Daily Brief India: Bharti Airtel, S.H. Kelkar & Co, Bajaj Housing Finance, Wim Plast Ltd, Bombay Burmah Trading, Advanced Enzyme Technologies, Delhi International Airport Limited and more

• Sunil Mittal-led promoter entity, Indian Continent Investment (ICI) is looking to raise around US$806m via selling a 0.6% stake in Bharti Airtel (BHARTI IN).
• ICI had earlier sold around US$1bn in Feb and Aug 2025 while Singtel had sold US$1bn+ via 0.8% stake sales in Airtel in May 2025 and Nov 2025 as well.
• In this note, we run the deal through our ECM framework and comment on deal dynamics.

• SHK reported 12% revenue growth in H1 FY26, but the reported EBITDA margin was compressed due to significant, deliberate investments in new growth initiatives and higher insurance costs.
• The margin compression is temporary, a function of strategic, discretionary capex and opex, which are critical for achieving the management’s ambitious 18–20% EBITDA margin target by FY27–FY28.
• The market is discounting the value of this forward-looking investment phase; sustained execution on new capacity, coupled with global regulatory shifts favoring organized players, provides a strong catalyst path.

• Bajaj Housing Finance (BHF IN) is a priced to perfection narrative.
• The current valuation (37.3x P/E, 4.2x P/B) prices the stock for absolute perfection in an environment that is distinctly imperfect and rapidly deteriorating.
• A critical red flag highlighted in the Q2 transcript is the elevated annualized attrition rate.

• Strong Brand Equity and Distribution Network: Wim Plast leverages the widely recognized “Cello”brand, a household name in India for decades, coupled with a robust pan-India network of manufacturing units and depots, providing a significant competitive advantage.
• Attractive Valuation with Consistent Shareholder Returns: The company trades at a compelling valuation (P/E of 9.7x, P/B of 1.03x) compared to its peers. This is supported by a history of consistent dividend payments and a healthy payout ratio.
• Favorable Industry Dynamics vs. Modest Growth: While the Indian plastic furniture market is poised for strong growth driven by urbanization and rising incomes, the company has demonstrated relatively flat revenue growth in recent years, highlighting a potential gap between market opportunity and execution.

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• Bombay Burmah Trading Corporation (BBTC) is a diversified holding company of the Wadia Group, with its intrinsic value primarily derived from its ~50.5% stake in the fast-moving consumer goods (FMCG) major, Britannia Industries.
• The company trades at a significant and persistent discount to the market value of its underlying assets, offering potential for substantial value unlocking. However, this discount is perpetuated by the underperformance of its standalone businesses and concerns over capital allocation.
• BBTC’s standalone operations, mainly in tea plantations and auto-electric components, face industry-specific headwinds and have historically yielded modest returns, weighing on the consolidated financial performance and investor sentiment.

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• Advanced Enzyme Technologies is a leading Indian enzyme and probiotics manufacturer with a global footprint, serving over 700 customers in more than 45 countries. The company has a diversified business model, catering to various industries including human healthcare, animal nutrition, and food processing.
• The company is well-positioned to capitalize on the growing global demand for eco-friendly and natural solutions. The industrial enzymes market is projected to grow at a CAGR of 6-7% annually. Key growth drivers include a strong focus on R&D, expansion of its international presence, and potential inorganic growth opportunities.
• While the company demonstrates a strong financial profile with a net cash position and healthy margins, it faces risks from regulatory changes, raw material price volatility, and intense competition from larger global players.

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• In today’s Morning Views publication we comment on developments of the following high yield issuers: Delhi Int’l Airport
• UST yields fell yesterday, led by the long end, on the back of a solid 2-year note auction and surprisingly dovish comments from San Francisco Fed President Mary Daly. The yield on the 2Y UST declined 1 bp to 3.50%, while that on the 10Y UST was down 4 bps at 4.03%.
• Equities rose for a second day, as tech stocks recovered slightly from the prior week’s sell-off. The S&P 500 advanced 1.5% to 6,705, and the Nasdaq jumped 2.7% to 22,872.