In today’s briefing:
- The Adani Factor: Creating India’s Biggest PVC Capacity
- NSDL IPO: The Bull Case
- Lucror Analytics – Morning Views Asia
- Narayana Hrudayalaya Ltd (NARH IN): All That Cheap Is Not Always Value Buying Opportunity
- Rayzon Solar Ltd Pre-IPO Tearsheet
The Adani Factor: Creating India’s Biggest PVC Capacity
- India’s PVC market faces high import dependency, reaching 63% in FY25, due to stagnant domestic capacity and a widening 3 MMT demand-supply gap.
- Adani and Reliance plan 2.5 MTPA domestic capacity expansion, bolstering production to reduce import reliance.
- This aims to cut import dependency from 63% to under 30% by FY27, narrowing the gap to 1.4 MMT, enhancing domestic profitability.
NSDL IPO: The Bull Case
- National Securities Depository Limited/NSDL (NSDL IN) is the largest depository in India. It is seeking to raise US$400 million.
- The depository market in India is a duopoly with high barriers to entry as each of the current depositories is promoted by large institutions.
- The bull case rests on outperforming its key peer on several metrics, the core business’s solid performance, signs of margin recovery, cash generation, and no debt.
Lucror Analytics – Morning Views Asia
- In today’s Morning Views publication we comment on developments of the following high yield issuers: Tata Motors, Nissan Motor
- UST yields rose yesterday, ahead of an auction cycle beginning today. The UST curve bear steepened, with the yield on the 2Y UST rising 1 bp to 3.90%, while that on the 10Y UST climbed 3 bps to 4.38%.
- Equities retreated from record high levels after US President Donald Trump unveiled his tariff plans for countries that have yet to secure a trade deal with Washington. The S&P 500 fell 0.8% to 6,230, while the Nasdaq was down 0.9% at 20,413.
Narayana Hrudayalaya Ltd (NARH IN): All That Cheap Is Not Always Value Buying Opportunity
- Narayana Hrudayalaya Ltd (NARH IN) reported revenue growth of 12% over the last two years, which is on the lower side compared to the peers.
- Capacity constraint is the major setback. Until the company adds new greenfield capacity, there will be no significant change in volume. Near-term growth expectation is subdued.
- Compared to peers, NHL is a late mover in capacity expansion. Significant greenfield expansion is scheduled to complete in FY28, through which nearly 1,100 beds will be added.
Rayzon Solar Ltd Pre-IPO Tearsheet
- Rayzon Solar Ltd (0127839D IN) (RSL) is looking to raise about US$175m in its upcoming India IPO. The bookrunners for the deal are SBI, Ambit, IIFL.
- RSL, established in 2017 as M/s Rayzon Green Energies, manufactures and sells Mono PERC, TOPCon, and bifacial solar PV modules for utility, C&I, and residential markets.
- According to the CRISIL Report, RSL is among the top 10 solar photovoltaic (PV) module manufacturers in India, with an installed capacity of 6.00 GW as of Mar 25.
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