Category

India

India: Swiggy, Powerlong Real Estate Holdings and more

By | Daily Briefs, India

In today’s briefing:

  • India Food Delivery – Bracing for Disruption (ONDC)
  • Weekly Wrap – 01 Jul 2022

India Food Delivery – Bracing for Disruption (ONDC)

By Pranav Bhavsar

  • The near term impact of ONDC on OFD platforms like Zomato & Swiggy is limited, longer term they will have to move from platform to a network centric model.
  • An external shock will be required to drive faster ONDC adaption as we have seen in the case of UPI.
  • Logistics companies especially the ones with express capabilities are likely beneficiaries in case ONDC scales up rapidly. 

Weekly Wrap – 01 Jul 2022

By Charles Macgregor

Lucror Analytics Weekly Wraps provide an overview of all Morning Views comments and reports published by our analyst team in the past week, and also showcase a list of the most-read reports.

In this Insight:

  1. Sunac China Holdings
  2. Shimao Property Holdings
  3. Powerlong Real Estate Holdings
  4. JSW Steel Ltd
  5. Tata Steel Ltd

and more…


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India: Zomato, Max Healthcare Institute and more

By | Daily Briefs, India

In today’s briefing:

  • Zomato Blinkit Deal: Stains Get More Murky
  • Max Healthcare (MAXHEALTH IN): 4QFY22 Review- Continued Growth Momentum; Better Profitability

Zomato Blinkit Deal: Stains Get More Murky

By Nitin Mangal

  • Zomato (ZOMATO IN) ‘s announcement to acquire Blinkit (BCPL) for all-stock deal worth INR 44.5 bn has rattled the market price of the stock in the trading sessions that followed.
  • While the management focuses on the cost synergies and the bigger picture, the acquisition has left several doubts, including the valuation and cash burning nature of Blinkit.
  • More importantly, it is the corporate governance that should be looked at, especially since this is an indirect RPT, as mentioned in our earlier report Zomato’s Investments Game: Stain on Governance.

Max Healthcare (MAXHEALTH IN): 4QFY22 Review- Continued Growth Momentum; Better Profitability

By Tina Banerjee

  • Max Healthcare Institute (MAXHEALT IN) reported Q4FY22 results in-line with expectations, with 12% revenue and 58% net profit growth. The EBITDA margin improved 70 basis points to 24.8% during Q4FY22.
  • Despite the Omicron, the average occupancy for the quarter stood at 68%, partly fueled by the international medical tourism bouncing back to ~90% of the pre-covid levels in March 2022.
  • The company plans to add over 2,800 beds in the next five years. For context, it has current bed capacity of 3,400. Capex will be funded through internal accrual.

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India: Hitachi Home & Life Solutions India Ltd, Dish TV India, Ultratech Cement and more

By | Daily Briefs, India

In today’s briefing:

  • Johnson Controls-Hitachi (JCHAC IN) | Irreparable Loss in Market Share
  • Dish TV: Promoters Left in the Dark, or Is There Something Else?
  • UltraTech Cement Ltd – Steep Correction Has Made Valuations Reasonable

Johnson Controls-Hitachi (JCHAC IN) | Irreparable Loss in Market Share

By Pranav Bhavsar

  • Our checks suggest Hitachi Home & Life Solutions India Ltd (JCHAC IN) has lost market share this season. 
  • Market share loss has come on the back of poor product quality due to focus on costs and competition, which is irreparable in spite of the strong dealer network. 
  • Poor capital allocation, high receivables and low-profit margins, all warrant attention. 

Dish TV: Promoters Left in the Dark, or Is There Something Else?

By Nitin Mangal

  • The legal tussle between promoters of Dish TV India (DITV IN) and Yes Bank (YES IN) has again entered into the limelight.
  • The promoters of Dish TV, after repeatedly attempting to block Yes Bank from voting, have been left in the dark by the Bombay High Court’s verdict. 
  • However, Mr. Goel still continues to sit on the board which irked several investors. This indicates that the story is not over and there are still some grey areas.

UltraTech Cement Ltd – Steep Correction Has Made Valuations Reasonable

By Nirmal Bang

  • Market share gains for Ultratech will be difficult going forward
  • Sizeable improvement in EBITDA/mt for Adani possible: Holcim group’s aggregate EBITDA/mt is ~Rs200/mt lower than Ultratech’s for the past three years or so.

  • Valuation multiples have room to grow for the combined ACC-Ambuja entity

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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India: Tata Power, KEI Industries, Mahindra & Mahindra and more

By | Daily Briefs, India

In today’s briefing:

  • NIFTY Quiddity Leaderboard Sep 2022: June Trades Successful; More to Come
  • KEI Industries Ltd- Forensic Review
  • Mahindra & Mahindra – New Model Scorpio-N Unveiled at Competitive Pricing

NIFTY Quiddity Leaderboard Sep 2022: June Trades Successful; More to Come

By Janaghan Jeyakumar, CFA

  • In this insight, we take a look at the names leading the race to become ADDs/DELs for the NIFTY 50, 100, and 500 Indices for the September 2022 Rebalance.
  • With only one month left in the reference period, most changes for the NIFTY 50 and NIFTY 100 Index seem to be high-conviction index changes.
  • In addition, I have discussed some trading opportunities with interesting potential index flow dynamics.

KEI Industries Ltd- Forensic Review

By Nitin Mangal

  • Kei Industries (KEII IN) has become a well known player in the cable industry.
  • However, if we look at the financials, there are several areas which catch attention as far as forensic checks are concerned.
  • Some of the key forensic takeaways include effect of mis-statement of cash flows, increase in receivables, change in inventory valuation, significant contingent liabilities etc.

Mahindra & Mahindra – New Model Scorpio-N Unveiled at Competitive Pricing

By Emkay

  • Scorpio-N manual transmission is priced competitively at Rs1.2-1.9mn for petrol versions and Rs1.25-1.95mn for diesel versions.
  • It is built on the new 3rd generation body-on-frame platform and has no carryover components from Scorpio Classic.
  • The petrol engine generates 149KW of power and 380NM of torque.

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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India: Life Insurance Corp of India (LIC), Agile Property Holdings, Gland Pharma Ltd, Tata Consumer Products and more

By | Daily Briefs, India

In today’s briefing:

  • S&P BSE Quiddity Leaderboard Dec 2022: LIC, Shriram Finance, Tata Motors, Dr Reddy’s, & More
  • Morning Views Asia: JSW Steel Ltd, SJM Holdings, Tata Steel Thailand
  • Gland Pharma – Multiple Levers at Play; Valuations Attractive
  • Tata Consumer Products – On Course for Growth

S&P BSE Quiddity Leaderboard Dec 2022: LIC, Shriram Finance, Tata Motors, Dr Reddy’s, & More

By Janaghan Jeyakumar, CFA

  • In this insight, we take a look at the names leading the race to become ADDs/DELs for the BSE SENSEX, 100, 200, and 500 Indices for the December 2022 Rebalance.
  • Life Insurance Corp of India (LICI IN) will be added to BSE 200 and BSE 500 at the end of this week. Below are more details on this.
  • In addition, I have discussed some trading opportunities with interesting potential index flow dynamics.

Morning Views Asia: JSW Steel Ltd, SJM Holdings, Tata Steel Thailand

By Charles Macgregor

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.


Gland Pharma – Multiple Levers at Play; Valuations Attractive

By Motilal Oswal

  • After delivering 27% earnings CAGR over FY17-22, GLAND is well-placed to sustain its earnings growth momentum over the next three-to-five years
  • It has been enhancing its offerings by adding complex products to its portfolio, scaling the product at the global level, expanding capacity to aid manufacturing, as well as increased backward integration.
  • While constraints on availability of certain materials may hinder performance over the near term, GLAND is in good stead for consistent performance over the next three-to-five years.

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.


Tata Consumer Products – On Course for Growth

By Motilal Oswal

  • TATACONS has made significant progress on key strategic initiatives laid out to build a focused consumer products company.
  • Strengthening and accelerating the core business: In FY22, TATACONS expanded into new target markets, launched regional focused packs, unveiled impactful campaigns across multiple platforms, and drove premiumization.
  • It met its direct reach commitment of 1.3m outlets in India by the end of Mar’22. It gained ~100bp/400bp market share in core categories such as Tea/Salt.

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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India: China South City, Sadbhav Engineering and more

By | Daily Briefs, India

In today’s briefing:

  • Morning Views Asia: China South City, HPCL-Mittal Energy Ltd
  • Sadbhav Engineering Ltd – Liquidity Issues at Peak, Asset Monetization Key to Survival

Morning Views Asia: China South City, HPCL-Mittal Energy Ltd

By Charles Macgregor

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.


Sadbhav Engineering Ltd – Liquidity Issues at Peak, Asset Monetization Key to Survival

By Nirmal Bang

  • Execution remains weak in FY22: SADE reported weak numbers for FY22 as revenue at Rs12.26bn declined by 25% YoY.
  • Orderbook value uncertain, extended delays in execution: As on 3QFY22, SADE had an order book of Rs85bn, reflecting 7x TTM book to bill ratio.
  • Leverage still remains high, liquidity issues persist: Net debt to EBITDA as on FY22 stood at 7x.

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.


Before it’s here, it’s on Smartkarma

India: Ramkrishna Forgings, Indika Energy and more

By | Daily Briefs, India

In today’s briefing:

  • Ramakrishna Forgings Ltd- Forensic Review
  • Weekly Wrap – 24 Jun 2022

Ramakrishna Forgings Ltd- Forensic Review

By Nitin Mangal

  • Ramkrishna Forgings (RMKF IN)  is primarily engaged in manufacturing and sale of forged components of automobiles, railway wagons & coach and engineering parts.
  • On inspection of the annual report, there were several red flags visible; pertaining to accounting and the overall health of the company.
  • Most prominent forensic checks included misstatement of operating cash flows, Debt alarms, working capital mis-management and some governance setbacks.

Weekly Wrap – 24 Jun 2022

By Charles Macgregor

Lucror Analytics Weekly Wraps provide an overview of all Morning Views comments and reports published by our analyst team in the past week, and also showcase a list of the most-read reports.

In this Insight:

  1. Fosun International
  2. Country Garden Holdings Co
  3. Logan Property Holdings
  4. China Jinmao Holdings
  5. Lifestyle International Holdings

and more…


Before it’s here, it’s on Smartkarma

India: Manak Waste Management, Indian Hotels, Ipca Laboratories, Tata Consumer Products and more

By | Daily Briefs, India

In today’s briefing:

  • Indian Recommerce Startup Nets $90m in Series E Money
  • Indian Hotel – Leveraging Brands Leading to Diversified Business
  • Ipca Laboratories – On Course to Revive Earnings Growth
  • Tata Consumer Products Ltd. – Continues to Make Progress on Strategic Priorities

Indian Recommerce Startup Nets $90m in Series E Money

By Tech in Asia

  • Cashify, an India-based recommerce marketplace, has closed a US$90 million series E round, which saw participation from NewQuest Capital Partners, Prosus, and Paramark Ventures.
  • The new funds will be used to further develop Cashify’s team, marketing efforts, technology infrastructure, and market expansion.
  • Founded in 2013 by Mandeep Manocha, Siddhant Dhingra, Nakul Kumar, and Amit Sethi, Cashify provides aftersale services such as repairs and buybacks to extend the lifespan of gadgets

Indian Hotel – Leveraging Brands Leading to Diversified Business

By Motilal Oswal

  • Hotel Brands (Traditional business): IH has introduced AHVAAN 2025 strategy, under which it expects to reach a portfolio of 300 hotels, comprising Taj (100), Vivanta and SeleQtions (75), and Ginger (125).
  • For details on AHVAAN 2025, refer to IH Analyst meet report.
  • As on 31st March 2022, IH has 20,581 rooms, after adding around 1,156 rooms in FY22.

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.


Ipca Laboratories – On Course to Revive Earnings Growth

By Motilal Oswal

  • The domestic formulation (DF) segment continues on its robust growth path, led by market share gain, favorable price hikes, addition of medical representatives (MRs), and its increased presence particularly in the cardiology segment.
  • The exports opportunity is expected to improve with increased product launches in the UK, new launches and market share gain in Russia, and industry outperformance in Africa branded generics market.
  • After 18% YoY decline in earnings in FY22, we expect 11% earnings CAGR over FY22- 24, led by 13%/8%/8% sales CAGR in DF, exports formulations, and API, respectively.

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.


Tata Consumer Products Ltd. – Continues to Make Progress on Strategic Priorities

By Nirmal Bang

  • Revenue growth drivers: The company expects low-to-mid single-digit growth in its international business while in the domestic business, the company anticipates double-digit growth
  • Distribution: Direct reach now stands at ~1.3mn outlets with a total numeric reach of ~2.7mn outlets.
  • Innovations: Innovations continue to see an improvement. TCPL started FY22 with innovations contributing 0.9% to sales, which has now increased to 2.7% while exiting the year.

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.


Before it’s here, it’s on Smartkarma

India: Bandhan Bank Ltd and more

By | Daily Briefs, India

In today’s briefing:

  • India Channel Insight #40 | Assam Floods and Impact on Financials

India Channel Insight #40 | Assam Floods and Impact on Financials

By Pranav Bhavsar

  • Our channels in Assam indicate a high impact of floods this year on the overall state economy. Normalcy is expected to take 4-5 months in order to be restored. 
  • Despite the high impact, Bandhan Bank Ltd (BANDHAN IN) may not see an increase in NPAs.
  • New recovery tools, changing regulations and customer mindsets are aiding faster than anticipated recovery even for older loans. 

Before it’s here, it’s on Smartkarma

India: Ashok Leyland, Keystone Realtors, L&T Finance Holdings and more

By | Daily Briefs, India

In today’s briefing:

  • Ashok Leyland (AL IN) | Outperforming but Warrants Caution
  • Keystone Realtors Pre-IPO Tearsheet
  • L&T Finance Holdings – Real Estate Asset Sale to Accelerate Retailization

Ashok Leyland (AL IN) | Outperforming but Warrants Caution

By Pranav Bhavsar

  • Ashok Leyland (AL IN) ‘s volumes recovered in FY22 thanks to a much milder than expected omicron wave and market share gains.
  • Discounting lead gains, the absence of retail fleet owners in the market, and little excitement around the scrappage policy all warrant caution. 
  • While the stock is currently outperforming, channel feedback and valuations point to caution. 

Keystone Realtors Pre-IPO Tearsheet

By Ethan Aw

  • Keystone Realtors (3324626Z IN)  is looking to raise about US$109m in its upcoming India IPO. The deal will be run by Axis Capital and Credit Suisse.
  • Keystone Realtors is a real estate developer which develops projects under the Rustomjee brand, with operations based solely in India.  
  • As of March 31, 2022, it has developed 20.05m sqft of residential buildings, premium gated estates, townships, corporate parks, retail spaces, schools, iconic landmarks and various other real estate projects.

L&T Finance Holdings – Real Estate Asset Sale to Accelerate Retailization

By Emkay

  • Apollo Global Management is in advanced talks with LTFH to acquire real estate loans worth Rs80-90bn in a deal pegged at $1bn, reported The Economic Times
  • The report suggests the deal is expected to be finalized in the next few weeks. 
  • The transaction will help LTFH get upfront cash, which it could use to deleverage the balance sheet and move toward its aim of becoming a retail-focused NBFC.

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.


Before it’s here, it’s on Smartkarma