of the following high yield issuers: Delhi Int’l Airport
• UST yields fell yesterday, led by the long end, on the back of a solid 2-year note auction and surprisingly dovish comments from San Francisco Fed President Mary Daly. The yield on the 2Y UST declined 1 bp to 3.50%, while that on the 10Y UST was down 4 bps at 4.03%.
• Equities rose for a second day, as tech stocks recovered slightly from the prior week’s sell-off. The S&P 500 advanced 1.5% to 6,705, and the Nasdaq jumped 2.7% to 22,872.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: ReNew Energy, China Jinmao
• UST yields fell on Friday, led by the front end, after New York Fed President John Williams said he saw room for another rate cut in the near term, amid a softening labour market.
• The yield on the 2Y UST declined 6 bps to 3.53%, while that on the 10Y UST dropped 5 bps to 4.09%. Equities recovered on Friday, but remained down for the week. The S&P 500 and Nasdaq rose 1.0% and 0.9% to 6,603 and 22,273, respectively.
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• Capacite Infraprojects saw its highest-ever Q2 performance with 24% YoY income growth. It achieved nearly its full-year order inflow target of Rs. 3,500 crores in H1 FY26, signaling strong execution. 
• The Rs. 11,991 crores order book provides robust 4.5x revenue visibility, and a shift towards the upper end of the 16.5%-17.5% EBITDA margin guidance suggests improving operational efficiency and profitability.
• CIL is set for sustained, high-double-digit growth with major H2 FY26 project ramp-ups and a Rs. 4,000 crores FY28 revenue target, necessitating a focus on execution and working capital strategies.

• Khazanchi Jewellers posts a strong Q2FY26 with 46% revenue growth, 119% PAT surge, and a major 10,000 sq. ft. Chennai flagship store set to launch in Jan 2026.
• High-Margin retail and diamond segments are accelerating, supported by a stable B2B engine with 90% repeat orders, positioning the company for structural margin expansion and stronger long-term earnings visibility.
• Khazanchi enters a high-growth phase, with premiumisation, retail expansion, and strong execution driving sustainable profitability and transforming it from a wholesale-led player into a high-margin retail-focused jewellery brand.

• NARH delivered its best-ever quarter in Q2FY26, with 20.3% YoY revenue growth, 30.3% YoY EBITDA growth and margin expansion across India and Cayman.
• Margins improved even with limited capacity, showing stronger earnings quality. Cayman maintains over 40% margins, and India is preparing for a major INR 3,000 crore expansion phase.
• With India easing capacity limits, Cayman scaling, and the UK Practice Plus acquisition expanding global reach, NARH is evolving into a stronger multi-country healthcare platform with long-term growth potential.