Daily Brief India: Bikaji Foods, Dabur India Ltd, Canara Robeco AMC, LG Electronics India, Onward Technologies and more

• 94% of Bikaji’s revenue now falls under favorable GST slab due to the recent rate cut, positioning it to gain significant market share through lower consumer prices.
• The company is strategically passing on the tax benefit to consumers via higher grammage and lower MRP, which is expected to drive an incremental 2-3% volume growth while sustaining margins
• The company has the immediate manufacturing headroom and distribution reach to capture the expected volume surge without major, immediate capital expenditure.

• Dabur India Ltd (DABUR IN) ‘s business is contracting in volume and value, with declining margins, masking structural weakness through recurring excuses and shifting narratives across seasons and quarters.
• Disclosure standards have been reduced; management hides key metrics citing “competitive sensitivity,” obscuring true demand, volume trends, and domestic business performance.
• Q2 guidance cut to mid-single-digit growth confirms prior double-digit guidance was untenable, exposing weak underlying demand and the market’s slow recognition of systemic underperformance.

• Canara Robeco AMC (570515Z IN) is looking to raise up to US$150m in its upcoming India IPO.
• Overall, revenue increased annually at about 39% since FY22 and based on 9M25 numbers, Canara’s FY25 performance is on track to surpass FY24’s levels
• We have looked at the company’s past performance in our previous note. In this note, we talk about valuations.

• LG Electronics India (LGEIL) ’s USD 1.3 bn IPO, which opened on October 6, closes for subscription today, October 9, and is expected to list on October 14th.
• LGEIL has secured Rs34.7 bn from anchor investors ahead of its Rs116.1 bn IPO, signaling a likely strong oversubscription at close today.
• LGEIL IPO, priced at a steep discount to peers do not fully reflect company’s comparative strengths – strong market leadership, high returns and growth potential. Expect listing pop of 30%+.

• Onward Technologies is strategically pivoting from traditional IT services to high-growth, higher-margin Digital and Engineering Research & Development (ER&D) services, targeting key industrial verticals.
• The company is well-positioned to capitalize on the significant growth projected for the Indian ER&D services market, which is driven by global trends in digital transformation, automation, and connected technologies.
• While demonstrating strong long-term growth in revenue and profitability, the company has experienced recent margin pressure and a decline in net income, highlighting execution risks and competitive intensity.

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