Daily Brief Equity Bottom-Up: Hindustan Zinc: The Silver Underdog and more

• 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.

• Inference compute is going increase by a factor of one billion. It’s already gone up at least 2x in the past twelve months
• OpenAI will become the next multi-trillion dollar hyperscaler. NVIDIA is going to make sure this happens
• AI-Related revenues have already reached $1 trillion since all hypercaler revenues are now AI related according to Jensen. Problem solved!

• In its second quarter of 2025, CoreWeave showcased significant growth amid strong demand for AI cloud services.
• The company’s revenue soared by 207% year-over-year, reaching $1.2 billion, with an adjusted operating income of $200 million.
• This marked the first instance of CoreWeave achieving both $1 billion in revenue and $200 million in operating income in a single quarter.

• Sunmax is a niche leader in collagen-based dermal fillers, capitalizing on a rapidly growing global medical aesthetics market driven by non-invasive procedures.
• The company exhibits a strong growth trajectory, evidenced by impressive multi-year CAGRs in revenue and net income, supported by high resilience and profitability metrics.
• Future growth is contingent on successful capacity expansion, with a new facility expected to be fully operational by H1 2027, and continued geographic expansion beyond its core markets in Taiwan and China.

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• 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.

• UiPath saw a near-10% spike in its share price after unveiling high-profile partnerships with OpenAI, Nvidia, and Snowflake, signaling a renewed push into AI-driven enterprise automation.
• The automation software provider announced it will integrate OpenAI’s cutting-edge GPT models, including GPT-5, into enterprise workflows.
• With Nvidia, the collaboration centers on fraud detection and healthcare solutions, while Snowflake will support UiPath’s Agentic Automation platform with its Cortex AI tools.

• TreeHouse Foods presented their second-quarter results with both positive and negative takeaways.
• The company surpassed its guidance upper ranges for adjusted net sales and adjusted EBITDA, a sign of successful execution in margin improvement strategies.
• However, the volume was pressured due to structural cost reductions and adjustments within their manufacturing network to focus on efficiency.

• Credo Technology Group is riding a wave of explosive growth, with its Q1 FY2026 results showing a 274% yearover-year revenue surge to $223 million and record non-GAAP net income of $98 million.
• This growth reflects its leadership in Active Electrical Cables (AECs) and high-speed optical DSP solutions, which power the AI infrastructure of hyperscale data centers.
• Against this backdrop, Credo has announced its plan to acquire Hyperlume, a privately held firm specializing in ultra-fast microLEDs and ultra-low power circuitry designed to address the bandwidth and energy bottlenecks of traditional interconnects.

• Sunway Healthcare is a leading integrated private healthcare provider in Malaysia with ambitious expansion plans, aiming to significantly increase its bed capacity and network of hospitals across the country, positioning it to capitalize on the growing demand for quality healthcare in the region.
• The upcoming Initial Public Offering (IPO), expected by the first quarter of 2026, is a significant catalyst, intended to raise substantial capital to fund its aggressive growth strategy, including the development of new hospitals and the expansion of ancillary healthcare services.
• The company benefits from strong parentage under the Sunway Group conglomerate and a strategic partnership with Singapore’s sovereign wealth fund, GIC, which provides financial backing and regional healthcare expertise, enhancing its growth prospects and market credibility.

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• Atkore Inc., a leading manufacturer in electrical infrastructure, is under fresh scrutiny after activist investor Irenic Capital Management disclosed a 2.5% stake and began pressuring the company to explore a sale.
• The news, first reported by Bloomberg, triggered a 2.2% rise in Atkore’s stock price and follows the company’s own announcement that it is evaluating strategic alternatives with the help of Citi.
• While no formal process has been confirmed, market speculation has intensified around a possible leveraged buyout or private equity-led acquisition.