Category

India

India: Bajaj Finance Ltd, CarTrade, LIC Housing Finance, TVS Motor , Firstsource Solutions, Laurus Labs, Marico Ltd, Shriram Transport Finance, Solar Industries India, Tech Mahindra and more

By | Daily Briefs, India

In today’s briefing:

  • Bajaj Finance: Undergoing Major Transformation Towards Becoming a Fintech Company
  • CarTrade Tech IPO Initiation: Shifting Gears
  • LIC Housing Finance – Unmitigated Disaster
  • TVS Motor: Weak Quarter Impacted by the Pandemic
  • Firstsource Solutions: Top Client De Growth Impacts Revenues
  • Laurus Labs: Strong Performance Driven by Formulations
  • HSIE Results Daily: Marico, JSW Energy, Container Corporation and More
  • Shriram Transport Finance Company Ltd. Rs Q1FY22 Result Update
  • Solar Industries India: Strong Earnings Momentum Continues
  • HSIE Results Daily 30 July 2021: Tech Mahindra, SRF Ltd, Colgate Palmolive and More

Bajaj Finance: Undergoing Major Transformation Towards Becoming a Fintech Company

By Ankit Agrawal, CFA

Bajaj Finance Ltd (BAF IN) reported weaker than expected Q1FY22 earnings led by weakening asset quality and subdued growth due to adverse impact from the second wave of COVID. On the other hand, it reported strong advancement in its next phase transformation of becoming an app based fintech ecosystem. With this app based ecosystem, we think BAF is gearing up to be the next big fintech in the country. If all goes well, we won’t be surprised to see BAF getting bigger than Paytm, PhonePe, etc. over time. BAF has an inherent advantage over its peers in the form of a large vetted and wealthy customer base as well as in-house products that can be tailored as per customer requirements. BAF’s fintech peers, on the other hand, acquire customers through significant discounts and cash burn. Also, these peers have limited in-house products and have to rely mostly on third-party products that provide limited leeway for customization. While, BAF’s current valuations are around fair at 65-70x on a normalized profit base (i.e. ex of COVID impact), we think BAF still has potential to surprise on earnings growth led by its new Fintech avatar. 


CarTrade Tech IPO Initiation: Shifting Gears

By Arun George

Cartrade (0056989Z IN) is a leading online destination for auto consumers in India. CarWale and BikeWale, key brands owned by CarTrade, ranked number one on relative online search popularity when compared to their key competitors over the last three years, according to Google Trends data. CarTrade’s shareholders include Warburg Pincus (34.44% of fully diluted shares), Temasek (26.48%), JP Morgan (11.93%) and March Capital (7.09%). 

CarTrade is looking to raise Rs28 billion ($375 million) through an IPO in India, according to press reports. The IPO comprises a pure offer for sale of 18.53 million shares by its existing shareholders and promoters. The IPO is set to launch on 9 August.  

India was the fifth largest car market in the world in 2019 and is forecasted to become the third-largest auto market in the world as measured by volume in 2025, according to RedSeer. The COVID-19 pandemic has also resulted in a shift in preference towards used cars as people limit their use of public transportation. Indian auto OEMs spent only 14% of their total ad budgets on digital advertising, which is significantly lower than the global average of 42% in 2020, according to RedSeer. 

The growing auto market combined with the rising penetration of digital ad spend presents an attractive opportunity for auto transaction platforms such as CarTrade. CarTrade is capitalising on this market opportunity as evidenced by its highly popular platforms, solid organic growth, strong margins and healthy cash generation. Overall, we think that CarTrade is an attractive play on India’s new economy sector.


LIC Housing Finance – Unmitigated Disaster

By Thomas J. Monaco

*Credibility Gap Widens: LIC Housing Finance (LICHF.IN) [LIC] reported FY 1Q22 bottom-line results of INR 1.5 bn, declining INR 2.5 bn (61.5%) linked quarter. Negative operating jaws, were the culprit, as costs increased INR 469 mn (21.1%) whilst revenues declined INR 2.6 bn (16.7%); and

*Very Negative Credit Delta: Despite the limited NCOs, net new NPLs at LIC still skyrocketed INR 44.7 bn or 190.3% on an annualized basis linked quarter significantly accelerating from a very high INR 12.6 bn (62.0%) during FY 4Q21. By our calculation, if the large blip in credit continues, LIC management ought to think about adding another INR 158 bn to the reserve – which amounts to 78% of stated equity at just 50% cover of NPLs.


TVS Motor: Weak Quarter Impacted by the Pandemic

By Chola Wealth Direct

Commodity cost impact and margins: The commodity cost impact in 1QFY22 was offset by a favorable product mix, cost-saving initiatives, and product price hikes. During the quarter & subsequently beginning Q2’FY22 the company undertook a price hike of 1.1% in Apr’21 and 2.4% in Jul’21. The management is confident of normalizing EBITDA margins, and recovery in volumes…

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.

Firstsource Solutions: Top Client De Growth Impacts Revenues

By ICICI Securities Limited

About the stock: Firstsource Solutions (FSL) provides business process services to BFSI, communication, media, tech and healthcare.

  • The company generates 68% revenues from the US and 31% from the UK
  • FSL has witnessed healthy revenue improvement (up 19% YoY in FY21) and 100 bps improvement in EBIT margins in FY21
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.

Laurus Labs: Strong Performance Driven by Formulations

By ICICI Securities Limited

About the stock: Laurus Labs operates in the segment of Generic APIs & FDFs (formulations), custom synthesis and biotechnology. Major focus in APIs is on ARV, oncology and other APIs.

  • It has eight manufacturing units (five FDA approved sites) with 61 DMFs, 27 ANDAs filed (two Para IV, seven first to file), 292 Patents filed (150 granted)
  • Laurus acquired Richore Life Sciences to diversify in area of recombinant animal origin free products, enzymes as well as building biologics CDMO
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.

HSIE Results Daily: Marico, JSW Energy, Container Corporation and More

By HDFC Securities

HSIE Results Daily Marico: Marico posted in-line revenue growth, however margin was a miss. Revenue/EBITDA grew by 31/3% (HSIE 31/7%). Domestic revenue and volume grew 31/21%, 7/2% 2-year CAGR, a good show despite the COVID pressure. PCNO saw volume growth of 12% YoY, albeit on a low base (- 11%), impacted by extended lockdowns in its core south and west markets. VAHO registered 35% YoY value growth (-32% in the base year) and saw 70bps share gain. Saffola remained a torchbearer (clocked 60/24% value/volume growth), aided by improved penetration and +450bps volume share gain.

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.

Shriram Transport Finance Company Ltd. Rs Q1FY22 Result Update

By Edelweiss

Asset quality outcome better than expectations

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.

Solar Industries India: Strong Earnings Momentum Continues

By ICICI Securities Limited

It also leads the exports share from India, which is around 70% in industrial explosive and initiating system It exports to 51 countries in the world and has recently expanded its…

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.

HSIE Results Daily 30 July 2021: Tech Mahindra, SRF Ltd, Colgate Palmolive and More

By HDFC Securities

HSIE Results Daily Tech Mahindra: We maintain a BUY rating on Tech Mahindra (TechM), based on better-than-expected revenue performance, healthy net-new deal wins (in both telecom and enterprise segments), and in-line margins. TechM delivered 3.9% QoQ CC growth, which was broad-based across verticals. The focus on large deal wins (net-new TCV of USD 815mn), following a healthy Q4 (Telefonica deal), improves growth visibility. The key attributes that underscore our positive outlook are (1) the largest deal win in the healthcare vertical (patient care modernisation); (2) healthy growth in BPS; (3) increase in intake of freshers after six quarters; (4) improvement in 5G related deals (~50% of telecom deals are related to 5G); and (5) continued growth momentum in enterprise segment, led by technology, BFSI and manufacturing verticals.

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: Cartrade, Religare Enterprises, Yes Bank, Aegis Logistics and more

By | Daily Briefs, India

In today’s briefing:

  • CarTrade Tech IPO- A Patchy Drive
  • Religare Enterprises: Will Fortunes Change?
  • Yes Bank’s New Owners Keep Overpaid Mismanagers in Place
  • Aegis Logistics Ltd. Rs Q1FY22 Result Update

CarTrade Tech IPO- A Patchy Drive

By Nitin Mangal

Internet IPOs are turning out to be the theme of the year in India so far. In yet another instance, Cartrade (0056989Z IN), operator of Carwale, and Bikewale lately received SEBI’s nod of floating the public issue.

Cartrade, along with its subsidiaries, operates an automotive digital ecosystem which connects automobile customers, OEMs, dealers, banks, insurance companies and other stakeholders. The Group owns and operates under several brands: CarTrade, CarWale, Shriram Automall, BikeWale, etc. Through these platforms, the group enables new and used automobile customers, vehicle dealerships, automotive manufacturers and other businesses to buy and sell their vehicles.

While the auto tech platforms have several players in the Industry, CarTrade is the first one in the line to get listed. The company also reported in the DRHP that it is the only competitor to boast a positive net income, while also ranking number one on relative online search popularity when compared to their key competitors over the period from April 2020 to March 2021. 

However, on the flip side CarTrade also undergoes several shortfalls on the balance sheet end. A simple forensic check of DRHP reveal issues like aggressive revenue recognition, worrying cash yield, fragile earnings, etc.


Religare Enterprises: Will Fortunes Change?

By Nitin Mangal

In our previous coverage on Religare Enterprises (RELG IN) in Religare Enterprises: Sustained Red Flags , we highlighted the red herrings that had tainted the group’s image and valuation as a whole. In the two years i.e. F17-19, REL has witnessed a bunch of malpractices and poor asset quality, which led to a demise in the value of stock. The distressed state of affairs had almost corrupted its NBFC arm, as RBI had placed a cap on the operations. The NBFC business was also tarnished by its auditors in the last few years, having constantly been on the receiving end of qualified opinions, several of them being repeated year on year. 

However, with the exit of ‘recognisable promoters’ and the entrance of the ‘new management’, REL has stepped up to clean itself, undergoing several measures to reinforce the confidence. Since most of the damage relating to the lending business is been done, and that other segments are doing better than ever including insurance IPO which just might be the savior, REL is set for a turnaround when one looks at the overall scheme of things.


Yes Bank’s New Owners Keep Overpaid Mismanagers in Place

By Hemindra Hazari

Pay obscene salaries to a favoured few, completely out of sync with the already inflated salary structure in the industry, silently watch as they bring the bank to near collapse – this was Yes Bank (YES IN) ’s policy for senior management. It is not surprising that this was done under the earlier CEO, Rana Kapoor. The surprise is that the some of the grossly overpaid mismanagers were gracefully allowed to continue in their posts under the new owners, the State Bank Of India (SBIN IN)-led consortium, including prominent names in private financial capital. Ashish Agarwal , the current Head-Wholesale Banking and the former Chief Risk Officer (CRO), who was also in charge of corporate credit appraisal, earned a salary (including staggered bonus) of nearly Rs 72 mn in FY2018, significantly higher than peers who were managing much larger balance sheets. Agarwal, who played a critical role in appraising and approving dodgy credit, has been allowed by the new board of  directors to continue (like some of his senior colleagues) on a reduced remuneration. It is shocking that the new consortium of owners, which includes Axis Bank Ltd (AXSB IN), Kotak Mahindra Bank (KMB IN), HDFC Limited (HDFC IN), ICICI Bank Ltd (ICICIBC IN)  and others, continues to employ an individual with such a track record.

While Rana Kapoor, the erstwhile CEO, was the main culprit, extravagantly paid individuals like Ashish Agarwal made their own contributions to the downfall of the bank by failing to raise stringent objections, complain directly to the banking regulator or resign from the bank. The attractive financial package that such individuals were rewarded with by a servile Nominations and Remuneration Committee compromised professionalism, and an incompetent/complicit Credit and Risk Management Committees failed in its oversight responsibilities.  

Supposedly, the free market rewards superior performance and punishes non-performance, but this role of the free market appears to have bypassed Yes Bank and its new board of directors.


Aegis Logistics Ltd. Rs Q1FY22 Result Update

By Edelweiss

Results in line, growth recovery expected from H2FY22

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: ABM Investama, Pfizer Limited, Mold Tek Packaging, Birlasoft, Dalmia Bharat, Coforge, Eris Lifesciences, Essel Propack, Dixon Technologies India Ltd and more

By | Daily Briefs, India

In today’s briefing:

  • Asia HY Trade Book – July 2021 – Lucror Analytics
  • Pfizer: Exemplary Performance with Strong Margins
  • Mold-Tek Packaging: New Client Additions to Drive Revenue
  • EARNINGS UPDATE- KPIT TECHNOLOGIES LTD 1QFY22
  • Coforge: Healthy Organic Performance, Robust Guidance
  • Dalmia Bharat: Healthy Operating Performance; New Capex To Provide Growth Thrust
  • Coforge: Sturdy Growth, Healthy Deal Pipeline
  • Eris Lifesciences (HOLD): Strong quarter; cut to HOLD post recent rally
  • Lower margins across regions, except AMESA
  • Dixon Technologies: Resilient Performance Amidst Challenging Times

Asia HY Trade Book – July 2021 – Lucror Analytics

By Charles Macgregor

The Asia HY Trade Book for the month of July includes a summary of our recommendations, as well as our high-conviction ideas. The report also features relative-value charts and lists of the bonds in the Lucror Asia HY index.


Pfizer: Exemplary Performance with Strong Margins

By ICICI Securities Limited

About the stock: Pfizer collectively addresses 15 therapy areas with a portfolio of over 150 products that include therapeutics & vaccines. The company has been continuously restructuring its portfolio in the last few years to improve the…

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.

Mold-Tek Packaging: New Client Additions to Drive Revenue

By ICICI Securities Limited

It was the first to introduce in-mould label (IML) decorative products and QR coded packaging products in India While new product launches helped drive profitability of the company,…

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.

EARNINGS UPDATE- KPIT TECHNOLOGIES LTD 1QFY22

By Chola Wealth Direct

Background: KPIT Technologies is leading is a global technology company providing software solutions that help mobility companies leapfrog towards autonomous, clean, smart and connected future. The major focus areas of the company are power train (Conventional and electrical), autonomous technology (vision and control systems), connectivity and diagnostics. The company’s focus sub verticals are Passenger cars, Commercial and Off-highway vehicles and New Mobility. KPIT derives 84.6% of its revenue from strategic top 21 clients.

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.

Coforge: Healthy Organic Performance, Robust Guidance

By ICICI Securities Limited

About the stock: Coforge offers system integration, apps & BPO services to BFSI, travel & healthcare verticals

  • Coforge’s revenues and PAT have grown at a CAGR of ~12% each over the past five years
  • Healthy OCF, EBITDA (~75%) and robust return ratios (RoCE > 20%)
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.

Dalmia Bharat: Healthy Operating Performance; New Capex To Provide Growth Thrust

By Axis Direct

We maintain our BUY rating on the stock, valuing the company at 13x FY23E EV/EBITDA, to arrive at a target price of Rs 2,370/share, implying an upside of 10% from the CMP.

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.

Coforge: Sturdy Growth, Healthy Deal Pipeline

By Axis Direct

We recommend a BUY and assign 37x P/E multiple to its FY23E earnings of Rs 139.5/share which gives a TP of Rs 5,220 /share, implying an upside of 10% from CMP

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.

Eris Lifesciences (HOLD): Strong quarter; cut to HOLD post recent rally

By BOB Capital Markets Ltd.

Q1 EBITDA/PAT growth strong at 22%/20% YoY to Rs 1.3bn/Rs 1.1bn, meeting street estimates

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.

Lower margins across regions, except AMESA

By Motilal Oswal

EPL Ltd. (EPLL) reported a weak operating performance in 1QFY22 on the back of higher other expenses due to an increase in freight costs and onetime expenses. Factoring in the 1QFY22 performance, we decrease our earnings estimate for FY22 by 6% on account of a slower pickup in volumes post the total shutdown in Colombia and the shutdown of its unit in Russia. On the other hand, we maintain our earnings estimate for FY23. We value the stock at 26x FY23E EPS to arrive at TP of INR320.

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.

Dixon Technologies: Resilient Performance Amidst Challenging Times

By Axis Direct

In Q1FY22, Dixon reported a Consolidated Revenues of Rs 1,867 Cr up 261% YoY/ down 11% QoQ, as the second wave of Covid-19 impacted growth in April and May’21 while the recovery was seen in Jun’21. While the Gross Margins were adversely impacted by 460 bps, the EBITDA margins, too, declined to 2.6% (Vs 3.3% in Q1FY21) due to change in product mix (higher share of LED TV’s having lower margins), negative operating leverage, and a sharp increase in RM costs. The PAT stood at Rs 18 Cr as against Rs 2 Cr in Q1FY21.

Given encouraging long-term potential but limited upside potential from CMP, we recommend a HOLD on the stock.

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: Allcargo Logistics, Devyani International, Kpit Technologies, Granules India, Dixon Technologies India Ltd, Anup Engineering, VST Industries, Indusind Bank, Navin Fluorine International, Sanofi India and more

By | Daily Briefs, India

In today’s briefing:

  • Allcargo (AGLL IN): Process Reinitiated! 70%+ Up Now. Should You Still Chase?
  • Devyani Pre-IPO – Thoughts on Valuation
  • KPIT Tech: Hitting All the Right Notes
  • On track to build product pipeline as well as capacity
  • Dixon Technologies: Broadening Revenue Streams
  • Anup Engineering: Decent Show Amid Challenging Environment
  • VST Industries: Volumes Recover Partly; Focus on High Priced Brands
  • IndusInd Bank: Steady Performance, Business Outlook Improving
  • Navin Fluorine: Non Legacy Business to Lead Show
  • Sanofi India: Decent Performance with Strong Margins

Allcargo (AGLL IN): Process Reinitiated! 70%+ Up Now. Should You Still Chase?

By Janaghan Jeyakumar, CFA

India-based integrated logistics company Allcargo Logistics (AGLL IN) received a “Delisting Proposal” from its Promoter Group (Shashi Kiran Shetty and Talentos Entertainment Private Limited) in August 2020. Since then, the stock has gained more than 70%. 

Source: Smartkarma

I have covered this situation three times since the Deal was announced (as indicated by the “①” markers in the figure above) taking a Bullish stance on all three occasions as I believed the stock was fundamentally undervalued on a growth-adjusted basis. 

Last week, the company announced that the Delisting Process has been “reinitiated” causing the share price to rise sharply.

So what does this mean and how does this affect the timeline and the upside potential of the event?

Read below to find out.  


Devyani Pre-IPO – Thoughts on Valuation

By Sumeet Singh

Devyani International Limited (DIL), Yum Brand’s largest franchisor in India, aims to raise around US$200m via its Indian IPO. The IPO will be a mix of primary and secondary shares. 

DIL operates a chain of quick service restaurants (QSRs) in India. Its core business is to operate KFC, Pizza Hut and Costa Coffee in India. It operated 655 stores across 155 cities in India, as of Mar 2021. These include 264 KFC stores, 297 Pizza Hut stores and 44 Costa Coffee stores. It also operates stores in Nepal and Nigeria for KFC and Pizza Hut. In addition, it also runs its own brands Vaango, Food Street, Masala Twist, Ile Bar, Amreli, and Ckrussh Juice Bar in India. Yum owns over 4% stake in the company.

In this note we will talk about valuations.


KPIT Tech: Hitting All the Right Notes

By Ankit Agrawal, CFA

KPIT reported strong Q1FY22 earnings. Overall, the earnings growth was led by margin expansion (EBITDA margin expanded to 17.3% vs 13.4% YoY) and high-teens QoQ revenue growth. The guidance also remains robust. While the stock has more than quadrupled since our initiation note KPIT Technologies: A Pure Play on Automotive Technology in Jun 2020, we believe the upside potential still remains significant.


On track to build product pipeline as well as capacity

By Motilal Oswal

Granules India (GRAN) delivered a better-than-expected 1QFY22 performance, led by better off-take in the Intermediates (PFI) and Finished Dosage (FD) segments. The impact of the sharp rise in key starting materials (KSM) for Paracetamol was offset by controlled opex, driving better-thanexpected profitability during the quarter. The improved availability of KSMs and new launches would further enhance the performance going forward. We marginally tweak our EPS estimate for FY22/FY23E, factoring in a) the easing of the supply situation for KSMs and b) higher logistic costs.

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.

Dixon Technologies: Broadening Revenue Streams

By ICICI Securities Limited

Dixon operates in both original equipment manufacturing (OEM) and original design manufacturing (ODM) Strong RoE, RoCE at ~20%, ~24%, respectively (three year’s average)…

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.

Anup Engineering: Decent Show Amid Challenging Environment

By ICICI Securities Limited

About the stock: Anup Engineering is one of the leading process equipment manufacturers with special focus on heat exchangers.

  • The company has a facility in Odhav, Gujarat and is currently in the process of making a greenfield expansion in Kheda
  • The company aims to achieve a topline target of | 1000 crore by 2025
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.

VST Industries: Volumes Recover Partly; Focus on High Priced Brands

By ICICI Securities Limited

About the stock VST Industries (VST) is among the oldest cigarette company in India, involved in manufacturing and marketing of cigarettes and also trading unmanufactured tobacco. Incorporated in 1930, it is an associate undertaking of…

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.

IndusInd Bank: Steady Performance, Business Outlook Improving

By ICICI Securities Limited

About the stock: IndusInd Bank is a Hinduja group promoted newer age private sector bank and is the fifth largest private bank in India.

  • Vehicle finance forms around 30% of overall loans
  • Strong pan-India presence with 5221 branches as on June 2021
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.

Navin Fluorine: Non Legacy Business to Lead Show

By ICICI Securities Limited

The company has two manufacturing facility in Surat and Dewas while it is setting up a new greenfield capacity at Dahej In terms of revenue contribution, speciality chemical constitutes 40% of overall revenue followed by CRAMS of 25% and rest from refrigerant (~18%) and inorganic fluoride (~17%) businesses Q1FY22 Results: Revenue was almost in line with our estimates while PAT came…

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.

Sanofi India: Decent Performance with Strong Margins

By ICICI Securities Limited

About the stock: Sanofi offers drugs in therapies like diabetes (insulins & orals), cardiology, thrombosis, anti-infective, CNS, allergy, vitamins, minerals & supplements.

  • Lantus, Allegra & Combiflam are in Top 100 pharmaceutical brands in India
  • Sanofi is one of the fastest growing companies in India in anti-diabetic therapy
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: Angel Broking, Axis Bank Ltd, Dlf Ltd, Dr. Reddy’s Laboratories, Phillips Carbon Black, Torrent Pharmaceuticals, Alembic Pharmaceuticals, Zensar Technologies and more

By | Daily Briefs, India

In today’s briefing:

  • Angel Broking: Riding the Digital Broking Wave in India, But It May Slip
  • Axis Bank: Healthy Revival to Aid Improvement in Return Ratios
  • HSIE Results Daily: DLF, Dr. Reddy’s, IndusInd Bank and More
  • India drives earnings growth, while North America/PSAI drags it down
  • Phillips Carbon Black: Steady Show, Inexpensive Valuations, Value Play
  • DF on a strong footing; making inroads in Trade Generics
  • Alembic Pharmaceuticals: US Challenges Offset Domestic Recovery
  • Zensar Technologies: Strong Recovery, Improved Outlook

Angel Broking: Riding the Digital Broking Wave in India, But It May Slip

By Ankit Agrawal, CFA

Angel Broking (ANGELBRK IN)‘s stock has risen >4x over the last four months on the back of strong growth in the digital broking industry in India. However, we think the stupendous growth of >17x in Angel’s active client base over the past couple of years may not sustain. While the shift to digital and discount broking is inevitable, the recent growth seems to be temporary and will likely reverse led by high customer churn. Cyclicality and heightened competition in the sector will further adversely impact the fundamentals and lead to de-rating of the stock once the euphoria in the sector subsides. The market is also pricing in high optimism around Angel’s potential to be a fintech platform. We again differ here based on our insights into Angel’s customer base, competitive scenario and nascent track record of Angel in the quasi-passive quant-based asset management and wealth management space.  


Axis Bank: Healthy Revival to Aid Improvement in Return Ratios

By ICICI Securities Limited

About the stock: Axis Bank is the third largest private sector bank in India with a balance sheet size of | 9.8 lakh crore as on June 2021.

  • The bank has a large footprint across India with 4600 branches
  • Retail and SME comprise ~64% of total loans
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.

HSIE Results Daily: DLF, Dr. Reddy’s, IndusInd Bank and More

By HDFC Securities

HSIE Results Daily DLF: DLF surprised positively on presales at INR 10bn (6.6x/-5% YoY/QoQ) despite the lockdown during the quarter. While office collection remains robust at 99%, occupancy at DCCDL declined to 86% vs. 88% at Mar 21-end. The consumption of malls rebounded to 50% of pre-COVID level during Jun-21, with footfalls exhibiting a rising trend. With robust Q1FY22, DLF is well on course to achieve INR 40bn presales in FY22, aided by 8msf launches. Net debt also continues to trend down (INR 47.bn vs INR 49bn on Mar-21).

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.

India drives earnings growth, while North America/PSAI drags it down

By Motilal Oswal

Dr. Reddy’s Labs (DRRD) delivered a miss on earnings in 1QFY22, affected by a) higher price erosion in North America (NAM) sales, b) the deferment of offtake by DRRD’s customer in the Pharma Services and Active Ingredients (PSAI) segments, and c) quarterly lumpiness in the Tender business in the Russia segment. DRRD exhibited strong growth in Domestic Formulations…

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.

Phillips Carbon Black: Steady Show, Inexpensive Valuations, Value Play

By ICICI Securities Limited

Net sales for Q1FY22 were at Rs 1004 crore with carbon black sales volume at 109 KT, down 3% QoQ and consequent EBITDA/tonne at ~Rs 15,000 Consequent PAT in Q1FY22 was at Rs 104 crore, down 18% QoQ…

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.

DF on a strong footing; making inroads in Trade Generics

By Motilal Oswal

TRP’s 1QFY22 performance was largely in line with our estimates. Growth momentum in the Domestic Formulation (DF) business was offset by a muted showing in the US business and a higher tax rate. It continues to…

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.

Alembic Pharmaceuticals: US Challenges Offset Domestic Recovery

By ICICI Securities Limited

Consequent PAT was at Rs 164.5 crore (down 45.4% YoY) What should investors do? Alembic’s share price has grown by ~1.7x over the past five years (from ~Rs 573 in June 2016 to ~Rs 984 levels in June 2021)….

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.

Zensar Technologies: Strong Recovery, Improved Outlook

By Axis Direct

We assign a 22x P/E multiple to its FY23E earnings of Rs 20.8 per share to arrive at a TP of Rs 455 per share, implying an upside of 13% from CMP.

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: BYJU’S, Edelweiss Financial Services, Paytm, Bandhan Bank Ltd, Maruti Suzuki India, Tata Motors Ltd, Crompton Greaves Consumer Electricals, Symphony Ltd, SBI Life Insurance Co Ltd, Mangalam Cement and more

By | Daily Briefs, India

In today’s briefing:

  • Can After Tremors of the China Tutoring Sector Shakeup Impact India EdTech?
  • Edelweiss: The Worst Is Behind Us
  • Paytm IPO: Multiple Revenue Channels but Profitability Is a Tall Order
  • Bandhan Bank | Postcard from West Bengal
  • India Channel Insight | Maruti, Hyundai, Tata Motors, Eicher, Ola Electric
  • Tata Motors – Earnings Flash – Q1 FY 2021-22 Results – Lucror Analytics
  • Crompton Greaves
    Consumer Electrials
  • Symphony Ltd: Slow Recovery on Favourable Base
  • VNB growth robust; margins expand on steady product mix
  • Mangalam Cement: Value Play in Cement Space

Can After Tremors of the China Tutoring Sector Shakeup Impact India EdTech?

By Devi Subhakesan

China-based after-school tutoring stocks saw the bulk of their equity value evaporate as authorities decided to turn the regulatory heat on this sector and also requiring the players to operate as non-profits. As the after-tremors of this move reverberate across the investment space, are the multibillion-dollar valuations of India’s rapidly growing edtech players at risk? Well-known private equity players ranging from Sequoia Capital to Tiger Global have invested in India’s fast-growing online education players – notably, BYJU’S (1391510D IN)  (valued at USD16.5 Bn) and Unacademy (valued at USD 2Bn) amongst others.

In this insight, we discuss if India’s rapidly growing online education sector is vulnerable to regulatory risks similar to that faced by after-school tutoring companies in China and how this could potentially affect large online tutoring players like Byju’s and Unacademy. We also look at leading investors in this space – and how they could be impacted.


Edelweiss: The Worst Is Behind Us

By Ankit Agrawal, CFA

While Edelweiss has faced significant provisioning led losses over the past one and half years, we believe the worst is behind us now. Edelweiss had significantly cleaned up its book in Q4FY20 and in the most recent reported quarter i.e. Q4FY21, it further took significant provisioning to account for adverse impact of COVID second wave and any additional stress. Going forward, we expect Edelweiss’ asset quality to improve largely assisted by significant clean-up in the past few quarters. Additionally, the residential real estate market seems to have bottomed out with liquidity coming back to the market and demand turning favorable post COVID. In line with our original thesis, Edelweiss has also significantly accelerated its shift towards fee based business model over the past couple of years. All in all, we expect significant re-rating in the stock over the next 1 to 2 years.


Paytm IPO: Multiple Revenue Channels but Profitability Is a Tall Order

By Shifara Samsudeen, ACMA, CGMA

India’s largest payment and financial services platform Paytm (PAYTM IN)  has filed for an IPO to raise about INR166bn (US$2.2bn) through the issuance of new shares as well as through the sale of existing shares. Paytm plans to raise about INR83bn through the sale of new shares while the existing shareholders including the company’s founder Mr. Vijay Shekhar Sharma and other investors plan to offer part of their shareholding in the company.

According to news media outlets, Paytm aims for a valuation of about US$25-30bn and the company’s FY03/2021 revenues of INR28bn (US$364m) implies a trailing EV/Sales of 69-82x.

Paytm’s revenues grew 1.5% YoY in FY03/2020 while it declined 14.6% YoY in FY03/2021 due to the pandemic. We expect the company’s commerce and cloud services business’s top line to further decline in FY03/2022E due to the resurgence of Covid-19 in India in April 2021. Though Paytm has multiple monetisation channels and established itself as a category leader in overall payments sector in India, we believe it will take a few more years for the company to reach profits.

In this insight, we examine Paytm’s business model, segments, revenues and margins. In a follow-up insight, we plan to take a look at the corporate governance related issues of the company and run through our governance framework.


Bandhan Bank | Postcard from West Bengal

By Pranav Bhavsar

Bandhan Bank Ltd (BANDHAN IN) is a fine example, reiterating our ability to deliver “qualitative” alpha that is backed with rigorous primary research and channel checks (YTD BANDHAN -26% vs NIFTY at +12%). Our work done on Bandhan stands as a testimony proving our ability to cover channels not just for consumer names but also financials where in spite of wide coverage, primary checks are able to provide the required edge. 

Our earlier coverage on Bandhan includes 

We again test the waters by speaking to five DSC managers in top districts in West Bengal with an objective to assess collection, lending practices and expected delinquency. 


India Channel Insight | Maruti, Hyundai, Tata Motors, Eicher, Ola Electric

By Pranav Bhavsar

In this Insight, we present commentary from our interactions with one of the largest dealers of Maruti Suzuki India (MSIL IN) , Store Manager of Royal Enfield from Eicher Motors (EIM IN) , Dealership owners of Hyundai Motor Co (005380 KS) and an Electric Vehicle (EV) of Greaves Cotton (GRV IN). We also share anecdotal commentary that we have gathered about Tata Motors Ltd (TTMT IN) .

About India Channel Insight 

Our objective with India Channel Insight is to share snippets from our channel interactions that are part of our research process. These snippets emerging out of these interactions and have been aiding us to generate interesting trade ideas and have often proven to be reliable sources of qualitative alpha.


Tata Motors – Earnings Flash – Q1 FY 2021-22 Results – Lucror Analytics

By Trung Nguyen

Tata Motors’ Q1/21-22 results were weak, as expected. The quarter was affected by the second wave of COVID-19 outbreaks and the chip shortage. Our key concern is the surge in net automotive debt. We believe it is unlikely that net debt at FYE would return to the level at the beginning of the fiscal year. However, the net debt increase may be offset by potentially higher earnings. Liquidity is adequate, especially after the recent bond issuance.


Crompton Greaves
Consumer Electrials

By ICICI Securities Limited

Market leader in the domestic fan industry with value market share of 24%. The company has increased focus on increasing market share in home appliances categories like (air coolers, water heater and kitchen appliances) Robust balance sheet with RoE & RoCE of 34% & 39% (three-year average), respectively, with stringent working capital policy…

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.

Symphony Ltd: Slow Recovery on Favourable Base

By ICICI Securities Limited

Better gross margins (up 452 bps YoY) helped turned EBITDA positive at 4.3% vs. -3.2% in Q1FY21. However, lower-than-expected EBITDA margin is mainly due to higher advertisement expense (3x jump YoY)…

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.

VNB growth robust; margins expand on steady product mix

By Motilal Oswal

VNB growth robust; margins expand on steady product mix Motilal Oswal values your support in the Asiamoney Brokers Poll 2021 for India Research, Sales, Corporate Access and…

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.

Mangalam Cement: Value Play in Cement Space

By ICICI Securities Limited

About the stock: The company is a north based player with cement capacity of 4.0 MT having plants in Morak (Rajasthan) and Aligarh (UP). Mangalam markets and sells cement under the brand name Birla Uttam Cement.

  • The key markets include Uttar Pradesh, Rajasthan and Madhya Pradesh having revenue share of ~45:30:25, respectively
  • The company is in the process of increasing its clinker capacity at its existing facility at Morak, from 2.3 MT to 2.6 MT at a projected cost of | 135 crore
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: Paytm, Jubilant Pharmova Limited, Glenmark Pharmaceuticals, Persistent Systems, HDFC Standard Life Insurance, JSW Steel Ltd, Federal Bank, Havells India, IIFL Holdings and more

By | Daily Briefs, India

In today’s briefing:

  • Paytm IPO Initiation: A Payments-Led Super-App
  • Jubilant Pharmova: Low Base, Covid Opportunities Drive Q1
  • Glenmark Life Sciences IPO: Leadership in Select APIs, Strong Relation with Large Companies
  • Persistent Systems: Services Revenues Continue Their Strong Performance
  • Hdfc Life Insurance Company Limited: Spike in Claims Affects PAT; Operations Stable
  • JSW Steel: Stellar Performance
  • Morning Views Asia: Evergrande Real Estate Group, JSW Steel Ltd, Tata Motors ADR
  • Federal Bank: Decent Performance Amid Turmoil Due to Pandemic
  • Havells India: Strong Performance Amid Challenging Scenario
  • IIFL Securities: Robust Client Acquisition; Healthy Business Growth

Paytm IPO Initiation: A Payments-Led Super-App

By Arun George

Paytm (PAYTM IN), formally known as One97 Communications, is India’s largest payments platform based on the number of consumers, number of merchants, number of transactions and revenue as of 31 March 2021, according to RedSeer. Paytm has an overall payments transaction volume market share of 40%, and wallet payments transaction market share of 65-70% in India as of FY21, according to RedSeer. Paytm’s shareholders include Ant Financial Services Group (6688 HK) (29.6% of outstanding shares), Softbank Vision Fund (18.3%), Alibaba Group (BABA US) (7.2%) and Berkshire Hathaway Inc Cl B (BRK/B US) (2.8%).  

Paytm plans to raise up to Rs166.0 billion ($2.2 billion) with a primary/secondary split of 50%/50%, according to the DHRP filing. 

The Indian Government is highly supportive of digital payments and in 2016, introduced demonetisation efforts through the launch of Unified Payment Interface (UPI) to reduce the reliance on cash. However, India continues to be a cash-driven economy which underscores the opportunity. Due to government initiatives, improving technology, growing awareness, digital payments by value in India are expected to more than double from $20 trillion in FY21 to $40-50 trillion by FY26, according to RedSeer. 

As India’s largest payments platform, Paytm is well placed to benefit from this structural tailwind. The advent of UPI has increased competition (Google Pay, PhonePe, MobiKwik) but Paytm is also leveraging its dominance in digital payments to build a synergistic ecosystem of complementary services, resulting in a strong claim to the “super-app” tag. While the COVID-19 pandemic was disruptive particularly to the non-payments business, Paytm should return to growth as the impact of the pandemic wanes and vaccination rates rise in India. Overall, we think that Paytm’s fundamentals are attractive. 


Jubilant Pharmova: Low Base, Covid Opportunities Drive Q1

By ICICI Securities Limited

About the stock: Jubilant Pharmova is engaged in specialty pharmaceuticals, CDMO, generics, drug discovery and proprietary novel drug businesses.

  • Formulations – 24% of FY21 revenues, Radiopharma and allergy therapy – 38%, and CDMO & API – 33% of sales
  • It has six USFDA approved manufacturing facilities in India, US and Canada
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.

Glenmark Life Sciences IPO: Leadership in Select APIs, Strong Relation with Large Companies

By ICICI Securities Limited

Leadership in select APIs, strong relation with large companies GLS is a leading developer, manufacturer of select high value, noncommoditised APIs in chronic therapeutic areas, including CVS, CNS & pain management, diabetes and continue to branch into other APIs. It has strong market share in select specialised APIs like Telmisartan (anti-hypertensive), Atovaquone (anti-parasitic), Perindopril (anti-hypertensive), Teneligliptin (diabetes), Zonisamide (CNS) and Adapalene (dermatology).

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.

Persistent Systems: Services Revenues Continue Their Strong Performance

By ICICI Securities Limited

About the stock: Persistent System (Persistent) offers cloud, data, product & design led services to BFSI, healthcare & hi tech verticals.

  • Persistent has shown a healthy turnaround in dollar revenue growth of 13% YoY in FY21 and margin expansion of 248 bps
  • Net debt free and healthy double digit return ratio (with RoCE of 20%)
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.

Hdfc Life Insurance Company Limited: Spike in Claims Affects PAT; Operations Stable

By Geojit BNP Paribas

Spike in claims affects PAT; Operations stable HDFC Life Insurance Co. Ltd, a joint venture between HDFC Ltd. and Standard Life Aberdeen, provides insurance services and was listed on BSE on 17th…

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.

JSW Steel: Stellar Performance

By ICICI Securities Limited

About the stock: JSW Steel is one of the leading integrated steel companies in India. It has a strategic collaboration with global leader JFE Steel of Japan, enabling JSW to access new and state-of-the art technologies to produce and offer high value…

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.

Morning Views Asia: Evergrande Real Estate Group, JSW Steel Ltd, Tata Motors ADR

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.


Federal Bank: Decent Performance Amid Turmoil Due to Pandemic

By ICICI Securities Limited

About the stock: Federal Bank is an old private sector bank based out of Kerala with around 1272 branches and 1953 ATM across various states.

  • Strong liability franchisee with 93% of total deposits being retail
  • Balanced loan mix with retail: corporate mix of 54:46
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.

Havells India: Strong Performance Amid Challenging Scenario

By ICICI Securities Limited

About the stock: Havells India (HIL) is India’s leading electrical appliances & equipment manufacturer with a diversified product portfolio consisting of switchgears, cables, electrical consumer durables and lighting & fixtures. Apart from ‘Havells’, HIL’s other major brands include Crabtree, Standard, Reo, and Lloyd.

  • At all its business segment, Havells has a strong presence in the organised product category with market share ranging between 6% and 20%
  • Robust balance sheet with RoE & RoCE of 20% & 25%, respectively (five year average), with stringent working capital policy
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.

IIFL Securities: Robust Client Acquisition; Healthy Business Growth

By ICICI Securities Limited

About the stock: IIFL Securities (IIFL Sec) is engaged in retail and institutional broking, distribution of financial products and investment banking.

  • The company caters to an active retail client base of ~3.24 lakh
  • IIFL’s institutional broking segment has ~740 domestic and foreign clients
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: Zomato, ICICI Bank Ltd, Agung Podomoro Land and more

By | Daily Briefs, India

In today’s briefing:

  • ECM Weekly (25th July 2021) – China Tourism, APM Monaco, Paytm, CTOS, Zomato, Kuaishou Lock-Up
  • Cause for Alarm – ICICI Bank’s Burgeoning Retail Lending Vulnerable to the Economy
  • Morning Views Asia: Agung Podomoro Land, Anton Oilfield, Bright Scholar Education, Future Retail Ltd

ECM Weekly (25th July 2021) – China Tourism, APM Monaco, Paytm, CTOS, Zomato, Kuaishou Lock-Up

By Zhen Zhou, Toh

Aequitas Research puts out a weekly update on the deals that have been covered by the team recently along with updates for upcoming IPOs.

Tencent Music was the latest victim of China’s regulatory crackdown. The company was fined and had to relinquish its exclusive music licensing rights with global record labels in the next 30 days. Daojia also announced that it would halt its US$300m US IPO following similar announcements by Lalamove, Xiaohongshu, and others. 

China ADRs took another leg down on Friday led by education companies falling by more than 50%. This was due to policies that will seek to ban companies that teach the school curriculum from raising capital, going public, and converting them into non-profit entities. Needless to say, China ADR market will take a back seat for a while.

Hong Kong IPO activity remains subdued and we are taking this time to cover upcoming IPOs. This week, we initiated on China Tourism Group Duty Free Corp Ltd. and its secondary listing of up to US$10bn. The firm is the largest travel retail operator in the world and is currently listed in Shanghai. 

We also covered APM Monaco’s US$300m IPO. The company is a contemporary fashion jewelry brand that is popular in China. It designs, manufactures and sells fashion jewelry products such as earrings, necklaces, rings, and bracelets.

We continued our coverage on Transcenta and Shanghai HeartCare which are looking to raise US$200m and US$100m, respectively.

In India, Zomato’s strong debut on Friday should help pave the way for other upcoming large IPOs like PayTM’s which we covered this week. The company boasts an impressive list of pre-IPO investors such as Ant Financial, Softbank and Berkshire Hathaway. The deal will be a combination of both primary and secondary shares. 

We continued our coverage on Yum Brand’s largest franchisor in India, Devyani International, comparing it to other listed competitors. The IPO was approved by SEBI last week.

In Korea, we initiated on Lotte Rental’s US$740m IPO. The company was the largest car rental provider in South Korea. Bookbuild will run between 3-4 August, and shares are expected to list on 19 August. 

Kakao Bank, South Korea’s largest digital bank, priced its books at the top end of the IPO price range. It was reported that its institutional tranche was about 1,700x covered. Shares will debut on 6 August and we have covered the deal earlier.

In Malaysia, Creador-backed CTOS Digital debuted on Monday and closed 47.2% above deal price. Share price has been tapered off from its first day high but still held up well, closing 39% above IPO price on Friday. 

For lock-up expiry, we circled back to Kuaishou which was listed on 5th Feb 2021. Lock-up will expire on 5th August and there had been large CCASS movement that saw JPM holding 638m shares, worth about US$10bn.

On placements this week, Wuxi Biologics Holdings raised US$1.3bn from selling 1.8% of its stake in Wuxi Biologics. The deal had been widely anticipated since this was not its first selldown. Shares were priced at a 6.5% discount but share price struggled to stay above deal price, closing just 0.5% above deal price. 

In Australia, Evolution Mining raised US$294m to acquire assets from its rival, Northern Star Resources. Strong interests came from existing shareholders and new investors. Shares closed 10.4% above deal price on Friday.

In Korea, TongYang Life Insurance raised around US$261m from selling its 3.7% stake in Woori Financial Group. This was a clean-up trade but we think that KDIC could come to market to sell as well. The deal was priced at a 4.29% discount and has traded flat, closing just 0.4% above deal price on Friday. 

Accuracy Rate:

Our overall accuracy rate is 73.8% for IPOs and 67.4% for Placements 

(Performance measurement criteria is explained at the end of the note)

New IPO filings this week

  • Adlai Nortye Ltd. (Hong Kong, >US$100m)
  • Huayuan Medical Group Holding (Hong Kong, >US$100m)
  • Star Health and Allied Insurance Company (India, US$1bn)
  • Anand Rathi Wealth Limited (India, US$135m)

News on Upcoming IPOs

Hong Kong/China

US/China ADRs

India

Others

Analysis on Upcoming IPOs

NameInsight
Hong Kong
Anjuke

Anjuke Pre-IPO – Mixed (Positive and Negative) Developments 

Betta Pharma

Betta Pharma (贝达医药) A+H: Tier 2 Player Struggled to Break Out 

Broncus

Broncus (堃博医疗) Pre-IPO: Big Potential to Be Tested 

ByteDance

ByteDance (字节跳动) IPO: How Jinri Toutiao Paves The Way for a Bigger Empire (Part 1)

ByteDance

ByteDance (字节跳动) Pre-IPO: Why Facebook Should Worry About TikTok 

ByteDance

ByteDance (字节跳动) IPO: Tiktok the No.1 Short Video App for a Good Reason (Part 2)

ByteDance

ByteDance (字节跳动) Pre-IPO: How Has It Done in 1H? 

ByteDance

ByteDance: The Unlisted Company’s Video Apps Leading the Market and Threatening Internet Giants 

ByteDance

ByteDance (字节跳动) Pre-IPO: Why Facebook Should Worry About TikTok 

ByteDance

ByteDance (字节跳动) Pre-IPO – Globally the Most Downloaded App for Jan 2020 Driven by India 

ByteDance

ByteDance (字节跳动) Pre-IPO: Global Ambition Meets Regulatory Challenges 

Dida

Dida Pre-IPO – Making Hay While Big Brother Retreats 

Dida

Dida Pre-IPO – Earnings Forecast and First Stab at Valuation 

Dida

Dida Pre-IPO – Peer Comparison – Lagging in Scale, Leading in Profitability 

Edding Grp

Edding Group (亿腾医药) Pre-IPO: Notes from Latest Financials and Its Related Party 

Edding Grp

Edding Group (亿腾医药) Pre-IPO: Notes from Latest Financials and Its Related Party 

Hanyu

Shanghai Hanyu (捍宇医疗) Pre-IPO: Not a Straight-A but Listing at Right Time 

Intco Med

Intco Medical (英科医疗) A+H: From China No.1 to Global No. 1 

Kilcoy

Kilcoy Global Foods Pre-IPO – Rapid Earnings Growth on the Back of Margin Improvement 

Kilcoy

Kilcoy Global Foods Pre-IPO – A Lot of Things Still Remain Unexplained 

Novotech

Novotech Pre-IPO: Biotech Focused CRO at Hefty Pre-IPO Valuation 

RemeGen RemeGen (荣昌生物) Pre-IPO: Thoughts on Valuation of RC18 and RC48 
SH Bio-heart Shanghai Bio-Heart (上海百心安) Pre-IPO: Needs a Long Runway 
Toplist Toplist China Pre-IPO – Overwhelmingly More Negatives than Positives 
Tasly Tasly Biopharm (天士力生物) IPO: Visible Growth from Approved Drug but Lacks Blockbusters 
WeDoctor WeDoctor (微医) Pre-IPO -App Walk Through – The Online Medical Directory and More 
WeDoctor WeDoctor (微医) Pre-IPO – A More Focused Online Medical Svc Provider than Ping An Good Doctor 
WeDoctor We Doctor (微医) Pre-IPO – Peer Comparison – Picking Its Battles Wisely 
WeDoctor We Doctor (微医) Pre-IPO – Forecasts, Early Thoughts on Valuation, and Acquisition Gripes 
Weilong Weilong Delicious Global Pre-IPO – The Positives – Fast Growth, Strong Backers 
Weilong Weilong Delicious Global Pre-IPO – The Negatives – Spicy Valuation 
WM Tech WM Tech Pre-IPO – Digitalization Efforts Coming Through but Not Well Substantiated 
WM Tech WM Tech Pre-IPO – Peer Comparison and Pre-IPO Valuation – Some Signs of Advantage 
India
Aadhar Housing Aadhar Housing Finance Pre-IPO – Decent past Growth but Comes with Weird Disclosures 
ASK ASK Investment Managers Pre-IPO – Riding on a Wave of Wealth 
Anmol IndAnmol Industries Pre-IPO Quick Take – No Growth, Generous Payments to Founders
Bharat Hotel

Bharat Hotels Pre-IPO – Catching up with Peers 

Bajaj En

Bajaj Energy Pre-IPO – Supposed to Deliver Steady Performance if Only Its Sole Client Would Let It 

CMS InfoCMS Info Systems Pre-IPO – When a PE Sells to Another PE… Only One Gets the Timing Right
Crystal CropCrystal Crop Protection Pre-IPO – DRHP Raises More Questions than in Answers
ESAF SFB ESAF Small Finance Bank Pre-IPO – Growing Fast but Remains Highly Dependant on a Related Party 
Flemingo Flemingo Travel Retail Pre-IPO – Its a Different Business in Every Country
Emami Cem Emami Cement Pre-IPO – Still in Ramp Up Phase but Shares Pledge Might Lead to an Early IPO 
NSENSE IPO Preview- Not Only Fast..its Risky and Expensive
NSENational Stock Exchange Pre-IPO Review – Bigger, Better, Stronger but a Little Too Fast for Some

LIC

Life Insurance Corporation of India Pre-IPO – Early Take on India’s Largest IPO 
Penna Cem Penna Cement – Aggressive Expansion Plans Even Though Past Performance Has Been Tepid 
PNB MetPNB Metlife Pre-IPO Quick Take – Doesn’t Stack up Well Versus Its Larger Peers
Samhi Hotels Samhi Hotels Pre-IPO – Assets and Borrowings Are Growing, but Earnings Haven’t Kept Pace 
Malaysia
QSRQSR Brands Pre-IPO – As Healthy as Fast Food
The U.S.
ForU ForU Worldwide Pre-IPO – Mostly Negatives 
Qiniu Qiniu Cloud (七牛云) Pre-IPO: PaaS Doesn’t Warrant a Premium 

Cause for Alarm – ICICI Bank’s Burgeoning Retail Lending Vulnerable to the Economy

By Hemindra Hazari

ICICI Bank Ltd (ICICIBC IN) ’s 1QFY2022 results on July 24, 2021 highlight the need for shareholders to re-examine the bank’s retail asset strategy. ICICI Bank’s strategy was to focus on retail assets to compensate for the bulky poor-quality corporate assets that it had earlier emphasised. However, the broad economic slowdown even prior to the Covid-19 pandemic impacted all segments of the economy, and the pandemic dealt small and medium enterprises, and indeed the whole informal sector, a severe blow. A section of organised sector employees too lost their jobs or experienced pay cuts. All these developments affected retail assets of banks. Unlike HDFC Bank (HDFCB IN) , which started shifting from retail assets, ICICI Bank surged ahead in retail lending even when retail asset profits declined in FY2021, and this strategy continued in 1QFY2022 despite a drastic fall in retail profits.

Apparently the board of directors has taken a view that the bank has to continue to grow the overall balance sheet despite the weak economic conditions, and that, since corporate credit remains weak, the only other avenue is to grow retail assets. It is precisely this strategy that shareholders need to review and debate with the management. The past two years’ data from both ICICI Bank and HDFC Bank reveal that, on account of deteriorating retail asset quality, the contribution of retail profits before tax (PBT) to overall PBT is declining, and in 1QFY2022 it has fallen steeply. From ICICI Bank’s surge in retail assets in FY2021 and 1QFY2022, it appears that the bank believes that the past two years’ data are an anomaly, and that retail asset quality will bounce back.

According to ICICI Bank, additions to gross NPAs are expected to be lower in 2QFY2022, and further improve in 2HFY2022. Given the state of the Indian economy, it may be more prudent for ICICI Bank to curtail its asset growth, de-emphasise retail loans and focus on treasury and select corporate credit to boost profitability.      


Morning Views Asia: Agung Podomoro Land, Anton Oilfield, Bright Scholar Education, Future Retail 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.


Before it’s here, it’s on Smartkarma

India: Can Fin Homes and more

By | Daily Briefs, India

In today’s briefing:

  • Can Fin Homes Ltd Rs Q1FY22 Result Update

Can Fin Homes Ltd Rs Q1FY22 Result Update

By Edelweiss

Growth and margin rebound expected; Retain BUY’

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: Mphasis Ltd, Havells India and more

By | Daily Briefs, India

In today’s briefing:

  • Mphasis (HOLD): Direct business growth negates shortfall in DXC raise to HOLD
  • HSIE Results Daily: Hindustan Unilever, UltraTech Cement, Bajaj Auto, Havells India, ICICI Lombard

Mphasis (HOLD): Direct business growth negates shortfall in DXC raise to HOLD

By BOB Capital Markets Ltd.

MPHL grew 6.3% QoQ USD in Q1, outperforming our (4%) and street estimates. EBIT margin was a miss at 15.9% due to the pandemic impact

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.

HSIE Results Daily: Hindustan Unilever, UltraTech Cement, Bajaj Auto, Havells India, ICICI Lombard

By HDFC Securities

Havells India: Havells delivered a strong Q1FY22 performance despite the industry facing several challenges due to COVID-19. Revenue grew by 76% YoY (HSIE 68%), driven by strong performance across all segments, notably switchgears and ECD. While our channel checks suggested a ~15% revenue decline vs. Q1FY20, Havells, through its superior execution capabilities, managed to control the revenue decline to 4% (vs. Q1FY20), as against the 46% YoY dip registered in Q1FY21. With the second wave hitting India at the peak of summer season, Lloyd lost out on crucial sales; however, it posted slightly higher revenue than our expectation (24% down vs.

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