In today’s briefing:
- Event Driven: Delta Corp Demerger~ Separation Of Core Business From Problems
- Quiddity NIFTY Mar25 Rebal: Some Surprises; Combined Flows of US$1bn One-Way
- Event Driven: KKR Acquired Controlling Stake in HealthCare Global
- Event Driven: Indorama Bought Strategic Stake in EPL~ A New Chapter in Global Packaging
- The Beat Ideas: Manappuram Finance: Gold Loan Growth, Ashirwad IPO Play
- The Beat Ideas: Solara Active Pharma Science~ Turnaround & Value Unlocking Via Demerger
- Higher Rubber Prices Continue To Eat Into Profits Of Indian Tire Majors
- Krsnaa Diagnostics Limited Q3FY25 Update: Radiology, Pathology, and Expansion in Retail
Event Driven: Delta Corp Demerger~ Separation Of Core Business From Problems
- Delta Corp Ltd (DELTA IN) announced a demerger to separate its Hospitality & Real Estate businesses from its GST-challenged Casino business. Additionally, it is divesting its online gaming business.
- The hospitality business plans to add 450 new rooms and the company owns a 100-acre land parcel near Moga Airport, which holds significant growth potential.
- The demerger will leave tax liability with the main company, while the demerged business, accounting for only 6% of revenue, will operate with focused execution and independent decision-making.
Quiddity NIFTY Mar25 Rebal: Some Surprises; Combined Flows of US$1bn One-Way
- The March 2025 Rebalance results for the NIFTY broad market Indices were announced after the close on Friday 21st February 2025.
- There will be two changes for NIFTY 50 and five changes for NIFTY 100 during the March 2025 index rebal event.
- All NIFTY 50 and NIFTY 100 changes will also be reflected in the NIFTY Next 50 index which could see US$366mn one-way capping flows.
Event Driven: KKR Acquired Controlling Stake in HealthCare Global
- KKR has signed definitive agreements to acquire up to 54% of HCG from CVC Asia V, positioning itself as the largest shareholder and assuming sole operational control.
- This will trigger an open offer to buy an additional 26% stake at a price of INR 504.41 per share.
- Now, HCG will be seen as a transformed healthcare leader with a robust growth trajectory, driven by global expertise and strategic restructuring for long-term value creation.
Event Driven: Indorama Bought Strategic Stake in EPL~ A New Chapter in Global Packaging
- Indorama Ventures (IVL TB) is acquiring a 24.9% stake in EPL Ltd (fka Essel Propack) (EPLL IN) from Blackstone at Rs 240, marking a major entry into India’s packaging market.
- This deal strengthens EPL’s growth and sustainability, unlocking cross-border synergies and driving competitiveness in the global specialty packaging sector.
- It redefines investment dynamics in Indian packaging sector, emphasizing sustainable growth and long-term value creation, challenging traditional global investment paradigms.
The Beat Ideas: Manappuram Finance: Gold Loan Growth, Ashirwad IPO Play
- Manappuram Finance is a leading Indian NBFC specializing in gold loans, offering financial services to lower socio-economic backgrounds with 5,286 branches across India.
- The RBI had barred the microfinance arm Aashirwad Micro Finance from sanctioning and disbursing loans due to non-compliance. Company is planning for IPO and intended to raise INR 1500 Crore.
- Manappuram is committed to growing its secured lending portfolio, including gold loans and other secured assets and anticipates overall growth of 15%-18% in the consolidated loan book.
The Beat Ideas: Solara Active Pharma Science~ Turnaround & Value Unlocking Via Demerger
- Refocusing on the core business with the promoter stepping back on the board & demerger. Also focusing on value-added products and reducing debt from rights issues & internal accruals.
- Solara Active Pharma Sciences (SOLARA IN) had issues in getting US FDA approvals for the Visakhapatnam facility & pricing pressure on the key product Ibuprofen.
- The CRAMS and high-potent API segments have the potential to generate significant value over the next 4-5 years through the addition of new customers.
Higher Rubber Prices Continue To Eat Into Profits Of Indian Tire Majors
- Apollo posts better profits than leader MRF in Q3 FY 2025
- JK Tyres faces the worst fall of 75% in net profit
- Raw material prices look flattish in Q4 and demand robust\
Krsnaa Diagnostics Limited Q3FY25 Update: Radiology, Pathology, and Expansion in Retail
- Krsnaa Diagnostics (KRSNAA IN) Q3 FY25 Revenue increased by 10% YoY, with PAT up by 50%, driven by strong performance in radiology and pathology, and expansion in retail and collection centers.
- Robust financial and operational improvements, despite some project delays, highlight the company’s effective cost management and strategic expansion, positioning it well for future market growth.
- The company aims to expand its retail network to 500 touchpoints and target to expand partnerships with hospitals, nursing homes, and laboratories to 1,000 by FY26.
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