In today’s briefing:
- Mankind Pharma (6596876Z IN) Pre-IPO: Solid India-Centric Growth Story Fueled by Marquee Brands
- Nextracker IPO Valuation Analysis
- Sonos Inc: New Launches & Other Drivers
- Sunrun Inc: Collaboration With The Enel Group & Other Drivers
- Qualys Inc.: The Blue Hexagon Acquisition & Other Drivers
- Marathon Oil: Acquisition Of Eagle Ford Assets Of Ensign Resources & Other Drivers
- Enphase Energy Inc: Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (01/23)
- Lululemon Athletica: Major Drivers
- Appian Corp: Major Drivers, Financial Forecasts, DCF & Comparables Valuation, Key Risks (01/23)
Mankind Pharma (6596876Z IN) Pre-IPO: Solid India-Centric Growth Story Fueled by Marquee Brands
- Mankind Pharma (6596876Z IN), India’s fourth largest pharmaceutical company, has filed DRHP for INR55B IPO, which is comprised of an OFS of 40M shares by promoters and existing investors.
- Mankind has 36 pharma brands that have each achieved annual revenue of more than INR500M. 18 of its brands are among 300 top selling brands of the Indian pharma market.
- During FY20–22, domestic sales of Mankind had a CAGR of ~16%, which is ~1.5 times that of the Indian pharma market, which grew at a CAGR of ~11%.
Nextracker IPO Valuation Analysis
- NEXTracker (NXT US) , a leading solar tracker and software solutions provider for utility-scale and distributed generation projects, filed for an IPO.
- According to Crunchbase, NEXTracker (NXT US) has raised ~$548M in funding over four rounds, and investors include Sigma Partners, DBL Partners, SJF Ventures, and American private equity firm TPG.
- We have a favorable view of the upcoming Nextracker IPO and see upside potential to the last round valuation of ~$3B, when the company announced a strategic investment from TPG.
Sonos Inc: New Launches & Other Drivers
- Sonos delivered a decent performance in the last quarter with revenue growth beyond market expectations and narrower-than-expected losses despite the challenging macroeconomic backdrop.
- In the last quarter, installer solutions revenue grew, driven by robust demand for the company’s Port and Amp products in spite of persistent supply challenges.
- Sonos continues to see strong performance in its installer solutions channel in spite of slowing house activity in the United States.
Sunrun Inc: Collaboration With The Enel Group & Other Drivers
- Sunrun delivered strong results in the last quarter as it continued expanding net subscriber value and delivering cost efficiency.
- During the quarter, Lunar Energy unveiled the clean energy company where Sunrun invested for accelerating whole-home electrification.
- Ford’s partnership with Sunrun continues to deliver strong results.
Qualys Inc.: The Blue Hexagon Acquisition & Other Drivers
- Qualys delivered a strong set of results for the previous quarter, surpassing Wall Street expectations in terms of revenues as well as earnings.
- It was another quarter of steady VMDR (Vulnerability, Management, Detection, Response) adoption that has developed 45% of the company’s customers worldwide.
- VMDR applications of the company saw an increasing number of vendors and Qualys managed to build a high positioning in the recent market.
Marathon Oil: Acquisition Of Eagle Ford Assets Of Ensign Resources & Other Drivers
- Marathon Oil delivered a mixed result for the quarter as it surpassed the revenue expectations of Wall Street.
- It brought 13 wells to sales, among which 8 were 2-mile laterals and the productivity for these extended laterals is very strong.
- We provide the stock of Marathon Oil Corporation with a ‘Hold’ rating with a revision in the target price.
Enphase Energy Inc: Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (01/23)
- Enphase delivered solid results for the past quarter driven largely by solid revenues through microinverters which helped them produce an all-around beat.
- Enphase Energy has recently announced the launch of IQ8 Microinverters in the Netherlands and France, thereby making the foremost expansion into the international markets for this product.
- In the U.S., the microinverter channel inventory has been very healthy, and its storage channel inventory was slightly elevated because of longer installation times.
Lululemon Athletica: Major Drivers
- Lululemon’s results for the last quarter continued to be strong and the company produced an all-around beat despite the fact that the external environment remains challenging.
- In terms of traffic driven and revenue, Black Friday was among the biggest days for the company.
- The revenue growth of Lululemon remained balanced and strong across various drivers, and the company’s market share gains continued.
Appian Corp: Major Drivers, Financial Forecasts, DCF & Comparables Valuation, Key Risks (01/23)
- Appian Corp delivered a mixed result in the last quarter with revenues exceeding Wall Street expectations largely driven by the growth in cloud subscription revenue.
- In every category, the revenue growth is healthy and setting records in the quarter.
- While a large part of the tech industry has been retrenching, Appian went ahead and hired 221 employees in the last quarter.
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