Daily Brief India: Bharat FIH, Ringcentral Inc Class A, Sirius Xm Holdings and more

In today’s briefing:

Bharat FIH IPO: Rife with Bottlenecks
RingCentral, Inc.: Initiation of Coverage – Education Oriented Products, The New Webinar Launch, Other Drivers, Financial Forecasts, DCF & Comparables Valuation, Key Risks (07/22)
Sirius XM Holdings Inc.: Initiation of Coverage – Business Strategy, Cost Advantage & Other Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (07/22)

Bharat FIH IPO: Rife with Bottlenecks

Bharat FIH (BFIH IN) is India’s largest Electronic Manufacturing Services (EMS) provider and the largest mobile phone manufacturing and assembly services provider to Xiaomi Corp (1810 HK).
It has received Sebi approval for an IPO to raise Rs50,038 million (US$625 million), split equally between a primary and secondary raise. The offer will launch in August.
The fundamentals are challenged due to its reliance on Xiaomi, market share pressure, glacial revenue diversification, low margin and cash burn. We would pass on the IPO.

This is our first report on UCaaS player, RingCentral.
The company started off with 2022 reasonably well with solid revenue growth and expansion in both free cash flow and operating margins.
Currently, it is the only company that offers a fully integrated solution that combines UCaaS and CCaaS on one bill.

This is our first report on broadcasting giant, Sirius XM Holdings.
The company reported strong first-quarter growth in subscription and advertising revenue, as well as strong cash flow generation.
We initiate coverage on Sirius XM Holdings with a ‘Hold’ rating.

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