Daily Brief Equity Bottom-Up: Why Biocon’s Merger Is the Cleaner and more

• 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.

• FY25 is the trough: weak smelter ramp (3–39%) and export ban drive losses; recovery depends on utilisation >50% in FY26.
• FY26 mining strong, smelter unclear: 220 kt Cu and 579 koz Au guided, but smelter repairs run through H1’26.
• Index risk rising: gold share <20% puts AMMN at high risk of GDX/MVGDX exclusion, with US$140–200m passive outflows.

• AppFolio, Inc. has reported its financial results for the third quarter of 2025, showcasing both advancements and challenges as it navigates the property management software industry.
• The company achieved revenue of $249 million, marking a robust 21% increase year-over-year.
• This growth underscores AppFolio’s market strength, driven by their strategic initiatives in expanding new business and enhancing current service offerings, particularly in their Plus and Max premium tiers.

• 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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• Merit Medical Systems reported a strong performance in the third quarter of 2025, showing substantial growth across various financial indicators.
• The company achieved total revenue of $384.2 million, representing a 13% increase year-over-year on a GAAP basis, and 12.5% on a constant currency basis.
• This robust performance was primarily driven by 7.8% constant currency organic growth, surpassing the previously forecasted 6% high range.

• Mitsubishi Electric is strategically divesting non-core assets, including a motor and insurance business, to free up capital and focus resources on the high-growth Factory Automation Digital Solution business.
• Capital optimization efforts have generated financial resources to fund the company’s ambitious Digital Transformation goals and M&A pipeline, including the acquisition of Nozomi Networks.
• Company now focused on structural enhancement, including significant CapEx plan for FY26 prioritizing the Semiconductor & Device segment, which covers SiC technology for semiconductor applications; large R&D investments also planned

• CCC Intelligent Solutions presented its third quarter results for fiscal 2025, demonstrating a strong financial position with a notable revenue increase and robust performance in expanding AI-driven solutions.
• The company reported a 12% year-over-year revenue growth to $267 million, exceeding guidance estimates.
• This growth was propelled by a 5% contribution from cross-sell and upsell initiatives, 3% from new client acquisitions, and 4% from EvolutionIQ.

• Cavco Industries, Inc. recently reported their second quarter fiscal year 2026 earnings, showcasing both strengths and challenges.
• Positive aspects included a 9.7% year-over-year increase in revenue, driven by a 5.4% increase in homes sold and a 4.4% increase in average revenue per home sold.
• Operating profit spiked by 27% compared to the previous year, indicative of robust operational performance and cost management efficiency.

• Hilton Grand Vacations (HGV) reported a performance in the third quarter of 2025 that showcased both strategic successes and challenges.
• The company’s contract sales rose impressively by 17% to $907 million, setting a record on a pro forma basis.
• This growth underpinned a noticeable improvement in both real estate profitability and adjusted EBITDA, which reached $302 million, marking near double-digit growth.

• Casella Waste Systems, Inc. recently presented its third quarter 2025 results, showcasing a blend of accomplishments and challenges, which together compose an intriguing outlook for the company.
• The report included key personnel, such as John Casella, Chairman and CEO, who will transition to Executive Chairman at the end of 2025, passing the CEO role to Ned Coletta on January 1.
• Despite the leadership overhaul, the company’s operational consistency and growth strategy appear solid.