India

• 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.

• As forecast, InterGlobe Aviation Ltd (INDIGO IN) will replace Tata Motors (TTMT IN) in the S&P BSE SENSEX Index (SENSEX INDEX) after the close on 19 December.
• Passive trackers will need to trade between 3.6-7.7x ADV in the stocks and that increases significantly to 7.1-12x delivery volume.
• There are indications that positioning has built up in both stocks over the last few weeks. However, in both cases, positioning is expected to be smaller than the passive selling.

• Context: The Axis Bank (AXSB IN) vs. ICICI Bank (ICICIBC IN) price ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
• Highlights: Going long ICICI Bank (ICICIBC IN) and short Axis Bank (AXSB IN) targets a 5% return.
• Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.

• Asian Paints achieved a 7-quarter high in Q2FY26 with 10.9% domestic volume growth, driven by easing raw material costs and strategic integration, leading to a 2% margin expansion.
• Despite heavy monsoons, strong execution drove a double-digit volume rebound, signaling stabilized consumer demand. This coupled with a key competitor’s executive loss, validates the firm’s defensive market position.
• Asian Paints’ strong performance deserves a premium valuation but justifying it hinges on the perfect execution of its backward integration project and defending its competitive position.

• Power Grid Corporation of India (PGCIL) has barred KEC from new tenders for nine months starting November 18, 2025, though ongoing Rs.39,000 crore plus projects is unaffected.
• KEC’s diverse orders limit PGCIL’s impact, PGCIL’s share in new orders is only 4% YTD, much lower than last year.
• KEC’s Q2 success counters the PGCIL ban. With strong Q2 results and 8% FY26 margin guidance, the focus is now on execution and cash flow from its global pipeline.

• Vedanta Resources is a globally diversified natural resources company with a strong foothold in India, focused on zinc, aluminium, oil and gas, and other base metals. The company is currently undergoing a significant strategic transformation, including a planned demerger of its primary businesses into separate listed entities to unlock value and attract investment.
• The company has been aggressively deleveraging its balance sheet, having reduced debt at the parent level significantly over the past few years. Recent credit rating upgrades from agencies like S&P Global reflect improved financial flexibility and easing refinancing risks, supported by strong operational cash flows and successful bond issuances.
• Future growth is centered on a $20 billion, four-year investment plan focused on India, targeting expansion in technology, electronics, and semiconductors, alongside its core commodities. This ambitious plan aims to capitalize on India’s economic growth but faces execution risks and is dependent on volatile commodity markets.

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• Canara Bank reported a robust Q2 FY26, defying sector-wide headwinds. The headline surprise was the sharp asset quality improvement, with GNPA collapsing to 2.35% and NNPA at a pristine 0.54%.
• The bank has successfully pivoted from “balance sheet repair” to “sustainable compounder.” While NII is flat, the bank is offsetting this with volume growth and 42% jump in non-interest income.
• With the “bad bank” legacy officially buried(PCR >93%), the narrative now shifts to value unlocking. The listing of subsidiaries and the decline in credit costs makes the current valuation attractive.

• The company is executing an ambitious capital expenditure plan focused on integrating raw material sources and nearly doubling grinding capacity to 41.85 MTPA by CY28.
• JSW Cement reported robust Q2 FY26 results, delivering a 64.2% YoY surge in operating EBITDA to INR267.5 crore, underpinned by 14.9% volume growth, cost control, achieving an EBITDA/tonne of INR860.
• JSW Cement’s ‘green premium’ strategy and structural cost advantage position it for a potential re-rating.

• Ethos is India’s largest retailer of luxury and premium watches, commanding a significant market share of 13% in the combined premium/luxury segment and 20% in the exclusive luxury segment.
• The company is strategically positioned to capitalize on the rapidly growing Indian luxury market, which is forecast to grow at a CAGR of 11-12% annually, driven by rising affluence, increasing brand awareness, and a trend towards premiumization.
• Strong revenue and profit growth underscore the company’s successful expansion and operational execution, though the premium valuation and negative operating cash flow warrant careful monitoring.

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• Aarti Pharmalabs is a significant player in the global pharmaceutical industry, specializing in Active Pharmaceutical Ingredients (APIs), Xanthine derivatives, and offering Contract Development and Manufacturing Organization (CDMO) services. The company was demerged from Aarti Industries in 2022 to create a focused pharmaceutical entity.
• The company holds a dominant position in the Xanthine derivatives market, being the largest Indian manufacturer and commanding a 15-20% global market share. This segment benefits from its use in beverages, nutraceuticals, and pharmaceuticals.
• Strategically, Aarti Pharmalabs is focused on expanding its capacities, particularly in the Xanthine and API segments, and increasing its presence in regulated markets. A major greenfield project at Atali, Gujarat, is expected to be a key growth driver upon its commissioning.

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• We forecast 7 stocks moving from MidCap to LargeCap, 10 stocks moving from LargeCap to MidCap, 3 stocks from SmallCap to MidCap, and 11 stocks from MidCap to SmallCap.
• From the new listings, 13 stocks are expected to be added to Large Cap, 5 stocks are expected to be added to Mid Cap, and multiple stocks to Small Cap.
• With the review period nearing completion, there could still be more outperformance given the momentum, but we would look to take profit on the stocks as the divergence gets wider.

• Sify Infinit Spaces Ltd (2026850D IN) is looking to raise US$484m in its upcoming India IPO.
• Sify Infinit Spaces Ltd is a provider of data center colocation services in India.
• In this note, we look at the company’s past performance.

• Aarti Industries is a leading Indian specialty chemical manufacturer with a diversified product portfolio catering to various industries, including pharmaceuticals, agrochemicals, polymers, and pigments. The company is well-positioned to benefit from the growth in these end-user markets and the “China plus one”strategy.
• The company is currently in a significant capital expenditure phase, focusing on expanding existing capacities and venturing into new high-value product chains. While this is expected to drive long-term growth, it has led to a recent decline in profitability and free cash flow due to higher depreciation and interest costs.
• Despite near-term headwinds such as margin pressures and global demand slowdown, Aarti Industries has demonstrated resilience with consistent volume growth. The company’s focus on cost optimization, backward integration, and securing long-term contracts is expected to improve profitability and shareholder returns in the medium to long term.

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• Physicswallah raised around US$430m in its India IPO, despite having a decent anchor book.
• Physicswallah Ltd (PWL) offers test preparation courses for competitive examinations, and other courses such as for upskilling, across 13 education categories, including JEE, NEET, and UPSC, among others.
• We have looked at the past performance in our previous note. In this note, we talk about the trading dynamics.

• Syrma SGS Technology is acquiring a 60% stake in Elcome Integrated Systems, with a path to 100% via performance-linked earn-outs, alongside Elcome’s simultaneous acquisition of Navicom Technology.
• This strategic move marks Syrma SGS’s formal entry into the high-barrier, long-cycle Indian defence electronics market, offering diversification from its core EMS business and aligning with India’s “Aatmanirbhar Bharat” initiative.
• The accretive nature, revenue visibility of over INR 400 crore, and design-led capabilities gained position Syrma SGS for a structural re-rating.

• Amber has signed a definitive agreement to acquire a majority stake in Pune-based PCB manufacturer Shogini Technoarts through its subsidiary ILJIN Electronics (India) Pvt. Ltd.
• This move strengthensAmber’s backward integration in printed circuit boards at a time when India’s PCB market is expanding quickly and still relies heavily on imports.
• The acquisition supports Amber’s transition from a primarily HVAC and consumer-durables component player to a more complete EMS and PCB solutions provider, an important shift that deserves closer analysis.

• Context: The Bank of Baroda (BOB IN) vs. Canara Bank (CBK IN) price ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
• Highlights: Going long Bank of Baroda (BOB IN) and short Canara Bank (CBK IN) targets a 9% return.
• Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.

• Tenneco Clean Air India Ltd (1880671D IN) raised US$406m in its India IPO.
• TCAIL designs and manufactures clean air, powertrain, and suspension solutions for Indian OEMs, export markets, and the aftermarket, serving PVs, CVs, OHs, and industrial applications.
• We have looked at the company’s past performance and valuations in our previous notes. In this note, we will talk about the trading dynamics.

• Context: The Union Bank of India (UNBK IN) vs. Canara Bank (CBK IN) price ratio has deviated two standard deviations from its one-year average, presenting a potential relative value opportunity.
• Highlights: Going long Union Bank of India (UNBK IN) and short Canara Bank (CBK IN) targets a 10% return.
• Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.

• The generic availability of GLP-1 drugs from 2026 presents a structural, high-volume, and repetitive diagnostics opportunity that perfectly fits Thyrocare’s low-cost, centralized B2B model.
• Thyrocare Technologies (THYROCAR IN) reported robust Q2 FY’26 consolidated revenue growth of 22% YoY, coupled with a normalized EBITDA margin expansion to 34.8%.
• Strong execution and quality improvements position Thyrocare to capture this multi-year GLP-1-driven volume surge.

• Aster DM Healthcare Ltd (ASTERDM IN) reported double-digit growth in revenue and EBITDA in Q2FY26, led by substantial recovery in Kerala, strong growth in international revenue, and better case mix.
• In Q2FY26, Kerala delivered its highest-ever quarterly revenue of INR6B, growing 24% increase over Q4 FY25. Profitability improved sharply, with EBITDA margins expanding to 26.8% from 22.3% in Q4FY25.
• Since our initiation of Aster DM as ‘2025 High Conviction’ idea in last November, shares rose ~55%. Main investment thesis of margin improvement still holds good.

• Emmvee Photovoltaic Power Limited (0198068D IN) (EPPL) raised around US$327m in its India IPO.
• EPPL is a vertically-integrated solar PV module and cell manufacturer in India, with operations spanning the solar PV modules production cycle from solar cell production to solar PV module assembly.
• We have looked at the company’s past performance and valuations in our previous notes. In this note, we will talk about the trading dynamics.

• SG Mart is rapidly expanding its B2B marketplace for building materials, primarily focusing on steel, with an aggressive growth strategy aiming to capture a significant share of the large and fragmented Indian market.
• The company benefits from the strong backing of the APL Apollo Group, providing it with industry relationships, funding, and brand leverage for its B2C distribution.
• Key risks include the highly competitive nature of the steel trading industry, which operates on thin margins, and the volatility of steel prices, which can impact profitability.

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• Dharmaj Crop Guard had commissioned its INR 275 crore Active Ingredients (AI) plant, cementing its transformation from a formulations-only company to a fully integrated AgroChem player. 
• This strategic backward integration provides a massive new growth lever. However, it came at a short-term cost, as “front-loaded expenses” resulting in EBITDA losses from new plant last year.
• With the new plant’s losses absorbed, Dharmaj is positioned to leverage its integrated model, a pan-India distribution network, to pursue its ambition of becoming a 2,000 crore company by 2030.

• Biocon Ltd has confirmed its board, via a committee first formed on May 8, 2025, is formally evaluating a reverse merger of its unlisted arm, Biocon Biologics, into the parent.
• This merger is a financial de-risking move designed to immediately address $1.2 billion in acquisition debt and unlock a ‘conglomerate discount’ on the Rs.2,721 crore revenue biosimilars business.
• The move would eliminate the parent’s holding company discount, but the key hurdle is the valuation and swap ratio required to satisfy minority shareholders, chiefly Serum Institute.

• Olectra Greentech is a leading manufacturer of electric buses in India, strategically positioned to capitalize on the country’s significant push towards electric mobility in public transportation.
• The company’s growth is underpinned by a strong order book from State Transport Undertakings (STUs), a technological partnership with global EV giant BYD, and robust support from government initiatives like the FAME II scheme and the National Electric Bus Program.
• Key risks include high dependence on government contracts, intensifying competition from established automotive players, and a premium valuation that demands flawless execution on its large order book.

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• Sagar Cements is pursuing an aggressive, debt-fueled expansion strategy to increase its capacity and market reach, particularly in Central and Eastern India, aiming to capitalize on anticipated demand growth from infrastructure and housing sectors.
• The company’s financial performance is under significant pressure, characterized by revenue growth offset by severe margin compression, leading to net losses and negative free cash flow in recent periods. This has necessitated the suspension of its dividend.
• Key challenges for the company include managing its high debt levels, navigating the intensely competitive and cyclical nature of the Indian cement industry, and mitigating the impact of volatile input costs on its already strained profitability.

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• Shadowfax Technologies (1310315D IN) is looking to raise about US$225m in its upcoming India IPO. The deal will be run by Morgan Stanley, ICICI and JM Financial.
• Shadowfax Technologies is a new-age, technology-led third-party logistics (3PL) company that leverages a unified platform to facilitate digital commerce across India.
• The company provides a comprehensive suite of logistics services organised across express, hyperlocal, and other logistics segments.

• Marksans Pharma’s new, capacity-doubling Goa facility (acquired from Teva) just received a ‘Zero 483 Observation’ clearance from the USFDA, completely de-risking its largest-ever capex.
• This facility is the engine for the company’s next growth phase. It will service a confirmed $220 million US order book and is critical to achieve INR 3,000 crore revenue.
• With the capex phase now complete and de-risked, the focus shifts to execution and the strategic deployment of its INR 711 crore cash pile, likely on a European front-end acquisition.

• SAEL Industries Ltd (2600245D IN) (SIL) is looking to raise about US$516m in its upcoming India IPO. The deal will be run by Ambit, ICICI, Kotak and JM Fin.
• SIL is a vertically integrated renewable energy independent power producer in India having capabilities for solar module manufacturing, engineering, procurement and construction, and operations and maintenance for power projects.
• According to CRISIL, SIL was among the top five Indian vertically-integrated renewable energy independent power producers, with in-house solar module manufacturing, based on operational capacity as of June 30, 2025.

• Capillary Technologies India Ltd (CTIL) (0611334D IN) IPO has opened for subscription. It consists of fresh issue worth INR 3.45 bn along with OFS worth INR 5.33 bn.
• Capillary is one of the rare SaaS companies having full stack offerings in customer loyalty and engagement solutions. It has a global presence and actively expanding to US and Europe. 
• While KPIs look good and company has turned around into profits, there are concerns with cash generation, overall consolidation process, increasing provision on receivables along with few governance issues.

• Disa India’s new Tumkur land acquisition marks a major capacity expansion, adding 40% footprint and enabling a new manufacturing unit by FY26.
• This expansion strengthens Disa’s ability to meet rising foundry demand, boosts export potential, and aligns with India’s manufacturing upcycle and the global China+1 shift.
• The company’s growth visibility improves meaningfully, supported by digital integration and strong balance sheet strengthelevating confidence in sustained 20–25% topline growth.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: Tata Steel, Rakuten Group
• Fed policymakers are uncertain, due to a lack of crucial data caused by the US government shutdown. Minneapolis Fed President Neel Kashkari said he did not support the central bank’s latest interest-rate cut.
• He noted that “the anecdotal evidence and the data we got just implied to me underlying resilience in economic activity, more than I had expected”, and stated that he can make a case to lower or hold rates in December. Mr Kashkari joins other Fed officials who have expressed scepticism over the need for another rate decrease in December, with some arguing for holding rates steady to balance inflation and weaker hiring in the labour market.

• Tracxn Technologies is a global Software-as-a-Service (SaaS) platform providing market intelligence on private companies to a diverse client base including venture capital firms, private equity funds, and large corporations. The company leverages a cost-effective India-based operation to serve customers in over 58 countries.
• The company’s financial performance shows a concerning trend, shifting from a significant net profit of ₹330.9 million in FY23 to a net loss of ₹95.4 million in FY25. This downturn is primarily driven by margin compression and slowing revenue growth, reflecting potential headwinds in the global private markets.
• Positioned in a highly competitive industry against established players like PitchBook, CB Insights, and Crunchbase, Tracxn’s key differentiators are its cost advantage and potentially broader coverage of early-stage and emerging market companies. However, the company faces significant risks from customer churn, intense competition, and the cyclical nature of the private investment landscape.

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