India

• Companies in India have disclosed their shareholding pattern as of end-September in October. There are companies with significant float changes from end-June and/or end-March.
• The changes in free float could be reflected in domestic and global indices over the next few weeks and months resulting in flow from passive trackers.
• Depending on the date that the shareholding was published, there could be 20 stocks with passive inflows from global trackers while 6 could have passive outflows in November.

• Venus Pipes & Tubes is a rapidly growing manufacturer and exporter of stainless steel (SS) seamless and welded pipes and tubes in India, capitalizing on the expanding domestic and international demand across various industries.
• The company is in the midst of a significant capacity expansion and backward integration strategy, which is expected to drive revenue growth, improve margins, and strengthen its market position.
• While the company has demonstrated strong financial performance and a robust growth trajectory, it faces risks associated with the cyclicality of the steel industry, raw material price volatility, and increasing competition from both domestic and international players.

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• Established Portfolio with Stable, Long-Term Cash Flows: IRB InvIT Fund owns a portfolio of operational toll road assets with long concession periods granted by the National Highways Authority of India (NHAI), providing predictable, long-term revenue streams essential for stable distributions to unitholders.
• Strong Growth Trajectory via Strategic Acquisitions: The Trust is actively expanding its asset base through strategic acquisitions from its sponsor, IRB Infrastructure Developers Ltd. A recent major acquisition of three high-revenue BOT assets is set to double the enterprise value to over ₹16,000 crore and extend the weighted average life of the portfolio to 17 years.
• Attractive Dividend Yield and Valuation: As an Infrastructure Investment Trust (InvIT), it is mandated to distribute 90% of its net distributable cash flow, resulting in a consistently high dividend yield. The units trade at an attractive price-to-book ratio, suggesting a favorable valuation relative to its underlying asset value.

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• Pine Labs (0568874D IN) is looking to list on the exchanges by selling 176.5m shares via a primary and secondary offering to raise US$439m at a valuation of US$2.86bn.
• The price band has been set at INR 210-221/share and could price at the top end of the range. The IPO raise and valuation are sharply lower than earlier reports.
• Inclusion at regular rebalances will commence in May but flow will be small given the low float and the Smallcap indices that it is added to.

• Steady operations despite price softness; volumes up 8% YoY, debt down ₹3,400 Cr, margins stable around 10%.
• Capex on track; IISCO ₹33,000 Cr expansion progressing, funded via internal accruals and moderate leverage.
• Valuation reasonable; trades at ~7× EV/EBITDA and ~US$560/t EV/Ton with Positive Bias on margin recovery and balance-sheet strength.

• Wendt India completed a transformative acquisition of global “Wendt” brand IP, while Wendt GmbH (3M) initiated exit from the JV, consolidating CUMI and public ownership.
• Autonomous brand/IP rights unshackle Wendt from legacy risk while maintaining technical lead. A diversified, high technology industrial revenue stream, debt-free balance sheet, and high cash conversion reinforce the investment case.
• Wendt India is among the highest quality plays in Indian manufacturing: sticky client relationships, sectoral diversity, and recurring cash flows balance mid-term volatility in autos/steel.

• Lenskart Solutions (0370405Z IN) much-awaited IPO, comprising a fresh issue of INR 21.5 bn and offer for sale of 127.5 mn shares, is set to open for subscription this week.
• We also find it surprising to note that the company purchased Dealskart, a profitable company with EBITDA of INR 2.33 bn for an insignificant sum of INR 20 mn.   
• Company was able to report in FY25 is mainly on account of “Other Income” by accounting for gains from lower deferred consideration to boost its Profitability.

• We remain near-term bullish since our 4/22/25 Compass, and our intermediate-term outlook remains bullish as well (as of our 5/14/25 Compass), with Int’l Compass reports all echoing this sentiment.
• In our prior Int’l Compass (Oct. 16) we discussed how the pullback was testing the uptrend, and we were buyers; this worked out well with indexes back at all-time highs.
• Taiwan, China, Korea, and the U.S. remain our only overweights, but India is becoming more attractive as well — add selective exposure. Many buy ideas highlighted in these countries.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: Adani Energy Solutions, Nissan Motor
• UST yields rose slightly yesterday, led by the long end, owing to increased corporate bond supply (including Meta Platform’s USD 30 bn offering). The yield on the 2Y UST was up 1 bp at 3.61%, while the yield on the 10Y UST increased 2 bps to 4.10%.
• Equities slumped, driven by a sell-off in large tech stocks. The S&P 500 declined 1.0% to 6,822, while the Nasdaq fell 1.6% to 23,581. US President Donald Trump and his Chinese counterpart Xi Jinping have concluded a summit in Busan, South Korea, in their first meeting since 2019. 

• In May, SEBI recommended changes to the minimum number of constituents for non-benchmark indices and the capping for those indices. Then came the market consultation in August.
• SEBI has now confirmed the changes along with the timeline for capping changes to the largest stocks in the index.
• The changes could commence in December and continue till March. The adds will take place in December and weight changes for the largest stocks will take place in 4 tranches.

• Lenskart Solutions is looking to raise about US$825m in its upcoming India IPO.
• Lenskart Solutions Limited (LSL) is a technology-driven eyewear company with integrated operations spanning designing, manufacturing, branding and retailing of eyewear products.
• We have looked at the past performance in our previous note. In this note, we talk about the RHP updates and valuations.

• Lenskart’s upcoming IPO marks India’s first major consumer-tech listing, positioning the eyewear disruptor as a vertically integrated D2C brand with around 75% share in organized retail and strong international traction.
• While Lenskart’s 75% revenue surge and 275% EBITDA jump over two years highlight its operational strength, but the proposed valuation (70x EV/EBITDA) far exceeds global peers raises serious concerns.
• Lenskart’s vertically integrated model, data-led omnichannel scale, and strong international playbook offer structural advantages. But the IPO’s frothy valuation and pre-IPO promoter stake sales warrant a cautious stance for investors.

• Midwest Ltd’s recent ₹451 crore IPO (₹250 crore fresh issue) funds quartz capacity expansion, debt reduction, and entry into heavy-mineral sands for long-term growth.
• The company is evolving from a granite exporter to a diversified clean-materials supplier, scaling quartz and HMS aligned with India’s solar and semiconductor build-out.
• Strong promoter alignment, integrated operations, and disciplined execution support margin expansion and a positive long-term stance.

• Strong recovery: Q2 FY26 volumes up 23% YoY; margins steady at 38%, confirming operational strength.
• Growth visibility: Expansion, slurry pipeline, and pellet plants drive FY26–27 capacity growth.
• Deep-Value play: Trades at 10× P/E, 5× EV/EBITDA—half peer valuations, 5% dividend yield.

• Indo-MIM Ltd (1666551D IN) (IML) is looking to raise about US$112m in its upcoming India IPO. The deal will be run by Axis, ICICI, HDFC, Kotak and SBI Caps.
• IML provides end-to-end solutions for the manufacture of precision engineering components using metal injection molding (MIM) technology. Its capabilities include mold designing and tooling, coupled with finishing and assembly operations.
• According to Frost & Sullivan,IML was the largest manufacturer globally of precision engineering components using MIM technology, with a 7% market share in terms of revenue from MIM in FY25.

• Blackstone has announced a INR 6,197 crore preferential capital infusion in Federal Bank, acquiring up to a 10% stake through convertible warrants, a landmark deal in India’s mid-sized banking space.
• This investment boosts Federal Bank’s capital by 200–250 bps, enabling growth in high-yield segments while maintaining financial stability, reflecting growing global investor confidence in India’s private banks.
• The capital infusion strengthens Federal Bank’s earnings prospects, with a projected 29% CAGR from FY26–28E, margin growth, and improved RoA reaching 1.35% by FY28E.

• Q2 FY26 saw Reliance Industries deliver robust, broad-based growth led by Consumer and Digital segments, concurrent with accelerated deployment of AI infrastructure and Green Energy assets.
• The consumer-facing businesses now contribute nearly 50% of Group EBITDA, structurally de-risking the conglomerate from O2C volatility while cementing its positioning for India’s twin tailwinds: Digital Transformation and Energy Transition.
• RIL’s aggressive, integrated strategy across AI and New Energy warrants a closer look at how these massive long-cycle projects are set to redefine the Group’s fundamental profile over the years.

• Safex Chemicals is a diversified agrochemical company in India with a presence across the value chain, including branded formulations, specialty chemicals, and contract development and manufacturing (CDMO).
• The company is on a growth trajectory, driven by both organic expansion and strategic international acquisitions, notably Briar Chemicals in the UK, to bolster its global CDMO presence.
• While the company has demonstrated strong revenue growth, it has also reported net losses in recent fiscal years, and its performance is subject to the inherent cyclicality of the agrochemical industry, which is dependent on climatic conditions.

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• In today’s Morning Views publication we comment on developments of the following high yield issuers: Adani Green Energy, ReNew Energy
• UST yields climbed 8-11 bps across the curve yesterday. This came as Fed Chairman Jerome Powell sought to temper market expectations for a December rate cut, following the central bank’s widely anticipated 25-bp rate reduction.
• The UST curve bear flattened, with the yield on the 2Y UST jumping 11 bps to 3.60%, while that on the 10Y UST climbed 10 bps to 4.08%. Equities gave up their intraday gains, with the S&P 500 closing flat at 6,891.

• Groww (1573648D IN) is looking to list on the exchanges by selling 663.23m shares via a primary and secondary offering to raise US$752m at a valuation of US$7bn.
• The price band has been set at INR 95-100/share, and the issue is likely to price at the top end of the range.
• The stock will not get Fast Entry to global indices. Inclusion at regular rebalances will commence in June 2026 but flow will be small given the low float.

• Cipla Ltd (CIPLA IN) signed an exclusive distribution and promotion agreement with Eli Lilly on 23 October 2025 to market tirzepatide under the brand name Yurpeak in India.
• The deal positions Cipla as a first mover in India’s nascent GLP-1 obesity care segment, projected to grow 40x by 2030.
• Financially modest but strategically transformative, the deal anchors Cipla’s entry into obesity therapeutics and sets the stage for a broader GLP-1 platform spanning branded and generic drugs.

• Orkla India owns two popular Indian food product brands ‘MTR’ and ‘Eastern that offer Ready to Cook/Eat products as well as pure and blended spices.
• Both its brands enjoy strong brand heritage in India as well as countries with a higher proportion of the Indian diaspora.
• IPO is being valued at TTM PE of 40x (lower end of 35-90x ascribed to Indian FMCGs). With a low double-digit growth profile and high ROCEs, valuations look reasonable.

• Dollar Industries (DOLLAR IN) has announced a Composite Scheme of Arrangement, merging eight promoter group companies and demerging one hosiery business undertaking into the listed entity.
• The scheme fundamentally restructures DIL, consolidating brand ownership, key manufacturing assets, and operational real estate, directly addressing long-standing concerns regarding related-party transactions and corporate complexity.
• While execution risks persist, the strategic clarity and governance enhancement resulting from this vertical integration could serve as a powerful catalyst, potentially driving a valuation re-rating.

• Greaves Cotton (GRV IN) has evolved from a traditional diesel engine manufacturer into a comprehensive fuel-agnostic mobility and engineering solutions provider.  
• Greaves Electric Mobility Ltd (GEML) (1295040D IN) its subsidiary (known by its flagship brand ‘Ampere’) plans to come out with an IPO of INR 10 bn and an offer-for-sale.
• Regarding forensics, we draw comfort from the Management’s ability to diversify its businesses and make value-accretive acquisitions. However, frequent churn in management warrants attention.

• Ather Energy raised around US$350m in its India IPO in May 2025. The lockup for its pre-IPO investors is set to expire soon.
• Ather is a pure play electric vehicle company in India designing and developing E2Ws, battery packs, charging infrastructure, associated software and accessories, also manufacturing battery packs and assembling E2Ws in-house.
• In this note, we will talk about the lockup dynamics and possible placement.

• Prices fail to breach INR200/kg mark making farmers unhappy  
• GST cut benefit to percolate to the rubber market soon  
• Demand to extend World Bank replanting aid to all Kerala districts

• HDFCB’s balance sheet has been normalizing post the merger, allowing it to accelerate its growth trajectory. The demand and liquidity environment have also improved. 
• NIMs are likely to expand led by rate cut tailwind that will reflect fully over the next 18 months. Shift to CASA from term-deposits should further help. 
• Merger synergies are now being leveraged, especially for cross-selling and up-selling. At the current valuation, an investment in HDFCB offers 25%+ IRR over a holding period of two years.

• Godfrey Phillips India is demonstrating robust top-line growth, consistently outpacing its primary competitor and gaining market share, driven by its strong brand portfolio which includes the licensed production of Marlboro.
• Despite impressive revenue and net income growth, the company faces a significant challenge with deteriorating cash flow, as evidenced by negative 3-year compound annual growth rates for both operating and free cash flow.
• The company operates within a highly regulated and taxed industry, posing persistent risks to profitability and growth. However, its strong brand equity and expanding distribution provide a solid foundation to navigate these challenges.

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• Context: The Bank Of India (BOI IN) vs. Union Bank Of India (UNBK IN) price-ratio has deviated more two standard deviations from its one-year average, signaling a potential pair trade.
• Highlights: Going long Union Bank Of India and short Bank Of India targets a 5% return. Union Bank Of India is set to report on 30 October.
• 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.

• Groww (1573648D IN) is looking to raise up to US$736m in its upcoming India IPO.
• Groww, officially called Billionbrains Garage Ventures,is a direct-to-customer digital investment platform providing financial products and services, where customers can invest/ trade in stocks, derivatives, bonds, mutual funds and other products.
• In this note, we talk about the company’s historical performance.

• Context: The HDFC Life Insurance (HDFCLIFE IN) vs. SBI Life Insurance (SBILIFE IN) price-ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
• Highlights: Going long HDFC Life Insurance (HDFCLIFE IN) and short SBI Life Insurance (SBILIFE IN) targets a 7% 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.

• Epigral is strategically shifting its business mix towards higher-margin derivatives and specialty chemicals, which constituted 56% of revenue in H1 FY25, up from 25% in FY22. This transition is expected to enhance profitability and provide more stable growth.
• The company is in a significant capital expenditure phase, aiming to double its production capacity for CPVC Resin and Epichlorohydrin. These expansions position Epigral to capitalize on growing domestic and international demand, driven by initiatives like ‘Make in India’.
• While demonstrating strong top-line growth, the company faces risks associated with the cyclical nature of the chemical industry, volatility in raw material prices, and execution risks related to its large-scale expansion projects.

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• Lalbaba Engineering Limited (LALBABA IN) (LEL) is looking to raise about US$113m in its upcoming India IPO. The deal will be run by Motilal Oswal, Nuvama and IIFL.
• LEL is an engineering solutions company focussed on the development and manufacture of high-performance seamless tubes, precision forgings and integrated rail systems.
• As of Aug 31, 2025, LEL was ranked as India’s largest manufacturer of cold-finished seamless tubes and second-largest overall for cold-finished steel tubes, by installed capacity, according to CRISIL.

• Allcargo Logistics is a global leader in LCL consolidation and a major player in India’s integrated logistics sector. The company is currently undergoing a strategic restructuring to create four distinct listed entities, aiming to unlock value by fostering focused management and independent growth trajectories.
• The company has outlined an ambitious growth strategy to 2030, targeting significant expansion in emerging markets, the launch of new trade lanes, and the implementation of AI-driven digital platforms to enhance operational efficiency. Financial goals include a substantial increase in gross profit and EBITDA.
• Despite a challenging recent financial performance characterized by declining net income and negative cash flows, Allcargo is focused on a turnaround. The company is leveraging its extensive network and investing in technology to improve profitability and capitalize on the positive outlook for the Indian and global logistics industry.

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• Duroflex (1603801D IN) is looking to raise about US$114m in its upcoming India IPO. The deal will be run by JM Financial and Motilal Oswal.
• Duroflex Limited is a leading provider of sleep and comfort solutions in India, with a legacy spanning over six decades. 
• Its “house of brands” architecture comprising Duroflex, Sleepyhead, Perfect Rest, and Durofoam, caters to diverse consumer segments ranging from economy to luxury. 

• Lenskart Solutions has filed RHP for IPO with a total offer size of up to INR 72.8B, offering 181M shares at a price band of INR 382-INR 402 per share.
• This includes a fresh issue of INR 21.5B (~ 53.5M shares). The company intends to use the proceeds for new store capex, promotion, inorganic acquisition etc.
• We recommend the investors to subscribe to the issue for expected listing gain. Lenskart has a long way ahead of itself in terms of attaining long term sustained growth trajectory.

• Eternal Ltd’s Q2FY26 revenue surged 183% YoY to INR 135B, driven by Blinkit’s shift to an owned-inventory quick commerce model, a major operational transformation.
• The new model boosts revenue and gross margins but pressures profits amid higher marketing costs, dark store expansion, and increased working capital needs.
• Eternal is prioritizing scale over near-term profits, investing heavily to strengthen its long-term leadership in Q-commerce and digital retail.

• Orkla India filed for IPO to sell shares worth INR16.7B. It is an “offer for sale” by the selling shareholders intending to sell 22.8M shares at INR 695-730 per share.
• Orkla is a multi-category Indian food company with key product categories being Spices and Convenience Foods under two major brands, MTR and Eastern.
• The IPO offer price range appears to be a more reasonable for the company considering the fact that it lags behind on many fronts when compared to its’ peers.

• Integris Medtech Limited (1234518D IN) is looking to raise about US$340m in its upcoming India IPO. The deal will be run by ICICI, Axis, Citi and IIFL.
• Integris Medtech Limited is a diversified India-based global MedTech company engaged in the development, manufacturing, and commercialization of medical devices and laboratory solutions.
• The Lab Solutions segment provides laboratory and clinical diagnostic products across hospitals and industrial labs. The Cardiovascular segment focuses on interventional cardiology devices used treatments of coronary artery disease.

• Lenskart Solutions (0370405Z IN) is looking to list on the exchanges by selling 181.05m shares via a primary and secondary offering to raise US$829m at a valuation of US$7.95bn.
• The price band has been set at INR 382-402/share, and the issue is likely to price at the top end of the range.
• The stock will not get Fast Entry to global indices. Inclusion at regular rebalances will commence in June 2026 but flow will be small given the low float.

• Emirates NBD to invest USD3 billion for a controlling stake of up to 74% in RBL Bank through a mix of preferential issue and open offer.
• The deal boosts RBL’s capital strength, global linkages, and business mix amid ongoing margin and asset-quality challenges.
• Short-Term earnings may stay uneven, but the investment sets up a long-term re-rating opportunity dependent on execution, regulation, and credit control.

• Royal Orchid Hotels is pursuing an aggressive, asset-light expansion strategy, focusing on management contracts to significantly increase its hotel and room count, particularly in underserved Tier 2 and Tier 3 cities.
• The Indian hospitality industry is experiencing a strong upcycle, driven by robust domestic tourism, rising disposable incomes, and a supply-demand gap that is expected to support high occupancy rates and pricing power.
• While the company demonstrates strong growth in revenue and market capitalization, its profitability has seen some pressure, and negative free cash flow raises concerns about long-term sustainable value creation.

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