India

• Hindustan Zinc (HZ IN) has committed to a massive INR 30k−35k Crs (3.6−4.2 billion) expansion to double its metal production underpinned by record-low zinc costs and high silver contribution.
• This integrated, self-funded capacity doubling effort, coupled with aggressive decarbonization and the high-margin silver tailwind, fundamentally de-risks the long-term earnings trajectory.
• While the corporate restructuring remains an overhang, HZL’s strategic shift makes it a compelling, low-cost proxy for India’s industrial growth and the global silver bull cycle.

• Tata Capital Limited (TATACAP IN) IPO highlights strong branch growth and granular loan book, though new-to-credit exposure remains limited and underwriting largely product-driven.
• Weak sourcing disclosures beyond Home Loans raise concerns on DSA reliance, portfolio quality, and resilience during downturns, especially in competitive lending segments.
• Collections are highly digitized and analytics-driven, yet regulatory inspections reveal persistent compliance, governance, and risk management lapses across Tata Capital, TMFL, and TCHFL.

• LG Electronics (066570 KS) is looking to raise US$1.3bn via part-selling its stake in LG Electronics India.
• LG Electronics India (LGEI) was the market leader in India in major home appliances and consumer electronics (excluding mobile phones) in terms of volume, as per Redseer Report.
• We have looked at the company’s past performance in our previous note, in this note we talk about the RHP updates and refresh our peer comparison

• Ambuja Cement has crossed the 100 MTPA capacity mark and is executing a roadmap for 140 MTPA by FY28 while targeting a INR1,500 per tonne EBITDA by the same year.
• The integration of multiple recent acquisitions, including Orient, Sanghi, and Penna, is crucial; Q2FY26 results will offer the first look into how the new consolidated entity handles initial integration costs.
• While Q1 FY26 set a high baseline, investors should  anticipate sequential dip in Q2 margins, viewing it as a short-term integration blip against a decade-defining capacity and cost rationalisation strategy.

• Salzer Electronics is a well-established player in the Indian electrical components market, demonstrating a robust track record of revenue and net income growth. The company is capitalizing on favorable industry tailwinds, including infrastructure development and the push for energy efficiency.
• Strategic expansion into high-growth areas such as smart meters and electric vehicle (EV) chargers presents significant upside potential. These new ventures, coupled with a strong existing portfolio in switchgears and wires & cables, are expected to be key long-term growth drivers.
• A significant concern is the consistently negative operating and free cash flow over the past three years, primarily due to high working capital requirements to fund growth. Improving cash conversion and working capital management will be critical for sustainable value creation.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• WeWork India Management Ltd (1690124D IN) IPO is an OFS under SEBI Regulation 6(2), reflecting weak financial eligibility, ongoing losses, and dependence on deferred tax credits for reported profitability.
• Promoter and governance risks loom large, with pending ED, CBI, and EOW proceedings against Jitendra and Karan Virwani, plus complaints of incomplete or misleading disclosures in filings.
• The IPO mainly serves as a deleveraging tool for the promoter, with pledged shares, heavy audit qualifications, weak controls, and depleting cash exposing material investor risks.

• LG Electronics India (123D IN) is looking to list on the exchanges by selling 101.8m shares at a valuation of US$8.7bn and raising around US$1.3bn in its IPO.
• The new valuation is around 24% lower than the rumoured valuation at the time of the DRHP filing last December.
• 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.

• NIFTY 50 represents the 50 largest stocks listed in the National Stock Exchange (NSE) of India and the NIFTY Next 50 index tracks the next 50 largest names.
• In this insight, we take a look at the names leading the race to become ADDs/DELs for these indices during the March 2026 index rebal event.
• We see no changes for NIFTY 50 and three changes for NIFTY 100 (which would result in similar changes to NIFTY Next 50).

• Sammaan Capital’s Board approved a preferential issue to Avenir Investment RSC Ltd., a wholly-owned subsidiary of Abu Dhabi’s IHC, aggregating INR 8,850 crore (USD 1.06 billion) in equity and warrants.  
• The strategic inflow from the well-capitalized, sovereign-linked IHC provides a massive de-risking event, validates Sammaan’s new-book strategy, and signals a powerful new stream of capital flows into Indian HFC/NBFC space.  
• The scale, strategic nature, and pricing of the deal position Sammaan for a significant re-rating, shifting the investment thesis from asset quality clean-up to funded growth.

• WeWork India Management Ltd (1690124D IN) is looking to raise about US$338m in its India IPO.
• WeWork India (WWI) offers a wide range of workspace solutions, including custom-designed buildings, floors, and offices, enterprise office suites, private offices, co-working spaces, customized managed offices, and hybrid digital solutions.
• In our earlier notes, we have looked at the company’s past performance. In this note, we talk about the peer comp and IPO valuations.

• WeWork India is the Indian arm of global flex space major (WEWKQ US); however, it is promoted by Indian real estate major Embassy group (~48% stake post IPO)
• WeWork has differentiated itself from the crowded flex space market with a focus on premium Grade-A property and cornering market share in major markets like Bengaluru and Mumbai (MMA)
• IPO valuation at 22x FY25 EBITDA prices in this premium relative to peers (12-14x). Can the company sustain these valuations?

• ADF Foods is shifting from an agency-based distribution model to a brand-led, in-house manufacturing approach, focusing on the U.S. frozen food segment to improve margins and supply control.
• This strategic pivot enhances margin stability, mitigates raw material and geopolitical risks, and deepens market penetration in mainstream international retail, positioning ADF for sustainable long-term growth and profitability.
• Market focus should move from export volatility to ADF’s brand premiumization and successful US greenfield execution, the key drivers of sustainable growth and long-term re-rating.

• Non-Operational Entity in Financial Distress: Mysore Paper Mills (MSPM) has ceased all core manufacturing operations, with paper production halted in 2015 and its sugar division in 2016. The company is characterized by a prolonged history of substantial financial losses, negative margins, and a complete erosion of net worth, rendering it a financially unviable entity in its current state.
• Government-Led Revival Efforts via Privatization: The Government of Karnataka (GoK), the majority shareholder, has deemed a public sector revival unfeasible and is actively pursuing leasing the company’s assets and operations to a private entity. However, multiple tender attempts since 2017 have failed to attract bidders, highlighting significant challenges and perceived risks by potential investors.
• High Uncertainty Against a Favorable Industry Backdrop: The company’s future is entirely contingent on the success of the government’s leasing strategy, which faces high uncertainty. This contrasts with the positive outlook for the broader Indian paper industry, which is experiencing robust growth driven by demand in packaging and education. Any potential value in MSPM lies in its physical assets and the speculative possibility of a successful operational turnaround under a new private operator.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: JSW Steel
• UST yields fell yesterday, led by the front end and belly, as weaker than projected ADP employment data further bolstered Fed easing expectations. The UST curve bull steepened, with the yield on the 2Y UST down 7 bps to 3.54%, while that on the 10Y UST declined 5 bps to 4.10%.
• Equities climbed for the fourth day, with the market remaining upbeat despite the US government shutdown. The S&P 500 and Nasdaq rose 0.3% and 0.4% to 6,711 and 22,755, respectively.

• Context: The ICICI Bank (ICICIBC IN) vs. HDFC Bank (HDFCB IN) price-ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
• Highlights: The combination of going long ICICI Bank (ICICIBC IN) and short HDFC Bank (HDFCB IN) has traded profitably in July and is now flagged again as a fresh opportunity.
• 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.

• Tata Capital Limited (TATACAP IN) is the third-largest non-banking financial company (NBFC) in India. It is seeking to raise US$1.7 billion. 
• I had previously discussed the investment case in Tata Capital IPO: The Investment Case. 
• The RHP updates show that the fundamentals remain mixed. Positives include large size, mid-tier growth rates and good asset quality. Negatives include below peer average NIM, interest spread and ROA. 

• The GST Council’s decision to exempt all individual life and health insurance premiums from GST (0% vs. 18% earlier), effective September 22, 2025, is a landmark affordability move.
• The immediate drop in premiums for products like term and ULIPs is expected to drive a significant surge in demand, though insurers like ICICI Prudential will lose ITC on expenses.
• While the volume boost from higher affordability is a major long-term catalyst,  immediate margin compression from ITC loss on commissions will require operational efficiency and pricing recalibration for ICICI Prudential.

• RateGain Travel Technologies has entered into a definitive agreement to acquire US-based, AI-powered travel marketing platform Sojern for an upfront consideration of $250 million.
• The acquisition is a bold move to create a scaled, AI-first digital marketing and distribution platform, significantly boosting RateGain’s MarTech business and nearly tripling its revenue/EBITDA run-rate (pre-synergies).
• The strategic upside of owning the full guest acquisition-to-retention cycle justifies the blended financing structure and the integration risk of two large, geographically dispersed travel tech companies.

• Tata Capital Limited (TATACAP IN) is looking to raise up to US$1.7bn in its upcoming India IPO.
• Tata Capital Limited (TCL) is the flagship financial services company of the Tata group and a subsidiary of Tata Sons Private Limited.
• We have looked at the company’s past performance in our earlier notes. In this note, we talk about valuations.

• LG Electronics’ BOD finally approved a plan to sell a 15% stake in LG Electronics India in an IPO to be completed in 2025.
• According to local media, LG Electronics India is now valued at about US$13 billion which is higher than LG Electronics’ market cap of US$8.8 billion. 
• Our base case valuation of LG Electronics India is implied market cap of 1,280 billion INR or US$14.4 billion.

• Tata Capital Limited (TATACAP IN) is looking to list on the exchanges by selling up to INR155bn (US$1.75bn) of stock at a valuation of around INR 1,384bn (US$15.6bn).
• The stock will not get Fast Entry to either of the global indices. The earliest inclusion in a global index should take place in June 2026.
• The stock should be added to the Large Cap segment in the AMFI Classification in January and to the Nifty Next 50 Index in March.

• In Q1FY26, Edelweiss reported 20% YoY PAT growth.  Edelweiss is growing from strength to strength with its businesses scaling up well. Its insurance and asset management businesses are growing rapidly. 
• During Q1FY26, Edelweiss divested 15% stake in its Mutual Fund business, Edelweiss Asset Management, to WestBridge Capital for INR 450cr, valuing the business at INR 3000cr. 
• YoY, Edelweiss has reduced its consolidated net debt by INR 4845cr (down 31% YoY) and corporate debt by INR 2260cr (down 26% YoY). Corporate debt is now at INR 6350cr.

• Tata Capital Limited (TATACAP IN) is looking to raise up to US$1.7bn in its upcoming India IPO.
• Tata Capital Limited (TCL) is the flagship financial services company of the Tata group and a subsidiary of Tata Sons Private Limited.
• We have looked at the company’s past performance in our earlier notes. In this note, we talk about the RHP updates

• WeWork India Management Ltd (1690124D IN)  is looking to raise about US$338m in its India IPO. The all-secondary IPO has been downsized from its initial estimated size of about US$407m.
• WeWork India (WWI) offers a wide range of workspace solutions, including custom-designed buildings, floors, and offices; enterprise office suites; private offices; co-working spaces; customized managed offices; and hybrid digital solutions.
• In our earlier notes, we have looked at the company’s past performance. In this note, we talk about the RHP updates.

• Nippon Life India Asset Management (NAM IN) is a leading asset manager in India, well-positioned to capitalize on the structural growth of the country’s financialization of savings, driven by rising incomes and financial literacy.
• The company has demonstrated a strong growth trajectory, consistently gaining market share in high-margin equity AUM and rapidly growing its Systematic Investment Plan (SIP) book, which provides a stable and recurring revenue stream.
• While the outlook is positive, key risks include intense competition from existing players and new entrants, potential pressure on yields from the growing share of lower-fee passive products, and market volatility impacting AUM growth and investor sentiment.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• Nuvama Wealth Management (“Nuvama”) posted a strong Q1FY26 despite a challenging market environment. Q1FY26 revenue grew 15% YoY and PAT grew 19% YoY led by improved cost efficiency.
• Managed Products and Investment Solutions (MPIS) which is a core focus area for Nuvama Wealth saw strong inflows representing 77% of the INR 2900cr total inflows.
• Even within Nuvama Private, the recurring assets net flows were INR 2900cr+, which on an annualized basis implies a growth of 25%+ YoY.

• SEBI barred Man Industries and three key executives from the securities market for 2Yrs, imposing 1 crore penalty on the company and officials for alleged “deliberate misstatement”.
• The order fundamentally questions the quality and credibility of past reported earnings, especially the non-consolidation of the loss-making subsidiary, Merino Shelters, and the alleged round-tripping of funds.
• While MIIL cites its strong ₹4,700 crore order book and minimal operational impact, the significant governance discount will persist until the SAT appeal is settled.

• Jain Resource Recycling (2300699D IN)  raised about US$142m in its India IPO.
• The company is primarily focused on manufacturing of non-ferrous metal products by recycling of non-ferrous metal scrap. It is also engaged in trading of non-ferrous metals and other commodities.
• 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.

• Despite early monsoon resulting in weak demand, RPPL posted a decent revenue growth of 4.9% YoY in Q1FY26. This was led by 45% YoY growth in exports.
• RPPL’s injection molding segment has been doing exceptionally well with revenue doubling in Q1FY26. RPPL’s Olive Ecopak JV has started slow but holds significant potential.
• At current valuation, RPPL’s stock offers an attractive entry point with potential to more than triple over a holding period of three years. 

• OneSource Specialty Pharma has approved a Composite Scheme of Arrangement to acquire Steriscience’s EuropeanCDMO and Brooks Steriscience’s Indian anti-infective assets.
• The transaction adds approximately $107 million in projected FY27 revenue, significantly diversifying the portfolio, reducing single-site risk, raising the consolidated FY28 revenue outlook to over $500 million.
• While the acquisition multiples appear steep for subscale assets, if management successfully delivers on ambitious growth targets, the transaction could position OneSource among the most competitive players in CDMO landspace.

• Punjab National Bank (PNB) is demonstrating a significant financial turnaround, marked by robust growth in net income and revenue over the past three years. This is supported by a strategic focus on improving asset quality and diversifying its lending portfolio.
• As the second-largest public sector bank in India, PNB benefits from extensive government backing and a vast branch network, providing a stable, low-cost deposit base. The bank is leveraging this position to push for digital transformation and expand into high-growth sectors like renewable energy and infrastructure.
• Key challenges remain, including managing historical non-performing assets (NPAs), navigating intense competition from private sector banks and fintech companies, and mitigating cybersecurity risks. Sustained execution of its strategic initiatives will be crucial for long-term value creation.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• In line with our thesis, HCG has been scaling up well led by rapid growth in emerging centers. Established centers are also growing at a steady pace.  
• With scale, profitability is normalizing. Over the next two years, we project the EBITDA to grow at 25% CAGR led by margin expansion and volume growth.
• Utilization on like to like basis came in at 76% in Q1FY26 vs 69% in FY25. ARPOB has been steady at around INR 45000.

• On July 1, 2023, HDFC Limited, India’s largest mortgage lender, merged with HDFC Bank, the country’s largest private sector bank, in a historic $40 billion deal. This primer analyzes the pre-merger entity, HDFC Limited, and its integration into HDFC Bank.
• The merger creates a financial services behemoth with a combined asset base of around ₹18 trillion, positioning it to capitalize on India’s burgeoning housing finance market. The home loan business is a central pillar of the merged entity’s growth strategy.
• Significant cross-selling opportunities exist, as a large portion of HDFC Limited‘s customers did not bank with HDFC Bank, and vice versa. The integration aims to leverage HDFC Bank’s extensive distribution network and lower cost of funds to enhance the mortgage business.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• PTC India Financial Services (PTCIF IN) faced a mass exit of Independent directors recently.
• The IDs flagged compromising independence and constrained in upholding the highest standards of corporate governance as their reasons.
• This once again brings back the governance issues under limelight, a situation the company is already familiar with.

• Shivalik Rasayan, once focused on agrochemicals, has entered pharmaceuticals by acquiring Medicamen Biotech and securing USFDA approval for its new API plant at Dahej-II in 2024.
• The company is transforming into a diversified chemicals and pharma player. Investments in R&D, larger agrochemical capacity, and regulated pharma access open pathways for higher-margin and sustainable growth.
• Despite past issues of underutilized plants, high costs, and delays, recent approvals and new facilities position Shivalik Rasayan for steadier performance and long-term growth if execution remains strong.

• Our earlier insight Tata Capital IPO – Jinxed by Tata Motors Finance describes how post merger with Tata Motor finance,  the finance metrics of the company changed.
• In this insight we discuss about updates from Q1FY26 results and key observations on the same.
• This also discusses about the IPO valuation, peer comparison and our view.

• IDBI Bank has demonstrated a significant financial turnaround, marked by robust profit growth and a substantial reduction in non-performing assets (NPAs). This improvement has been heavily supported by capital infusions from the Government of India and Life Insurance Corporation of India (LIC).
• The impending privatization, with the government and LIC set to divest a 60.72% stake, stands as the most critical forward-looking catalyst. This strategic sale is expected to enhance operational efficiency, improve governance, and unlock value for shareholders.
• Despite the positive financial trajectory, the bank’s stock has underperformed its peers. Concerns remain regarding the sustainability of performance post-privatization and corporate governance issues, highlighted by disproportionate increases in executive remuneration.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: Tata Motors, JSW Steel
• UST yields were little changed on Friday, following the release of robust August consumption data in the US, while the core PCE price index was broadly stable. The yield on the 2Y UST declined 1 bp to 3.64%, while the yield on the 10Y UST was stable at 4.18%. Equities recovered from a three-day slide. The S&P 500 rose 0.6% to 6,644, while the Nasdaq climbed 0.4% to 22,484.
• In the US, August personal spending accelerated slightly to 0.6% y-o-y (0.5% e / 0.5% p), while personal income came in marginally above estimates at 0.4% (0.3% e / 0.4% p).

• Context: This Insight follows up on previously highlighted relative value opportunities, using a statistical methodology based on mean-reversion to identify opportunities in paired securities.
• Highlights: Currently ten pair trade opportunities across four markets and four sectors persist.
• Why read: Statistical analysis offers a unique perspective on relative value. Gain insights into actionable statistical pair trade opportunities and monitor performance of previously highlighted pairs.

• TBL boasts of the largest ethanol distillery capacity (3.6% market share). With capex for input fungibility done, the company has set its sights on becoming the largest producer soon.
• The expansion in Compressed Bio-gas compounds the growth levers, but will require material working capital investments. Sustainable aviation fuel opportunity also seems compelling in light of the recent government push.
• IPO seems priced to perfection with deal multiples of 12x FY26 EBITDA, visibly at the higher end of 6-14x multiple for peers. Faster deleveraging may add to market cap upside.

• Back on the 10th December 2024, ReNew Energy Global (RNW US), an Indian renewable energy play, announced a non-binding Offer of US$7.07/share, by way of a Scheme.
• The bidding consortium, comprising (mainly) pre-IPO investors CPP, ADIA, Abu Dhabi Future Energy, and founder Sumant Sinha, collectively holding 64%. Non-binding terms were bumped to US$8/share on the 3rd July.
• ReNew’s Special Committee will provide “public comment regarding these matters at such time as there is a material development in the process, and by no later than 30 September 2025“.

• We visited two manufacturing plants of Nelcast Ltd (NELC IN) located in the southern part of India. In this insight we present the key takeaways from visit.
• Specifically the Pedapariya plant which was facing low capacity utilization is seeing signs of steep ramp up.  Insights on this are provided in the note.
• With no significant capex coming up, the ramp of capacity could make Nelcast Ltd (NELC IN)a dark horse in terms of investor returns. We highlight our projections in this note.

• Q1FY26 pre-sales came in weak led by delayed launches; however, KPDL’s management has guided to do INR 3500cr+ (25% YoY growth) in pre-sales for the full-year FY26.
• During Q1FY26, KPDL completed allotment of 14.3% equity stake to Blackstone bringing in INR 417cr of capital that is earmarked to be predominantly used as growth capital. 
• Due to ongoing transition phase with Blackstone (BX US) being added as a promoter, the business development activity has been slow. However, more clarity and visibility is expected post Q2.

• The U.S. Customs and Border Protection (CBP) has launched a formal investigation into Waaree Energies, alleging the company evaded anti-dumping and countervailing duties by mislabeling Chinese-made solar products as Indian.  
• The probe, initiated by a U.S. domestic manufacturing coalition, directly threatens India’s growing solar exports to the U.S. and highlights the complexities of global supply chains.
• This investigation introduces significant regulatory and financial risk for Waaree Energies, and the outcome will be a crucial for its ability to participate in the U.S. market.

• Nuvama Wealth is capitalizing on India’s burgeoning financialization trend, with its re-branding and strategic focus on affluent and ultra-high-net-worth individuals (UHNIs) driving strong growth in client assets and profitability.
• As India’s wealth management market matures and faces increasing regulatory scrutiny, Nuvama’s differentiated model position it uniquely to capture a larger share of the shifting landscape.
• Nuvama’s integrated platform and execution-focused management team are navigating industry-wide challenges, from tightening regulatory framework to sustain a growth trajectory that is outperforming peers and creating long-term value.

• Anand Rathi Share and Stock Brokers, a three-decade-old full-service brokerage house, is set to go public with a fresh issue to fund its working capital and expansion.
• The offering provides a window into a mature, brand-led brokerage with an industry-leading Average Revenue per Client (ARPC) and a strong presence across Tier I, II, and III cities.
• The company’s structural strengths, including its Margin Trading Facility (MTF) business and client vintage, position it for sustained growth in India’s evolving capital markets.

• Context: The Bajaj Finserv (BJFIN IN) vs. Bajaj Finance (BAF IN) price-ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
• Highlights: Going long Bajaj Finserv (BJFIN IN) and short Bajaj Finance Ltd (BAF IN) targets a 6% 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.

• Context: The Punjab National Bank (PNB 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 Punjab National Bank (PNB IN) and short Canara Bank (CBK IN) targets a 4% 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.

• Groww (1573648D IN) is looking to raise up to US$803m in its upcoming India IPO. The deal will be run by JPM, Kotak, Axis, Citi and Motilal Oswal.
• Groww, officially called Billionbrains Garage Ventures, is a direct-to-customer (D2C) digital investment platform that provides multiple financial products and services.
• According to the Redseer Report, Groww was India’s largest and fastest growing investment platform by active users on NSE as of June 30, 2025.

• LIC Housing Finance (LICHF) holds a strong position as one of India’s largest housing finance companies, benefiting significantly from the brand equity and extensive network of its parent, Life Insurance Corporation of India (LIC).
• The company has demonstrated robust growth in net income and operating cash flow over the past three years, driven by strong demand in the Indian housing market and a strategic focus on the salaried customer segment.
• While facing intense competition from banks and other housing finance companies, which puts pressure on margins, LICHF is strategically diversifying into higher-yielding segments like project finance and Loan Against Property (LAP) to support future profitability.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• Seshaasai is the second-largest payments card manufacturer in India (32% market share in FY25) and the largest manufacturer of cheque leaves in India creating a niche cash cow business.
• Growth tailwinds in the core business, driven by premium metal cards and export opportunities, and its RFID and IoT-led offerings position the company for 20-25% growth in the medium term.
• We estimate the IPO has been priced fairly at 18-20 times FY27 earnings and could potentially trade at multiples of 25+.

• Bajaj Finance Ltd (“BAF”)  reported a strong Q1FY26 in terms of growth; however, its credit costs remain elevated due to challenging environment.
• AUM grew INR 24750cr+ in Q1FY26 to reach INR 441450cr. BAF added 13.49mm new loans and acquired 4.69mm new customers during Q1FY26 taking the customer franchise count to 106.51mm.
• BAF envisions FY26 to be a defining year for AI led transformation (FINAI). BAF has been incorporating FINAI capabilities gradually throughout the company. 

• In our previousNIFTY Index insight published at the end of August we highlighted two possible scenarios before the Sep-30 rebalance: 1) risk-off pullback or 2) small rally. 
• Scenario 2), the small rally is what came true, it lasted 3 weeks (we said 2 weeks), but it was a weak rally. The NIFTY however is not very overbought.
• 3-Week rallies not reaching higher highs usually indicate a weakness in the trend, but this could be a buy opportunity, so let’s have a look at our model’s BUY zones… 

• Laurus Labs is shifting from ARV APIs to high-growth areas like CDMO and biotech, diversifying its revenue base for long-term stability.
• Heavy investments in complex, high-margin businesses reduce dependence on volatile ARV markets, ensuring sustainable and more profitable future growth.
• Though returns dipped initially, strong CDMO performance shows the strategy is working, making Laurus Labs a model of successful pharma transformation.

• Groww has established itself as India’s largest investment platform by number of active users, capitalizing on the country’s burgeoning retail investor base and the digital transformation of financial services.
• The company’s growth has been fueled by its user-friendly, mobile-first platform offering a wide range of investment products, including mutual funds, stocks, ETFs, and digital gold, attracting a large number of young, first-time investors.
• While experiencing rapid user and asset growth, Groww‘s revenue is heavily reliant on transaction-based income, making it susceptible to market volatility. The upcoming IPO is a key catalyst that will provide capital for further expansion and product development in a competitive fintech landscape.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• LICHF has been producing below-average growth over the past four years; however FY26 is expected to be a normal year in terms of growth and asset quality.
• Q1FY26 saw growth of 7% YoY in AUM, which is decent considering that Q1 tends to have employee promotions and transfers which disrupt the operations somewhat.
• Asset quality has stabilized with GNPA at 2.6% vs 3.3% YoY, although it has worsened slightly QoQ due to collection delinquencies in some retail loans.